Financial Crime World

Gabon’s Business Landscape: A Guide to Compliance Procedures for Banks and Foreign Investors

Attracting Foreign Investment: Regulations and Incentives

In an effort to attract foreign investment, Gabon has implemented regulations that provide equal treatment to both local and international companies operating within its borders. The country’s 1998 investment code, which conforms to Central African Economic and Monetary Community (CEMAC) standards, grants businesses freedom of establishment and protects them from expropriation or nationalization without fair compensation.

Key Regulations for Foreign Investors

  • Freedom of Establishment: Businesses enjoy freedom of establishment, allowing them to operate within Gabon’s borders with minimal restrictions.
  • Protection against Expropriation: The investment code safeguards foreign companies against expropriation or nationalization without fair compensation.
  • Specific Codes for Certain Sectors: Certain sectors such as mining, forestry, petroleum, agriculture, and tourism have their own specific codes aimed at drawing in foreign investors.

While Gabon’s regulations provide a solid foundation for businesses looking to establish a presence in this West African nation, navigating compliance procedures can be challenging. One area where foreign investors may encounter difficulties is during the negotiation process with government officials.

The Role of Government Officials

  • Negotiation Process: While there is no standardized procedure for new entrants to negotiate deals, the Gabonese Presidency typically reviews contracts after ministerial-level discussions are completed.
  • Uncertainty and Time-Consuming Process: Obtaining specific authorizations can be a time-consuming and uncertain process.

Streamlined Registration with ANPI-Gabon

The Agence Nationale de Promotion des Investissements (ANPI-Gabon) serves as a single-window registration system that allows domestic and foreign investors to register their businesses within 48 hours. This streamlined approach is beneficial for companies looking to establish a presence in Gabon, but there are still certain requirements that must be met.

Requirements for Companies

  • Authorization from the Ministry of Labour: Firms must obtain authorization from the Ministry of Labour before hiring foreigners.
  • Foreign Worker Quotas: Foreign workers are subject to quotas that can limit their numbers.
  • Balance between International Expertise and Local Talent: The government has implemented a 10% cap on foreign workers in the oil sector, with a requirement that Gabonese nationals occupy all executive positions.