The World Bank in Gabon

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 85% of its territory.

Gabon has one of the highest urbanization rates in Africa:  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 54 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 fairly 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 a year before the end of the presidential term, Gabon is preparing for several milestones, in particular the presidential and legislative elections, scheduled for 2023.

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 growth of -1.8% 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. According to the United Nations, over 104,000 jobs were lost in 2020.

Economic Outlook

Despite the impact of the war in Ukraine, Gabon’s economy is gradually recovering, supported by stronger external demand and higher oil prices. The fiscal balance is expected to increase gradually over the medium term, but the rising cost of living could increase household vulnerability.  According to the latest estimates, growth is projected to reach 2.7% in 2022 driven by the sound performance of the oil, mining, and wood sectors. In addition, public debt is expected to stand at 58.3% of GDP in 2022.

Development Challenges

Economic diversification and human capital building are priorities for the authorities, which have adopted a series of measures to improve the business climate. Faced with a poverty rate of 33%, the government has decided to focus 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.

Last Updated: Oct 26, 2022

World Bank Group Engagement in Gabon

Gabon is eligible for the World Bank’s IBRD window for middle-income and creditworthy poor countries. The new Country Partnership Framework (CPF), which will cover fiscal years 2023 to 2027, is currently being finalized. The proposed CPF will contribute to poverty reduction and shared prosperity. The following four priorities define the potential pillars of the World Bank’s future engagement in Gabon:

• Strengthening governance in service delivery;
• Improving access to basic services;
• Improving urban infrastructure services;
• Boosting private sector investment in the non-oil private sector.

These objectives are expected to contribute to two higher-level outcomes, namely: (i) greater household resilience and (ii) increased employment in the non-oil private sector. The CPF will also build on Gabon’s development strategy, the Transformation Acceleration Plan (PAT), and the World Bank’s Regional Strategy.

The World Bank’s current portfolio in Gabon has seven ongoing projects, for a commitment of $327.68 million (credits and grants), in various development sectors including education, health, environment and natural resources, energy and digital development, equity, and poverty.

Last Updated: Oct 26, 2022

Skills Development and Employability Project (PRODECE)

PRODECE aims to improve the effectiveness of vocational training, skills development, and entrepreneurship programs in order to reduce mismatches in the labor market through (i) expansion of training provision and quality improvement in technical and vocational education and training in key growth sectors; (ii) employability development, youth integration, and entrepreneurship promotion.

The project enabled the construction of the two sectoral centers specializing in ICT and construction and public works/wood processing, which can accommodate 1,000 young people; the two vocational training centers and two technical high schools were rehabilitated and upgraded. Other achievements include the development of new sectors, the training of trainers who will work in these centers, and the development of 49 new curricula specifically for the training centers.

PRODECE includes internships in businesses and training-retraining, and a program to provide support and financial assistance for the creation of income-generating activities.  To date, 4,900 young people have completed their training in several provinces of the country, 25% of whom have been integrated as employees or self-employed persons; 1,565 young people have completed the apprenticeship program; 3,333 others have completed the internship program. Entrepreneurship training has been provided to over 800 young people, 186 of whom have started their income-generating activities.

The Wildlife and Human-Elephant Conflicts Management Project (GeFaCHE)

GeFaCHE aims to reduce elephant poaching and increase community benefits through improved management of human-elephant conflicts in four national parks (Loango, Moukalaba-Doudou, Mayumba, and Waka). Thanks to the collaboration between the Agence française de développement (AFD) and the World Bank on this GeFaCHE project, Central Africa’s first wildlife genetic analysis laboratory was inaugurated in Gabon in March 2021. The project also established a national database on natural resources.  

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. Major data collection operations that have been carried out include the general agricultural census, the demographic and health survey (DHS-G), and the second Gabonese poverty assessment survey (EGEP 2). In February 2022, the Directorate General of Statistics launched the collection of data from Gabon’s First General Business Census (RGE). The Census of Economically Weak Gabonese and the third EGEP are also being prepared.

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

PASBMIR aims to improve access to electricity and water for populations in periurban and rural areas in four provinces in Gabon (Ngounié, Estuary, Woleu-Ntem, and Haut-Ogooué).  In April 2022, 200 households were connected to the network by the Gabon Water and Electricity Company (SEEG). Construction work for the rehabilitation and extension of the water supply network in eight towns and villages began in mid-May 2022.

List of the seven 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 Wildlife and Human-Elephant Conflicts Management Project (GeFaCHE);
• The Digital Gabon project.

Last Updated: Oct 26, 2022

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 UN.

Last Updated: Oct 26, 2022