“Country Risk Service Gabon July 2010 Updater” added to ReportBuyer.com
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Overview
The president, Ali Bongo Ondimba, will continue to consolidate his rule over the country and the ruling Parti democratique gabonais (PDG) after winning the disputed presidential election. The civil unrest that followed the announcement of Mr Bongo's victory has now settled, but his failure to deliver on promises to raise living standards could lead to fresh protest. To encourage investment in the declining oil sector, the government is considering raising to as high as 50% the share that foreign-partner operators can own in projects.
Key changes from last month
Political outlook
Union nationale (UN), an opposition party formed in February and composed mainly of defected PDG members, performed poorly at the June by-elections, winning only two seats in the National Assembly.
The UN and a number of opposition parties have accused the PDG of electoral fraud, but even if these claims are substantiated, prosecution of any PDG officials is unlikely owing to the slow judicial process.
Economic policy outlook
Having been postponed since May to give potential investors more time to prepare bids, the tenth oil-licensing round tender closing date has been set for set October 27th. Recent encouraging drilling results should support investor interest.
Economic forecast
On the back of stronger oil prices as the global recovery gains traction, Gabon's real GDP growth outlook has improved considerably. The Economist Intelligence Unit now sees real GDP growth of 4.8% in 2010 on the back of stronger investment, as well as higher take-home pay legislation that will boost private consumption. Labour unrest in the oil sector will remain a risk to real production, but elevated global oil prices will more than compensate for the effects of limited strike action in terms of export earnings.
Country Risk Service Gabon July 2010 Updater: published is available at:
http://www.reportbuyer.com/
