Gabon

LAST UPDATED: 17 August 2007

Gabon has been a major oil producer for many decades. Historically, oil revenues accounted for approximately 60% of the government’s budget, more than 40% of GDP, and 75% of export earnings. Despite holding Sub-Saharan Africa’s third largest oil reserves, oil preeminence in Gabon’s economy is expected to decline due to maturing oil fields. Gabon has reformed its legislation to provide incentives for exploration and development, a measure which has attracted the new players.

Gabon is also the third largest producer of manganese and holds a quarter of the world’s known reserves of this mineral. Manganese is Gabon’s third-largest source of export earnings after oil and timber. Gabon is considered a potential source of other minerals, but commercial exploitation has not started.

On 28 July 2004, Mr. Paul Toungui, Minister of Economy, Finance, and Budget of Gabon, addressed a letter to Mr. James Wolfensohn, President of the World Bank, expressing Gabon’s intention to adhere to the EITI, and requested technical assistance for its implementation. The Government informed the Bank of its commitment to adhere to the EITI, and requested technical assistance for its implementation. Two World Bank missions subsequently visited Libreville to present the basic criteria and objectives of EITI to Government officials and civil society. A preliminary evaluation and a diagnostic of revenue flows and institutional responsibility for assessment and collection of extractive industry revenues was carried out by the Bank with respect to the hydrocarbon and mining sectors.

The EITI Work Group was created by ministerial decree on 24 February 2005. The Government proposed September 2005 as the deadline for publication of extractive industry data under the EITI framework. The EITI Work Group is currently defining a detailed action plan and responsibility for implementation.

A Government delegation participated in the EITI London Conference, in March 2005, and signed the Statement of Outcomes (English, Français, Portuguese, Pусский, Español). That same month, the Government expressed its commitment to join the EITI in a letter of intent to the IMF. In July 2005, the Government nominated a Group of Interest in charge of reviewing data on oil revenues. In August 2005, the Government hired Ernst & Young to prepare a report on oil revenues from 2004. Finally, in mid-October, a new website was launched to provide further information on the implementation of EITI (in French).

In December 2005, the Government of Gabon published an EITI report, which covers information from 2004. However, this report does not provide information on the Government’s share of profit oil, which according to estimates might be as much as half of total oil revenue. The report notes difficulties on the part of the government in handling profit oil information, and lack of the necessary details for the auditor to do the reconciliation. In addition, the EITI process in Gabon needs to increase stakeholder involvement. Nevertheless, it is worth noting that the authorities have acknowledged the main shortcomings of the process, which is seen by them as the first step towards full implementation. The World Bank and the IMF are monitoring progress within the framework of the implementation of their general policies.

The Government of Gabon published its second EITI report on its Web site in April 2007. The report will be discussed publicly before the end of the month.