Financial Crime World

Gabon’s Corruption Risks Remain High for Businesses

A recent report by the World Bank and International Finance Corporation (DB 2016) has highlighted the moderate to high risk of corruption that businesses face when dealing with the government in Gabon. The country’s business environment is considered challenging, with corruption being a major obstacle to investment.

Corruption Remains Widespread

According to the report, corruption is widespread in Gabon, with government officials often demanding bribes or other forms of payment in exchange for favors or services. This has led many companies to lose faith in the system and opt out of doing business in the country altogether.

  • Government officials demand bribes or payments in exchange for favors or services
  • Corruption is a major obstacle to investment
  • Many companies have lost faith in the system

Lack of Transparency and Accountability

The report also highlighted the lack of transparency and accountability within the government, which has led to a perception that corruption is tolerated at high levels. The country’s anti-corruption laws are weak, and enforcement is often ineffective.

  • Lack of transparency and accountability within the government
  • Weak anti-corruption laws
  • Ineffective enforcement

Efforts to Reform the System

Despite efforts by the government to reform the system, including introducing an ethics code for government officials and auditing all government ministries, more needs to be done to tackle corruption.

  • Government has introduced an ethics code for government officials
  • All government ministries have been audited
  • More needs to be done to tackle corruption

Global Competitiveness Report Ranking

The World Economic Forum’s Global Competitiveness Report 2015-2016 also ranked Gabon poorly in terms of corruption, with a score of just 3.8 out of 7. This is likely to deter foreign investment and hinder economic growth.

  • Gabon ranked poorly in the Global Competitiveness Report
  • Corruption score: 3.8 out of 7
  • Deterrent to foreign investment and economic growth

Media Environment

The country’s media environment is also considered “not free” by Freedom House, with the government owning many of the main media outlets. This has led to a lack of independent reporting on corruption and other issues.

  • Media environment considered “not free”
  • Government owns many main media outlets
  • Lack of independent reporting

Civil Society Organizations

Civil society organizations in Gabon are few and far between, and their role in fighting corruption is limited. The government has also been accused of restricting freedoms of speech and press, including censoring some news outlets.

  • Few civil society organizations in Gabon
  • Limited role in fighting corruption
  • Government restricts freedom of speech and press

Investment Climate Statement

The United States Department of State’s Investment Climate Statement for 2016 highlighted the country’s poor business environment, citing corruption as a major concern for investors. The statement noted that foreign companies often face difficulties in accessing information on government procurement contracts and that bribery is common at all levels of government.

  • Poor business environment
  • Corruption cited as a major concern for investors
  • Difficulty accessing information on government procurement contracts

Conclusion

Overall, Gabon remains a challenging place to do business due to high corruption risks and a lack of transparency and accountability within the government. While there have been some efforts to reform the system, more needs to be done to create a fair and transparent environment for businesses.

  • High corruption risks
  • Lack of transparency and accountability
  • Challenging place to do business