Foreign Direct Investment
According to UNCTAD's World Investment Report 2023, FDI inflows into Gabon totaled USD 1.1 billion in 2022, compared to 1.53 billion one year earlier. In the same period, the FDI stock was estimated at USD 16.59 billion, around 75.6% of the country’s GDP. Historically, the mining, oil and gas, and wood sectors have attracted the most investment in Gabon, but foreign investment is promoted across a range of sectors, including infrastructure and ecotourism. However, FDI inflows will probably be hindered by the military coup that took place in August 2023. According to IMF data, Gabon’s main investors are Mauritius, India, the USA, China, Morocco, the Netherlands, Italy, and France. In recent years, China and Morocco have gradually become significant investors in Gabon. The stock of Chinese investments in Gabon has exceeded one billion dollars. Approximately 60 Chinese companies are established on-site, including around thirty large state-owned enterprises. The main Chinese investments are targeted in the oil sector (Addax (Sinopec)), the timber sector (Chinese companies exploit 55% of the Gabonese forest), and mining, with the Huazhou Industrial and Commercial Mining Company extracting 9% of Gabon's manganese ore. Morocco, the 7th supplier to Gabon, also has investments in numerous sectors, amounting to an estimated total of around USD 600 million (data French Ministry of Economy).
The government has been actively trying to attract FDI in recent years. Its development strategy (Plan Stratégique Gabon Emergent – PSGE) aimed at developing Gabon into an emerging economy by 2025 by diversifying the country and transforming Gabon into an internationally competitive investment destination. The plan called for increased public and private investment, modernized infrastructure, and improved human capital. Recently, the public-private partnership (PPP) agricultural program (GRAINE) was launched, providing new oil palm plantations and the development of food crops. Changes in hydrocarbon legislation should also help to accelerate private investment flows. However, such progress and targets may be affected by the 2023 military coup, which caused uncertainty among foreign investors. The country has special economic zones where companies have tax advantages, preferential customs duties, and simplified customs procedures. Gabon also enjoys a relatively high purchasing power compared to other Sub-Saharan African countries. However, limited market potential, bureaucracy, weak contract enforcement, an unskilled and expensive workforce, as well as poor infrastructure all constitute barriers to FDI inflows. Lastly, Gabon ranks 136th among the 180 economies on the 2023 Corruption Perception Index and 100th out of 184 countries on the latest Index of Economic Freedom.
Foreign Direct Investment | 2020 | 2021 | 2022 |
FDI Inward Flow (million USD) | 1,717 | 1,529 | 1,105 |
FDI Stock (million USD) | 13,957 | 15,486 | 16,591 |
Number of Greenfield Investments* | 5 | 5 | 2 |
Value of Greenfield Investments (million USD) | 2,479 | 2,120 | 209 |
Source: UNCTAD - Latest available data.
Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
Country Comparison For the Protection of Investors | Gabon | Sub-Saharan Africa | United States | Germany |
Index of Transaction Transparency* | 7.0 | 5.5 | 7.0 | 5.0 |
Index of Manager’s Responsibility** | 1.0 | 3.5 | 9.0 | 5.0 |
Index of Shareholders’ Power*** | 4.0 | 5.5 | 9.0 | 5.0 |
Source: Doing Business - Latest available data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.