The cement plant manufactures 130,000 tons per year. There is some manufacturing for the oil services industry, a paint factory and some manufacturing of compressed gases for welding. Sugar, flour, beer, cigarettes and bread are produced domestically. The roads outside the capital are poorly developed and inadequately maintained. Telecommunications, air and rail transport, and oil refining are managed by inefficient parastatals targeted for privatization.
Telecommunications is an area with potential for U.S. exporters.
External debt and domestic government arrears remain a problem. In 1997 the combined effect of a strong dollar, higher oil prices, and nominally increased oil production stimulated a minor economic rebound. Real growth exceeded three percent and inflation was under four percent. This may have a slowing effect on the economy for 1998 and 1999. Although production from known reserves are expected to remain flat and slowly decline, the petroleum sector will continue to dominate Gabonese exports and foreign, especially U.S., interests in the five coming years.