Gabon: Investing

FDI in Figures

Foreign investment into the country has experienced a slow growth. After having slowed down under the effects of the unfavorable international economic climate, FDIs have started their revival.

Limited market potential, bureaucracy, non-profitable projects, unskilled and expensive workforce as well as poor infrastructures all constitute barriers to FDI influx. Gabon's advantages are:access to raw materials, political stability and a relatively high purchasing power when compared to other Sub-Saharan African countries.

Oil is the main destination of FDI in the country.

France has a predominant place in the stock of FDI in Gabon since it counts with hundreds of branches from French companies in various sectors: oil exploitation, mining, timber, agribusiness, building and civil engineering works, financial services, water and electricity concessions, etc.

Country Comparison For the Protection of Investors

	Gabon	Sub-Saharan Africa	United States	Germany
Index of Transaction Transparency*	6.0	4.8	7.0	5.0
Index of Manager’s Responsibility**	1.0	3.4	9.0	5.0
Index of Shareholders’ Power***	3.0	5.0	9.0	5.0
Index of Investor Protection****	3.3	4.4	8.3	5.0

Source: Doing Business - Last Available Data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment	2008	2009	2010
FDI Inward Flow (million USD)	209	33	170
FDI Stock (million USD)	1,234.5	1,267.4	1,437.8
Performance Index*, Ranking on 141 Economies	114	129	-
Potential Index**, Ranking on 141 Economies	94	-	-
Number of Greenfield Investments***	5.0	3.0	-
FDI Inwards (in % of GFCF****)	6.4	2.5	-
FDI Stock (in % of GDP)	8.6	11.7	-

Source: UNCTAD - Last Available Data

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

Tax Rates

VAT: 18%
Other rates can be applied such as 10% or 25% depending on the product. Exports are not subject to VAT.
Company Tax: 35%
Withholding Taxes: Dividends: 20%, Royalties: 10%.
Bilateral Agreement: Gabon and Lebanon are bound by a tax convention. The convention has been signed on February 20, 2001, ratified on July 16, 2003.
Legal reference: Law N. 516. In OG N. 35 of July 24, 2003.

Download the treaty (in French).
Social Security Contributions Paid By Employers: 20.1%

Country Comparison For Corporate Taxation

	Gabon	Sub-Saharan Africa	United States	Germany
Number of Payments of Taxes per Year	26.0	37.3	11.0	16.0
Time Taken For Administrative Formalities (Hours)	488.0	315.1	187.0	215.0
Total Share of Taxes (% of Profit)	43.5	68.0	46.8	48.2

Source: Doing Business - Last Available Data.

Investment Opportunities

Tenders, Projects and Public Procurement: Tradeinvest Africa, Tenders in Africa
African Tenders
African Development Bank Group, Public Oversight Body
DgMarket, Tenders Worldwide
Setting Up a Company: Consult Doing Business Website, to know about procedures to start a Business in Gabon.
Useful Resources: Private Investment Promotion Agency (APIP)
Economic Developments and Prospects in Gabon - African Economic Outlook
Embassy of Lebanon in Libreville, Gabon
BP 3341
Libreville, Gabon
Phone: (+241) 73 14 77
Fax: (+241) 73 68 15
Contact the embassy by mail

Business Setup Procedures

Setting Up a Company	Gabon	Sub-Saharan Africa
Procedures (number)	9.00	8.90
Time (days)	58.00	45.20

Source: Doing Business.

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