One of the wealthiest nations in Africa is Gabon. The GDP per capita (PPP) is $ 18,100, more than double the average for Africa and comparable to China’s ($18,200). In general, Gabon has a large supply of natural resources most notably oil, but a small population of only 2 million people.
Africa’s central country of Gabon looks out onto the Gulf of Guinea. This region is home to numerous offshore oil fields. Gabon’s climate is equatorial because the equator runs through it, with heavy rains and warm temperatures all year.
Below you will find some business opportunities that you can explore here.
One of the highest per capita African GDPs
The value of Gabon’s GDO is particularly high in the African panorama and is most times compared to the big countries of the world.
However, there are significant income discrepancies and poorly distributed income among the population. It indicates that while most people live in substandard conditions, a small number of people have a lot.
A business perspective would suggest that either expensive or inexpensive goods might be exported. The middle class is a small one. Unfortunately, this kind of circumstance is extremely typical in many developing nations.
Since there are no related industries and a heavy reliance on the export of natural resources, Gabon imports almost everything from abroad.
The abundance of natural resources
Gabon is a nation where natural resources are abundant. The most significant is oil, which was discovered in the 1970s and is primarily extracted offshore. Around 80% of Gabon’s exports and 45% of its GDP are made up of oil.
It is, however, not Gabon’s only natural resource. The country is rich in manganese and is currently the world’s third-largest producer. The majority of the mining sites are in and around Franceville, Gabon’s second-largest city, which is located in the heart of the equatorial rainforest. Around 10% of the export is manganese. Besides timber, iron, and gold, there are other important natural resources.
French language
A union of French colonial colonies, French Equatorial Africa, including Gabon. The Central African Republic, Gabon, Chad, and the Republic of the Congo are the current members of the Federation, which was dissolved in 1960. The French colonial era had a significant impact on Gabon, beginning with the spoken language.
Fang, Mbere, and Eschira are the three primary languages spoken in distinct regions, although many additional local minor languages are spoken. Around 80% of people speak French, which is used as a common language. Because French is Gabon’s only official language, it is used in both commerce and government.
For those of you who are fluent in French, it is a significant benefit (that is among the most spoken and studied languages in the world). By the way, French influence extends beyond speech to other areas as well. For instance, the French legal system served as a model for the legislation in Gabon.
Stable currency
Together with the other six African nations, Gabon utilizes the Central African Franc (XAF). It is a stable currency because it is tied to the Euro. The official currency of Cameroon, the Central African Republic, Chad, the Republic of the Congo, Equatorial Guinea, and Gabon is the Central African Franc (XAF).
The African Franc eliminates exchange rate risk, which is a significant benefit for businesses based in the European Union or other African countries that have adopted the currency. For international businesses looking to invest in Gabon, this is a benefit.
Political stability
Gabon has been independent of France since 1960, but this remains a problem. In the last 60 years, there have only been three presidents: Léon M’ba, Omar Bongo, and the current president, Ali Bongo Ondimba (the son of Omar Bongo).
The country’s first two presidents died in 1967 and 2009, respectively. As a result, it is claimed that Gabonese presidents only changed after the president died. Gabon has been a republic, at least in theory, since 1960.
However, there is an issue. There was only one political party, and demonstrations only led to reforms to make the country more democratic in 1990.
The opposition claims that the country is not democratic and that there have been numerous protests, scams, and even several failed coup attempts (the latest in 2019).
Despite this, Gabon was one of the safest and most stable countries in a region of Africa that had seen civil war, murderous coups, and conflicts over the previous 60 years.
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