Business Environment in Gabon: Challenges and Opportunities
Gabon is a country with significant natural resources, including oil, timber, and minerals. However, its business environment is considered challenging due to corruption and regulatory issues.
Challenges in the Business Environment
Corruption
- A major challenge: Corruption is widespread in Gabon, with officials often engaging in corrupt practices such as soliciting or accepting bribes.
- Anti-corruption reforms: The government has implemented some anti-corruption reforms, including stripping ministers of responsibilities if involved in corruption investigations and auditing all government ministries.
Business Environment
- Not free: The business environment in Gabon is considered “not free” by Freedom House.
- Ease of doing business: According to the World Bank’s Doing Business 2016 report, Gabon ranked 159th out of 189 economies in terms of ease of doing business, citing issues such as a complex regulatory framework and bureaucratic procedures.
Investment Climate
- Efforts to improve: The US Department of State’s Investment Climate Statement - Gabon 2016 report notes that the government has made some efforts to improve the investment climate, including introducing an ethics code for government officials and actively requesting international expertise to audit procurement processes.
Natural Resources
Rich in Natural Resources
- Oil, timber, and minerals: Gabon is rich in natural resources, including oil, timber, and minerals.
- Weak governance: However, the country’s natural resource governance is considered weak by the Natural Resource Governance Institute.
Regulatory Framework
- Complex and opaque: The UK’s Overseas Business Risk - Gabon report notes that the country’s regulatory framework for the extractive industries is complex and often opaque.
Infrastructure
Underdeveloped Infrastructure
- Limited access to electricity, water, and transportation networks: Gabon’s infrastructure is underdeveloped, with limited access to essential services.
- Poor quality of infrastructure: The World Economic Forum’s Global Competitiveness Report 2015-2016 ranked Gabon 135th out of 140 economies in terms of the quality of its infrastructure.
Human Rights
Guaranteed Rights, Curtailed in Practice
- Freedom of speech and press: The US Department of State’s Human Rights Practices Report - Gabon 2015 notes that freedom of speech and press are guaranteed under Gabon’s constitution.
- Rights curtailed in practice: However, these rights have been curtailed in practice.