Country Risk Rating

C
A very uncertain political and economic outlook and a business environment with many troublesome weaknesses can have a significant impact on corporate payment behavior. Corporate default probability is high. - Source: Coface
A1A2A3A4BCDEVery Low RiskAcceptable RiskVery High Risk

Business Climate Rating

D
The business environment is very difficult. Corporate financial information is rarely available and when available usually unreliable. The legal system makes debt collection very unpredictable. The institutional framework has very serious weaknesses. Intercompany transactions can thus be very difficult to manage in the highly risky environments rated D.
A1A2A3A4BCDEVery Low RiskAcceptable RiskVery High Risk

Strengths

  • Abundant natural resources: Sub-Saharan Africa's fourth-largest oil producer (2024), the world's largest manganese producer (2024) and one of the continent's leading producers of tropical timber.
  • Under-exploited mining potential: deposits of iron, gold, uranium, diamonds, copper, zinc and rare earths.
  • Strategic position in the middle of Africa's Atlantic coast
  • Economic diversification efforts undertaken as part of the National Development Plan for Transition (2024-2026) (PNDT)
  • Hydroelectric potential
  • Immense forestry capital (sale of carbon certificates)
  • Member of OPEC+, CEMAC and Commonwealth
  • Pegged to the euro for monetary stability

Weaknesses

  • Economy heavily dependent on the oil sector (40% of GDP, 68% of exports and 50% of tax revenues in 2023)
  • High cost of production factors, linked to inadequate infrastructure (transport and electricity)
  • Dependence on imports of food, fuel and capital goods
  • High risk of deteriorating budgetary situation and over-indebtedness
  • High unemployment especially among young workers (40%), endemic poverty (one-third of the population is poor), informal economy (40-50% of GDP), widespread corruption
  • Political instability, corruption, appropriation of oil revenues and popular discontent create an uncertain business environment.

Current Trends

Source:

Coface (12/2024)
Gabon