April 2011 - Malnor

Credit Guarantee country profile
“Gabonese Republic” from page 23
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Infrastructure investment to accompany the fertilizer
plant will also benefit through the construction of an
eight kilometre road, a desalinisation plant to produce
fresh water from sea water, a power plant with a capacity
of 40 to 50 MW, the construction of a deepwater port
and the possible establishment of a palm-oil refinery in
Gabon. The project is estimated to generate as much as
$800 million in additional revenues for Gabon annually.
Gabon is expected to become Africa’s largest palm
oil producer.
The government is also planning to create a national
mining company as part of its efforts to reduce their
dependence on the oil industry.
Gabon has secured more than $8 billion of foreign direct
investment since October 2009 as a result of contracts
signed with French, Malaysian, Chinese, Singaporean,
Indian and American companies.
The World Bank expects Gabon to meet the 2015
Millennium Development Goals as the country has
already reached five out of the eight goals as stated in
the national MDG’s Progress Report.
Gabon is to co-host the African Cup of Nations with
Equatorial Guinea in 2012, but the country failed to
comply with the minimum accommodation requirements
set by the Confederation of Africa Football (CAF).
A minimum of 5 380 rooms across the country are
needed while only 3 590 rooms are available at present,
a shortage of 1 790 rooms. The government is trying to
address the situation with plans to build a number of
pavilion type hotels with a capacity of between 48 to
50 rooms each.
In January the French-based Electricité de France (EDF)
acquired a 25,5% shareholding in the failing power and
water utility, Société d’énergie et d’eau du Gabon
(SEEG), for a reported $20 million. EDF bought its
interest from another French-owned company, Veolia,
which has retained a 25,5% shareholding in SEEG,
meaning that together the two companies have majority
control of the Gabonese utility. The move is expected to
assist the utility in regaining its efficiency.
Gabon’s sugar cane producer, Societe Sucriere d’Afrique
plans to boost production by 5,9% in 2011 and double
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the amount of sugar it exports. The company stated that
the demand for sugar in Gabon is increasing by 1,5%
annually. Output is expected to rise to 30 000 metric
tons in 2011. According to the US Department of
Agriculture, South Africa is the continent’s top
sugar producer.
The EIU forecast a 6,1% real economic growth rate for
2011 boosted by the earnings expected from a new oil
well and increased consumer spending as a result of an
increase in wages as new legislation is expected to
boost gross wages. A downside risk to the outlook is the
possible labour unrest across various sectors that are
expected to adversely affect productivity.
The IMF also forecast positive economic growth for 2011
supported by the mining, wood processing and public
investment with inflation increasing as a result of higher
food and energy prices.
Trade developments
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Total exports increased from $6,04 billion in 2009 to
$6,8 billion in 2010. Export commodities include: crude
oil, timber, manganese and uranium.
Total imports increased from $2,2 billion in 2009 to
$2,4 billion in 2010. Import commodities include:
machinery and equipment, foodstuffs, chemicals and
construction materials.
Main trading partners include: Russia, France, US,
China, Belgium, Italy, Cameroon and Netherlands.
Gabon recently held a conference seeking increased
investments from Malaysia in its Special Economic
Zones (SEZ) for timber processing, quoting that 80% of
the country is still forested. The aim is to enjoy the
spillover effects of the transfer of technical skills from
Malaysia. The advantages of the SEZ include zero tax for
10 years, 10% concessional tax for the next five years,
no customs duty on imports of plant equipment and
machinery and a relaxation in the number of foreign
workers allowed.
SA’s exports to Gabon equalled R322 million in 2008,
R291 million in 2009 and R330 million in 2010.
SA’s imports from Gabon equalled R167 million in
2008, R445 million in 2009 and R81 million in 2010,
an 81% decline. ◆
EXPORT & IMPORT SA // APRIL 2011
18748 Export 04/2011