Gabon - Market ChallengesGabon - Market Challenges
Doing business in Gabon presents a number of challenges that the government is having mixed results in addressing. Business development is challenging due to excessive bureaucracy, cases of corruption, absence of a clearly-established and consistent process for companies to enter the market, high production costs, a small domestic market, rigid labor laws and work visa requirements, limited and poor infrastructure, outdated laws and regulations, a cumbersome judicial system, and inconsistent application of customs regulations. There is also a preponderance of French companies (this is changing) in the country’s business sector, which have made knowledge of French language and culture a necessity in doing business. The government, however, is aggressively pursuing an effort to make Gabon bilingual by establishing English as the second language.
In the World Bank Group’s 2018 “Ease of Doing Business” rankings, Gabon ranked 167 out of 190 economies. Because there has been little discernable progress in recent years in improving the business climate despite a number of government initiatives designed to facilitate foreign direct investment, the government has again embarked on a reform process it claims will be implemented vigorously once the new legislature is in place.
government adjusted its budget to account for protracted low oil prices. Many international companies, including U.S. firms, continue to have difficulties collecting timely payments from the Gabonese government, and some companies in the oil sector have closed down operations.
Since January 2016, an estimated 900 jobs have been lost in the oil and gas sector. While opportunities exist, the investment climate in Gabon will remain difficult as the government, working with international financial institutions, resolves its budgetary problems.
2018 is seen as a turning point by many as the IMF and international financial institutions continue to infuse stability funds into the budget at the rate of some $600 million/yr., austerity measures take hold, and the price of oil remains relatively high.
The economy remains heavily dependent on the extractive industries, such as those found in the oil, manganese, and timber sectors.
Gabon’s lack of sufficient modern infrastructure, such as all-weather roads connecting major economic centers, makes doing business across the country costly and time-consuming, especially in more remote areas.
Gabon's dependence on the export of raw materials leaves it vulnerable to external factors that influence price. Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
In the World Bank Group’s 2018 “Ease of Doing Business” rankings, Gabon ranked 167 out of 190 economies. Because there has been little discernable progress in recent years in improving the business climate despite a number of government initiatives designed to facilitate foreign direct investment, the government has again embarked on a reform process it claims will be implemented vigorously once the new legislature is in place.
government adjusted its budget to account for protracted low oil prices. Many international companies, including U.S. firms, continue to have difficulties collecting timely payments from the Gabonese government, and some companies in the oil sector have closed down operations.
Since January 2016, an estimated 900 jobs have been lost in the oil and gas sector. While opportunities exist, the investment climate in Gabon will remain difficult as the government, working with international financial institutions, resolves its budgetary problems.
2018 is seen as a turning point by many as the IMF and international financial institutions continue to infuse stability funds into the budget at the rate of some $600 million/yr., austerity measures take hold, and the price of oil remains relatively high.
The economy remains heavily dependent on the extractive industries, such as those found in the oil, manganese, and timber sectors.
Gabon’s lack of sufficient modern infrastructure, such as all-weather roads connecting major economic centers, makes doing business across the country costly and time-consuming, especially in more remote areas.
Gabon's dependence on the export of raw materials leaves it vulnerable to external factors that influence price. Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.