“As a President of the organization, my goal is to build bilateral relations reach new heights between India and Republic of GABON and our delegation will go in the month of October 2022. The focus will be on to deepen and diversify the relationship by identifying new synergetic areas for cooperation and collaboration, especially after the visit of our Vice President Shri. Venkaiah Naidu” said Dr. Asif Iqbal who is looking to connect the companies for business in GABON. Indian delegation will explore opportunities in areas of contractual farming, poultry industry, meat processing and agricultural collaborations and also identify other opportunities for building up a robust infrastructure needs of the country.
Gabon Delegation Visited and hosted by IETO during the EXIM Bank of India. The Deputy Minister of Foreign Affairs of Gabon.
Gabon celebrated 62 years of Independence and the event of the National day at the ITC Maurya witnessed the Diplomatic community and Gabonese foreign citizens who joined with a cultural performance by Gabon team. The chief guest of the event was the Joint Secretary of the Ministry of External Affairs Shri. Sevala Naik Mude IFS who emphasized on strengthening relations between both countries and deepening them with India’s economic diplomacy.
The Ambassador of the DR Congo formally is the Dean of the African Missions in New Delhi.
The entry of the DR Congo increases the bloc’s combined GDP by 22 percent and geographical area by 79 percent.
With its entry into the diplomatic activity the DR Congo can now fully participate in all the bloc’s programs and activities and also join various areas of cooperation.
The business trade delegation travelled to Gabon in November 2022 to initiate mechanisms on collaborations and making new trade relationships. The Embassy of Gabon supported the visit of the delegation for coordinating with meetings and interactions during the trip of the delegation to Liberville, the capital of Gabon. The Delegation had fruitful engagements with the ANPE Gabon and met the Minister of Trade and Investment Promotion.
Gabon offers an extensive forest cover of approx. 77% of the total land area for a very long time. The Forest industry has supplied many life necessities, food, and shelter to the country. Gabon’s forest is home to more than 400 different species of plants, and 100 varieties can serve industrial purposes.
Forestry plays a significant role in the country until 1968, when crude oil helped Gabon earn more than foreign exchanges. It has been the region’s leader in the export of wood, and the sales accounted for about 20% of raw wood exports. Also, the forest industry is the second most crucial sector after petroleum in export earnings. Gabon produces some world-famous hardwood trees like mahogany, ebony, kevazingo, tigerwood, movingui, and Zangana.
The Government of Gabon also promotes reforestation and carries out selective thinning, which helped the Okoume tree species from getting over-exploited. Around 50 companies explore forests in Gabon, and the government has granted concessions of forest exploitation covering approx. 19,000 square miles.
Gabon offers a vast mineral deposit and has the richest French colonies in Africa. Besides oil, which contributes about 80% of the exports, Gabon has the largest Manganese deposit in the world and is the 4th largest producer of minerals.
From high-grade manganese to minerals, there are over 250 million tons of manganese reserves, and their metal content is between 48% to 52%. Moanda mine, near Franceville, produces about 2.5 million tons yearly and is estimated to continue producing for the next 100 years. Other minerals discovered in Gabon include diamonds, zinc, lead, iron ore, uranium, phosphate, niobium, potash, marble, and more.
Some of these high-demand minerals are commercially exploited and have increased the profits accruing from the foreign companies extracting the minerals in the country.
According to UNCTAD’s World Investment Report 2021, FDI inflows into Gabon increased from USD 1.5 billion to USD 1.7 billion between 2019 and 2020. The FDI stock was estimated at USD 14 billion in 2020. Gabon recorded robust inflows into the oil sector, with the adoption of its new oil code in 2019 leading to several new offshore production sharing agreements, some of which materialised in 2020. According to UNCTAD’ Investment Trends Monitor, global FDI flows rebounded strongly in 2021, but FDI flows to African countries (excluding South Africa) rose only moderately. The oil and mining sectors are the main destinations for FDI in the country, however, the agrifood and infrastructure sectors have recently received the largest FDI flows, notably from the Singaporean Olam group. China is increasingly present in the country, as illustrated by the recent EUR 180 million investment of Chinese energy firm TBEA in a hydropower project, and the USD 50-100 million progressive investment by Jiangsu Wanlin Modern Logistics Co. in the construction of a high-quality furniture factory in Libreville. Morocco is also a major investor in the country, with companies investing in the service sector, mining, infrastructure and construction. France has historically had a predominant place in the FDI stock of Gabon as hundreds of French companies have established branches in various sectors: oil exploitation, mining, timber, agribusiness, building and civil engineering works, financial services, water and electricity concessions, etc.
The government is actively trying to attract FDI. Its development strategy (Plan Stratégique Gabon Emergent – PSGE) aims at developing Gabon into an emerging economy by 2025 by diversifying the country and transforming Gabon into an internationally competitive investment destination. The plan calls for increased public and private investment, modernised infrastructure and improved human capital. Recently, the public-private partnership (PPP) agricultural programme (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. Gabon is the 5th oil producer in sub-Saharan Africa, Africa’s 2nd largest producer of wood and it hopes to become the world’s leading producer of manganese. It has special economic zones where companies have tax advantages, preferential customs duties and simplified customs procedures. The country 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. In the 2020 Doing Business report of the World Bank, Gabon was ranked 169th for the ease of doing business, unchanged from the past year. Gabon improved on some aspects by making the start of a business easier. Dealing with construction permits is now safer and access to credit information has improved.
|Foreign Direct Investment||2019||2020||2021|
|FDI Inward Flow (million USD)||1,553||1,717||1,635|
|FDI Stock (million USD)||12,241||13,957||15,592|
|Number of Greenfield Investments*||11||5||5|
|Value of Greenfield Investments (million USD)||1,445||528||2,114|
Source: UNCTAD – Latest available data.
Umaiz Ahmed was appointed as the Trade Desk Commissioner for Gabon in the State of Gujrat that has enormous potential for companies in the wood sector, pharmacy, mining and minerals. The delegation coordination will happen under this office with exclusive information desk that is supported by the Gabon Embassy in New Delhi.
The Gabon Trade desk at the Indian Economic Trade Organization works with the Embassy of Gabon to provide support in terms of trade enquiry and follow ups on various other tasks for indian businessmen. Delegations are organized regularly for Gabon. Please contact us for further details.