Attitude toward 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 (PSGE / Plan Strategique Gabon Emergent), 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.
The Gabonese government has taken several measures to strengthen public investment management and the transparency of infrastructure development. Priority sectors for the government include transportation, housing, public facilities, tourism, energy, education, health, ports, and other large infrastructure projects. The National Agency for Public Works (ANGT) was set up to manage the identification, planning, management, and implementation of large public infrastructure projects. U.S. engineering corporation Bechtel assisted the government in forming ANGT and initially ran the agency. ANGT became a legally separate organization on January 1, 2013 and on January 29, 2015 it merged with the Road Fund, the body responsible for construction and maintenance of roads, to become the National Agency for Public Infrastructure Works (ANGTI). In addition to assisting the government by executing policy for major infrastructure projects, the ANGTI’s mission is to implement Gabon’s national infrastructure master plan and to lower costs, guarantee quality of work, and meet deadlines. Bechtel employees continue to play a role in ANGTI’s operations.
Other Investment Policy Reviews
Gabon has been a World Trade Organization (WTO) member since 1995. In June, 2013, Gabon's government 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.
Laws/Regulations on Foreign Direct Investment
Gabon’s 1998 investment code conforms to Central African Economic and Monetary Community (CEMAC) investment regulations, providing 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 is affiliated with the Organization for Business Law Harmonization in Africa (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.
Business Registration
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, 2016, the ANPI-Gabon was not yet fully operational.
Gabon defines micro, small and medium-sized enterprises (MSMEs) by ownership interest and the amount of capital invested. A Gabonese citizen must retain a 51 percent ownership interest and the enterprises are categorized as follows:
1) Microenterprise – up to USD 174, 000 invested;
2) Small enterprise – up to USD 500,000 invested; and
3) Medium enterprise – up to USD 1.0 million invested.
MSMEs receive a tax discount for their first two years of operation.
Industrial Promotion
There are no sectors that have formal government programs to attract investment. A Special Economic Zone (SEZ) at Nkok just outside of Libreville was originally aimed at attracting investment in the timber sector but insufficient investor interest led the administrators of the SEZ to seek out investment from investors in a broader range of sectors. 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 custom duties on imported machinery and parts, and 100 percent repatriation of funds.
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 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.
Privatization Program
Gabon does not have an active privatization program.
Screening of FDI
The standard practice is for the Presidency to review foreign investment contracts after ministerial-level negotiations are completed. There are instances in practice where the Presidency gets involved to push along 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 strategic vision of 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 with 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.
Competition Law
The relevant ministry reviews transactions for competition-related concerns.