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Gabon |
ECONOMY
Gabon’s industrial sector was previously in the sole hands of French companies who enjoyed a clear monopoly. Ever since the authorities announced that «Gabon is nobody’s private property», North American companies have entered the fray with their know-how and discipline
Discreet and efficient, about twenty North American companies now actively contribute to the development of Gabon’s economy. Although they are to be found in various sectors, they are especially in the areas of oil, timber and finance. They would like to see more flexibility in the administrative formalities for setting up companies, an improvement in the mining laws and in the fiscal system.
The companies
On the whole, those in charge of the North American companies consider conditions for establishing themselves in Gabon are O.K. Most export their goods from Gabon, because that country is too small to cater for their products.
Two companies, one American and the other Canadian, have made pioneering inroads in their respective areas. Amerada Hess specialises in the exploration and production of oil and gas; the other, Bois Tranchés, is into the production of veneers.
Another American company based in Port-Gentil, Baker Hughes International, deals in providing drilling materials and services in the oil sector. One of the company’s directors explains: «We found a qualified workforce on the spot who had already been employed by local oil companies such as Gabon Shell, which had had to relocate its headquarters to The Gambia, and had to layoff its Gabonese personnel». He said that «as long as a number of oil companies are involved in prospecting», then this particular sector of industry will perform well».
According to Mr John W. Bickerton, Director-General of the subsidiary, Amerada Hess Production Gabon (AHPG), «conducting oil exploration out at sea demands perseverance. It took years of prospecting, for oil to be discovered in the North Sea». Asked what sort of advice he would give to new North American companies wanting to start up in Gabon, Mr. Bickerton declared: «We’re not going to reveal all our secrets, but the market is open, and there’s room for everybody. Amerada Hess hasn’t had any problems, apart from those connected with prospecting for oil, and these have nothing to do with the country. Our main concern is, that there have been no new important discoveries in Gabon in recent years. This situation is connected with the rapid decline of existing reserves.»
A few examples of companies in Gabon
Bois Tranchés — Gabon’s forestry resources are enormous. Fed up with exporting timber in a rough untreated form and so losing revenue, the government has decided to set up a ministerial commission, with the task of looking for ways and means of speeding up the rate of industrialisation in the timber industry. The Canadian company, Bois Tranchés, a member of the Canadian General Woods & Veneers Ltd, is the first to produce veneering in Gabon. The Firm’s Director-General, Jean Paul Leroux, puts it this way: «We very quickly understood what Gabon’s government wanted, and responded to the challenge. Our clients are architects and furniture designers and makers, and are situated throughout the world. Bois Tranchés uses the commercial network of its technical partner, General Woods & Veneers Ltd., which is the world’s number two in that field.» Mr. Leroux further underlined: «There’s sharp competition in the hardwood sector, but you can get ahead of your competitors by making use of new and hitherto unused techniques in the production of finished goods.»
Faco Construction — For the last few years, there’s been an acute housing shortage, and this has seen an increase in the number of estate agencies operating in the capital. Libreville, in fact, has a tremendous housing shortage, amidst an atmosphere of economic crisis and imbroglio in land jurisdiction. Mr Walter Lapointe is a Canadian surveyor. He says: «Building at the rate of 10,000 houses a year, the present housing shortage will take ten years to put right. Faco Construction is a Canadian company, and has set up a plan to construct council houses. As the first buildings begin to appear, it becomes clear what the whole project is about». In 1960, there were 26 Gabon surveyors in Libreville for a population of 67,000. Now there are no more than five for a city which, with its 450,000 inhabitants, contains almost half the country’s population. (July 1997 estimates: 1,190,160).
Ernst & Young — Ernst & Young has been present for a number of years in Gabon. It’s Director-General for Gabon and Equatorial Guinea, explains: «Our company was established in Equatorial Guinea and offers entrepreneurs the whole range of its services. In Malabo, we can offer legal and tax advice; we have an auditing service and can provide financial advice. Six specialists are available in the office».
Mr. Nicholas Bonnefoy is a lawyer in Ernst & Young’s chambers and is in charge of oil matters in West Africa on behalf of his company. He emphasises that Ernst & Young can offer clients a whole range of expertise in the field of oil and telecommunications. On an international level, the company has a particular way of working and that is to establish a network of national offices and to ensure that each of these local offices has a leading position in a variety of areas.
Development Agency for Private Investment (APIP) — In order to speed up the procedures for foreign countries to establish themselves in Gabon, APIP (whose aim is to look for such companies throughout the world), has just opened a local office. This office informs, directs, advises and helps to complete all the administrative formalities for companies planning to set themselves up in business in Gabon.
Encouragement
Mr Paul Biyoghe Mba is Gabon’s Ministry for Small and Medium-sized Businesses (PME). He explains: «The main incentive measures for encouraging foreign businesses to come to Gabon, concern corporate taxation (duty-free for three years for everyone), guarantee and protection of investments, the application of business rights, the settlement of disputes through the courts, unrestricted facility to transfer financial profits abroad».
North American investors ought to feel reassured, since, from the beginning of 2001, the preparation and the control of Gabon’s budget has been calculated according to the North American model, known as «Budget Base Zero». Following on from a seminar organised in Libreville, with the support of the World Bank and of Japan, Gabon set up this new budgetary system; its reliability has been tested and proven in the United States and in Canada.
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