Country Brief

History                                                                     Country Brief last updated March 2008

Gabon was a French colony from 1885 to 1960. In 1910,   Gabon became one of the four territories of French Equatorial Africa , a federation that survived until 1959. The territories became independent in 1960 as the Central African Republic, Chad , Congo ( Brazzaville), and Gabon . The first president of independent Gabon, Mr. Leon M’ba, died in 1967, and was replaced by the then Vice President, Mr. Omar Bongo Ondimba. Gabon has been politically stable since its independence. President Omar Bongo Ondimba has succeeded in maintaining political stability and social peace in the country.

Politics

From 1968 to 1990, Gabon was a one-party state. Bongo was elected president in February 1975, 1979, and 1986. Economic discontent and a desire for political liberalization provoked violent demonstrations and strikes by students and workers in early 1990. This movement led to political reforms, including creation of a national Senate, decentralization of the budgetary process, freedom of assembly and press, and cancellation of the exit visa requirement. The first multiparty National Assembly elections in almost 30 years took place in September-October 1990. In December 1993, President Bongo Ondimba was reelected with 51 percent of the vote in a controversial election. Mr. Bongo Ondimba easily won the presidential elections in December 1998 and November 2005, with large majorities of the vote against a divided opposition. The 2006 legislatives elections confirmed the dominance of the ruling party in the political arena, the Parti Démocratique Gabonais of President Bongo which won 81 seats out of 120 in the National Assembly. The Government was reshuffled and streamlined in December 2007, reducing the number of ministers from 52 to 42. The main missions of this new team are: the promotion of good governance, the restoration of the authority of the State and the recovery of the economy. Initially planned for January 2008, local elections will take place April 2008.

Gabon has played a strategic role in promoting peace and stability in Central Africa. The president is often called upon to mediate in conflicts (recent examples include the Central African Republic, Republic of Congo, Côte d’Ivoire and Togo).

Economic Development

As one of Africa's few IBRD countries, Gabon's GDP per capita, estimated at about US$5,280 in 2005, is well above the Sub-Saharan African (SSA) average. The economy still depends greatly on oil production, but the government has started exploring the country's potential for economic diversification.

Despite its high GDP per capita, social indicators are barely higher than SSA averages. Multilateral donors are now working with the government to direct Gabon's resources towards poverty alleviation, improved social outcomes, and better governance. Some progress has been made. Gabon moved up from rank 124 to rank 119 in the Human Development Index, in 2007. Life expectancy has increased from 54 years in 2006 to 56.2 years in 2007/2008, while infant mortality remains low at 60 per 1,000 in 2002.

In 2004, 88 percent of the population had access to safe water. Gabon has succeeded in making primary education available to all, improving net enrolment from 88 percent (1990) to 91 percent (2005), though quality remains a concern. The adult literacy rate improved by13 percent and the overall school enrollment increased by 0.4 percent.

Enrollment of girls in primary and secondary schools increased, women are obtaining greater access to assets and health services and institutions protect equal constitutional and legal rights for women.  However, a major challenge is HIV-AIDS prevalence at 8.1 percent, exceeding the average rate for Sub Saharan Africa. Reducing poverty and improving delivery of social services to all households remains one of the major challenges facing the Gabonese authorities.

Gabon ’s economic performance has improved in recent years and prospects for the medium term indicate stable growth. The non-oil sector is expected to remain the main driving force of the economy in the medium-term, offsetting the recent declines in oil production. Investments in rubber production, expansion of agri-business, as well investments in forest and mining sectors boosted the non-oil GDP growth rate from 2.3 percent in 2004 to 4.9 percent in 2006 and an estimated 5.5 percent in 2007. Work related to the Belinga iron ore mine project is expected to start in 2008. Recently, high petroleum prices have enabled the activation of additional fields which would have otherwise been considered non-viable, and are expected to stabilize oil production for a few years. Gabon has traditionally been a zone of stability in the region, and has a growing regional role in the Central African Economic and Monetary Community (CEMAC).

Challenges ahead

The government prepared a full poverty reduction strategy in December 2005. The strategy was prepared in consultation with donors and through a participatory process. The PRSP is based on four pillars: (i) promoting strong and sustainable pro-poor growth; (ii) improving infrastructure; (iii) improving basic social services; and (iv) improving governance.

The challenge lies in implementing the program to help stimulate growth and employment (by promoting the non-oil sectors) and reduce poverty by improving access to social services, especially housing, water, primary education, and health services.

World Bank assistance to Gabon

The Bank’s Country Assistance Strategy (CAS) 2005-2009, is aligned with the PRSP and the national prospective study: “Gabon 2025”.

Currently, there are three active projects in Gabon. The Natural Resource Management Development Policy Loan (US$15 million) was approved in November 2005. The loan aims at improving the efficiency of natural resources management in Gabon, increasing its impact on poverty alleviation, protecting environment, and reducing the country’s dependence on declining oil resources. It covers renewable natural resources ― forests, fisheries, biodiversity, and environment ― as well as the country’s mining (mostly manganese) and oil sectors. In addition, a GEF grant (US$10 million) managed by the Bank was approved in March 2006 to help the country strengthen its capacity for managing national parks and protect its biodiversity. A Local Infrastructure Development loan (US$25 million) was also approved in March 2006.

Recent IFC investment activities include US$30 million committed in 2005 to support upstream oil & gas expansion programs of VAALCO, an existing IFC client with whom it had a committed portfolio of US$3 million. In 2006, IFC committed an equity investment of EUR25 million and a standby facility of EUR35 million to Veolia Water AMI, a multi-utility holding company with operations in many regions. One of its three largest operations is SEEG, the water and electricity company in Gabon which was privatized following an IFC advisory mandate.  SEEG, awarded in 1997, was the first true private utility concession to be awarded in Africa and is widely considered a success.

Gabon became a member of the Multilateral Investment Guarantee Agency (MIGA) in March 2003. MIGA is currently underwriting its first investment in Gabon, a vocational education project sponsored by Austrian and French investors. The project involves the construction/operation of seven vocational education schools in six cities across Gabon.

The World Bank works closely with Gabon's development partners through its country office in Libreville.

Contacts

Ms. Mary Barton-Dock
Country Director
World Bank Street 1.792, No.186, Ekoudou-Bastos
Yaoundé, Cameroon
Tel. (237) 22-20-38-15/ 22-20-16-36
Fax: (237) 22-21-07-22
Email: mbarton@worldbank.org

Mr. Olivier Fremond
Country Manager
Quartier Palais de Justice
Section RG
Parcelle No. 222
Libreville, Gabon
Phone: +241-73-81-71
Fax: +241-73-81-69
Email: ofremond@worldbank.org

Ms. Dorsati Madani
Country Economist
1818 H Street NW
Washington, DC 20433 USA
Tel : +1-202-473-7925
Fax: +1-202-473-8136
Email: dmadani@worldbank.org

Ms. Kathryn Hollifield
Country Program Coordinator
Tel: +1-202 458 1731
Fax: +1-202 474 5452
Email: khollifield@worldbank.org

Ms. Janet Dooley
Senior Country Officer
Tel:+1-202 458 4626
Fax: +1-202 473-5452
Email: jdooley1@worlbank.org

Ms. Nellie Sew Kwan Kan
Senior Program Assistant
Tel: +1-202-473-4756
Fax: +1-202-473-5452
Email: nsewkwankan@worldbank.org




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