HomeReportsBureau of Economic and Business Affairs2017 Investment Climate Statements...Gabon

# 					2017 Investment Climate Statements: Gabon			

 In this section										/

													Executive Summary											

                -  Executive Summary 
                -  1. Openness To, and Restrictions Upon, Foreign Investment   
                -  2. Bilateral Investment Agreements and Taxation Treaties   
                -  3. Legal Regime   
                -  4. Industrial Policies   
                -  5. Protection of Property Rights   
                -  6. Financial Sector   
                -  7. State-Owned Enterprises   
                -  8. Responsible Business Conduct   
                -  9. Corruption   
                -  10. Political and Security Environment   
                -  11. Labor Policies and Practices   
                -  12. OPIC and Other Investment Insurance Programs   
                -  13. Foreign Direct Investment and Foreign Portfolio Investment Statistics   
                -  14. Contact for More Information   

## Executive Summary

Gabon is a historically stable country located in a volatile region of the world and has significant economic advantages: a small population (roughly 1.8 million) with many well-educated elites, an abundance of natural resources, and a strategic location along the Gulf of Guinea. After taking office in 2009, President Ali Bongo Ondimba introduced reforms to diversify Gabon’s economy away from oil and from traditional investment partners (mainly France), and to position Gabon as an emerging economy. In his “Emerging Gabon” strategic plan, he laid out a vision for sustainable development by 2025 through creating domestic industrial capacity to process primary materials and by becoming a regional leader in service industries, including financial services, ICT, education, and healthcare. Gabon is also promoting foreign investment across a range of sectors, particularly in the oil and gas, infrastructure, timber, ecotourism, and mining sectors. Despite these efforts, Gabon’s economy remains dependent on revenue generated by the exportation of hydrocarbons. Gabon’s commercial ties with France remain very strong, but the government continues to seek to diversify its sources by courting investors from the rest of the world.

Although Gabon is taking steps towards making the country a more attractive destination for foreign investment, it remains a difficult place to do business. Foreign firms are active in the country, particularly in the extractive industries, but the difficulty involved in establishing a new business and the time it takes many new entrants to finalize deals are impediments to increased U.S. private sector investment. Although the Gabonese government is taking a more active role to ensure transparency in extractive industries, investors are still waiting for key reforms to be established in law and in practice. Gabon enacted a new mining code in 2015 and is currently revising its 2014 hydrocarbon code. A Special Economic Zone (SEZ) located at Nkok became operational in 2014. Gabon is making progress towards rejoining the Extractive Industries Transparency Initiative (EITI) after it failed to submit reports required to continue along the path to membership in 2013. In 2015, Gabon approved an action plan to renew its membership and appointed a president of the new Gabon EITI committee that will implement the plan. Increased investment is constrained due to limited bureaucratic capacity, unclear lines of decision-making authority, a lack of a clearly-established and consistent process for companies to enter the market, lengthy bureaucratic delays, high production costs, a small domestic market, rigid labor laws, limited and poor infrastructure, a cumbersome judicial system, and inconsistent application of customs regulations.

Economic conditions in Gabon weakened throughout 2016 and into 2017, as the government adjusted its budget to account for protracted low oil prices. Many international companies, including U.S. firms, continue to have difficulties collecting timely payments from the Gabonese government, and some companies in the oil sector *have closed down operations. Since January 2016, an estimated 900 jobs have been lost in the oil and gas sector.*While opportunities exist, the investment climate in Gabon will remain difficult until the government resolves its budgetary problems.

*Table 1*

							1. Openness To, and Restrictions Upon, Foreign Investment					

**Policies towards Foreign Direct Investment**

Gabon’s government is anxious to attract foreign direct investment. In July 2012, Gabon released President Ali Bongo Ondimba’s Strategic Plan for an Emerging Gabon (Plan Strategique Gabon Emergent, or PSGE), an ambitious blueprint for developing Gabon into an emerging economy by 2025 by diversifying the country away from its reliance on energy exports and transforming Gabon into an internationally competitive investment destination. The plan calls for increased public and private investment, modernized infrastructure, and improved human capital. The government understands that foreign direct investment will help it achieve its developmental goals.

Gabon’s 1998 investment code conforms to Central African Economic and Monetary Community (CEMAC) investment regulations and provides the same rights to foreign companies operating in Gabon as to domestic firms. Businesses are protected from expropriation or nationalization without appropriate compensation, as determined by an independent third party. Certain sectors, such as mining, forestry, petroleum, agriculture, and tourism, have specific investment codes, which encourage investment through customs and tax incentives.

Gabon established the Investment Promotion Agency (ANPI-Gabon) with the assistance of the World Bank in April 2014. The ANPI-Gabon’s mission is to promote investments and exports, support small and medium-sized enterprises, manage public-private partnerships, and help companies to set up. The agency is supposed to act as the gateway for investment into the country and reduce administrative procedures, costs, and waiting periods. As of April 2017, however, the ANPI-Gabon is not yet fully operational.

Gabonese authorities have made efforts to prioritize investment. On March 7, 2017, the High Council for Investment was established to promote investment and boost the economy. This body provides a platform for dialogue between the public and private sectors, and its main objectives are to improve the economy and create jobs.

**Limits on Foreign Control and Right to Private Ownership and Establishment**

There are no limits on foreign ownership or control, except for discrete activities customarily reserved for the state, including military and paramilitary activities.

Any legal entity or person (both foreign and domestic) wishing to do business in Gabon must request prior permission from the Ministry of Economy. Foreign investors are largely treated in the same manner as their Gabonese counterparts with regard to the purchase of real estate, negotiation of licenses, and entering into commercial agreements. There is no general requirement for local participation in investments. Many businesses find it useful to have a local partner who can help navigate the subjective factors in the business environment.

Gabon Oil Company, a state-owned enterprise created in 2011, has an automatic right to purchase a 15 percent share in any hydrocarbon contract at market price.

The standard practice is for the Gabonese Presidency to review foreign investment contracts after ministerial-level negotiations are completed. There are instances where the Presidency gets involved to push negotiations stalled at the ministerial level. The Presidency takes a very active role in meeting with investors, with the aim of ensuring that investments are in line with the government’s “Emerging Gabon” initiative. The lack of a standardized procedure for new entrants to negotiate deals with the government can lead to confusion and time-consuming negotiations. Moreover, the centralization of decision-making by a few senior officials who are exceedingly busy can delay the process. As a result, new entrants often find the process of finalizing deals time-consuming and difficult to navigate.

**Other Investment Policy Reviews**

Gabon has been a World Trade Organization (WTO) member since 1995. In June 2013, Gabon conducted an investment policy review with the WTO. The government has not conducted any investment policy reviews through the Organization for Economic Co-operation and Development (OECD) or the United Nations Conference on Trade and Development (UNCTAD) in the past three years.

**Business Facilitation**

The government encourages investments in some of Gabon’s main industries (oil and gas, mining, and timber) through customs and tax incentives. For example, oil and mining companies are exempt from customs duties on imported working equipment. The Tourism Investment Code, enacted in 2000, provides tax incentives to foreign tourism investors during the first eight years of operation. Gabon’s Nkok SEZ offers tax *incentives* to industrial investors.

ANPI-Gabon’s website address is: http://www.anpi-gabon.ga/ 

**Outward Investment**

One of ANPI-Gabon’s primary goals is to promote investments and exports. However, as of April 2017, the agency is not yet fully operational.

The Gabonese government does not restrict domestic investors from investing abroad.

							2. Bilateral Investment Agreements and Taxation Treaties					

Gabon has bilateral investment treaties (BITs) in force with the Belgium-Luxembourg Economic Union, China, Germany, Italy, South Korea, Morocco, Romania, and Spain. According to UNCTAD, Gabon has signed BITs that are not yet in force with Lebanon, Mali, Mauritius, Portugal, South Africa, and Turkey. Gabon has not signed a BIT with the United States.

Gabon has not signed a Bilateral Taxation Treaty with the United States.

							3. Legal Regime					

**Transparency of the Regulatory System**

Government policies and laws often do not establish clear rules of the game, and foreign firms can have difficulty navigating the bureaucracy. Despite reform efforts, hurdles and red tape remain, especially at the lower and mid-levels of the ministries. Lack of transparency in administrative processes and lengthy bureaucratic delays occasionally raise questions for companies about fair treatment and the sanctity of contracts. Additionally, as a former French colony, Gabon maintains strong economic ties with France. Lack of French language skills can put American or non-Francophone firms at a disadvantage.

There are no nongovernmental organizations or private sector associations that manage informal regulatory processes. The government of Gabon has not exhibited any recent tendency to discriminate against U.S. investments, companies, or representatives.

Rule-making and regulatory authority sits at the ministerial level.

Gabon is affiliated with the Organization for Business Law Harmonization in Africa (OHADA).

The government does not publish proposed laws and regulations in draft form for public comment. There are no centralized online locations where key regulatory actions or their summaries are published. Key regulatory actions are published in the government’s printed Official Journal. 

In 2015, Gabon implemented a CEMAC recommendation to *program* its budget by objectives. This was implemented to enhance financial efficiency and transparency. No new regulatory systems have been announced in the last year, and no new reforms have been implemented in the last year. Regulations are developed by the relevant ministry concerned, and regulatory enforcement is controlled by individual ministries. There are no instances of regulations being reviewed on the basis of scientific or data-driven assessments.

**International Regulatory Considerations**

Gabon is a member of CEMAC, along with Cameroon, the Central African Republic, Congo-Brazzaville, Equatorial Guinea, and Chad.

Gabon is affiliated with OHADA and has been a WTO member since January 1, 1995.

**Legal System and Judicial Independence**

Gabon’s legal system is based on French Civil Law. Regular courts handle commercial disputes in compliance with OHADA. Courts do not apply the law consistently, and delays are frequent in the judicial system. Lack of transparency in administrative processes and lengthy bureaucratic delays occasionally raise questions about fair treatment and the sanctity of contracts. Judicial capacity is weak, and many government contacts underscore the need for specialized training in technical issues such as money laundering and environmental crimes. Foreign court and international arbitration decisions are accepted, but enforcement may be difficult.

Gabon has a written code of commercial law.

The judicial system is not independent from the executive branch. Gabon’s judicial bodies are subject to political influence, creating uncertainty concerning fair treatment and the sanctity of contracts.

Regulations or enforcement actions are appealable and are adjudicated in the national court system.

**Laws and Regulations on Foreign Direct Investment**

Gabon’s 1998 investment code conforms to CEMAC investment regulations, providing the same rights to foreign companies operating in Gabon as to domestic firms. Certain sectors, such as mining, forestry, petroleum, agriculture, and tourism, have specific investment codes, which encourage investment through customs and tax incentives.

Gabon is affiliated with OHADA. Legislation allows foreign investors to choose freely from a wide selection of legal business structures, such as a private limited liability company or public limited liability company. The distinctions arise primarily from the minimum capital requirements and the conditions under which shares may be re-sold. Foreign investment in Gabon is subject to local law that is in many instances unsettled or unclear, and in certain cases, Gabonese law may require local majority ownership of businesses. The State reserves the right to invest in the equity capital of ventures established in certain sectors (e.g., petroleum and mining). There are no known systemic practices by private firms to restrict foreign investment, participation, or control.

Although neither site is regularly updated, http://www.en.legabon.org/invest-gabon  and http://www.gaboninvest.org/  contain some information on investing in Gabon.

**Competition and Anti-Trust Laws**

Gabonese Law No. 5/89 of July 6, 1989 on Competition (http://www.wipo.int/wipolex/en/details.jsp?id=8814 ) covers all aspects of competition and anti-trust. The relevant ministry for a given dispute reviews transactions for competition-related concerns.

**Expropriation and Compensation**

Foreign firms established in Gabon operate on an equal legal basis with national companies. Businesses are protected from expropriation or nationalization without appropriate compensation, as determined by an independent third party. The Gabonese government has not exhibited any tendency to discriminate against U.S. investments, companies, or representatives, nor have there been any indications or reports of incidences of indirect expropriation, such as through confiscatory tax regimes. Gabon does not have a history of expropriations.

**Dispute Settlement**

*ICSID Convention and New York Convention*

Gabon is a member state of the International Centre for the Settlement of Investment Disputes (ICSID) and a signatory to the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention).

The 1965 Code of Civil Procedure provides for various means of enforcement of judgments (both foreign and domestic), depending on the nature of the decree or decision.

*Investor-State Dispute Settlement*

The Gabonese government is a signatory to investment agreements in which international arbitration under those investment agreements is recognized.

Gabon does not have a BIT with the United States, and there is no pattern of investment disputes involving U.S. companies. There are no recent cases of foreign arbitral awards issued against the government, or instances of local courts enforcing such awards. There is no history of extrajudicial action against foreign investors.

*International Commercial Arbitration and Foreign Courts*

No alternative dispute resolution options exist within Gabon. Investment disputes are generally negotiated directly with the governmental entity involved, without the parties having to resort to legal action.

There is no domestic arbitration body within the country. Local courts recognize foreign arbitral awards, but enforcement may be difficult. There are no cases of state-owned enterprises (SOEs) being involved investment disputes in the court system.

**Bankruptcy Regulations**

Gabon has a bankruptcy law, but it is not well developed. In the World Bank’s Doing Business Report, Gabon ranks 123 out of 189 economies on the ease of resolving insolvency.

Gabon’s bankruptcy law is based on OHADA regulations. According to Section 3: Art 234-239 of OHADA’s Uniform Insolvency Act, creditors and equity shareholders, collectively or individually, may designate trustees to lodge complaints or claims to the commercial court. These laws criminalize bankruptcy, and the OHADA regulations grant Gabon the discretion to apply its own sentences.

							4. Industrial Policies					

**Investment Incentives**

Some of Gabon’s main industries (oil and gas, mining, and timber) encourage investment through customs and tax incentives. For example, oil and mining companies are exempt from customs duties on imported working equipment. The government has attempted to promote tourism by instituting the Tourism Investment Code of 2000, which provides tax exemptions to foreign tourism investors during the first eight years of operation.

President Ali Bongo Ondimba outlawed the export of unprocessed wood in 2009 to boost Gabon’s capacity to enjoy more domestic benefits from one of its top exports. The government and Singaporean-based firm Olam partnered to set up the Nkok SEZ to process timber, but later expanded the mandate of the SEZ to open it to a broader range of businesses. The SEZ provides a single-window business service to participants and provides new investors with beneficial fiscal incentives, including tax-free operation for 25 years, no customs duties on imported machinery and parts, and 100 percent repatriation of funds.

Gabon’s agriculture code of 2008 gives tax and customs incentives to agricultural operators, with a particular focus on small and medium-sized enterprises. Land used for agriculture and farm exploitation is exonerated from fiscal tax. All imported fertilizers and food for ranch exploitation are additionally exempt from customs duties.

As a member of CEMAC, Gabon’s trade with other member countries (Cameroon, Central African Republic, Chad, Republic of Congo, and Equatorial Guinea) is subject to low or no customs duties.

**Foreign Trade Zones/Free Ports/Trade Facilitation**

The Gabonese government inaugurated an SEZ at Nkok near Libreville in 2011. The SEZ is a joint public-private partnership between the government of Gabon and Olam, a Singapore-based corporation with interests in Gabonese timber, palm oil, and rubber. Olam has completed the infrastructure phase for the Nkok SEZ, and multiple companies are actively operating there. Olam has plans to build two more SEZs: one in Port Gentil focused on chemical engineering and another in Franceville for agriculture products. All SEZs will offer tax and customs incentives to attract foreign investors.

**Performance and Data Localization Requirements**

Gabon’s 1998 investment code conforms to CEMAC investment regulations, providing the same rights to foreign companies operating in Gabon as to domestic firms.

There is no known forced localization requirement.

There are no specific performance requirements imposed as a condition for establishing, maintaining, or expanding investment.

There are no performance requirements for investors, nor are there any requirements for foreign IT providers to turn over source code and/or provide access to encryption.

There are no measurements that prevent or unduly impede companies from freely transmitting customer or other business-related data outside the economy/country’s territory.

No mechanisms exist to enforce rules on local data storage.

							5. Protection of Property Rights					

**Real Property**

Secured interest in property is recognized, and the recording system is fairly reliable.

There are no specific regulations for foreign and/or non-resident investors regarding land lease or acquisition. Laws in Gabon for private and commercial property do not provide any restrictions on nationality for the possession and ownership of property in Gabon.

Almost 85 percent of Gabon’s area (and possibly 95 percent or more) is legally owned by the State. Only 14,000 private *land titles*appear to *have* been registered in *Gabon (according to a 2012* report, by land tenure specialist Liz Alden Wily, funded by the Directorate-General for Environment of the European Commission *– latest available data).*Most refer to tiny urban parcels. Urban area constitutes no more than one per cent of total land area. Very few titles exist in rural areas. In an effort to register land titles, in 2011, the government created the National Agency for Urban Planning, Surveys and the Land Registry.

If property legally purchased is unoccupied, property ownership can revert to other owners.

**Intellectual Property Rights**

As a member of CEMAC and the Economic Community of Central African States, Gabon adheres to the laws of the African Intellectual Property Office (OAPI). Based in Yaoundé, Cameroon, OAPI aims to ensure the publication and protection of patent rights, encourage creativity and transfer of technology, and create favorable conditions for research. As a member of OAPI, Gabon acceded to a number of international agreements on patents and intellectual property (IP), including the Paris Convention, the Berne Convention and the Convention Establishing the World Intellectual Property Organization (WIPO). As a member of the WTO, Gabon is also a signatory of the Agreement on Trade-Related Aspects of Intellectual Property Rights. U.S. companies have not raised IP rights (IPR) concerns with the Embassy.

For additional information about treaty obligations and points of contact at local IP offices, please see the WIPO country profiles at http://www.wipo.int/directory/en/ .

*Resources for Rights Holders*

Diana CostaPolitical/Economic OfficerU.S. Embassy Libreville+241 0145 7000CostaDL@state.gov

For a list of local attorneys see: https://ga.usembassy.gov/u-s-citizen-services/local-resources-of-u-s-citizens/attorneys/

During the past year, no new IP related laws or regulations have been enacted concerning IPR protection.

Gabon does not report on seizures of counterfeit goods.

Gabon is not listed in USTR’s Special 301 report, nor is it listed in the notorious market report.

							6. Financial Sector					

**Capital Markets and Portfolio Investment**

The Gabonese government encourages and supports foreign portfolio investment, but Gabon’s capital markets are poorly developed.

Gabon is host to the Central Africa Regional Stock Exchange, which began operation in August 2008.

There are no existing policies that facilitate the free flow of financial resources into the product and factor markets. On June 25, 1996, Gabon formally notified the International Monetary Fund (IMF) that they accepted the obligations of Article VIII, Sections 2, 3, and 4 of the IMF Articles of Agreement. Article VIII, Sections 2 and 3, provide that members shall not impose or engage in certain measures, namely restrictions on making payments and transfers for current international transactions, discriminatory currency arrangements, or multiple currency practices, without the approval of the IMF.

Foreign investors are authorized to get credit on the local market and have access to all the variety of credits instruments offered by the local banks, without any restrictions.

**Money and Banking System**

The banking sector is composed of nine commercial banks and is open to foreign institutions. It is highly concentrated, with three of the largest banks accounting for over 80 percent of all loans and deposits. Bank growth potential is constrained by the small size of the non-oil economy, given that the financing of the oil sector is largely undertaken by foreign international banks.

The banking sector is healthy, although protracted low oil prices have had an impact on banking activities. Over the longer term, the banking authorities’ plans to establish a credit bureau and payment incidents registry are set to boost lending levels. Banking penetration and financial inclusion indicators should also grow as banks’ branch networks expand, the government widens its program of payments via banks, and new modes of access such as mobile banking begin to take off. Corporate and government business are expected to remain the mainstays of the industry for the coming years.

The estimated total assets of all bank deposits in Gabon were USD 1.126 billion in 2014 (Central African States Central Bank (BEAC) latest data available).

Gabon shares a common Central Bank (Bank of Central African States) and a common currency, the Communaute Financiere Africaine (CFA) Franc, which is pegged to the Euro, with the other countries of CEMAC.

Foreign banks are allowed to establish operations in the country. There is one U.S. bank (Citigroup) present in Gabon.

There are no restrictions on a foreigner’s ability to establish a bank account.

**Foreign Exchange and Remittances**

*Foreign Exchange*

There are no restrictions or limitations placed on foreign investors in converting, transferring, or repatriating funds associated with an investment (e.g., remittances of investment capital, earnings, loan or lease payments, or royalties).

Foreign investors have the option of opening local bank accounts in CFA, U.S. dollars, or euros.

Gabon’s currency is CFA, which is convertible and tied to the Euro (EUR 1 equals CFA 656). As of April 2017, 1 U.S. dollar is roughly equivalent to CFA 615.

*Remittance Policies*

There are no recent changes or plans to change investment remittance policies that either tighten or relax access to foreign exchange for investment remittances.

There is no limitation on capital inflows or outflows. Investors may remit on a legal parallel market, so long as they justify the reasons for the transaction and respect the signed contract.

**Sovereign Wealth Funds**

Gabon created a Sovereign Wealth Fund (SWF) in 2008. Initially called the Fund for Future Generations (Fonds des Génerations Futures) and later the Sovereign Funds of the Gabonese Republic (Fonds Souverain de la République Gabonaise), the current iteration of Gabon’s SWF is referred to as Gabon’s Strategic Investment Funds (Fonds Gabonaise d’Investissements Stratégiques, or FGIS). As of September 2013, the most recent FGIS report, the FGIS had a reported USD 2.4 billion in assets and was actively making investments. The FGIS has the goals of allowing future generations to share income derived from the exploitation of Gabon’s natural resources, diversifying risk by investing surplus revenue, contributing to economic development, and encouraging investment in strategic sectors of Gabon’s economy. Officially, 10 percent Gabon’s oil revenues are dedicated to the sovereign wealth fund. Details regarding the FGIS’ assets and investments are not publicly available.

							7. State-Owned Enterprises					

Government-appointed civil servants manage Gabonese SOEs, which work primarily in industries including energy, extractive industries, and public utilities.

SOEs generally follow OECD guidelines on corporate governance. Corporate governance of SOEs usually consists of a board of directors under the authority of the related ministry. Each ministry chooses the members of the board. The ministry does not allocate board seats specifically to government officials and may choose members from the general public. The SOEs often consult with their ministry before undertaking any important business decisions. The corresponding ministry in each sector prepares and submits the budget of each SOE each year. Independent auditors such as PricewaterhouseCoopers or Ernest and Young examine the activities of SOEs each year, conducting the audit according to international standards. Auditors do not publish their reports, but rather, submit them to the relevant ministry.

There is no published list of SOEs.

There are no specific laws or rules that offer preferential treatment to SOEs. However, although private enterprises may compete with public enterprises under open market access conditions, SOEs often have a competitive advantage in the industries in which they operate.

**Privatization Program**

Gabon does not have an active privatization program.

							8. Responsible Business Conduct					

There is a general awareness of responsible business conduct (RBC) among both producers and consumers. There are no formal rules or regulations pertaining to RBC in Gabon.

Gabonese authorities state that they are committed to EITI principles. Gabon was a candidate for the EITI beginning in 2007. At its meeting in Amsterdam in June 2011, the EITI International Board renewed Gabon’s EITI candidate status for 18 months (until December 2012), by which time Gabon was required to have completed an EITI validation that demonstrated compliance with the EITI rules. Gabon did not approve, publish, and submit to the EITI Board a final EITI validation report by the deadline of December 9, 2012. Due to the non-respect of deadlines and the non-performance of Gabon’s National EITI Committee, the International Council of the EITI voted on February 27, 2013, to exclude Gabon from the application process. While Gabon is no longer an EITI candidate country, it has the ability to re-apply in the future and is making progress towards rejoining the EITI. The Gabonese Minister of Industry and Mines announced in 2014 that Gabon would work with the World Bank and KPMG to develop a new action plan to restart the process of joining the EITI. In 2015, the Gabonese government approved the action plan and appointed a president to form a committee to implement the plan.

							9. Corruption					

Gabon has established a comprehensive legal framework to fight corruption, yet enforcement remains moderate and official impunity is a problem. The Gabonese Penal Code criminalizes abuse of office, embezzlement, passive and active bribery, trading in influence, extortion, offering or accepting gifts, and other undue advantages in the public sector. Private sector corruption is criminalized whenever a given company is related to a public entity. Punishments for public officials found guilty of soliciting or accepting bribes include prison sentences ranging between two and 10 years, and a fine of CFA five million (USD 8,572). The government established the Commission to Combat Illicit Enrichment (CNLCEI) in 2004. However, corruption is rarely, if ever, prosecuted in Gabon. To date, CNLCEI has brought no one to trial. The CNLCEI regulations do not extend to family members of civil servants or to political parties.

There are no known laws or regulations to counter conflict of interest in awarding contracts or government procurement.

There is no information about action on the part of the government to encourage or require private companies to establish codes of conduct that prohibit bribery of public officials.

Some private companies use internal controls, ethics, and compliance programs to detect and prevent bribery of government officials.

Gabon is a signatory to the United Nations Convention against Corruption and is a member of The Task Force on *Money Laundering* in Central Africa (Groupe d’action contre le blanchiment d’argent en Afrique Centrale, or GABAC).

No international or regional watchdog organizations operate in Gabon. Local civil society lacks the capacity to play a significant role in highlighting cases of corruption.

Companies contend with a high risk of corruption when dealing with the Gabonese extractive industries. Gabon has vast oil, manganese, and timber resources; however, contracting and licensing processes lack transparency.

*Resources to Report Corruption*

Dieudonne Odounga AwassiDirector GeneralThe Commission to Combat Illicit EnrichmentP. O. Box: 4044Tel : +241 0765 7902 / +241 0244 4896Libreville, Gabonhttp://www.cnlcei.ga.ipaddress.com 

National Financial Investigations AgencyTel: +241 0176 1773Agence Nationale d’Investigation FinancièreImmeuble Arambo, Boulevard TriomphalBP:189Libreville, Gaboncontact@anif.ga

							10. Political and Security Environment					

Violence related to politics is relatively rare in Gabon. Elections, however, can lead to heightened tensions or erupt in violence. For example, violence broke out on August 31, 2016, after the National Electoral Commission announced incumbent president Ali Bongo Ondimba defeated opponent Jean Ping in the August 27 presidential election by a margin of less than 2 percent of the vote. Protestors took to the streets, the National Assembly building was burned, and there were numerous arrests. There were also reports that the government and its forces committed unlawful killings in the weeks following the controversial election results. Nongovernmental organizations stated the government’s use of excessive force to disperse demonstrators resulted in approximately 20 deaths; the opposition claimed at least 50 persons were killed. By contrast, the 2013 municipal elections, the last elections to take place before the 2016 presidential election, were held without incident.

							11. Labor Policies and Practices					

Gabon’s population is approximately 1.8 million, with foreigners (mostly Africans from West and central Africa) making up as much as one quarter to one third of that total. Foreign firms report a shortage of highly-skilled Gabonese labor. Chinese industry, in particular, imports the majority of its workers from China. Authorization from the Ministry of Labor is required in order to hire foreigners. Non-Gabonese Africans find it increasingly difficult to obtain employment authorization; non-African expatriates have less difficulty. Non-Gabonese Africans take up most positions requiring unskilled labor.

Many young Gabonese are unable to acquire vocational skills and are thus excluded from the labor market. This is due to the low quality of the basic education system, the insufficient output of technical and vocational training, and a lack of resources and effectiveness in the education sector. Reforms adopted in 2010 in the education and research system represent a step towards developing in-service training and encouraging public-private partnerships. For example, the Petroleum and Gas Institute, located in Port Gentil and supported by the Gabonese government and oil industry, has been training engineers specialized in oil-related technical areas since January 2014.

According to two governmental decrees, firms should obtain prior authorization from the Ministry of Labor before hiring foreigners. Pursuant to the first of these decrees, foreign workers must obtain permits before working in Gabon, and the availability of a permit for a job depends on the availability of Gabonese nationals to fill the job in question. That same decree states that quotas for the number of foreign workers may be set. A second decree states that when hiring workers, firms must give priority to Gabonese nationals. If no Gabonese worker with the appropriate qualifications can be found, this second decree states that a firm should hire a Gabonese to work along with the foreigner and, within a reasonable time, the Gabonese worker should replace that foreigner.

Labor laws differentiate between layoffs and firing. There is no unemployment insurance or other social safety net programs for workers laid off for economic reasons.

Gabon’s SEZ is not subject to the same foreign labor restrictions as the rest of the country.

Gabon’s French-inspired labor code recognizes the right of workers to form and join independent unions and bargain collectively, and prohibits antiunion discrimination, but the right to strike is limited or restricted. Strikes may be called only after eight days’ advance notification and only after arbitration fails. Public sector employees are not allowed to strike if public safety could be jeopardized. The law does not define essential services sectors in which workers are prohibited from striking. The Gabonese government strictly enforces the labor code’s mandatory retirement age of 65.

The government observes the resolution of labor disputes  and takes an active interest in labor-management relations. Unions in each sector of the economy negotiate with employers over pay scales, working conditions, and benefits.

French firm Maurel and Prom’s oil workers went on strike from October 17 to 25, 2016. The strike cut production from 28,000 barrels per day to 10,000. The government took an active role in resolving the strike.

Gabon has ratified most of the International Labor Organization laws and conventions. There are no gaps in compliance in law or practice with international labor standards that may pose a reputational risk to investors.

							12. OPIC and Other Investment Insurance Programs					

The Overseas Private Investment Corporation is open to providing services to U.S. investors in Gabon and has done so in the past. Gabon is also a member of the Multilateral Investment Guarantee Agency (MIGA), which guarantees foreign investment protection in cases of war, strife, disasters, or expropriation. MIGA is a branch of the World Bank Group.

							13. Foreign Direct Investment and Foreign Portfolio Investment Statistics					

*Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy*

*Table 3: Sources and Destination of FDI*

Foreign direct investment position data are not available for Gabon.*Table 4: Sources of Portfolio Investment*

Portfolio investment data are not available for Gabon.

							14. Contact for More Information					

Diana CostaPolitical/Economic OfficerU.S. Embassy Libreville+241 0145 7000CostaDL@state.gov

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### On This Page

                    -  Executive Summary 
                    -  1. Openness To, and Restrictions Upon, Foreign Investment   
                    -  2. Bilateral Investment Agreements and Taxation Treaties   
                    -  3. Legal Regime   
                    -  4. Industrial Policies   
                    -  5. Protection of Property Rights   
                    -  6. Financial Sector   
                    -  7. State-Owned Enterprises   
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                    -  11. Labor Policies and Practices   
                    -  12. OPIC and Other Investment Insurance Programs   
                    -  13. Foreign Direct Investment and Foreign Portfolio Investment Statistics   
                    -  14. Contact for More Information   

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