The World Bank in Gabon

Overview

Gabon, a central African country, is rich in natural resources. Located on the Atlantic Ocean, it borders Cameroon, Equatorial Guinea, and the Republic of Congo. It is sparsely populated, with a population of 2.3 million (2021) and forests covering 88% of its territory.

Gabon has one of the highest urbanization rates in Africa with more than four in five Gabonese citizens live in cities. Libreville and Port-Gentil are home to 59% of the country’s population. One in two Gabonese citizens is under the age of 20 and the fertility rate in urban areas is four children per woman against six in rural areas.

As a result of efforts to reduce emissions and preserve its vast rainforest, Gabon is a net carbon absorber and a leader in net zero emission initiatives. It has a rich ecosystem with extensive endowments of fertile land, coastal resources, and fisheries. However, despite its economic potential, the country is struggling to translate its resource wealth into sustainable and inclusive growth.

Political Context

The Gabonese Democratic Party (Parti démocratique gabonais, PDG) has dominated the political landscape for 55 years. President Ali Bongo Ondimba succeeded his father Omar Bongo Ondimba in 2009 and was re-elected in August 2016 in a highly controversial election marked by a low turnout (59%). Legislative and municipal elections held in 2018 saw a sweeping victory for the PDG, which retained its two-thirds majority in the National Assembly.

With less than six months before the end of the presidential term, Gabon is preparing for several milestones, the presidential and legislative and local elections, scheduled for 2023. A government reshuffle has taken place in January 2023, whereby President Ali Bongo Ondimba appointed a new Prime Minister.

Political consultations between the PDG and several opposition parties were held in February 2023, culminating in several agreements including on the following issues: (a) reintroduction of single-round ballot for all elections (replacing the two-round system), (b) a five-year term for the president, senators, deputies, and local elected officials (replacing seven-year and six-year terms), and (c) no reelection limitations for all political offices (previously elected officials were limited to two terms).

Economic Overview

Gabon, the fourth largest oil producer in Sub-Saharan Africa, posted strong economic growth over the past decade, driven mainly by oil and manganese production. In 2020, the oil sector accounted for 38.5% of GDP and 70.5% of exports despite efforts to diversify the economy.

Forecast at 3.4% before COVID-19, Gabon posted a -1.8% growth in 2020. The restrictive measures adopted to combat the pandemic and address the decline in oil prices in 2020 have resulted in rising unemployment and a sharp drop in domestic revenue mobilization, followed by a decline in exports and foreign direct investment, leading to a significant fiscal deficit.

Economic and social Outlook

Ukraine’s invasion has impeded Gabon's economic growth. Gabonese households have been facing a rise in food price since the beginning of 2022 as the inflation rate reached 4.3% that same year. However, Gabon has taken steps to fight the high cost of living including temporally price caps for 48 imported consumer goods from October 2022 to March 2023. A new ministry devoted to the fight against the high cost of living was created in January 2023.

Gabon’s economy is gradually recovering, supported by good performance in the oil, mining, and wood sectors. The removal of pandemic-related restrictions in March 2022 also contributed to growth in the services sector. GDP is estimated to be 3.1% in 2022, up from 1.5% in 2021. Moreover, the fiscal balance turned into a surplus of 3.0% of GDP in 2022 from a deficit of 1.9% in 2021.

Thanks to the gradual recovery, public debt declined in 2022, down to 52% of GDP against 60.7% in 2021. According to the July 2022 IMF Debt Sustainability Analysis, public debt is deemed sustainable, and risks have moderated.

Last Updated: Mar 30, 2023

Development Challenges

Economic diversification, climate change and human capital building are priorities for the authorities, which are adopting series of measures to Promote green and resilient development and improve the business climate.

Faced with a 33%poverty rate, the government focuses its social policy on the following three pillars:

• Establishing integrated social programs for the most vulnerable.
• Creating income-generating activities for the poorest population groups; and
• Reducing inequalities in access to basic public services.

In addition to delivering global public goods, forests provide opportunities for building local resilience and supporting economic diversification. The country has demonstrated a strong leadership to environmental protection through solid policy commitments. Gabon became the first country in Africa to receive results-based payments for reduced emissions from deforestation and forest degradation in 2021. It has hosted early March 2023, the One Forest Summit with France. The event sought a fair agreement between forest countries and the international community, to reconcile environmental ambition and economic development.

World Bank Group Engagement in Gabon

Gabon is eligible for the World Bank’s IBRD (International Bank for Reconstruction and Development) window for middle-income and creditworthy poor countries. On November 22, the World Bank Group’s endorsed a new five-year Country Partnership Framework (CPF) for Gabon, which will cover fiscal years 2023 to 2027 to support the country’s transition towards sustainable and inclusive economic growth. The new CPF will contribute to two higher-level outcomes, namely: (i) greater household resilience and (ii) increased employment in the non-oil private sector. The new framework also builds on Gabon’s development strategy, the Transformation Acceleration Plan (PAT), and the World Bank’s Regional Strategy.

This highly selective engagement targets the following areas:

• A strong public service delivery system:
  Gabon has made considerable progress on digital transformation and broadband connectivity. To improve service delivery, the Bank will support digitization of key public services through the Digital Gabon project. The goal is to deliver more efficient and quality public services and improve public sector accountability and transparency.
• Increased access to social services:
  More investments are being made to boost access to electricity, water, and sanitation in underserved neighborhoods, and to expand social protection to the most vulnerable. It also involves well-designed and targeted safety net systems to reduce unemployment and increase labor productivity.
• Improved resilient urban infrastructure:
  With one of the highest urbanization rates in Africa, Gabon needs to promote integrated urban development. This means better urban planning, improving roads and local transport, and greater access to greener and more resilient infrastructure in underserved neighborhoods. 
• Increased private investment in non-oil sectors:
  To diversify the economy and improve the investment climate, the World Bank, together with IFC and the Multilateral Investment Guarantee Agency (MIGA), will promote blue and green jobs in key sectors such as fisheries, forestry and ecotourism. This will involve continued support to the Kinguele Aval hydro project and the upgrading of the Transgabonais railway. 

The World Bank’s active portfolio in Gabon comprises of 6 active projects outlined in the previous CPF for total commitments of $318.62 million in various development sectors including Energy and Extractives, Education, Poverty and Equity and Health.

Last Updated: Mar 30, 2023

The Access to Basic Services in Rural Areas Project (PASBMIR)

PASBMIR’s project development objective is to expand access to water and energy services in targeted peri urban and rural areas in four provinces in Gabon (Ngounié, Estuary, Woleu-Ntem, and Haut-Ogooué). As of January 2023, more than 7900 households were connected to the network by the Gabon Water and Electricity Company (SEEG), 52 villages benefited from improved access to basic services, 166 km of electric lines have been installed in rural areas and 27 community water points were constructed or rehabilitated under the project, including sanitations in schools and health care units. It also provided communication, education, and awareness campaigns to more than 140 villages.

Skills Development and Employability Project (PRODECE)

PRODECE aims to improve vocational training, short-term skills development, and entrepreneurship programs in key growth sectors. The PRODECE activities included apprenticeship, internship, work-study, dual apprenticeship, and work placement programs. The project funded the construction of two sectoral centers specializing in ICT (information communication technologies) and construction and public works/wood processing; the renovation and upgrading of two vocational training centers and two secondary technical schools. Other accomplishments include the development of new areas, the training of instructors to work in these centers and the design of 49 new dedicated programs for use in the centers.

To date, the PRODECE has reached 7,665 direct beneficiaries (42.86% women). This number should increase with the opening of the two new centers and the commissioning of the rehabilitated centers.

The Gabon Statistical Development Project (PDS)

The PDS aims to strengthen Gabon’s statistical capacity, gather missing key data, and improve statistical production, and enhance statistical dissemination practices. The project conducted several surveys and censuses in the following areas: 2017 household budget survey for poverty monitoring; the second Gabonese poverty assessment survey (EGEP 2); Survey on the impact of COVID-19 among households; Demographic and Health Survey (EDSG II); Agriculture Census; and Education Census (2018-2019). The collection of data from Gabon’s First General Business Census (RGE) was launched in 2022. Also, the Census of Economically Weak Gabonese and the third EGEP are being prepared.

List of the six active projects:

• The E-Gabon Project;
• The Gabon Statistical Development Project (PDS);
• The Access to Basic Services in Rural Areas Project (PASBMIR);
• The Skills Development and Employability Project (PRODECE);
• The Gabon COVID-19 Strategic Preparedness and Response Project (SPRP)
• The Digital Gabon project.

Last Updated: Mar 30, 2023

With a resident mission in Libreville, the World Bank Group is one of Gabon’s leading development partners. The country’s other main partners are China, the European Union, Agence Française de Développement, the African Development Bank, and the United Nations.

Last Updated: Mar 30, 2023