R EST R I CTE D

FILECOPY ReportNo. AF-67a Public Disclosure Authorized Thisreport was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracyor completeness.The report may not be published nor may it be quoted as representing their views.

INTERNATIONALBANK FOR RECONSTRUCTIONAND DEVELOPMENT INTERNATIONALDEVELOPMENT ASSOCIATION Public Disclosure Authorized

THE ECONOMY

OF

GABON Public Disclosure Authorized

May 15, 1968 Public Disclosure Authorized

Africa Department CURRENCY EQUIVALENTS

$ U.S. 1 = CFAF 247 CFAF 1= U. S. cents 0.4

$ U. S. 1 million = CFAF 247 million CFAF 1 billion = $ U.S. $,048,580 This report is based on the findings of a miission to (May-June 1967) consisting of Nessrs. de lelde, Van Nimmenand Amselle. TABLE OF CONTENTS

Page No.

BASIC DATA ......

SUMMARY AND CONCLUSICNS...... *...... i - iii

I. GRIERAL BACKGROUND 1

II. ECONOMIC SITUATION 6

Economic Growth and Structure .... 6 Foreign Trade and Balance of Payments 8

Pu.blicFinance 1i

Money and Banking 16

Prices and Wages ...... 19

III. ECONOMIC PROSPECTS ...... 21

A. Overall Plan Targets ...... 21

B. Production ...... 23

Forestry ... 24r

Mining...... 26

Manufacturing 28

C. Infrastructure ...... 29

Transportation...... 2(9

Telecommuications ...... 4...... 30

ElectricPower ...... 30

Education * ********** 31

D. The Overall Outlook...... ** 31

Output ...... 31

Exports and Imports ...... *., 33

InvestmentMagnitudes and Feasibility ..... 33

Financing of the Public Sector ..... ***.... 36

Foreign Debt .*.....*****.... **'.*....*.. 38 - ii -

APPENDICES A. , Livestock and Fishing

B. Forestry

C. Mining

D. Manufacturing E. Transportation

F. Statistical Appendix

MAPS GABON

BASIC DATAl Area : 267,000 square kilormeters

Population : 468,oooin 1966 of wbich 8,000 non-Africans

Rate of growth : 0.6% per a num Density : 1.8 per km

Political Status : Independentsince August, 1960.

Monetary or Customs Area Membership

Joint Central Bank for Equatorial Africa and (BCEAEC) Central African Customs and Economi.cUnion (UDEAC) Joint African and Malagasy Organi.zation(OCAM) Associatemenber EEC

Gross DobnesticProduct : 55.3 billion CFAF in 1966

Rate of growth (1960-66) : 9.7% at current market prices (in real terxns,1960-66) : 4.3% Per capita GDP : U.S.$ 479 in 1966 U.S.$ 440 in 1965

Percentageof GDP at Factor Cost 1966 1963

Mines 18.1% 14.3% Agriculture :14.1% 17.7% Commierce 10.0% 11.3% Transport 9.7% 7.9% Forestry : 8.8% 12.2% Construction : 8.8% 5.8 Manufacturingand energy 5.9% 6.251

Average Percentage of GDP at YiarketPrices 1965 1960-55

Total consumption(private and public) 67% 61% Gross investment (private and public) : 24% 32% Gross domestic savings 33% 39% Exports 52% 13% Imports :43% 36% External balance on goods and services (resourcesurplus) 9% 7% Investment income payrent and private transfer abroad 18% n.a. Government tax revenue : 21% 18% BASIC DATA: Page 2

Annual Average Money, Credit and Prices Dec. 31, 1966 Rate of Change 1960-66

Money supply (billionCFAF) 8.6 + 7.6% Time deposits (billion CFAF) : 0.6 +38.0% Commercial bank credit to private sector (billion CFAF) : 8.7 +20.0% Cost of living index (1960 = 100): 136.9 + 5.14%

Public Sector (in billion OFAF)

Total governmentrevenue (Prel.) : 13.3 +19.4% Government current expenditures : 10.9 +17.8% Surplus 2.4 +30.0% Government development expenditures 1.9 +24.0% Net public borrowings - 0.2

1967 million External Public Debt (in billion CFF) U.S.$

Debt outstanding December 31, 1967 : 18.5 75.0 Total annual debt service : 2.1 8.3 Debt service ratio : 7.0% of projected 1968 exports

1966 Average Annual Change Balance of Payments (in billion CFAF) 1964-66

Total exports : 26.6 + 7.8% Total imports 18.6 +10.2% Net invisibles : - .8 + 2.7% Net current accountbalance : + 2.2 * 2.4%

Commodity Concentration of Exports 1966 Average (1960-66)

Wood products : 38.9% 51.6% of which: Okoume logs 25.6% 34.9% Plywood and veneer : 8.2% 10.7% Manganese 34.1% 19.8% 8.1% 8.6% Crude oil : 14.9% 15.2%

Gross Foreign Exchange Reserves 1966 1960

U.S,$mmillion at end of year 10.8 9.5 BiiSIC D`T, : Page 3

IMF Position (U.S.$ millions) 1966 1963 Quota 8.0 7.5 frawings - - Gold tranche .78 6 SUMEARYAND CONCLUSIONS

1. Gabon is a relatively large equatorial country, covering 267,000 square kilometers, but with a very small population amounting to hardly half a million people. This makes it one of the least densely pepulated ceuntriesin Africa. Seventy-fivepercent of the country's area is coveredwith dense tropical rain forests,which are only partly penetrated by means of navigablewaterways and a thinly spread network of roads. The climate is generally hot and humid. The population growth rate is still very low.

2. Gabon became independentin August 1960. It originallyhad two principal political parties, the Bloc D&mocratiqueGabonais which was the ruling party, and the Union Démocratiqueet Sociale Gabonaise (UDSG),wJhich led the opposition. After an unsuccessfulcoup d'état by the oppositionin 196h, the leader of the UDSG was imprisoned and the party dissolved. Although the country has since remained a one- party state, the governing party has made progress in reconciling the oppositionand has apparentlylaid the foundationfor greater political stability.

3. The economy is based primarily on the extraction of timber and minerals. Agricultureis little developed, largely owing to gener- ally poor soils, transport difficultiesand the availabilityof other opportunitiesto earn money incomes. Agriculture, raising and fishing only account for 15 percent of Gabonts GDP even though well over 70 percent of the active population are nominally engaged in agri- culture,primarily on a subsistencebasis. In terms of foreign exchange earnings the contribution of agriculture is even smaller. (Robusta$ and cocoa, the two major agricultural exptrt items, accounted jointly for only h percent of export receipts in 1960, and still less - 1.5 percent - in 1965. h. The market economy has the characteristic features of an economic enclave, largely doninated by foreign enterprisewhich to- gether with government gives rise to vîrtually aIl of the employment. Foreign private investment and enterprisehave taken the lead in de- velping lumbering,mining, building and trade. In 1962 these four sectors together directly accountedfor over 45 percent of GDP and 69 percent of the wages paid out to Africans,and they contributed more than 40 percent of the government1s ordinary revenues.

5. In the current decade there has been a gradual shift in the relative impçrtance of timber and mineral products. During the tfifties, timber and timber products provided over 70 percent of Gabonts export earnings. Under the impact of a gradual depletion of the coastal forest zone, increased extraction of uranium, the development of manganese output and a significant expansion of production, the relative contribution of timber products to foreign exchange has nov fallen to less than h0 percent. In the light of the important oil discoveries which have been made in the last couple of years, it may be expected that petroleum production will continue to grow from 1.45 million tons in 1966 to a level of around 4 million tons by 1968-1970. Important and rich iron ore reserves still await exploitation. - ii -

6. The exploitation of Gabonls natural wealth has enabled the country to reach a high level of gross output per capita, equivalent in 1966 to about $480. However, a large part of the income generated by this output is transferred abroad in the form of returns on foreign investment and remittances by the considerable number of foreigners living in the country. In 1966 transfers of investment inc.ome and indi- vidual earnings were probably more than CFA? 10 billion as compared with a GDP of around CFA? 55 billion and commodity exports of CFAF 26 billion.

7. Until recent years the rapid development of the country's natural wealth has made for a very impressive rate of growth. Although estimates in real terms are difficult to make, it is probable that the economy expanded at a rate of areund 15 percent in the period 1956 to 1960. In the period 1960-1966 this rate probably dropped to around five percent per annum; and in the last few years it has probably been well below this level because the output of timber, manganese and uranium has risen but slowly. The level of investment, high throughout the whole period, has also apparentlyfallen off in the last few years, though in 1966 it was still estimated at about a quarter of GDP. Private investment has been dominant, though public investment,largely in infra- structure,has risen sharply since 1961.

8. The country is now attempting to carry out a developmentplan extendingover the years 1966 to 1970 inclusive. This envisagesa total investment of CFA? 90.3 billion offwhich 54.1 billion would be in the private sector and 36.2 billion in the public sector. A rough analysis made by the MLssion indicates that actual investmentwill probably only be a little over CFAF 66 billion of which nearly CFAF 39 billion is likely to be private. Most of the anticipatedshortfall is occasioned by the probable failure to realize a large pulp project which would entail a large amount of private and also related public investment.

9. The public investmentprogram appears on the whole to be well conceived. Ivostof it is ftcused on transport and communications which are of key importance to the country. A small but essential part is devoted to education, a field in which great progress has been made in the past but where improvements and expansion are still neces- sary, particularly with respect to teacher training, secondary schools and vocational training centers.

10. With the continuedhelp of foreign grants and loans which have been availableon a rather generous scale in the past,Gabon should be able to finance its developmentprogram. However, it will need to husband its own revenues very carefully, for it can no longer count on the very rapid increase in tax revenues wbich it enjoyed in the past as the result of the marked expansionin the economy and a number of increasesin tax rates. il. In the five-year period l965-l970, GDP in real terms will probably rise at the most at the rate of five percent per year, while exports may increase at a rate of around 6.5 percent. The output and - iii - export of timber and minerals other than oil are not expected to rise significantly. The "lleading" sectors in the economy urill be petroleum and, to some extent, processing and manufacturing. Petroleum output may well rise to 4 million tons, and the completion of a refinery in 1967 will make it possible to export some petroleumproducts as well as crude.

12. In the longer run - i.e. beyond 1970 - the econoamyfaces relative stagnation unless the countryts large iron ore reserves in the Mekambo region are tapped. Ihis will hinge upon the construction of a railway for which a final engineeringsurvey is due to be com- pleted in 1968. This railway will not only be able to evacuate the iron ore but will open up large new forest reserves which should enable the country to raise substantially its exports of timber. A final de- cision on the total investment entailed - around CFAF 70 billion or $280 million - and the requisite financing will need to be made in the light of a final appraisal of the project's impact on production and export earnings.

13. Eventual implementationof the Mekambo scheme vould be con- centratedin the 1970-1975period. Neanwhile Gabon should be able to incur and service the comparatively modest additional external indebted- ness which it will need to contract primarily for roads and education. It is estimated that debt service payments are presently the equivalent of nearly 7 percent of export earnings. However, the service burden should decline significantly within the next five years unless the government sanctions a significantamount of new and rather short-term supplier credits. A not inconsiderable part of the service on government-guaranteed debt is being met by companieswho have contracted debt and who would, in the absence of these service payments, probably step up their transfers of investment income abroad rather than make more foreign exchange available to the Gabonese economy. THE ECONOMY OF GABON

I. GENERAL BACKGROUND

1. Gabon covers an area of 267,000 square kilometers (103,000 square miles), extending, along the west coast of the African continent, on either side of the Equator. Topographicallythe country consists of a series of plateaus with an average altitude of 450 meters, dominated in the north by the Monts de Cristal - where several mountain peaks exceed 900 meters - and in the southeastby the Chaillu Massif. In the latter region, near Koulamoutou,stands lMontIboudji which is the highest peak in Gabon (1,,575meters). Along the coastline,which is some 800 kilometers long, lowlands extend inward for 30 to 200 kilometers,pene- trating at certain places, along riverbanks, even deeper into the country.

2. Dense rain forests cover seventy-five percent of the territory and render the country difficult to penetrate except by means of the waterways. There is only a thinly spread network of roads. The main artery of the waterways îs formed by the Ogooué River, which originates in Congo (Brazzaville),runs along the foot of the Chaillu Massif to the center of Gabon, and then flows westwards through a region of lagoons and lakes towards the Atlantic Ocean. The mouth of the Ogooué forms a huge delta, in the middle of which lies Port-Gentil,the country's largest port and second largest city. The rest of the country is pri- marily savannah which can be found in the -Port-Gentil area, in the stretch of land east of Franceville and in the Tchibanga region.

3. According to the latest census which was carried out in 1960-61 by the staff of INSEE (InstitutNational de la Statistiqueet des Etudes Economiques)the population of Gabon amounted to 450,000 people. In 1966 the populationwas estimated at about h68,o00. In a territory about half the size of this makes for a population density of 1.7 inhabitants per square kilometer, which is one of the lowest densities on the African continent. For various reasons which have not yet been clearly established the birth rate is relatively low - 3.2 percent per annum - while the death rate is around 2.6. This has resulted in a very low rate of population increase of 0.6 percent per annum. Consequently, the population pyramid has a relatively narrow base. The population falling in the age group below 15 years of age represents only approximately 30 percent of the total population, whereas percentages as high as h0 percent are not un- common in the neighboring countries. - 2 -

POPULATIONIN 1960-61 in thousands (percentages)

Age group Males Females Total

0-14 68 64 132 (52, (48) (100) 15-49 104 135 239 50 and over 33 () 41 (6) 74 (100) (45) (55) _ 100) Total African population 205 240 544 (46) (54) (100) Non-Africans 3 2 5

Total population 208 242 450

Source: Recensementet enquêtedémographiques, 1960-1961; Ensemble du Gabon - Résultatsdéfinitifs; INSEE - Service de Coopération, Paris. SupplémentNo. 6 au BulletinStatistique, mai 1963.

4. Populationdensity in the countryvaries considerably from one region to another. Vast expanses in the TJoleu Nt Tem and Ogooué-Ivindo regions are virtually uninhabited. In general,population seems to cluster in narrow bands along roads and waterways. The greatest densi- ties are observed,of course, in the urban centers, of which Libreville (54,000)and Port-Gentil (26,000) are the most important. Other centers include Mouila, Moanda, Lambarénéand Oyem. Although in 1960 only 17 percent of the total population of Gabon livedin settlementsof over 2,000 inhabitants, urban growth has been considerable. Census data for 1964 in Libreville indicate that the population of the capital has in- creasedby 49 percent from 1960 to 1964; i.e. at an annual rate of growth of nearly 9 percent. This rate of increaseby far exceeds all previous expectations.

5. Superimposedupon the phenomenonof unevendistribution of population, one finds an uneven composition of the active population. To every 100 active persons (age 15 to 49) Gabon has 44 males. Fur- thermore, because of the greater internal mobility of the male popu- lationand becauseof the presenceof a predominântly male migrant foreignlabor force,the percentageof males among the activepart of the populationis not uniformover the entireterritory. Great dispersions around the national average (h4 percent) can be found, with the high deviations in the plains of the first forest zone -. 3 -

- including the Estuary region (56 percent) and the Ogooué Maritime (52percent) - in the Moyen Ogooué where most of the lumbering activity of the second zone is concentrated,and in the district of Moanda (52 percent) where the manganese and uranium mines are located. Low deviations,on the other hand, appear in the districts around Moanda (39 percent) as well as in the Ogooué-Lolo(39 percent) and Nyanga (36 percent) regions. Tne latter regions have traditionallyprovided the labor force employed in the forest lumbering industries.

6. As in other forest areas the population of Gabon consists of a great variety of ethnie groups. Three of these groups are pre- dominant:the Fang, which constitute some 30 percent of the total popu- lation of the country and some 94 percent of the inhabitantsof the Woleu N'Tem region; the Eshiras, which tend to concentratein the Nyanga area and the MtB6dés which are the vast majority of the populationof the Haut Ogooué. Together, these three ethnic cormunitiesmake up three- fourths of the African population of Gabon.

7. No precise figures are availableon the total number of non- Gabonese Africans who are presently living in the country. In 1964 some 4,200 non-Gabonesewere countedin Librevillealone, for the largest part coming from Cameroon and Dahomey. Nationals fromn Congo (Brazzaville),who once formed the numericallymost important African colony in Libreville,have been reduced to a token number as a result of the political tensions between their country and Gabon which devel- oped in late 1962.

8. The number of non-Africans, after having remained at a level of 4,,000 for a long tiune,has been increasing at an annual rate of about 5 percent since 1956. By 1964 non-Africans- over 90 percent French nationals - totalled 6,000; more than half lived in the Libreville area. In the last couple of years the increase in the non-African population seems to have acceleratedeven more; in 1967 this population was esti- mated at 8,000.

9. The 1960-61 population census revealed that only 13 percent of the populationover age 14 were literate and that only 1 percent of this group had received post-prinaryeducation. Since then, however, great efforts have been undertaken to improve the situation. In 1966/67, for instance, 75 percent of the childrenin the 6-15 years age group were attendingprimary school. Out of this total of 81,000 children,46 percent were girls. In the same year 7,000 students were following courses at the secondarylevel, while some 387 post- secondary studentswere studying abroad.

10. Ihis recent evolutionin school attendancemust soon exert a drastie influence on the literacy rate in the country. The major problems regarding education are thus no longer to be found in an overall deficiency of the educational level, but rather in the lack of qualified Gabonese teachers and in the inadequacy of the curricula which do not alwsays prepare students with the qualifications mostly needed in the country. - 4 -

11. Gabon is rich in natural resources, including timber, manganese uranium, petroleum and iron ore. The exploitation of this natural wealth has enabled it to achieve a high level of gross output per capita equal to arcund $480 in-1966. The country t s large timber resources were the first to be tapped, but since 1958 the production and export of manganese, pe- troleum and uranium have assumed increasing importance. In 1966 timber and timber products still accounted for about 39 percent of total exports, but the share of minerals - manganese particularly - had reached 43 percent and that of petroleum nearly 15 percent. In the same year mining, including petroleumi, contributed about twice as much to gross domestie product as forestry. However, the extraction and processing of timber still employ the most paid labor - over 13,000 wage earners at the end of 1965 compared to a little less than 5,000 for mining and petroleum.

12. Agricultureis little developed largely because of generallypoor soils, transportdifficulties and the availabilityof other opportunities to earn money incomes. In 1966 agricultureaccounted for only 14 percent of GDP, and Robusta coffee and cocoa, the only significantcash crops, con- tributed but 1.8 percent of total export earnings. Agricultural output is devoted almost wholly to subsistence. Nominally over 70 percent of the active population in the 15-49 age group are engaged in agriculture, but there is little doubt that the approximately 55,000 wage earners in the modern sector of the economy contribute significantly to the support of relativesleft behind in the subsistencesector.

13. Foreign private enterprisehas been almost whoUy responsible for developingthe economy, including lumbering,mining and oil. Foreign companies and individualsalso dominate industry, construction,foreign trade and even to a considerable extent retail trade. UIhile foreign enterprise and investmenthave contributedto very rapid development of the economy, this has been accompaniedby a substantialoutflow of income earned by foreign companiesand individualsin Gabon. Thus in 1966 remit- tances of investmentincome and individual earnings probably amounted to over 10 billion CFA as comparedwith a GDP of g5 billion and com- modity exports of about 26 billion CFA francs.

14. Politically,the country appears to have moved in the direction of greater stabilityfolloeing an abortive coup dtétat early in 1964 which was frustratedwith the help oa French military intervention. Following the uprising the leaders of the oppositionparty (Union Démocratiqueet Sociale Gabonaise) were imprisoned and the party itself dissolved. The ruling party - Bloc Démocratique Gabonais - was the only organized politi- cal body allowed to present candidates at the elections. Since then, however, followers of the previous opposition party have been included in the electoral slate in an endeavor to form a national coalition govern- ment, albeit under the one-party system. In February 1967, President Leon Mba, ailing in Paris and anxious to ensure a peaceful succession in case he would be unable to exercise his functions, called for a revision of the constitution. This revision, adoptedunanimously by the National Assembly,provides for the office of a Vice-Presidentwith automatic succession rights to the President. It also stipulatesthat both candi- dates for the presidency and vice-presidencylvill be elected for seven years on the basis of universal suffrage and that their election will coincide with the election of the legislative assemnbly. A few days later, President Leon Pta dissolved parliament and called for early elections. As a result of these electionsLeon Mba was re-elected with an overwhelming majority. A.-bert Bongo, previously acting head of the Government, has become Vice-President with automatic succession rights. Outwardlythe country presents aIl the signs of political con- solidation and stability. Whether the measures taken ilUl be sufficient to satisfy the political opposition and to guaranteea smooth presiden- tial successionremains, however to be seen.

15. Even before its independence,at the time when the Federation of French EquatorialAfrica neared its dissolution,Gabon joined the threeother members of the federationin the establishmentof an Equa- torial Customs Union (UDE).-YThis customsunion, of which Cameroon had become an associatemember in June 1962, was broadenedin scope on January 1, 1966, wihen it was transformedinto the Central African Customs and Economic Union (UDEAC). Tis organization,now in its second year of existence,has as primary purpose the harmonizationof fiscal and economic policies of the five member countries, and as secondary aim the redistribution of a part of the budgetary revenue of the more prosperous countriesof the union to the poorer ones.

16. So far, steps have been taken towards the harmonizationof customs duties and investment codes and the settingup oa a system of single taxation (taxe unique, a privilegegranted to certain enterprises to substitute a single tax.for a nunber o0 other taxes to which it may be subject) for those products which are îaanufacturedin the zone and sold in more than one country of the area. The harmonizationof invest- ment prograums, on the other hand, is still in an early stage and will, undoubtedly, entail many difficulties; but if, through negotiation and compromise, these diîficulties can be overcome, UDEACmight in the long- run turn out to be one of the most successful common market schemes on the African continent. The first large-scaleinvestment project to be undertaken i-ith financialparticipation of the five member countries- the at Port-Gentil - Las started operàtion tolrards the end of 1267.

The four original members of UDE were the Central African Republic, Chad, Congo (Brazzaville) and Gabon. - 6 -

II. ECON0MIC SITUATION

Economic Growth and Structure

17. Between 1956 and 1960 - dates of the two successive detailed studies on the national accounts of Gabon - the counitry registered a very impressive rate of growth. Expressed in current prices, more than doublec, from CFAF 15.0 billion in 1956 to CFAF 31.7 billion in 1960. This amounts to an annual rate of growth of 21 percent. Although a general price deflator index is not available, the mission estimates,on the basis of more recent wholesaleprice index trends, that the real rate of increase in GTP may have been as high as 15 percent per annum. Exports rose by nearly 150 percent per annum in current prices. This period iritnessedthe developmentof mining, par- ticularlyuranium, and considerableinvestment in the explorationand developmentof oil resources. Timber extractionalso advanced rapidly. Private investment as a whole increased substantially.

18. In the more recent period 1960-66 the rate of growth has been slower, partly because it started from a much higher level. In current prices it appears to have been around 9.7 percent per annum, vhich in real terms was probably between h.5 and 5 percent. In the first two years of the decade the rate was higher, probably owing to heavy invest- ments in mining, particularlymanganese. In recent years production and export of timber has tended to stagnate,primarily because reserves in the first and most accessibleextraction zone were being exhausted and the industry was required to move into the so-called second zone. The principal growth industries have been manganese, of which production and export began in 1962, and petroleum,in which investmentwas rather heavy and of which output increased gradually. In 1965 and 1966, however, emanganese exports levelled off partly because the availabletranxsport fadlities were approaching capacityutilization. National accounts figures indicate a sharp decline in private investment during i963-1965which was only partly offset by rising public investment (see Table I). From 1963 to 1966 the real growth in GDP was probably not more than 2 to 2.5 percent per annum.!/

19. Table II shows the increasing importance of mining and the relative decline of forestry during recent years. By 1966 niining con- tributed 18 percent of GDP while the share of forestry had dropped below 9 percent. A similar shift has taken place in the composition of exports. Although the value of exports of timber and timber products rose from 1960 to 1966, their share in the total fell from 73 percent to h0 percent. During the sanieperiod the share of minerals and petroleum.rose froma22 percent to 58 percent.

1| However, some doubt is thromn on the reliability of these figures by the continuedrise in imports of equipment (see Table 8, Appendix F). - 7 -

Table Is BALMCE OF RESOURCES

(in billion CFAF - current prices)

1956 1960 1961 1962 1963 1964 165

GDP at Marketprices 15.0 31.7 37.6 41.0 44.0 47.7 50.8 Importsof Goodsand: Net Services 4.5 11.5 12.6 12.7 14.6 19.7 21.8 Exportsof Goods -4.9 -12.1 -13.9 -15.1 -18.3 -23.6 -26.4

Total AvailableResources 14.6 31.1 36.3 38.6 40.3 43.8 46.2

Consumption 9.1 18.7 20.6 22.6 27.0 31.7 34.0 Private (7.5) (14.1) (14.9) (16.4) (19.8) (23.6) (25.5) Public (1.6) (4.6) (5!7) (6.2) (7.2) (8.1) (8.5) GrossDomestic Fixed CapitalFormation Private 3.2 10.7 12.3 12.2 8.6 7.5 6.5 Public 1.1 1.5 1.8 2.7 4.0 3.2 .7

Stock Cha:nges 1.2 0.2 1.6 1.1 0.7 1.4 -

TotalUse of Resources 14.6 31.1 36.3 38.6 40.3 43.8 46.2

Gross DomesticInvestment 5.5 12.4 15.7 16.0 13.3 12.1 12.2 DomesticResource surplusl 0.4 0.6 1.3 2.4 3.7 3.9 4.6

Gross DomesticSavings 5.9 13.0 17.0 18.4 17.0 16.0 16.8

GrossDomestic Investments as a percentof GDP 36.7% 39.1% 41.8% 39.0$ 30.2% 25.3% 24.0%o G;rossDomestic Savings as a percentof GDP 39.3% 41.0, 45.2% 44.9% 38.6% 33.5% 33.1% Resourcesurplus as a percentof GDP 2.7% 1.9%o 35% 5.9% 8.4% 8.2% 9.1%

/ Net exportsof goodsand services Sources: République Gabonaise, Comptes Economiques - 1956 République du Gabon - Comptes Economiques - Since 1960 Ministre de l'Econorme Nationale,du Plan et des Ilines - 8 -

Table I- GDP BY SECTOROF ORIGIN

(in billion CFAF - current prices)

1963 1964 1965 1966 _ Value Percent Value Percent Value Percent Value Percent

Mining 6.3 14.3 7.6 15.6 9.4 18.5 10.0 18.1 Agriculture 7.8 17.7 7.8 16.3 7.8 15.4 7.8 14.1 Trade 5.0 11.3 4.9 10.2 5.0 9.9 5.5 10.0

Transportand Services3.5 7.9 4.5 9.5 4.9 9.6 5.4 9.7 Forestry 5.3 12.2 5.6 11.8 5.2 10.3 4.9 8.8 Construction 2.6 5.8 3.1 6.5 3.5 6.9 4.9 8.8

Manufacturing and Energy- 2.7 6.2 3.0 6.4 3.2 6.3 3.2 5.9 Others 10.8 24.6 11.3 23.7 11.8 23.1 13.6 24.6

Total 4h.o 100.0 47.7 100.0 -o.8 100.0 55.3 100.0 - - - - Sources: as in Table I Foreign Trade and Balance of Paynents 20. Tables 6 to 12 in Statistical Append-i F shoi, the composition and direction of foreign trade. Comments on the composition of exports have already been made. The bulk of recorded exports go to France and the other countries of the EEC, but the , the principal pur- chaser of Gabonese manganese,sharply increased its share from 3.4 percent in 1962 to 22.6percent in 1966. Equipmentforms the largestand increas- ingly important category of imports, accounting for over 35 percentof the total in 1966 as compared tJith 28 percent in 1960. imports are also significant owing partly to the low productivity of Gabont s owm agriculture and partly to the demand generated by the large foreign colony in Gabon. However, the share of food imports has fallen from about 20 percent in the first threeyears of the tsixtiesto 15 percentin recent years. France has remainedthe sourceof around60 percentof the countrytsimports, iuhile the other EEC countriessupply from 12 percentto 15 percent.

21. The above figuresdo not includeGabonts trade with its UDEAC partnersor clandestineexports such as coffeesmuggled to Spanish Guinea. Estimatesof this non-registeredtrade are givenin TableIII. Unrecorded exportsare evidentlynegligiblè, although imports, equalto about 1l percentof recordedimport trade, are much more substantial,consisting primarilyof purchasesof food and other consumergoods from Cameroon, - 9 -

Chad and Congo-(Brazzaville). Gn the whole, trade among the UDEAC countries is as yet small because of poor communications and a lack of complementarity in their economies. However, it should gradually increase in importance particularly as joint industrial projects such as the Port-Gentil oil re- finery are carried out.

Table III:GABON - NON-REGISTEREDTPADE/&

(in million CFAF)

1962 1963 1964 1965 1966

Exports 509 704 367 389 742 Imports 1,864 1,293 1,544 1,672 2,257

Balance -1,355 - 589 -1,177 -1,283 -1,515

/a Estimatesrefer to tradewith EDE countries(C.A.R., Chad, Congo (Brazzaville), and sinceJanuary 1966, Cameroon)and to clandestine trade. Sources: Rapportsannuels sur la situationéconomique, financière et sociale de la RépubliqueGabonaise.

22. Gabon has had a large and grovingexport surplus in its recorded trade. The exportsurplus rose from CFAF 4 billionin 1960 to 10.5 billion in 1965, but droppedslightly to 9.5 billionin 1966.1/ Thisis character- istic of an economywhich is dominatedby foreignprivate enterprise and where a significantpart of outputand exportsgoes automaticallyinto factorincome payments to foreign enterprisesand individuals.Exports amountto abouthalf of GDP; and the proceedsof sales of timber,minerals and petroleumabroad are repatriatedonly to the extentthese are required in Gabon to meet operatingand investmentexpenditures and tax liabilities. The balanceof actualreceipts and paymentsis to a large extenta Lunction of foreigninvestment. When privateinvestment increases, imports not only tend to rise, but the proportionof exportproceeds used to defraysuch importsand local investmentoutlays tends to increaseat the expenseof factorincome transfers.

23. SinceGabon is part of a largermonetary union and thereis no control over international transactions, the available data on balance of payments are rough estiniates and can be considered only broadly indicative of the component magnitudes except for recorded trade and the changesin monetary reserves for wihich precise figures are obtainable. Table IVgives a general picture oa the structure and evolutionof the balance of payments for the years 196h to 1966 inclusive.

TThese are the trade returnsas givenin Table 12 of StatisticalAp- pendixF. Balance of paymentsfigures, including unrecorded trade, are givenin TableIV. - 10 -

24. The largest items in the balance of payments other than tllose relating to commodity trade are those for investment income and "private transfer payments." The estimate for investment income is derived from national accounts calculationsfor 1964 and has been conservatively as- sumed to remain the same for all three years. Private transfer payments, however, reveal a substantialincrease from CFAF 3.9 billion in 1964 to 5.6 billion in 1966, reflecting the growiingnumber of foreignersworking in Gabon and banking most of their savings abroad. The service account other than investment income shows a slight deficit.

Table IZV: ESTIXATEDBALAI'CE OF PAIMMTS 1964-66

(in billion CFAF)

196h 1965 1966 1. Goods Exports, f.o.b. 22.9 26.3 26.6 Inports, c.i.f. -15.3 -17.1 -18.6 Trade balance =7. 9.2 .

2. Services InvestimentIncome -5.o -5.o -5.0 Travel -0.3 -0.3 -0.4 Transport and Insurance (net) -- 0.1 -0.1 Governnent, Services under Aid Progran,s -0.9 -1.0 -1.1 Government,Local Expendituresof Foreign TechnicalAssistance o.5 0.5 0.6 Government, Others (net) 0.3 0.3 0.3 Other Services t(net) -0.1 -0.1 -0.1 Balance on Services -57 -:7g -S7 Balance on Goods and Services 2.1 3.7 2.2 3. Transfer Payments -1.2 -2.1 -3.3 Official (net) 2.7 2 2.3 Private(net) -3.9 -4.7 -5.6

4. Non-nonetarycapital known 4.4 h.7 ___ Officiàl (net) 1.05 2.3 2.7 Private (net) 3.h 2.4 2.3

5. Other non-monetarycapital and errors and omissions (net5 -5.2 -5.o -5.1 Overall balance 1 to 5 0.1 1.3 -1.2

6. lonetary Capital (net) -0.1 -1.3 1.2 Central Bank -0.2 -2.1 +1.5 Commercialand Developnent Bank +0.1 +0.8 -0.3

Sources: Comité Monètaire de la Zone , La Zone Franc en 1964 et 1965; Commissariatau Plan, Comptes Economiques1964 et 1965, data provided by the Gabonese authoritiesand IMF estimates. - il -

25. Imports of capital take the form of foreign grants showm under official transfer payments, as well as foreign private investment and of- ficial borrowing shown under "knoem" non-monetary capital transactions. The source of foreign grants which have averaged around CFAF 2.5 billion in each of the years 196h-66, is given in Table 17 of the Statistical Appendix. France (FAC) has accounted for about 60 percent of the grants, but the FED has also been an important contributor. The same table shows official foreign borrowingwhich has also been significant. The IBRD and the French Caisse Centrale (CCCE) have been the principal lenders. Ac- cording to the balance of payments estimatesnet official borrowingrose from CFAF 1 billion in 1964 to 2.7 billion in 1966. Since these are sup- posedly net of amortization,they are higher than those shown in Table 17, probably because they also include, at least to some extent, suppliers' credits whîch appear to have been contracted on a considerablesale in recent years. Private net capital investment is shoum to have declined slightly - fromaCF.IF 3.4 billion in 1964 to 2.3 billion in 1966. This is presumably due in part to repaynents on the IBRD loan to COMILOG, the manganese mining concern. Data on capital transactionsas a whole, however, seem far from comnplete.It wiil be noted that the balance of payments estimates for each of the last three years carry a negative iten of about CFAF. billion, reflecting errors and omissions and unidentified capital transactions.

26. There has not been a significantnet movemnentin foreign exchange reserves (net monetary capital) over the years 1964-66. The first ttfoyears witnessed an increase in the reserves held for Gabon by the Central Bank of the Equatorial African monetary union, but in 1966 there was an almost equivalent decline which seems to have continuedin 1967. By the end of March 1967 the bankts foreign exchange reserves stood at CFAF 2.5 billion, equivalentto about-twomonthst imports.

Public rinance

27. Since 1960 governmentfinances have been characterizedby the progressive allocation of more revenues to the equipment or development budget and a rapid increase in both revenues and expenditures.

28. In the first feu years after independenceall government revenues were attributedto the currentbudget while the equipmentbudget depended on the transfer of surplusesfrom the current budget and on foreign financing. There were, however, a number of special funds (Road Fund, Forestry Fund, etc.) for which revenues from certain taxes were earmarked.

29. In order to ensure a rimore stable source of financing development expenditures, a series of measures :Teretaken, beginning in 1963, to set aside a certain portion of government revenues for the equipment budget (henceforthcaiied developmentbudget). At first this budget was assigned a specific share (set at 113/1L5 in 1963 and increased to 24/29, or slightly over four-fifths,in 1964, 1965 and 1966) of the import turmover tax, the revenue from a feu special taxes, as well as the receipts from the sale of "bons dt&quipement"to tehichbanks, saving institutionsand other business - 12 - were obliged to subscribe.!/In 1967 it was decided that henceforth 20 percent of all tax revenues, irrespectiveof their origin, would be ear- marked for the development budget. Meanwhile, the special funds which were financed from special taxes and earmarked for particular purposes were also abrogated. Thus in 1964 the revenue Lrom two taxes (the taxe immobi1ière and the taxe dtéquipement radio) together with their corre- sponding expenditures were shifted from the development budget to the ordinary budget; and since 1966 the taxe de fonds routier a levy on foreiCn trade (3 percent of all imports and 2 percent of exports of okoume logs), has no longer been earmarked for road expenditures or even differentiatedfrom other customs revenue. Only one source of revenue remains specificallyearmarked for development - namely dues levied for the performance of certain technical assistance services rendered by a special governnent department (ATEG) to Gabonese lumbering enterprises.

30. From 1960 to 1966 ordinary governnentrevenue increasedfrom CFAF 4.6 billion to 13.3 billion or at no less than 19 percent per year. Since GDP in current prices rose at a much slower rate - 9.7 percent per annum - the ratio of ordinary revenue to GDP went up from 1h.5 percent in 1960 to 24 percent in 1966. Particularly sharp increases in revenue took place in 1963, when the import turnover tax was raised considerably,and in 1966 when, as a result of the harmonizationof fiscal measures within UDEAC, some nea;import taxes were introduced and a few others were raised.

31. The contributionof indirect taxation, traditionallythe main source of governnent revenue, rose from 57 percent of ordinary revenue in 1960 to 75 percent in 1964 and has since remained about the same. Taxes on foreign trade have been particularlyimportant. The combined revenue from import and export duties, including that portion allocated to the developmentbudget from 1963 to 1966, rose from CFAF 2.0 billion in 1960 to CFAF 7.7 billion in 1966, i.e. at an annual rate of growth of 25 percent. Foreign trade in the same period increased at an average annual rate of 14 percent. This relativelygreat increase of foreign trade tax revenue is due not so much to the elasticity of the taxation system as to the increases in the import tax rates in 1963 and 1966. In the latter year, for example, the income from foreign trade taxation (CFAF 7.7 billion) was some 50 percent higher than the income of the preceding year (CFAF 5.1 billion) largely due to the increase in the taxe de solidariténationale on the import of petroleum products (friom CFAF 10 per liter of petro'eum to CFAF 20.50 per liter), and the changes introduced in the frameworkof the UDEAC fiscal harmonization.

1/ The tbons dléquipementItiintroduced early in 1963, are two-year bonds bearing 3.5 percent interest. Banks and other savings institutionshave been obliged to invest 10 percent of their deposits in these bonds, and business firms have been required to invest part of their taxable profits (originallyalso set at 10 percent) in these securities. For business concerns the'bons dIéquipementt" are converted on maturity into 10-year bonds bearing 1.5 percent interest unless they can prove to a special commission established by the Ministry of Finance that they have meanwhile made investments equal to two, three or four times the amount of bonds purchased, depending on the priority of the investment. - 13 -

32. Although the estimated revenue fron foreign trade taxation rose substantiallyin 1966, the revenue from direct taxes increased even more, from CFAF 1.8 billion to CFAF 2.3 billion, i.e., 28 percent for the latter as conpared to 23 percent for the former. Higher income taxes and the in- troduction of a defense tax (taxe de défense nationale) were the main factors which accounted for this large increase in direct tax revenue. After having declined considerably in relative importance between 1962 and 1964, direct taxes have again become more important, although they still constitute a smaller part in total ordinary revenue than they did from 1960 to 1962.

33. Betu-ieen 1960 and 1966 total government expenditures increased fron CFAF 4.6 billion to -FAF 12.8 billion, or at about the same annual rate - 19 percent - as revenues. Development expenditures rose much more rapidly than current outlays from 1960 to 1965, but dropped off sharply in 1966. Even the lower 1966 level, however, reflects an average annual increase of 24 percent as comparedwith 19 percent 'om total expendituresand 18 percent for current expenditures. As will be noted from Table V, capital infrastructure - primarily roads - have accountedfor the largest part of developmentoutlays. In 1965, when the execution of the road program in the second forest zone was in full swing, expenditureson road constructionamounted to CFAF 2.5 billion or almost three-fourths of the total development expenditures.

3h. Table VI gives a breakcownr of current expenditures and their rate of growth. In recent years, the greatest increase in current expenditures was in the field of maintenanceand construction,which accounts for 18 per- cent of all current expenditures. Expenditures of the Ministry of the Interior have also substantially increased, mainly as a result of considerable expan- sion of the police force appropriations (fromaCFAF 70 million in 1960 to CFAF 385 million in 1967). Plst of the other major sectors of current expenditures (education, health, etc.) have increased very moderately.

35. Ever since 1960 Gabon has registered a surplus on its current budget. This surplus reached a level of CFAF 300 to 400 million from 1960 through 1963, CFAF 44 million in 1964, CFAF 21,7million in 1965 and CFAF 165 million in 1966. That these surpluses in the current budget have been maintained since 1963, when a considerable part of tax revenue became earmerked for the development budget, is in itself a remarkable fact. Taking the 7 years from 1960 to 1966, it appears that Gabon had a total surplus on the current budget amounting to CFAF 1.9 billion. If, furthermore, one includes in the ordinary budget surplus the revenue from the taxes which, beginning in 1963, were earmarked for the development budget, total public savings for the 7 above-mentioned years were as high as CFAF 10.5 billion or one-fifth of total current expenditures for the same period. The yearly amoimt of public saving increased from CFAF 0.5 bil- lion in 1960 to CFAF2.4 billion in 1966, at an annual rate of 30 percent. After the big jump in 1963, however, the rate of increase in public savings was much more modest; it amounted to hardly h percent per annum in the last 3 years. However, the increase in current expendituresmight have been higher and the rate of savings correspondinglylower if it had not been for the adop- tion of provisions allocatinga certain percentage of governnent revenues to the developmentbudget. - 14 - Table V: CONSOLIDATEDBUDGET L

In million of CFAF

1960 1961 1962 1963 1964 1965 1966 1967 Provisional Estimated resuutst

REVENUE Directtaxes 977 1,082 1,466 1,535 1,445 1,765 2,343 2,876 of which: Personaland corporate income taxes ( 649) ( 699) ( 947) ( 948) ( 976) (1,165)(1,618) (2,194) Individualtaxes ( 75) ( 87) ( 130) ( 128) ( 129) ( 60) ( 78) ( 110) Indirecttaxes 2,605 3,461 4,084 6,038 7,416 7,675 9,534 9,407 of which: Importtaxes (1,475) (1,838) (2,122) (2,928) (3,272) (3,441) (6,149) (6,244) Exporttaxes ( 550) ( 865) ( 875) (1,058) (1,617) (1,619) (1,579) (1,950) Internalturnover tax ( 242) ( 238) ( 290) ( 495) ( 721) ( 770) (1,035) ( 890) Taxeunique ( 75) ( 105) ( 110) ( 119) ( 152) ( 198) ( 311) ( 276) Taxeson alcoholicbeverages ( 245) ( 306) ( 467) ( 583) ( 731) ( 700) ( 743) n.a.

Registrationand stamptaxes 137 143 153 263 312 300 487 515 Publicproperty 662 736 813 915 530 601 676 1,043 Other 201 305 213 212 170 300 210 201

Totalrevenue 4,582 5,727 6,729 8,963 9,873 10,641 13,250 14,042 EXPENDITURES OrdinarY:/18 Wagesand salaries 1,581 2,108 2,428 2,778 3,101 3,291 3,520 3,'95 Generaloutlays 743 985 1,325 1,651 1,884 1,647 2,509 2,890 Maintenanceand construction 413 4°5 424 516 890 1,266 1,565 2,091 Transfersand subsidies 1,191 1,334 1,505 1,655 1,766 1,667 2,569 2,316 Others 1L4 272 207 235 316 716 695 614

Totalcurrent expenditures 4,072 5,104 5,889 6,835 7,957 8,587 10,858 11,506 Surplus 510 623 840 2,128 1,916 2,054 2,392 2,536 Development: Studies - - - 140 316 105 187 il Production - - - 140 281 290 344 187 Capitalinfrastructure 163 33 204 630 1,463 2,792 1,201 982 Socialand culturalinfrastructure 133 255 126 100 78 18 37 315 Participations 36 170 293 388 193 200 6i 460 Buildingsand urbandevelopment 204 324 387 787 170 - 100 - Others - - - 177 53 - 9 -

Totaldevelopment expenditures 536 782 1,010 2,362 2,554 3,405 1,939 1,955 Totalexpenditures 4 6 ,6 6.899 9,197 10,511 11,992 12,797 13,461

Over-all surplus or deficit - 26 - 159 - 170 - 234 - 638 -1,351 453 581 FINAMCIN,IG Publicdebt service4 182 193 568 231 742 707 989 976 Grossforeign borrowin!g 82 357 225 43 643 1,519 533 65 Grossdomestic borrowing - - 88 334 307 284 298 330

Net public borrowing - 100 164 - 255 146 208 1,096 - 158 - 581

Changein cash balanceincrease (-) 126 - 5 425 88 430 255 - 295 -

/a Grants from FAC, FED, US AID and the UN are not included in the budget. b Beginning in 1965, the nomenclature of ordinary expenditure items has been changed; hence the figures are not quite comparable to those for preceding years. /c Including pension obligations.

Source: ComptesDéfinitifs des Recetteset des D6penses and data supplied by the Gaboneseauthorities. - 15 -

Table VI: CURRENTEPENDITURES BY MINISTRI ANDFUNCTION (in million CFAF, current prices) 1960-67 19614-67 1960 1961 1962 1963 19614 1965 1966 1967 Rate of Rate of Estimated growtb growth

National Assenbly 98 164 166 161 113 136 150 151 6.LJ% 10.1M Wages and salaries 5 T5 I1 T5 1014 127 132 132 6.5% 8.3% Other operating expenses 13 10 8 il 9 9 18 19 5.6% 28.0%

Presidency 100 164 100 124 158 199 307 351t 19.8% 31.0% Wages and salaries 'T7 90g T3 719; T 24.0% 28.0% Other operating expenses 57 74 1J7 55 63 117 141 156 15.4% 35.0g%

Defense -- 357 52h 617 637 615 790 880 16.2% 11.4% Wages and salaries -- 27 327 3r9 11 390 li 1170 7.14% 1.1% Other operating expenses __ 90 197 258 236 225 356 170 31.0% 26.0%

Ministry of Interior Affairs / 1458 381 1437 1496 550 5hi8 716 853 9.3% 15.8% Wages and salaries 3 302 350 T V32 123- 3f 7.0% 11.6% Other operating expenses 85 79 87 92 118 125 195 253 16.8% 29.0%

Ministries of Finance, Plan and National Econoriy 183 220 262 309 350 336 389 L162 1>4.1% 9.7% Wages and salaries 7 -ln 211 -20 M 273 ' 373?7 11.6% >4.2% Other operating expenses 33 36 51 59 62 63 92 137 23.0% 30.0%

Ministry of Public Wdorks 116 1i47 179 202 230 142 182 221 9.6% - 1.1% Wages and salaries -7Z 92 97 110 137 118 T ;171 9.2% 8.3% O3ther cperatîng exoernses 30 55 82 92 93 21 35 147 6. 6 - 26.0%

Mirnistry of Education 3714 L02 351 532 644 665 743 868 12.8 10.14% Wages and salar;es 2r2 -E 230 8 7 WW E17 r7 19% 9.5% Other opersting 3xoenses 92 108 121 115 200 217 215 285 17.5% 12.6%

Ministryof Public Health 1,1,4 IJ8IJ 5b1 663 751 685 766 893 10.5% 6.o% Wages and salaries 25 w 3 3 E S8.14 3.9% Other operatingexpenses 193 198 256 315 359 307 356 153 13.0% 8.1%

Other Personnel and Operating Ex. 695 1066 1300 16214 1934 2291 2612 2298 18.6% 6.0% Wages and salaries 318 51 617 0 2 7 1I 915 73 8.5% - 12.8% Other operating expenses 377 615 683 922 1127 1169 1727 1735 214.0% 15.5%

Maintenance and Construction U13 1o5 1421 516 a90 1206 1566 2091 26.0% 33.0% Subsidies and Transfers 1191 131I4 1605 1591 1700 1667 2569 2316 10.0% 10.9%

Others -- __ __ 37 39 119 -- --

TOTAL h072 51014 58S9 6835 7957 8587 10858 11506 16.0% 13.0%

_/ Includes expenditures for police for all years.

.Z~~~~~~~~~~~

Source: Corptes Définitifs des Recettes et ies Dépenses, 8udget 05néral de Fonctionnement (1965, 1966, 1967) and data supplied by the Gabonese authorities. - 16 -

Money and Bankdng

36. The banking system in Gabon is, understandably, very limited. The country has three commercial bancs, two of which are foreign owned (the Banque Nationale de Paris and the Banque Internationale de ltAfrique Occidentale) and one of which is a joint venture between the Gabonese Governnent and foreign commercialbanis (Union Gabonaisede Banque). Together with the Banque Gabonaise de Développement (BGD), a financial institution owned primarily by the Gabonese Government and the Caisse Centrale de CoopérationEconomique (CCCE), the three commercial banks extend short- and medium-termcredit to the economy. Topping this structure is the Joint Central Bank for EquatorialAfrica and Cameroon (BCEAEC) which rediscountssome short- and medium-term credit, issues currency and keeps foreign exchange reservesmainly in the form of a current accountbalance (corpte d'opérations)with the French Treasury. Long- term credit, both to the private and public sector, is granted by the BGD, the CCCE and a few other financial institutions. Furthermore,in recent years, BGD has started launching public issues carrying Government guarantee on the French capital market, primarily for the financing of public wrks. Three such issues have been placed so far - in 1962, 196 4 and 1966 - for a total amount of FF 32 million (CFAF 1.6 billion): they were bought mainly by French insurance com- panies.

37. Total money supply - including currency, bank deposits and postal checking deposits - has increased fronaCFAF 5.6 billion in 1960 to CFA? 8.6 billion in 1966, at an annual rate of growithof 7.5 percent. This expansionoa the money supply has, however, considerablyslowed down in the last 3 years. 1Vhereasthe rate of yearly expansionhad been as high as 14 percent from 1960 to 1962, it slowed dotinto 7 percent per annum between 1962 and 1965. In 1966 total money supply in fact fell, for the first time, from CFAF 8.8 billion to CFAF 8.6 billion. The pronounced slowldomnbeginning in 1963, and the decline in 1966, clearly reflects the lower rate of economic expansion dhich,primarilr as a result of the comparative stagnationin the forestry and public works sectors, characterizedGabon for the last 3 years.

Table VII: MONEY SUPPLY (At end of period in billion CFAF)

1960 1961 1962 1963 1964 1965 1966 Currency(outside barks) 2.94 3.51 4.06 4.39 4.76 5.05 3.79 Bank demand deposits 2.53 2.76 3.00 3.22 3.46 3.58 4.60 Postal checking deposits 0.08 0.10 0.13 0.16 0.18 0.20 0.23 5.55 6.37 7.19 7.77 8.hO 8.83 8.62

Source: IMiF - InternationalFinancial Statistics.

38. Domestic bank credit expanded very rapidly frorm 1960 to 196h, but has since remained virtually stable, reflecting the slower growth of the economy. (See Table VIII). The largest part of the domestic credit consists of short-termloans; in Decernber1966 they aniountedto CFAF 6.4 billion or 73 percent of the total. - 17 -

Tab1e,TIII:-DOMESTIC CREDIT TO PRIVATE SECTOR

On December 31

(in billion CFAF)

1960 1961 1962 1963 1964 1965 1966

I. Bank Credits Short-term 6.57 5.76 6.h2 Mledium-term 1.13 1.02 1.07 Long-term o.74 0.96 1.25

Total 2.85 4.41 5.63 7.67 8.44 7.71 8.74

Rediscourtedwith Central Bank o.86 1.07 1.53 2.49 2.21 0.97 1.02

as % of total 30% 2>4% 27% 32% 26% 13% 12%

II. Treasury Credit Customs duty bills A n.a. 1.32 1.37 1.27

Rediscountedwith Central Bank 0.31 0.79 1.03 0.98

as % of total bills n.a. 60% 75% 77%

Sources: IMF - InternationalFinancial Statistics BCEAEC - Etudes et Statistiques

39. Short-term credit to the private sector is used primarily by trade and building industries. Figures for 1965 show that out of the short-term advances granted to the economy and registered with the Cen- trale des Risques (a centralizing information agency to which all commercial banks have to declare short-tern advances exceeding CFAF 10 million), 56 percent were absorbed by trade activities and 21 per- cent by building enterprises. Forestry only accountedfor 4 percent of the total.

These bills are short-term paper tbrough wbich the Treasury extends credit for up to 120 days to local importers and exporters for the paynent of their customs duties. Since 1963 the Gabonese Treasury bas increasinglymade use of the facility offered by the BCEAECto rediscount these papers, and this in spite of the fact that in June 1963 the rediscourt rate for the customs duty bills was raised from 2.65 percent to 4.0 percent. From CFAF 314 million in 1963, the out- standing amount of rediscounted custons bills has risen to CFAF 1.2 billion in 1966. - 18 -

10. The main channel for medium- and long-term credit is the Banque Gabonaise de Dé'veloppement.A public finance institution,with a major- ity Gabonese participation(60 percent),the BGD was set up in May 1960 to succeed the "Société Gabonaise de Crédit," whicb itself bad replaced the "Crédit de l'AEF" in 1959. Bank resources come from its own capital (CFAF 1 billion, of which CFAF 708 million bave been called), deposits from semi-publicand public institutions(amounting to CFAF 850 million in June 1965, but reduced in June 1966 to CFAF 563 million, because of recent witbdrawalsin favor of the Treasury),long-term and medium-term advances frmn the CCCE (some CFAF 600 million) as well as the above- mentioned public issues on the Frencb market. Furthernore,the BGD receives a series of special contributions(fonds de garantie)whicb serve as guaranteein the financing of specific operationswhich aim primarily at "Gabonizing"some sectors of the economy.

41. The most important of these funds is the Fonds de Garantie Forestiers. It is fed by tbree-nonthlycontributions from the OBAE (a semi-publicagency in charge of the purchase and sale of okoumé), and serves at granting medium-term credit for the purchase of equipment by small-scalelumbering enterprises. Total credit outstandingunder this heading may total as mucb as tbree times the amourt of the fund. As of Narch 31, 1967, this forestry fund amounted to CFAF 100 million, covering a total amount of credit outstandingof CFAF 195 million. Simailarfunds exist to cover medium-termloans for the financingof small- scale industry and housing.

42. Since 1948 the BGD and its predecessorshave granted total cre- dits for CFAF 9.3 billion, the bulk of which (i.e. CFAF 8.4 billion) have been corrmittedby the BGD itself. The table below shows that most of the oans granted since June 1960 were for the financingof public works (27.8 percent), followed closely by the loans for bousing (26.6 percent) and by the loans for the collective categoryincluding handicraft,indus- try and transport (27.3 percent). The repayment record has been very good.

T2ae i 'LOANS GRANTEDBY THE BANQUEGABONAISE DE DEVELOPPEMENT in million CFAF Sector From 1948 to From June 30,1960 June 30, 1960 to IMarch 31,1967 Amount Percentage Amount Percentage Agriculture/Municipalities 110 11.8% 889 10.6% Rural Improvements 29 3.1% 7 0o.% Handicraft/Industry/Transport146 15.7% 2,292 27.3% Forestry - - 477 5.7% Housing 619 66.6% 2,228 26.6% Consumer Credit 26 2.8% 156 1.9% Commerce 5 0.1% Public Works -- -- 2,320 27.8%

TOTAL 930 8,373 - 19 -

Prices and Wages

43. Price changes in Gabon are measured by means of three indices, all of which refer to urban centers. TWo of these indices measure the variation in retail prices - one for the European-type consumption, the other for the African-type consumption - while the third index shows changes in the level of wholesale prices.

41. As measured by these indicators, price rises in Gabon bave been relatively moderate, although in the last four years there bas been a tendency for prices to rise faster than in the past. Furthermore, European consumerprices tend to increase more than the prices of African-type consumer goods, partly because imported goods are weighted more heavily in the European-type consumption index than in the index pertaining to the African-type consumption and because recent increases in indirect taxation have mainly been levied on foreign trade.

45. Between 1959 and 1966 the European-typeconsumption index increased at an annual rate of 5.h percent. This rate is slightly higher than the Prebch cost of living rate of increase of 3.6%, in spite of the similar consumptionpatterns, mainly because of tariff increases on European-typeconsumption goods. In general, the trend of both the European type consumptionindex and the wholesale price index follow closely changes in French prices, with an additionalmargin for changes in tariffs and transport costs. Prices of African-typecon- sumption increased at an annual rate of 4.2 percent between 1962 and 1966.

Table X-: PRICE INDICES

1960 1961 1962 1963 19t4 1965 1966

Libreville (base 1959): European-typeconsumption 10o 106 110 123 132 136 145 Wholesale prices lo5 112 117 123 131 137 144

France (base 1958): Cost of living 110 114 119 125 129 132 136 Export 113 113 113 115 119 120 124

46. Wage determination in Gabon shows the same characteristics as in most French-speaking African countries.- A minimum wage - salaire minimun interprofessionnel.garanti (SMIG) - is set by decree and period- ically reviewed, at discretionwhenever it deems necessary, and obliga- torily whenever the index for African-typeconsumption increases by more than 4 percent. On the wJhole,the SMIG bas increasedmore rapidly than bas the index of African-typeconsumption. Whereas the latter increased at an average rate of 3.8 percent fron 1962 to 1966, the SMIG was raised at a rate of over 10 percent in the sane period. Over the period 1960 to 1966, the minimum wage rose by somethinglike 9 percent per annum, which is higher than the equivalentrise in the European- type consumptionindex (5.4 percent). The latest readjustmentin the - 20 -

SMIG took place in March 1967, when, under the pressure of increasing prices, the bourly wage was raised froenCFAF 40.00 to CFAF h2.50. This rapid increase reflects in part the existing labor shortage and the general increase in real wages. Rises in the areas of the country outside the urban centers of Libreville and Port-Gentil bave been higher than the ones outlined above, due to the fact that over the years the zoning systen bas been gradually abolished. As of August 1966 the minimum wage is the samne all over the country, whereas in previous years the country had been divided in up to three zones where wages were considerably lower than in the Libreville-Port-Gentil area.

47. Apart from the minimum wage determination, there exist in the country a series of collective agreementswhich stipulatethe level of wages for all wage-earnersin the sector. Such collective agree- ments exist for the main sectors of the economy: forestry,mining, commerce,transport, etc. . .; they are also periodicallyreviewed, but adjustments for the categories of more qualified labor tend to lag behind those for the SMIG. In the mining industries, for example, bighly qualified labor is being paid in 1967 at an hourly wage of CFAF 225.67 as compared to CFAF 186.16 in late 1963; this increase of 21 percent compares to a rise of 47 percent in the SHIG in the same period. - 21 -

III. ECONOMIC PROSPECTS

A. Overall Plan Targets

48. Gebon's economic prospects must be assessed in the light of possibilitiesof realizing the 1966-1970 DevelopmentPlan which the National Assembly adopted on May 9, 1966. This is the first com- prehensive plan, includingboth private and public investment,adopted by the Government. It was preceded by an interim plan covering the years 1963 to 1965 %ehichemphasized the principal directions that developmentshould take and projected public investmentby major categories. Data to evaluate the results of this plan are not readily available. Progress was acbieved in following some of the lines of development it stressed. This was true witb respect to the opening of the second timber extraction zone, the strengthening of the cormaun- ications among various parts of the country and the improvement of the educational systen. On the other hand, little or no progress was made toward certain other objectives such as the developmentof a deep water port and hydroelectric power or a shift of agricultural production away from export commodities and toward food required for local consumption. The projected public investmentof CFAF 19.6 billion was apparentlynot realized. Total resourcesmade available for public investment during the three years apparently totaled CFAF 16.7 billion of which 5.3 billion came from the budget, 8.1 billion from foreign grants and 3.3 billion fromnnet foreignborrowing. It shouldbe noted that the budget funds available considerablyexceeded the plan estinateswbich envisaged only CFAF 2.9 billion. National accounts data indicate that actual public investmentfor the 1963-65 period were CFAF 13 billion. Probably somethingbetween CFAF 13 and 16 billion were invested on public account.

49. The 1966-70 Plan envisages a total investment of about CFAF 90.3 billion of which 54.1 billion would be in the private, and 36.2 billion in the public sector. Except for a modest anount allocated to agricultureand some investmentin forestry,the developmentof production is largely left to private foreign investment and enter- prise. The actual amount of investment will therefore depend on the assessmentof profit opportunitiesby private enterprise. Public investment is primarily designed to provide the infrastructurefor the private sector. Tnansport,for example, is to absorb balf of the public investment. The planned allocation of investment by sector is shown in Table XI.

50. Because of the plants heavy dependence on the private sector, many of the planned invest-ments rermain uncertain as to their phasing and realization. The Mission estimates that out of a total of CFAF 90 billion planned to be invested over the five years, only CFAF 67 billion are likely to materialize. The pbasing of these investments will undoubtedly also be different from that originallyplanned. Accord- ing to the Plan the bulk of the investmientswould be concentratedin the first two years - CFAF 20 billion in 1966, and CFAF 17 billion in 1967. Statistics on actual investment for 1966 are not yet available,but it - 22 -

Table XI! FIVE YEARINVE3ST11ET PLAN (1966 - 1970) in Million CFAF

190Total 1966 1967 168 1969 Private Total Publie o rivate Total PablIc Priante Total Public Private -Tota PabIlo PrivaPte Total PblIc Private Total Public Dmestc eoroig- I. PRODUCTION 287 109 9 118 66 9 75 453 442 235 1,130 Agriculture, livestock, fisheries 329 16 345 179 126 305 212 75 98 9 107 6$ 9 74 4l4 285 155 854 192 16 208 143 106 249 201 601$ 21671 il -- il 1 -- 1 39 157 80 276 iUncertaiuFairly certain projects projects 137 --- 137 36 20 $6 il 2,150 7,377 250 2,470 $07 250 757 420 -- 420 4,h30 797 Foc-eetry 390 82$ 1,21$ 1,690 82$ 2,51$ 2,220 970 507 250 757 420 --- 420 1,930 797 2,150 4,877 Fairly certain projects 390 825 1,215 690 825 1,515 720 250 ------___------2,500 2,500 Uncertaih projecte ------1,000 --- 1,000 1,500 --- 1,500 --- 4,760 4,760 --- 4,760 4,760 ------27,400 27,400 Nining j/ --- 8,110 8,110 --- 4,910 4,910 --- 4,a60 4,860 6,648 36 4,542 4,578 36 496 532 372 350 22,386 23,108 Industry 578 2 661 3,239 36 8,075 8,111 36 6,612 1,148 36 542 578 36 496 532 222 200 7,156 7,578 Pacrly certain projecte 278 2,281 2,559 36 2,725 2,761 36 1 112 5500 -.- 4,oo0 4,ooo ------150 150 15,230 15,530 Ulncertain projecte 300 380 680 --- 5,350 5,350 --- 5,500 335 --- 333 333 --- fl 333 333 36 1,835 1,871 Touriam, transport and trade 36 398 434 --- 436 436 -__ 335 60,886 14,600 652 9,894 10,546 522 5,598 6,120 5,291 1,589 54,006 Total plamned production 1,333 12,010 13,343 1,905 14,372 16,277 2,468 12,132 641 5,894 6,535 521 5,598 6,119 2,602 1,282 38,696 42,5s0 Total fairly certain 896 11,630 12,526 869 9,002 9,871 957 6,572 7,529 7,071 il 4,000 4,011 1 - 1 2,689 307 15,310 18,306 Total uncertain 437 380 817 1,036 5,370 6,406 1,511 5,560

Il. INFRA3TRUCTURE 2384 --- 2,370 3,755 7,998 --- 11,753 2,577 --- 2,577 1,789 --- 1,769 2,633 , 2,3843633 2,370 Eoadsuand bridges --- 1,894 1,090 --- 1,090 3,038 6,314 --- 9,352 projects 2,538 --- 2,538 1565 --- 1,565 2,265 -$-- 2,265 1,894 Fairly certain 490 --- 490 1,280 --- 1,280 717 1,684 --- 2,401 Uncoertain projecto 39 --- 39 224 --- 224 368 --- 368 $ 515 290 --- 290 140 --- 140 643 4,415 62 5,120 Air and Water transport Â/ 1,955 15 1,970 2,158 47 2,205 515 -- 271 162 --- 162 148 --- 148 618 771 --- 1,389 Rfadio, T.V, Telecomunicationa l / 347 --- 347 461 --- 461 271 ---

--- 5,152 --- 1,315 1,288 --- 1,288 231 --- 231 1,630 3,522 and Water 705 --- 705 i,613 --- 1,613 1,315 --- 2,152 Poirer 315 --- 315 288 --- 288 --- _--- -- 1,630 522 certain projects ------613 --- 613 --- 3,000 Fairly 1,000 --- 1, 1,00 1,000 ------3,000 Uncertain projects ------1,000 --- 1,000 250 250 --- 250 250 --- 250 1,200 ------1,200 City Planning 200 --- 200 250 --- 250 250

--- 284 1,350 --- 1,634 567 ______500 500 Railroads I/ 567 _ 567 567 - 3,639 --- 3,639 8,130 18,056 62 26,248 6,351 15 6,366 6,838 47 6,885 4,984 --- 4,984 4,374 --- 4,374 Total planned infrastructure --- 3,884 2,359 --- 2,359 7,413 16,372 62 23,847 6,312 15 6,327 6,614 47 6,661 4,616 --- 4,616 3,884 Total fairly certain 368 490 -- 490 1,280 --- 1,280 717 1,684 --- 2,401 Total uncertain 39 --- 39 224 --- 224 368 -- - III. SOCIALINVESTMNT8 102 --- 102 145 --- 145 343 369 ___ 712 reclth 158 --- 158 143 --- 143 164 --- 166 1,846 30$ 375 --- 37$ 34$ --- 34$ 901 945 Education 417 --- -404417 404 30$ 2,558 ___ 469 477 --- 477 490 --- 490 1,244 1,314 -- Total social investments 575 --- 575 547 --- 547 469 _566 --- 515 111 --- 111 130 _-- 130 102 102 9 IV. STUDIES 126 ___ 126 106 --- 106 4,753 5,598 10,351 14,'674 21,525 54,068 90,267 8,38$ 12,02$ 20,410 9,396 14,419 23,81$ 8,032 12,132 20,164 5,633 9,894 15,527 TOTALPLANNED INVESTNENTS 10,026 5,598 9,070 11,268 16,534 38,758 66,56o 7,909 11,64$ 19,554 7,136 9,049 16,185 5,153 6,572 11,72$ 4,132 5,894 3,472 23,707 Fairly certain investments _8,439 1,501 4,000 5 50, 1,281 __ 1,281 3,406 4,.991 15,310 Oncertain investicents 476 380 856 ~~~~~~~~5,7 ~~~~~2,260.30 2 879 5,L560

1J AUl planned investments in this Tield ceem fairly certain to be undertaken within the plan period. | Education expenditures as listed in the plan exclude a credit of CFAF 428 million which had already been granted before the start of the plan period as vell as another CFAF 463 million for expenditures on specialized training programs included either under Forestry or under lEealth.

Scarces le Plan de D6veloppement Economique et Social du Gabon, 1966-1970. - 23 - is unlikelythat totalinvestiments reached the plannedlevel. While privateinvestments may have beer as high as CFAF 12 billion,public investinentwas probablywell below the expectedlevel of CFAF 8.h billion. Total1966 investmentswere probablyin the orderof CFAF 16 to 17 billion.

51. The plan expectsGDP to rise at a rate, in constantprices, of about7.5 percentper annum,with 1963 as the base year. Sincethe plan apparently somewhat overestimated gross product for 1963 and real economic growtb between 1963 and 1965 was rather small, GDP would have to increase at a rate of arcund 11 percent per year from a 1965 base if the Plan objective is to be met. As will be seen from the subse- quent analysis, it is very unlikely that such a bigh growth rate can be achieved.

B. Production 52. The Plan gives agriculturea ratherlow priority. Total invest- ment in agriculture, livestock ard fisheries is projected at only OFAF 1.13 billion,or 1.9 percent of planned investments in production and 1.2 percentof total investments.I This rightlyreflects the very modestprospects of increasingoutput over the next five years. As alreadyindicated, production for the markethas been almost negligible. The amountoa cocoa sold bas fluctuatedbetween 3,000 and h,000tons per year and sales of Robustacoffee bave seldomexceeded 1,000 tons. Marketings of groundnuts are anly around i00tons per year and ôf paddy aotmore than 1,000 tons at best. Sales of paimail and kernels are very small. Largely owing to the prevalence of the there are only about 3,500 cattlein the whole country. Agricultureis largelydevoted to the cultivationof manioc and plantainswhich are the staplefoods of the populationand aimprimarilygro-an for subsistence.

53. The plantsprojects in the fieldof agricultureare generally small - mostly on a pilot scale - and focussedin large part on efforts to raise the outputof cocoa,coffee, rice, groundnuts and vegetables for the urban market. The resultsare likelyto be modest,partly becausemarketing costs are bigb and tbe non-agriculturalsectors of the economy have so far provided rore attractive incomae opportunities for that part of the rural populationwhich is enterprisingand anxious to increaseits earnings. In time the growtfhof demardfor foodmay lead to increasesin pricesthat will providea more decisiveimpetus to output. It shouldbe noted,however, that urban consumerpreferences are largelyfor Europeantypes of food such as bread. Anotherfactor likelyto make for slow progressis the very limiitedavailability oa trainedagricultural staff. Most of the proa,ectsdepend heavily on foreigntechnical assistance.

A more detailedsurvey of the variaussectors of the economyand their prospective development is given in Appendices A - E. - 2>4-

Forestry

54. In the realm of forestry the principal objectives of the Flan are to (1) accelerate the transfer of exploitation from the first to the second extraction zone, (2) give special encouragement to Gabonese entrepreneurs, (3) increase the rate of reforestation and (4) develop the production of pulp for export. Altogether the plan hopes to raise timber output fromn the level of about 900,000 tons at which it seems to have stabilized in the three years 196>-1966 to a total of slightly over 1,000,000 tons in 1970. The output of okoumé, which is the principal species exploited and is especially suited for the manufacture of plywood and veneer, is expected to remain stationary. Extraction of other species, which exist in abundance and which have yielded an average annual production of 110,000 tons in the first half of the 'sixties, is therefore to be increased to over 200,000 tons. 55. The systematic transfer of lumbering from the first or coastal zone was first initiated in 1961 and has been prompted by the progressive exhaustion of the forestry resources of this zone and the desire to reserve the remaining timber there for extraction by Gabonese as distinct froin foreign entrepreneurs. The process has been facilitated by the denial of further permits for exploitat on in the first zone and the grant of tax concessions to entrepreneurs moving to the second zone. By 1966 well over half of the okoumé output camnefrom the second zone; and by 1970 the proportion is to be raised to 80 percent. Apart from considerable private investient, this entails large investments in infrastructure. Thus out Of CFA 11.8 billion earmarked for roads in the Plan, 60 percent is directly related to the forest penetration program. In the coastal zone extraction has relied almost wholly on water transport but in the second zone, which is above the "lNIaterfall" line, forestry exploitation is largely dependent on the construction of roads.

Table XII: TLIBER PRODUCTION (quantities in thousand tons, value in million CFAF) 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 Okoumé: Quantity 586 634 682 737 782 700 761 821 79>4 786 Value 4078 4771 6122 6949 8075 7028 7940 8914 8>438 8123 Other varieties:a/ Quantity sj 73 74 114 108 84 113 122 113 103 Value 550 509 592 916 998 721 871 1004 923 1003

a/ Exported production only

Source: Rapports annuels sur la situation économique, financière et sociale de la République Gabo-naise. -25 -

56. While most of the lumbering is stili carried out by European enterprises,the share of Gabonese in the production of okoumé rose from 10 percent in 1960 to 28 percent in 1966. However, of the !rGabon- ese"'output of 220,000 tons, 80,000 tons was actually extractedby European enterpriseson behalf of Gabonese permit holders. The plan aims rot so much to raise the total amount of timber produced by Gabknese as to improve the present rather low quality of most of the timber extract- ed. Unorganized felling by villagers and individual artisans is to be discouraged in favor of government-aided and sponsored cooperative efforts. Producers are to be grouped and provided with technical assist- ance and equipnent that would make possible more efficient exploitation. In principle, this appears to be a worthwhile program, though management and organizationallimitations may slow up its implementation.

57. Apart from the movement of large-scale timber extraction to the second zone, the Government bas initiated a long-term project to reforest the coastal region. Following experiments with okoumé plan- tations at the forest research station, replanting on a larger scale was launcbed in 1959. By the end of 1966 some 16,000 hectares had been planted, and the annual rate of replanting bas been raised from 2,000 to 3,000 hectares per year. Reforestationcosts about CFAF 100,000 per hectare and is being carried out by the parastatal Société Technique de la Forêt d'Okoumé (STFO) wbich is financing the scheme, costing CFAF 1.5 billion over five years, from a reforestationtax on timber exports. Since reforestationprovides a much denser stand of okoumé than under ratural conditions,continuation of this program could provide by the year 2015 a constant yearly production of 900,000 tons from the reforested areas. While it takes a long time for okoumé to mature, the necessary thinning operations on reforested land could supply by 1975 some 300,000 tons of young timber wbich might be used for pulp.

58. The most costly project in the plan - that relating to the developmentof pulp production- is also the most uncertain of realiza- tion. It envisagesthe constructionof a pulp mill witb a capacity of l40,000 tons and a total private investment of CFAF l1 billion. Develop- ment of the appurtenantforestry resources would entail a public invest- ment of CFAF 2.5 bîllion; and the Kinguélé hydro project for whih CFFAF 3 billion is included in the plan is designedprimarily to supply power to the pulp mill. There are also related investmentsin a saw mill, a veneer factory and roads and buildings. The whole project bas been under study by a joint private and public company, Cellulose du Gabon. However, the large private enterprise which bas participatedin the study and was expected to undertake the project bas apparentlyfound it more attractive and less risky to expand its considerable holdings in the pulp industry by acquisition of already existing mills abroad. For the time being the project therefore seems to be in abeyance.

59. If the Mekambo-Owendo railway is built early in the 'seventies, additional forestry areas could be tapped. It bas been estimated that tbese new areas could yield about 950,000 tons of timber în the first year after the operation, rising perbaps to 1.8 million tons five years later (say, 1980). The Government bas decided to carry out a detailed - 26 - forestry survey of the area in order to assess its potentialmore accur- ately. Financing of this project has been requested from UNDP. Pending the findings of the survey, the Government bas also taken the decision that the wbole area (basically, the polygon extending north-eastwards from the line Bigasse-Mlitzic-Koumameyong-Koulamoutou ) would be ternporar- ily reserved and would not be opened for new permits. To what extent the exploitationof this area might increase Gabon's total output and exports of timber would depend, of course, on the decline in supplies from other forest areas and world market demand. In Gabon it is anticipated that timber output which may increase to 1 million tons by 1970 would probably drop somewhat in the 'seventies owing to supply limitations if new forest areas were not opened up.

Mining

60. In mining, wbich was the most dynamic sector of the economy in the 'sixties (See Table XIII), production of uranium and manganese is unlikely to increase during the plan period, but substantialinvestt- ments in the exploration and development of oil reserves can be expected. In the longer run, development of the large and rich iron ore deposits of the Mekambo region offers the most promise of a large increase in mineral output and exports.

61. The production of manganese, mined by the Compagnie Minière de l'Ogooué (COMILOG) is unlikely to exceed significantly the annual level of nearly 1.3 million tons already reached because output is limited to the capacity, already fully utilized, of the 73-kilometer ropeway by which the ore is evacuated to the railhead in Congo (Brazza- ville), and there are no present plans for doubling this transport facility. There appears to be no prospect either of raising tihe output - now at 1,600 tons per year - of uranium ore which is being exploited by a mixed French company (the Compagnie des Mines d'Uraniumde Franceville, or COMUF)and sold at fixed prices to the French Commissariat à l'Energie Atomique (CEA). 62. Petroleum was first discovered and exploited by the Société des Petroleâ' Afrique Equatoriale (SPAFE). Since the 1956 discovery of-theMandji field, there bave been other significant finds; the Anguille field in 1962 and the 1963 discovery, by the association SPAFE and Shell-Gabon, of the Ganba field in the Port-Gentil area. Taking into account the still existing, albeit rapidly declining, production fromIMandji, the present production fron Anguille and the new finds in Gamba, it can be estimated that annual production which was 1.45 million tons in 1966, will reach about 4 million tons in the next few years. If new discoveries are not made, the level of output will start decreasing by 1970, as a result of the depletion of the existing Mandji field. Pros- pects for new discoveries, however, are very encouraging; and an output of 7 million tons by 1975 would not be surprising. - 27 -

63. By 1967 total investrnent in the petroleum industry, both for exploration and exploitation purposes, amounted already to nearly CFAF60 billion, of which CFAF>46 billion had been invested by SPAFE and CFAF14 billion by Shell-Gabon. The investment progranm for the coming years - as communicated to the mission by the petroleum indus- try - amounts to approximately CFA? 5 billion per annun, but in case new discoveries are nade it may well be as high as CFAE8 billion. In any event, the actual investment program is likely to surpass the estinate of CFAF23 billion for the 5 year period made in the develop- ment plan.

Table XIII: MINERALPRODUCTION (value in million CFAF)

1960 1961 1962 1963 19ioh l95 1966

Petroleum' Quantity 800 77>4 827 944 1068 1281 1447 (thousand tons) Value 25h5 2318 2555 2591 3129 3385 3225 Natural gas Quantity 7>7451 6700 8790 8613 9457 10647 11493 (thousand m3) Value 26 23 30 30 33 37 h4 Gold Quantity (Kg.) 55o 475 507 1111 1330 1155 1071 Value 149 114 115 274 310 286 247 Uranium ore Quantity (tons) -- 969 1300 1317 1>400 1644 1599 Value -- 1482 2193 1909 1954 23>48 2399 Manganese ore Quantity -- - 203 637 9>8 1275 1268 (thousand tons) Value -- -- 1382 3548 52>49 9763 9486

Source: Situation économique, financière et sociale de la République Gabonaise and staff estirnates.

6h. Gabon's richest mineral resource, the Mékamboiron ore is still unexploited. Discovered in the late 'fifties in the northeastern part of the country, the reserves are now evaluated at almoast 1 billion tons of high-quality (64 percent Fe content) ore, which puts themn arnong the largest deposits in the world. Prospecting and preparations for mining of the deposits bave been in the bardsof a private company - the "Société - 28 _ des Mines de Fer de Mekambo (SOMIFER) - half of the shares in this com- pany are held by Bethlehem Steel, 20 percent by French private and public financial institutions, 5 percent by the Banque de Paris et des Pays-Bas, and the remainder by French, German, Italian, Belgian and Dutch steel producers. 65. The bulk of the ore is located near Belinga, at a distance of more than 560 km. from the sea. Exploitation of the ore would involve not only the development of mining facilities, but also the construction of a railway and the equipment of a mineral port, at a total investment cost provisionallyput at around CFAF 70 billion. A final cost estimate awaits the completion,by mid-1968, of a final engineering survey of the railway which itself wiU probably entail an investment of over CFAF 40 billion (the balance would be for mining facilities,special ore wagons and the ore port).

66. A final decision on this large project will depend on the amount of ore which major steel producers will contract to buy and the contri- bution which timber traffic can be expected to make to railway revenues. There is some doubt whether the minimum ore offtakewhich appears to be assured (5.8 million tons per year, unless timber production to be devel- oped in the area assures a substantialadditional income to the railroad) is sufficient to ensure the financial viability of the railway. The project, is, however, under active and continuous consideration,and only its timing seems to be in question. At best the railway could hardly be completed before 1974/75. Except for the cost of studies and surveys, the financing of this project will accordinglyfall in the period following the current 1966-70 Plan.

67. ITithinthe 1966-70 Plan period, total investment in the mining sector is estimatedat CFAF 27.4 billion, the largest part of which (84 percent) is expected to be made in the petroleunindustry. As mentioned before, financing of the investment program in petroleuum exploration and exploitation seems assured, and is in fact likely to exceed the forecast. The remainingitems amount to CFAF 4.4 billion; they represent relatively small investments to be made by COMILOG, SOMIFER and CMUF, and the cost of certain studies to be financed by foreign aid. The amounts involved seem realistîc.

Manufacturing

68. Large scale manufacturingactivity is restricted at present to the wood-processingindustries. Plywood is manufacturedin Gabon ex- clusivelyby the Société de Gestion de la CompagnieFrançaise du Gabon (SGCFG)located at Port-Gentil. The factory, with its production of 63,000 m3 per year, is one of the largest in the world. There are three veneer factorieswith a total output of 25,000 m3 , all of which is ex- ported, and seventeensmall saw mills. Consumer goods industries are little developed owing to the limited market, and are confinedprimarily to the processing of food and the manufacture of beverages. A small ship repair and boat-building yard is located at Libreville. - 29 -

69. Apart from some expansion in the production of veneer and ply- wood, there is likely to be little developmentof the wood-processing industries unless the pulp project can be realized contrary to present indications. Two major ventures already under constructionand scbe- duled for completionby the end of 1967 are an oil refinery at Port- Gentil and a brewery at Libreville. The refinery,wbich will bave a tbroughputof 625,o00 tons, is a "conmon market" venture witb each of the five UDEAC governmentsholding 5 percent of the share capital in the mixed company that will operate the refinery. Total investment in the refinery is estimated at CFAF 4.5 billion.

70. No agreementhas been reacbed on other UDEAC ventures. The projected cement plant whicb was dependenton access to the Cameroon market bas had to be abandoned in favor of a plant that would simply grind imported clinker. A Gabonese proposal to establisb a bottle glass factory is still awaiting UDEAC approval. Similarly, a proposal to set up a dry-cellbattery plant using manganese oxide suppliedby COMIIOG is apparentlydependent on an assured market in UDEAC as a whole.

71. Since industrialdevelopment has been almost entirely developed by Europeans,the Government bas establisbeda special institution called Promo-Gabonto foster the developmentof siralland primarily Gabonese enterprise. This institution,to which has been assigned 1h percent of the sale of equipmentbonds, carriesout feasibility studies, provides tecbnical advice and other promotional services. 11hile it bas already demonstratedits usefulness,it can bardly be ex- pected to bring about a very rapid developmentof local enterprisein view of the shortage of entrepreneurialtalent.

72. Total investment in industry - nearly all private - is thus expected to be far below plan expectationswhich envisaged CFAF 15.58 billion for the wood-processingindustries including the pulp plant, and CFAF 7.53 billion for other industries. For the first the Mission estimatesinvestmnent at only CFAF 1.58 billion and for the reniainder about CFAF 6.0 billion.

C. Infrastructure

Transportation

73. For transportationthe plan envisages an investment of CFAF 16.9 billion, of whicb 11.8 billion is for roads, 4.1 billion for ports and waterways, and nearly 1 billion for airport facilities. These investmentsare likely to be carried out broadly as indicated.

74. Part of the road investment is for a CFAF 7 billion programi wbich was launched in 1963 and is due to be completed by the end of 1967 witb much of the financing provided by the IBRDJ, FAC, FED and Mi. This was designed priimarily to facilitate penetration of the second forest zone and complement the river transport system in the coastal region. The balance of the proposed investment will serve largely - 30 - the same purpose; and many of its component projects are in an advanced stage of preparation and are expected to get additional foreign financing.

75. Of the CFAF 4.1 billion provided for ports and waterways, pro- bably as much as CFAF 3.5 billion will go for the construction of a deep water port and related facilities at Owendo below Libreville. Construction of this port which is expected to start by the end of 1968 with financial assistance from FED, anticipates in part the building of the ?4ekambo-Owendo railway.

76. Gabon has a fairly well-developednetwork of air services which are operated by a private French company and which perform a particularly useful function in knitting together a country that will inevitably con- tinue to suffer fromainadequate land transport facilities. Air traffic has been growing rather rapidly, and additional investment in airports is accordingly considered necessary.

Telecomunications

77. Libreville and Port-Gentil have at present automatie telephone networks which are already operating at full capacity, 1600 telephone lines in Libreville and 600 in Port-Gentil. In the interior only Oyem, Lambarene, Mouila, Moanda and Bitam have automatic exchanges, while Franceville and Owendo have manual exchanges. All these centers are linked by radio for telegraph and telephone traffic. International communicationsexist with Brazzaville and Paris.

78. Because of the construction of the Port of 0Jendo, the indus- trial growth in the area and the general expansion of Libreville, it is estimated that the demand for telephone service in the Libreville- Owendo area is very likely to double by 1970. The plan, therefore, envisagesan expansion of the telephone network to take care of the future needs of the Libreville-Owendo area. Expansion and moderniza- tion of the telephone networks of Port-Gentil,and some of the centers of the interior are also contemplated. There also is a project to establishmicro-wave telephone communicationbetween Libreville and Brazzavillevia Mouila and Dolisie, wqhich could later be expanded to link other minor centers. The total cost of telecommunication expan- sions and developmentis estimatedin the plan at CFAF 1,389 million.

Electric Power and Water Supply

79. The plan foresees an investment in power and water supply of CFAF 5.15 billion, but it seems unlikely that this will be realized. With respect to electricitythe principal load centers are Libreville and Port-Gentilwhere production,supplied entirely by thermal stations, was 23.2 million and 25 million KWH respectivelyin 1966. Consumption has been rising rapidly, particularly in Libreville where it is expected to reach about 40 million KWH by 1970 and 98 million KWH if the pulp nill - 31 -

and cement plant are built. *Nhile additional generating capacity and distribution facilities will undoubtedly be needed in the Libreville- Owendo area in view of existing and assured development projects, the fact that the cement project has been reduced to a clinker grinding plant and that the pulp scheme is unlikely to be realized for the time being appears to make it advisable to defer the Kinguélé hydroelectricproject included in the Plan. This project, costing a minimum of CFAF 3 billion, was designed to develop a firm capacity of 17,000 KW and deliver an output of 135 million KWH. On the other hand, the expansion oa water supply fa- cilities in Libreville and Port Gentil has become urgent and the Governnent is now seeking long term financing for a program based on the development of water supply systens in some of the major urban areas, including the future port of Owendo.

Education

80. The Plan envisagesinvestments in education of about CFAF 1.8 billion which is equal to around 5 percent of projected public investment. As indicated previously, Gabonts education system, modeled on the French, has expanded rapidly since 1960, so that by 1966/67 enrollment in the primary and secondaryschools was the equivalent of 75 percent and 10 percent res- pectively of children in the 6 - 15 and 12 -19 age groups. It is not sur- prising, however, that this expansionhas been accompaniedby some sacrifice in quality and by difficultiesin adapting education to the actual require- ments for various types of skilled manpower in the econony.

81. Planned educational development in the coming years is expected to focus largely on teacher training, expansion and diversification of secondary schools, revision of curricula, improvements in equipment and extension of vocational training centers.

82. The Gabonese educaticnalsystem has enjoyed considerableexternal support. Foreign aid to education amounted to the equivalentoa $5.5 million in 1966, with France contributingabout 60 percent, FED 20 percent and the U.S. 10 percent. Assistance from these sourceswill undoubtedly continue and is expected to be supplementedby an IBRD-financedprogran costing around CFAF 750 million.

D. The Overall Cutlook

83. On the basis of the foregoing analysis, some indication can now be given of the prospective development of total output and exports and of the possibilitiesof financingthe projected development.

Output

84. It is difficult to project GDP because the estinates for the past are not urhollyreliable and considerabledifficulties arise in any attempts to correct the Plants prognosis for 1970 in the light of possible shortfalls. It is possible that GDP in 1970 will be around CFAF 65 billion in 1965 prices, wbich would imply an annual growth rate of - 32 - around 5 percent i-ri.th1965 as the base year. This might seem surprising in view of the fact that the output of the forestry sector will at most probably rise only 10 percent over the entire five-yearperiod,and that a significant increase in agricultural putput can also bardly be expected. The petroleun industry will in fact account for much of the increase pro- vided crude output is indeed raised from 1,281,000 tons in 1965 to 4,000,000 tons in 1970. The "value addedr'of this additional output will presumably be rather high, since it will be achieved largely on the basis of past outlays. Thus the contribution of the mining sector to GDP should rise substantiallydespite the relative stagnationin the output of minerals. Among the other productive sectors the completion of the refinery, sore further expansionof the wood-processingindustries and the establishment of a number of new industrialplants should raise the contribution of the "industrial" and "energy" sectors by about a half from 1965 to 1970. There will also be modest increases in the cortribution of the service sectors of the economy including transport, communications and commerce.

85. Two observations should be made in connection with this very rough projectionof GDP. One is that much of the increase in GDP will not directlybenefit the Gabonese economy, but will be transferredabroad as additional investment income. The 1965-70 Plan document estimated in fact that investmentincome transfersmight rise from CFAF h.ù billion in 1963 to around CFAF 14 billion in 1970, and that of this latter amount CFAF 12 billion would come fror the mining sector. While the Mvission was unable to check this estimate, there is little doubt that investment income payments will be rising rather rapidly, particularlysince, apart from the petroleuraindustry, there will be little need in the mining sector to retain any significantportion of gross export proceeds for investmentin Gabon.

86, The other observationthe Mission would make is that the 1965-70 projectionmakes no allowance for the stimulus to economic growth which investment in the mining and transport facilities for the developmentof the Mekambo iron ore depositswould impart. The timing of this project is likely to be such that at best no signifi- cant impact would be felt before the final year of the period.

87. Looking beyond 1970 to the next five-yearperiod, it is likely that the econory'sgrowth will slacken considerablyunless the Mekambo project is undertaken. To be sure, it may be possible to raise petroleum output still further to 7 million tons, but this is necessarilyqualified by the uncertaintiesattending oil exploration. Timber extractionis un- likely to expand unless and until the constructionof the Mekarbo-Owendo railway opens up new forest reserves; and the output of minerals is not ex- pected to rise. Nor are the prospects for industrialdevelopment'very bricht unless it should prove possible, after all, to carry out the wood pulp scheme. Under these circumstances,the Nekarbo developmentwould be the key to economic groirth,first by greatly stimulatingconstruction activity and then by making possible, tow}ardtme end of the 1970-75 period, the export of iron ore and of substantiallylarger quantitiesof timber. - 33 -

Exports and Imports

88. Considerationof the probable evolutionof exports confirms the above pîcture. As Table XIV indicates, tbe value of exports, including trade with UDEACcountries, may rise from CFAF 26.3 billion in 1965 to around 36 billion in 1970. Most of this increase is due to the probable rise in exports of crude oil to a level of 3,350,000 tons and to the expected sale of refinery products to other UDEACcountries. The projected value of total exports for 1970 implies an average annual rate of increase of 6.5 percent from the 1965 base. If the larger exports of crude oil do not materialize, the rate will drop to 3.5 percent. Even the latter rate assumes - perhaps somewhatoptimistically - that the extractionof timber from the second zone, which is the criticallimita- tion on export potential, can be raised sufficiEntly to permit a sigpi- ficant increase in the export of logs other than okoumé. The projection also assumes that it eill be possible to keep the production and export of manganese at tbe maximum permitted by the existing capacity of the ropeway. Prices of the principal exports are generally expected to remain stable tbough an annual decline of one percent in the price of petroleum has been assumed.

89. If the Mekambo developmentis not undertaken,exports except perhaps of petroleum, will tend to stagnate completely according to present indications. A further rise in the output of petroleum to 7 million tons - a possible but not certain development- could raise total exports further from around CFAF 36 billion to CFAF 41 billion per year,or at an averageannual rate of approximatelyh percentper annum.

90. The evolutionof imports is difficultto forecast. There is little reason to believe, however, that imports will rise disproportion- ately to exports in such a way as to create a significantbalance of payments problem. The volume of imports will, of course, be determined by the demand for consumer and investment goods in Gabon. To the extent that an increasing portion of GDP and export proceeds may well be trans- ferred abroad as factor income (especially investment income) payments, this will detract from demand for imports. The probabilitythat invest- ment will be well below Plan projectionsimplies that the demand for investment good imports will be less and that the resources available to finance them - new imports of capital and foreign enterprise earnings retained for investment- will also be correspondingly less. A tendency toward disequilibrium wçould develop only i- the Government should exper- ience difficulty in financing its own investmert program.

Investment Magnitudes and FeasibilityT

91. The probable composition and magnitude of investments in the 1966-70 Plan period has already been discussed in the preceding section of this report. Table XV summarizes the Mlission'sconclusions about the likely magnitude of private and public investment. It will be noted - 34 -

Table XIV

ProJection of Exporte

(Volume in thousand muetric tons, value in million CFAF) 1965 1966 1970 1975 / Volume Value Volume Value Volume Value Volume Value

Timber Products Okoumélogs 653.6 6,946 642.6 6,641 650 6,700 650 6,700 Other logs 113.2 923 103.1 1,003 130 1,300 160 1,600 Plyioodand veneer 32.9 2,260 34.5 2,122 40 2,660 44 2,900 Other 15.8 333 14.6 319 - 350 - 400

Minerals

Gold (kilograms) 1,095 271 922.0 213 400. 100 300 70 Manganese 1,149 8,802 1,181.0 8,835 1,300 9,700 1,300 9,700 Uranium 1.5 2,142 1.4 2,101 1.5 2,250 1.5 2,250 Crude Oil 1,281 3,385 1,408.2 3,866 3,350 8,840 6,350 15,930

Agriculture

Cocoa 3.3 256 3.8 327 4.0 300 4.0 300 Coffee 0.7 102 1.7 132 2.0 125 2.0 125

Other n.a. 483 n.a. 361 - 400 450

Total

Recorded Trade 25,905 25,920 32,725 40,425

UnrecordedTrade 389 742 3,500 / 3,500Z/

Grand Total 26,294 26,662 36,225 44,425

- / Projectionsfor 1975 do not includethe possibleexports of timber and iron ore resultingfrom the Mekamboproject.

/ Including exports of petroleumproducts to other UDEAC countriesof about CFAF 2,790 million. 35- that investment will probably be about CFAF 24 billion or 30 percent less than the Flan projections,and most of the shortfall - CFAF15 bil- lion - will be in the private sector. As already indicated,reductions in the originally planned public outlays are primarilythe consequence of the Missionts expectationthat the pulp project with its related public investmentin forestry,power, etc. is unlikely to be realized.

Table XV: PROJECTED INVESTMENTFOR 1966-70

Public Private Total

Plan Estinate Total 36.2 54.1 90.3 Annual Average 7.2 10.8 18.0

Mission Estimate Total 27.8 38.8 66.6 Annual Average 5.6 7.8 13.3

92. The financingof the expectedprivate investmentshould not prove difficultfor it consists of reasonably certain projects which private capital - largely existing foreigu enterprise and new foreign enterprise- is deemed urillingto carry out, and for which the public sector is cormmittedto provide any complementarypublic investinent.

93. If probable public investment is averaged over the five-year period, the resulting amount of CFAF 5.56 billion does not appear abnor- mally large in relation to the &FAF 5.7 r,iillionestimated to have been invested in 1965 according to the national accounts or to the average figure of CFAF 1.3 billion over the three years 1963-65 inclusive. Apart from the question of financing,whicb trillbe consideredin sub- sequent paragraphs,the executionof a prograr of this magnitude sbould not on the whole encounter serious difficulties. Nearly 70 percent of the investment w4ll fall in the transport sector where much of the necessary preparatorywork on projects bas been completedor is underway. Tbe Commissariatau Plan, whicb operates under the supervisionof the Minister of Economic Affairs, Development,Planning and Mining, is responsiblefor (1) ensuring that invrestmentprojects are -vorkedout in accordance ritbthe Plan, (2) coordiuatingrequests for technical assistance and studies, (3) preparing and acministeringthe development budget for whicb 20 percent of governrentrevenues are earmarked, and (4) supervising programs or projects financed from external smurces. Within the Cornissariatand the agencies directly responsiblefor various parts of the program, there is still considerableforeign advisory and technicalpersonnel to assist the Gabonese ministers or directorsand their staff. All this does not mean, however, that the Commissariat always bas the necessary means to coordinate the execution of the Plan and to see that the "discipline" of the Plan is observed; nor does it imply that there will not be delays in carrying out the projects in the Plan that the MJission has characterized as reasonably certain. There will - 36 - inevitably be organizational and staff deficiencies at times and also failures to take timely decisions. These will, however, principally affect the phasing of the public sector program rather than its total size. The Plan envisages that total expenditures on the projects whicb the Mission consideredlikely to be carried out would start at a high level of CFAF 7.9 billion in 1966, decliningprogressively to only CFAF 3.5 billion in 1970. In fact delays are likely to produce a much more even expenditureover the five years.

Financing of the Public Sector

94. The feasibilityof financingthe public sector progran inust now be considered. According to indications supplied in the Plan, the public investment of CFAF 27.8 billion would be financed fron external sources to the extent of CFAF 16.5 billion and fron internal sources in the amount of CFAF 11.3 billion. In the light of past experience, the arount of foreign financing anticipatedis not unreasonable. Ir 1966 disbursements of foreign aid totaled CFAF h billion exclusive of French technical assistance (See Appendix F Table 17);and over the three years 1964-66, disbursementsaveraged CFAF 3.6 billion. All the governments and institutionsthat bave contributedto this total in the past bave continuingprograns or are likely to make additional commitments.

95. Of the domestic resources the Plan expected about CFAF 8 billion to come fron the goverrnment'sdevelopmnent budget, and the balance fror,the internal resources of autonoreouspublic semi-public institutious sucD as the BGB, the SEEG (the Société d'Energieet d'Eau du Gabon whicb is responsible for electricityand water supply) and the PTT (Office des Postes et Téléconmunications).Since the latter institutionsmight have sone difficultyin mobilizing their share of funds, it rnightbe safer to assume that the developmentbudget would have to supply CFAF 9 billion or about CFAF 1.8 billion per year.

96. IJhetherthis can be done mill depend on the rate at which ordinary government revenue will increase and on the extent to which these bigher revenues will be absorbed by rising current exo.enditures. As already pointed out, governmnentrevenues frorm1960 to 1966 rose at an annual rate of 19 percent per annum. This reflected not only the marked increase of GDP in current prices, but also the tax increases in 1963 and 1966 which were instrumentalin raising the proportion of goverunentrevenue to GDP from 14.5 percent in 1960 to almost 24 percent in 1966. In projecting revenue to the year 1970, it would probably be imprudent to expect that it will exceed 24 percent of GDP, partly because the prevaUing tax regime will increase government income from oil rather slowly, and also because the rate of increase in the volume of imports, which furnish much of the tax income, nay lag behind that of GDP. On this basis, ordinary governmentrevenue in 197f0could be CFAF 15.6 billion. This calculationis at 1965 prices since the investmentplan has also been costed at 1965 prices. Table XVI indicates the approximaterevenue that might be expected and the amount that might be set aside for the - 37 - developmentbudget under prevailing regulations. Provisionalestimates of actual receipts for 1966 have been deflated by 5 percent for price changes; and it bas been assumed that the total from 1966 to 1970 will rise at a uniform rate. On this basis, revenue would rise from around CFAF 12.6 billion in 1966 to 15.6 billion in 1970. If in accord- ance with current regulations,the developmentbudget sbould continue to receive 20 percent of ordinary revenue, total allocations over the five-year period would be approximately CFAF 1h billion, of wbicb, how- ever, probably about CFAF 3.5 billion would be required for debt service. The balance would in theory still be CFAF 1.5 billion in excess of the resources that would bave to be rade availablefrom the development budget to finance the public investmentprogram.

Table XVI: PROJECTIONOF GOVERIMENT ORDINARYREVENUE (in billions of CFAF at 1965 prices)

Year Revenue For Development For Current Expenditures

1966 12.6 2.h 10.2 1967 13.3 2.7 10.6 1968 14.0 2.8 11.2 1969 1h.8 3.0 11.8 1970 15.6 3.1 12.5

TOTAL 70.3 13.9 56.4

97. It is somewhat doubtful, bowever, that a fifth of the govern- ment's ordinary revenue could continue to be assigned without a drastic cut in the rate at which governnent current expenditures bave been rising in the past. Froui1960 to 1966 these expenditures increased at a rate of 17.75 percent per annum, and, after discounting the effect of the rise in prices, probably at a real rate of around 12 percent. The very large jumps that took place from 1960 to 1961 and from 1965 to 1966 undoubtedlyraised the averagerate of increase considerably. Fromn1961 to 1965, for examnple,the annual rate in real termnswas considerably lower - probably a little over 8 percent; and from 1960 to l965 it was approximately10 percent. Even so,these rates are higher than the average increase of 7.7 percent that would be possible fron 1965 to 1970 witb the continued allocationof 20 percent of ordinary revenue to the development budget.

98. It bas already been indicated that projected expenditures on development service are unlikely to absorb all of the governnent revenue now assigned to tl- developmentbudget. It may be assumed, for exraple, that in 1970 domestic resources required for developmentand debt service would be respectivelyCFAF 1.8 billion and 0.8 billion, or a total of CFAF 2.6 billion. This would then leave approxiaatelyCFAF 13 billion for current expendituresin 1970, and rouldmnake it possible for these - 38 - outlays to increase at an average annual rate of 8.6 percent from the 1965 base or at 5.9 percentfrom the much higherlevel of 1966. It shouldnot be impossiblefor the governnentto keep the rise in current expenditureswithin these limits, but it will obviouslyrequire a determinedeffort.

Foreign Debt

99. Earlierit has been notedthat the Plants expectationthat the public sector might receive external financing in the amount of CFAF16.5 billion (about $66 million) appears reasonable in the light of past experi- ence. Sinceprobably over half of this wouldhave to be borrowed, the countryts abilityto serviceadditional debt needsto be examined.

100. Gabontsoutstanding foreign debt, including undisbursed, amounted as of December-31,1967 to $62,517,o00.On this amountservice is estimated at $6,927,000in 1968, $7,127,000in 1970,and $4,337,000in 1975 (See Table18, Part 1, AppendixF).

Table XVII: FOREIGNDEBT OUTSTANDING AS OF DECEMBER31, 1967 Ihousand Billion US $ CFAF IBRD 25,266 6.24 France (CCCE) 25,160 6.21 (KFW) 3,875 .96 Publicity issued debt 6,017 1.49 Privately placed debt 2,199 .54 62.,517 15.44

This total, however, apparently excludes a government-guaranteed supplierst credit of CFAF3 billion used by the SociétéEquatoriale de Raffinage (SER) for the construction of the refinery. This would add another $12 million to the external debt figure of $63 million given above. Ca this total debt the Mission estimates debt service in 1968 at approximately $8,3 million. This probably is the equivalent of nearly 7 percent of projected commodity export proceeds in 1968. Calculated on commodity export earnings minus net invest- ment income payments, the debt service ratio would be 8 percent, and 1l percent when computed on the revenue from comodity exports minus net invest- ment income and private transfer payments.

101. Several observations should be made about the external debt burden. First of all, the outstanding amount should go down considerably over the next four or five years, particularly as the rather short-term suppliers' credits are paid off and if the government is prudent enough to curtail the use of such credits in the future by the various agencies in the public sector. Secondly, more than half of the debt is not government debt but only guaranteed by the government; and of the guaranteed portion a substantial portion has been contracted by commercial concerns such as COMILOGand SER. Thus over - 39 -

the five years 1967-1972 the annual service on the IBRD loan to COMILOG alone averages $2.81 million of CFAF 694 million (by 1975 it will be paid off). Loan payments by such concerns do, of course, come out of export earnings,but they probably do not actually reduce the amount of foreign exchange availableto Gabon since in the absence of such loan payments, the amount of investment income transferredbu these companieswould pre- sumably rise proportionately. The service on the governnentlsown external debt should not occasion any balance of paynents pressures as long as the governnentcan fully cover all its outlays through tax and other revenues collected from the public, as well as supplementary external aid, and therefore does not need to resort to inflationaryborrowing from the banking system. We have already indicated above that the governnent should be able to fulfill this condition with reasonably prudent financial management.

102. In the light of the above factors, the lission considers that the governnentshould be able to borrow the rather modest amounts needed for such purposes as roads and improvementof education over the next few years. In the longer run, borrowing on a large scale for the Mekambo railway and mining project must be separatelyjustified on the basis of a final evalu- ation of this entire scheme, including the amount and types of foreign financing it wili require in relation to the increase in national product and foreign exchange earnings it will generate. APPENDIXA

AGRICULTURE,LIVESTOCK AND FISHING

Agriculture

1. Although there are a few small export-oriented industrial plan- tations, the bulk of the agricultural output in Gabon is produced by the traditional sector mostly on a subsistence basis. The sbifting pattern of traditionalagriculture makes it difficult to measure the area under cultivation,but it bas been estimated at 125,000 hectares.

2. Traditionalagriculture has up to the present provided adequate food supplies to the population,but consumer preference,particularly in urban areas, bas shifted to European-typefoodstuffs which the Gabonese agricultural milieu is largely unable to provide. Estimatesindicate tbat 30 percent of the food budget of the urban consumer is spent on imported food (for the rural consumer the percentage is 6 percent). This already existing tendency,combined with the gradual movement from rural to urban areas, is likely to divert more food demand from the domestic agriculturalsector to imports.

3. Capital is very scarce in the rural sector and agricultural credit almost nonexistent. Agriculturalcredit bas been channeledsince 19h8 tbvougb the Banque Gabonaise de Développementwith the funds being provided by differentinstitutions. The Société Gabonaise de Crédit was the first agency responsible for agriculturalcredit. It was succeeded in 1962 by the Société Gabonaise de DéveloppementRural (SGDR) which in turn was replaced in 1965 by the Office National de Commercialisation Agricole. Between 19h8 and Varch 31, 1967, only CFAF 275 million were lent to agriculture,most of which were short term loans for tbe purpose of helping the farmer bridge a liquidity gap between the barvest and sale time; only about CFAF 70 million can be consideredto be development loans at medium or long term. It should also be pointed out that these CFAF 275 million only represent3 percent of the total credit granted by tbe BGD. Three percent of the CFAF 275 million are considered "dubious loans" (probabledefaults).

4. The basic functionsof the SGDR were (a) to act as a marketing agent for agricultural products, (b) to operate four pilot farms for demonstrationpurposes, (c) to manage the Cocoa MarketingBoard and (d) to manage the agricultural credit. The ONCAreplaced the SGURin 1965 but only took over the marketing of agricultural products. Operation of the pilot farms was entrustedto the Direction of AgriculturalServices, agricultural credit to the Banque Gabonaise de Développement, and man- agement of the Cocoa Marketing Board to the Direction des Affaires Economiques. Another credit institution,the Caisse Nationale de Cré- dit Rural, was founded in October 1965, but its lending activitieshave been rather limited.

5. Agriculturaltechnical training and research have been largely lacking. Some agronomicresearch was undertaken at the station of Oyem but was limited to rubber and cocoa trees. Occasional agricultural A - Page 2 -

researchbas also been performnedby the Institutdes RecherchesAgronomi- ques Trapicales(IRAT) at the requestof the GaboneseGovernment, and agreement is being sought to have the IRAT conduct researcb on a more regular basis. Intensive research mainly on rice growing bas been carried out by a Nationalist Chinese group of consultants who have pro- vided techuicalassistance to Gabon since 1963 in connection with the Akok-Tchibangaprojects mentioned below.

6. A vell equippedpedological department under the management of ORSTOMbas been makingsurveys of Gabon since1960. The most pro- misingareas are NorthernGabon and the ChailluRange where soilsare suitedto a wide range of crops. In the Lebambaand the Mayombe-Bapounou regions,the soil is rathersandy. Elsewhere,the loss of forestcover- ing and shifting cultivation patterns hbve contributed to soil depletion and erosion. In general,the soil is poor in mineral reserves and even where fertilizershave been used, higher yieldscould not alwaysbe maintained.Rîinfall is relativelyabundant and well distributed,and the averageyearly sunsbine fluctuates around 1800 hours. 7. There are approximately7,500 hectaresunder coffeecultiva- tion. The total coffeeproduction for 1966 can be estimatedat 2000tons. There is a considerableamount of smugglinginto Rio Muni which makes productionestimates difficult. There is very limited room for further increases in coffee production since Gabont s export quota bas been fixed by international agreement to 1500 tons. Xarketing is the responsibility of ONCA,which buys the coffee cherries and processes them for export. The buying price for coffee cherries is revised yearly and is stabilized to some extent through the Fonds de Soutien des Produits Agricoles. PRODUCTIONOF SELECTEDAGRICULTURAL COMMODITIES Quantity in metric tons; value in million CEAF 1960 1961 1962 1963 1964 1965 1966 Cocoa (exported production only) Quantity 3300 3200 3391 3000 3600 3300 3782 Value 440 331 265 245 306 256 327 Coffee(exported production only) Quantity 300 500 625 600 1100 724 1675 a/ Value 38 68 93 88 173 102 132 / Groundnuts Quantity 400 410 195 360 422 440 308 Value 19 18 8 14 18 21 15 (industrial production) Quantity 384 400 425 555 1067 1146 1003 Value 20 22 21 29 58 68 52 Palm kernels Quantity 20 8 5 10 290 407 271 Value 1 - - - il 17 il Rice (paddy) Quantity 916 785 553 673 997 1017 550 Value 19 18 13 17 26 26 1l a/ The sharp increasein the production figure is due to inclusion of estimatedsmuggling into Rio Muni. Source: SituationEconomique, Financière et Socialede la République Gabonaiseand staffestimates of value. A - Page 3 -

8. Most of the production of cocoa is exported legally, but some Smuggling also occurs. Exports in 1966 were 3,782 tons. The bulk of the production comes from the Woleu-N'Ten region where ecological con- ditions are particularly favorable. Stabilized prices are enforced by a cocoa marketing board presently under the management of the Direction des Affaires Economiques. The support price fluctuates around 75 CF.AF/Kg. being at present 70 CFAF/Kg. The board bas at the moment reserves of CFAF 150 million. These reserves are replenished yearly by a budgetary appropriation'tôthis effect.

9. Palm oil industrial production is mostly exported. In 1966, 1,003 tons of oil and 271 tons of kernels were exported. It is calculated that an additional1,000 tons are produced by traditionalmethods for domestic consumption. Industrialproduction is mostly in the hands of the Société Gabonaise des Oléagineux (SOGABOL), a state company, and Palmhévéa, a company affiliatedwith the Unilever group.

10. Pepper bas been produced in two industrialplantations at a level of 7 tons per year,but since196h, when productionfell to 4 tons, the output has continuedto decline, ceasing altogetherin 1966.

11. Rice cultivation was introduced in the Tchibanga region in 1947. Production increased steadily until 1955 when it reached 1,000 tons but bas stagnated at this level since. Cultivation takes place on cleared forest land and the yields have been rather low.

12. Manioc and plantain are the staple .of the majority of the Gabonese people. A 1960 survey estimated that some 80 percent of the cultivated land is devoted tc these and other foodstuffs which for the mnostpart are grown for subsistence.Rough estimatesof the area and production of these crops are given below.

Crop Area (hectares) Production

Manioc 142,000 165,000 tons

Plantain 13,500 80,000 tons

Groundnuts 13,500 10,000 tons

Taros 14,200 20,000 tons

Others (maize and other vegetables) 14,000

13. The investmentin agriculturalprojects consideredin the plan amounts to CFAF 617 million; this represents1 percent of total planned investments in production and 0.7 percent of total planned investments. The largest of these projects is located in the Woleu N'Tem region and involves an expenditure of CFAF 334 million. This project, which will A - Page h - be financed by FAC, involves the supply of extension services to some 85 villages in the neighborhood of Iélèneand Bolossoville. Although some efforts toward diversification will be made, the program will tend to concentrateon improved techniques applicable to the existing crops, mainlycacao, manioc, groundnuts and plantain.

1h. Otherprojects worth mentioning are the Akok and Tchibanga rice growingprojects which are being mmplemented,with ratherlimited success,by Formosantechnicians and the Médouneuproject for the cul- tivationof vegetables,whicb is of particularinterest in that it con- stitutesan atternptto grow European-typevegetables which are not traditionalto Gabon, and which are presently imported. The total cost of this projectonly amountsto CFAF 33.2 million. A similarproject plannednear Librevillebas been abandoned.Another project which has been droppedfrom the plan is the expansionof the oil palm plantation in M'Vily. In view of the competitionto be expectedfrom otherAfrican countries,it was decidedthat the projectwas not profitable.

15. Becauseof the peculiarcharacter of food deriandin Gabon, and becauseof the low productivityof agriculturalactivities in general- due to high clearingcosts, low soil fertilityand consider- able transportationcosts - agricultureis a sectorof low priority in the plan,and is likely to remainso in the foreseeablefuture. Orly if, under the impulseof the dynamicsectors of the economy,the internalterzs of tradeof agriculturalgoods would improveand income opportunitieswiden, could one expectsome changeto occur in this situation. Livestock 16. Cattlebreeding is concentratedin the savannahareas of the southeastregion. There are ouly about3,500 head of cattlein Gabon of the Ndama,Lagunes and Baoulébreeds, all of which are somewbat trypano-resistant.There is an abattoirin Librevillewhich was financed by FIDES and a small rancbingoperation under the managementof the SociétéGabonaise d'Elevage (SOGEL) whieh was financedby FAC. 17. The plan envisagesestablishment of two veterinarycenters at Tchibangaand Mitzic. Therewould alsobe, in addition,four mobile centerswith headquartersin Oyem, Nloanda,Ndendé and Tchibanga. These centerswill provideveterinary care and promotecattle breeding. The totalinvestment cost wouldbe aroundCFAF 32 millionto be financed by the GaboneseGovernment. 18. A breedingranch financedby FED was installedin Moandain 1966 and a secondone to be set up at Biborais contemplatedfor the secondplan. Industrialcattle breeding is contemnplatedthrough expan- sions of the SOGEL ranch so as to attainthe goal of 10,000head by 1972, and an abattoiris to be built to processthe cattlefor consumption. The total investmentcost of the expansionof the ranch and of the study and implementationof the abattoirwill be about CFAF 105 million. A - Page 5 -

Fishing

19. Littleindustrial fishing exists at presentin Gabon,the only concernworth mentioning being PEGAB. All the catch is sold in Libre- ville and Port-Gentilwith only a smallquantity of fish reacbingthe interiorbecause of tbe limitedmeans of refrigeration.Total yearly productioncan be estimatedat 1,250 tons.

20. Only one projectin industrial fishing is likelyto be imple- mentedin the presentplan. This is a tuna fishingproject which will probablybe financedout of privatefunds. The investmentcost will be aboutCFAF 134 million. Two more projectshave been considered- a shrimpfishing project and a sardinesproject - but they are not likely to be undertaken in the near futuredue to the limited size of the shrimp reserves and to the low price of sardines. Expansion of present fishing facilities for the domestic market is being considered.The additional investmentwill representabout CFAF 60 raillion.

21. Traditionalfishing, carried out along primitivemethods and in smaIl quantities - mainly in rivers and lakes - is done irregularly and on a subsistence basis. There are few commercial fishermen. 22. Pisciculture was introduced in Gabon by the Agricultural Service in 1954 and was continued by the Service des Eaux et Forêts in 1955. Fish ponds were developednear Libreville,Mbigou, 14imongo, Tchibanga,Oyem, Lastourville and Koulamoutou.Lack of propercare from the villagersbas not been conduciveto success. New effortsto revive piscicultureand providethe villagersbetter information and assistance on how to care for the fish and the ponds are contemplatedin the plan. Thisproject will be financedin part by UNDP and partlyby tbe Gabonese Governmentat a total cost of CFAF 8.h million. Technicalassistance will also be givento the peoplefishing in the Lacs du Nord. APPENDIX B

FORESTRY

1. The forests of Gabon contain many varieties of tropical trees, arong wbich some forty-ninehave been recognized as having a potential marketablevalue. In spite of this great choice of availabletimber okoumé bas for a long time remained almost the only exploited variety. It is only in the 'fifties that the lumbering of other varieties started gaining in relative importance; from less tban 5 percent of total forestry productionin 1950 the productionof other varieties rose to around 15 percent of the total in 1960. Since then, the productionof other varieties bas slightly declined again, both in absolute and rela- tive terms, due primarily to the sharp drop registeredin 1965 and 1966 in the production of ozigo, the second most important variety of tropical wood exploited in Gabon.

2. Originally,lumbering in Gabon was concentratedin the coastal area, because transportationcould be managed easily and economically by floating the logs down in the rivers and w¢aterwayswhich flow through the region. Arourd 1956, however, it was felt that the hinterland should be opened up for exploitation. Already somie years earlier a boundary had been officially drawn between the first and second forest zone, essentiallyfollowing the line of waterfallswhich separate the coastal region from the plateaus of the interior and which forn an in- surmountablebarrier for the floating of the logs. Beginning in Novem- ber 1956, exploitationpermits for the second zone wvereissued. It was not until March 1961, however - one year after independence - that drastic neasureswere taken to speed up the penetrationof the second zone. The Government decided that, in view of the rapid depletionof the first zone, the large forestry concerns should be compelledto move into the binterland,and tbat the still existing stands in the first zone should be reserved to Gabonese who could not afford the considerable financialinvestinents required for the more capital-intensiveexploit- ation of the second zone.

3. Okoumé density is very low. In its early growth stages okoumé requires a great deal of light and the heavy vegetation cover existing in natural stands considerablyhampers its development. A ser- ies of surveys conducted in 1952 in the first zone bas indicated that the density of exploitabletrees - witb a minimum diameter of 70 cm. - is hardly about two trees per hectare, which amounts to almost 12 m3 per hectare. Because of its low density and slow growt-h- it takes fromn50 to 60 years for an okoumé to attain a diameter of 70 cm. - natural depletion sets in very quickly.

h. On the basis of the 1952 forestry survey and taking into account the okoumé production which bas taken place from 1952 to 1962, it can be estimated that in 1962 the total reserves of okoumé in the first zone amounted to only approximately6 million tons. Considering that the then existing annual production of 700,000 tons carie entirely from the first zone, and taking into account lumbering losses amounting B - Page 2 -

to 30 percent, the first zone would have been virtual2y entirely depleted of okoumé after six or seven more years of continuous exploit- ation, i.e. by the end of the decade.

5. To prevent this depletion a certain number of measures were taken to acceleratethe movement into the second zone - non-renewalof expiring exploitationpermits in the first zone (except for those held by Gabonese citizens or those relating to relatively small areas), transfer of permits from the first to the second zone, the granting of temporary tax exemptions and, last but not least, the construction of roads in the area of penetration.

6. As a result of the policy directed towards the exploitation of the second forest zone, the tonnage of okoumé production ir the first zone bas steadily declined. By 1964 only slightly more than half oafthe okoumé productionin 1964 came from the first zone; and it is expected that by the end of the plan (1970) the first zone ieill only accourt for 150,000 tons of okoumé or 19 percent of the expected production in that year.

7. Ta promotemore active participationof the Gabonese population in forestry production and to discourage the tenancy system (fermage), which in many cases resulted in European concerns extracting the timber on bebalf of Gabonese permit holders, the Government bas embarked on an intensified program of tecbnical and financial assistance including technical teans under supervision of the Service des Eaux et Forets (ATEG) and credit facilities offered by a special forestry fund set up in the BGD. The Government, furthermore, envisages the creation of two cooperative services (COMEX)which would assist medium-size Gabonese enterprises(or associationsof 5 to 6 srmall permit holders) in the building and maintenanceof feeder roads and in the transportation of the logs. Finally,the alreadyexisting Institut National d'Etude Forestière,a forestryschool set up in 1959 primarily to form lower- level personnelin the administration,will be expandedto includea sectionat the level of highereducation. 8. Okouméis ordinarilymarketed through the Officedes Bois de l'AfriqueEquatoriale (OBAE), a semi-publicagency wbich has a monopoly on the purchaseand sale of okounéand ozigo,both in Gabon and Congo- (razzaville.).This agencyacts as a marketingboard; it surveysforeign and domesticmarkets, signs deliverycontracts, fixes domesticpurchase and exportprices, and if necessary,imposes production quotas on its suppliers.Producers who processokoumé in their own plantsin Gabon or in countriesbelonging to the EuropeanEconomic Community (plus ) do not have to markettheir output through OBAE. In recentyears, this shareof okoumélogs not marketedby OBAE bas increased; from 25 percent in 1958 it rose to 35 percentin 1966. APPENDIXC

1MIING

1. While the developmentof forestry was the dominant feature of the economy for several decades, mining bas overtaken forestry in recent years in terms of its rate of growtb and its contributionto total ex- port earnings. The mining sector's contributionto Governmentrevenue, on the other hand, bas only recently caught up with the sector's expan- sion, because under the provisions of the InvestmentCode profits from the manganese exploitationwere not taxed until 1965, and it is only since 1966 that the profits of the Compagnie Minière de leOgooué (COMILOG)have been taxed at the rate of 22.26 percent establisbedin tbe concession agreement - a rate wbich is considerably below the present- ly prevailing profit tax of 3h percent. Whereas taxation of the mining sector only accounted for h percent of Government ordinary revenue in 1962, this share will be nearly 20 percent in 1967. In the future, the fiscal contribution of the mining sector is likely to increase further both in absolute and relative terms as the industry's tax concessions come to an end, and the production of oil increases.

2. Gold was the first mineral to be exploited in Gabon; production goes back as far as the early 'forties. The level of production bad apparently settled at a level of arourd 500 kgs. per year in the early 'sixties, wben it suddenly more than doubled in 1963, due to new dis- coveries in the Northeast of Lastourville and to a reorganization of the sector by the Société Gabonaise de Recherches et d'Exploitation Min- ières (SOGARDEI),a newly created public company in charge of prospecting and mining. In 1964, productien amounted to 1,330 kgs., but since then it bas again dropped somewhat. In view of the very narrow profit mar- gins presently existing and in anticipation of the gradual depletion of existing sites, gold production in Gabon is expected to fall back in the next years to something like 400 kg. in 1970, unless new discover- ies are made. Prospecting activities, partly financed by FAC, are being carried out in various parts of the country.

3. Uranium was discovered by the French Commissariat à l'Energie Atomique (CEA) around Mounana it 1956. In 1958 a company with private participation- Compagnie des Mines d'Uranium de Franceville (CMUF) - was set up,and production got under way in 1961. Until recently,mining was by the open pit method, but in 1966 a shaft of 200 m. was sunk to permit extractionof underground deposits. At present the production level stands at 125,000 tons of ore, which is being refined in a cbenical plant to 1,600 tons of concentrate,containing some 500 tons of uranium. Known reserves are estimatedto last for 8 more years, but the investment policy pursued by the company seens to indicate that prospecting activitiespresently being pursued may well considerably extend the life of the mine. Originally it wias expected that annual production during the 1966-71 plan would remain stable at the level of 1,200 tons of concentrate, but figures for 1965 and 1966 indicate that the production may be more in the neighborbood of 1,600 tons per year. The ore is sold to the CEA under long-term contract at a fixed price of CFAF 102 per kg. C - Page 2 -

>4. Manganese is now the major source of foreign exchange earnings from mineral production in Gabon. In the last two years it has provided 60 percent of tbe foreigr exchange earnings (oil included) and 34 percent of the earnings from total exports.

5. Altbough traces of manganese ore had been discoveredin Moanda as early as 1945hjthe decision to exploit the ore was only taken in l957, when the CompagnieMinière de l'Ogooué (COMILOG),originally set up as a prospectingcompany, increased its capitalto CFAF 2.5 billion. The largest number of shares (49 percent) is held by U.S. Steel, who is the only consumer of ore among the sharebolders. An IBRD loan of US$35 million (CFAF 8.75 billion) was inadeto COMILOG in June 1959. It was decided to evacuate the manganese froenthe mine by means of a 76 km. long cableway to M'binda, in Congo(Brazzaville),and from there via railway to Pointe- Noire.

6. Actual production started in 1962, when the output amounted to 203,0O0 tons. Since then, production bas graduallyincreased to almost 1.3 million tons in 1965. Production bas tended to stabilize at this level and cannot increase beyond 1.L million tons without constructing a second cableway or - possibly - a rail connectionbetween Moanda and the future Owendo-Belinga railroad. Nelther of these alternativesis, bowever.,being seriouslyconsidered for the moment.

7. Apart from its output of regular ore, COMILOG also produces some enriched,bigb-quality ore used in the manufactureof electricbat- teries. Last year, the production ofathis ore stood at the level of 5,739 tons, although the processingplant installed in Nloandabas a capacityaf 10,000 tons. Up to now, the entire production bas been exported,but studies of tbe feasibilit-yof producingbatteries in the country have been undertaken. If such a project is realized, it would absorb part of the domestic productionof enriched ore.

8. Explorationfor petroleumin Gabon dates back to the period irmediatelyfollowing World War II, when the Société des Pétroles d'Afri- que Equatoriale (SPAFE), a subsidiaryof the French state-ownedEntre- prise de Recherches et d'ActivitésPétrolières (ERAP),was given a 40 year explorationpermiit for a total on-shore area of 15,000 square miles. Ten years later more perits were granted for of'-shore exploration.

9. The firstoil was discoveredby SPAFE in 1956 on the islandof Mandji, in the far western part of the Ogooué delta. Productionstarted in 1957 at a level of 173,000 tons, and gradually increasedto almost 1 million tons in 1962. Total known reserves at that tim.ewould only bave permitted exploitationfor 5 or 6 more years, but in 1962 off-shore drillingled to the discoveryof the Anguille field, some 15 km. frome the coast. The latterfield bas an exploitablereserve of 50 million n in 1966 it produced 250,000 tons, but it is estimatedthat by 1966 the productionof the Anguille field alone wiil be as high as 1 million tons. C - Page 3 -

10. In the meantime, SPAFE had decided to fan out from the Port- Gentil area in joint ventures witb subsidiaries of Mobil Oil and Shell (Shell-Gabon). After 5 years of fruitless prospecting, Mobil Oi. witbdrew. The association of SPAFE and Shell-Gabon, however, was more successful. In 1963 an entirely new oil field was discovered in Gam.ba along the coast some 250 km. southeast from Port-Gentil. Production started only in 1967 because substantialinvestments were required, including special facilities to deal with the high viscosity of the petroleum and a 6.5 km. long submarinepipe-line for delivery of the oil to tankers, Output is expected to increase to 2 million tons a year, and while known reserves are only 10 million tons, the prospects for proving additional quantities are very encouraging. By 1970, total petroleum production is expected to be about h million tons and, depend- ing on the success of research,may very well reach 7 million tons by 1975.

11. A by-product of the petroleum production is the availabilitg of natural gas. Yearly productionpresently arnountsto 80 million m , most of which-is flared,but part of whicb - some 11 million m3 - is sold to the Société d'Energieet d'Eau du Gabon (SEEG) for the production of electricity; these sales anount to about CFAF ho million per year. Sales of natural gas will more than double next year when some 18 mill- ion m3 will be sold to the Société Equatorialede Raffinage (SER), the cmmpany which by the end of 1967 will start refining a considerable part of Gabon's petroleum production in the Port-Gentil area. APPEGDIX D

MANUFACTURING

1. The greatest activityin manufacturingis in the wood process- ing industries such as plywood and veneer factories and sawmills. As already mentioned in the text, the Compagnie Française du Gabon (SGCFG) is the sgle plywood manufacturer in the country. With its output of 63,000 r , it is one of the largest plywood factories in the world. An expansion programn to be completed in 1968 at a cos5 of CFAF 600 mil- lion will increase the factory'scapacity to 75,000 m . Practically all of the plywood production is exported.

2. Almost all the plywood produced by SGCFG is made of okoumé, but some other woods are occasionallyused. Althoughmost of the tîmber reeds are suppliedby two subsidiarylumbering concerns (the Compagnie d'ExploitationForestière Africaine and the CompagnieGénêrale de Plan- tations et de Placages de l'Ogooué), some tinber is also obtaired fronm the OBAE. The plywood yield in relation to the volume of logs used is around h7 percent. A large proportionof the waste could be used for making particle board, but given the present market prices and the relatively high production cost, it would not be a profitableventure.

3. There are three veneer factories in Gabon with a combined production of 25,000 m3 , all of whibchis exported. The most important is the Compagnie Africaine de Placages. Although at present the price prospects for veneer are not as good as they are for plywood, it is expected that production will reach 0,0OO ni by 1970. h. There are 17 small saw mills in existence with a total produc- tion of hG,000m 3, the only one worth mentioningbeing the one belonging to the ConsortiumForestier et Maritime near Libreville. They produce sawn and cross-beams,only ho percent of whicb are exported. M4ostof the saw mills operate well below capacity. Exports are difficult because of strong competition froni saw rills abroad.

5. Other industries are of minor significance; they can be divided in three groups; processing of local rav materials, food industriesand mnanufacturingof industrial intermediate products.

(1) Processingof local raw materials. These industries are very few, but among the most important are the rice husking mili of Tchibanga, seven small nills to process coffee cherries, and two oil mills belorging to COOPAIIMOand PALIBEVEA.

(2-t Food industries. These industries are all located in Libreville or Port-Gentil. There are twqo bakeries of industrial size, one of them employing 63 workers. There are also two carbonatedbeverage factories, one et Libreville with an output of 1.6 million bottles per year, and one at Port-Gentilwith a productionof 600,000 bottles per year. Another industry worth mentioning, althoughnot a food industry, is the soap factory at Port-Gentilwith a production of 200 tons per year of general purpose soap. The nacbinery presently in use is obsolete,but the factory, under the new management of the BOUTONNIETestablishment, is being remodeled. D - Page 2 -

(3) Intermediateindustrial production. There are two ice factor- ies, one of which is very modern and under the management of the Chamber of Commerce. It bas a capacity of 10 tons per day. The output of these factoriesis mostly3sold to the fishing boats. Apart from a small plant producing 300,000 m of oxygen and 150,000 m3 of aceteleneper day, the only important enterprisein this sector is the Ateliers et Chantiers de l'Afrique Equatoriale,a concernmostly concernedwith ship con- structionand repairs of small vessels. ACAE employs five foreign tecb- nicians and over 200 Gabonese. Since 1956 this company bas built 139 boats of small sizes. It bas a completemachine,sbop, foundry facilities for manufacturingsbip screws, and other heavy machinery. Additional investments in connection witb the future port of Owendo are envisaged.

6. Many other small industries exist in connection with general mechanical work, construction, metal work (furniture), etc., but in general, the industrial development of Gabon is hampered by many factors such as a limited domestic market, lack of a skilled labor force and a scarcity of domestic capital and entrepreneurial talent. The creation of UDEACbas belped to expand the immediate market in Africa, but the distancesbetween Gabon and the European and American markets, and the lack of a deep water port still leave it at a sligbt competitive dis- advantagein exporting to these areas. The lack of domestic skilled manpower tends to increase the cost of production since expatriate labor is much more expensive and its use makes the goal of progressive Gabonizationmore difficultto attain. The tbird problen is also very real and common to many developing countries; private domestic savings are scarce and, due to lack of entrepreneurship, the absence of an industrial tradition, and preference for "safe" investments, those savings that do exist tend to be channeled into real estate and other non-industrial ventures.

7. In an attempt to partly remedy the latter situation, the Gov- ernment set up Promo-Gabon, an institution under the direction of the Ministry of Economie Affairs, wbose main function is the promotion of small and medium-size Gabonese-owned and controlled industries. Promo- Gabon bas its own resources, which are 14 percent of the proceeds from the sale of equipment bonds (total sales in 1966 were some CFAF 35 million). Promo-Gabon undertakes feasibility studies of small industries, provides technical assistance as well as legal advice, and serves as a general promoter of the small enterprise. It should be added that altbough its primary purpose is to foster small Gabonese enterprise, its services can also be used by non-Gabonese. Arong the small businesses helped by Promo-Gabon are a paint factory and a factory for producing clamps (crampons) used in lumbering and the rafting of logs. Studies under preparationinclude one on the utilization of natural gas at Port-Gentil, and others on the production of fertilizers,insecticides, glue, wood particle board, and many others. Promo-Gabonserves a useful purpose since up to now nearly all industrial developmentbas been the result of foreign enterprise and investment rather than of Gabonese initiative. D - Page 3 -

Projecots

Pulp Project

8. This is a very importantproject both because of its magnitude and because of its link with other related projects. The project envis- ages the constructionof a pulp mill with a productivecapacity of 110,000 tons per year at a total cost of CFAF 16.5billion, of which 14 billion represent the cost of the mill alone. This investrientis by itself more than twice the amount of all the other planned industrial investments combined. This pulp plant would employ over 2,000 workers, consume 750,000m 3 of wood per year, and require 170,000 KWH of power.

9. If the pulp project is implemented,it would bring witb it a number of associatedprojects sucb as forestry exploitation,wbich by itself would represent 50 percent of the volume of tinber extraction in Gabon and would employ 2,500 men; the Kinguélé dam to provide electricityfor the mill; a saw mill, a veneer factory, roads, build- ings, etc. Because of its extensive repercussionson the Gabonese eco- nomy, the pulp project is clearly of great importance.

10. 'Cellulosedu Gabon" was founded in 1962 to study the feasi- bility of the project. The study was favorable and showed that the mixed tropical woods available in the area nake a particularlygood paper pulp. The same company bas been authorizedto undertake the project, but financing at present remainm uncertain since the principalpotential stockholderbas apparentlyfound it more attractivefor the time being to expand its many holdings in the pulp industry by acquisitionof already existing mills abroad.

Palm il Miiil

11. The aim of this project was to build an oil mill at the M'Vily plantation to process the increased output of the latter. The investment would have been around CFAF 200 million for a mill large enough to pro- duce 800 tons of oil and 200 tons of kernel. This project bas been shelved for the present.

0i1 Refinery Project

12. This project, located at Port-Gentil,was conceivedwithin the frameworkof UDEAC. It was chosen in February 1961 over two competing projects located at Pointe Noire and Douala and is designed to supply the UDEAC countries'needs. The refinery will be under the control of the Société Equatorialede Raffinage (SER) which was incorporatedin October 1964 for this purpose. The control is divided as follows: 25 percent to the UDEAC countries; 37.5 percent to the Bureau de Recherches de Pétrole (BRP), a French semi-publicinstitution, and 37.5 percent to the Compagnie Française des Pétroles (CFP). The project invest- ment cost is estimated at CFAF 4.2 billion, and the refinery,which will bave a total tbrougbputof 625,000 tons, is scbeduledto start operations by the end of 1967. D - Page h -

Cement Factory Project

13. The possibility of a cement factory has been studied as a result of the discovery of a rich limestone deposit on the island of Coniquet, very near the future port of Owendo. Since the economic scale of production is too large for the output to be absorbed by the present Gabonese market, an agreementbas been sought with Cameroon by which Cameroon would purchase about 50,000 tons of clinkers per year from Gabon for their own grindingmill at Dbuala. Unfortunately, agreement bas not been reached. Gabon plans there- fore to install its own grinding mill at Owendo and import the clink- ers from abroad until the domestic market expands enougb to justify exploitation of its own limestone deposits.

Electric Batteries Project

1h. This project will most likely be undertaken by private groups. The factory would produce the standard 1.5 volt dry cells usin-fmanganese dioxide from COMILOG. Studies show that a viable factory must produce at least 800 tons of batteries (8 million batteries) a year. This figure is well witbin the present consump- tion of the UDEACcountries which is now imported from Europe. The project investment cost would be about CFAF 140 million.

Glass Factory

15. This project must also be consideredwithin the contextof UDEAC. It is one of three projects recently presented for UDEAC's consideration. The other competingprojects are in Cameroon and Congo (Brazzaville). 5iven the consumption of beer and carbonated beverages in the UDEACarea, a glass factory appears to be justified (witb bottles as its main line of production). Over 9,000 tons of glass (80 percent of wbich bottles) are imported by the UDEAC countries to fill their needs; and the minimum economic size for a factory is reported to be around 6,000 tons. The project presented by Gabon calls for a factory to be built at Port-Gentil by the Société Gabon- aise de Verrerie with a capacity of 30 tons per day. The investment cost would be around CFP 600 million.

Brewery Project

16. Gabon is a heavy consumer of beer, which at present is being imported from Cameroon and Europe at a rate of 61,000 bectoliters per year. The Société des Brasseries du Gabon (SOBRAGA)bas already started the constructionof a brevery at Librevillewhich will have a capacity of 50,000 hectolitersof beer and 25,000 bectolitersof carbonatedbeverages. This capacity can be easily increasedif demand sbould warrant it. SOBRAGA'sproduct should be in the market by the end of 1967. The investment cost will be about CFAF 720 million. APPENDIX E

TRANSPORTATION

1. The transportationnetwork was, up to 1960, very poorly developed. Altbough tbe countrywas well provided with waterways, the presence of waterfalls some 150 kms. fron the shore and the lack of navigability during certain months of the year, prevented these water- ways from wholly compensatingfor the absence of a fully developedroad network. The main road systemn was based on the old Frencb Equatorial effort to assure an overland connection between Cameroon and the Congo railroad at Dolisie; and this left communications with the outlying Woleu N'Tem and Haut Ogooué regions extremelyprecarious. Furthermore, Gabon bas had no railroad and no deep water port.

2. MNuchbas been done since 1960 to develop the transportation network in Gabon. Foremast in this respect is the road construction and improvementprogram connected with the penetration of the second forest zone. In 1963, a vast program of road construction centered around Alembe was undertaken involvingthe constructionand improvement of nearly 350 km. of roads as well as the construction of bridges for a total length of 1,000 meters. The total cost of this program, which is to be completed by the end of 1967, amounted to more than CFAF 7 bil- lion (US$28.5million), of which nearly forty percent were financed by an IBRD loan (GA 385), 34 percent by the Governmert of Gabon and the rest with the assistance of FAC, FED and Kf'W (Kreditanstalt fer Wieder- aufbau). The purpose of this road network is to transport the logs to the Ogooué river, where they are either dumped into the water and floated to tbe coast or, in the case of heavy logs, transported by barges. The terminal point of this road network is in the vicinity of N'Djole, where the river is navigable all year round, and Alembe, at the foot of the rapids, where the river is navigableanly h months a year.

3. In the years ahead, the Government intends to pursue this policy of penetration by extending the existing road network both in northern and southern directions. The northern extension project wmuld connect Lalara with Mitzic and Matora, thus permitting more distant areas in the second forest zone to be exploited. The cost of this pro- ject, c-overing a total distance of 95 km., bas been estimated at CFAF 2.2 billion. IBRD assistance bas been requested. The southern extension would connect Basse-Obiga tith Lastourville, thereby for the first tine assuring a link between Libreville and the hitherto isolated southeastern part of the country. The cost of this extension (150 km.) would amount to soane CFAF 3 billion, possibly to be financed by FED, which is already paying for the final project studies. h. Apart from these two large projects, some minor road improve- ments and the construction of a number of bridges have been undertaken. The whole of the investment programi outlined in the plan amounts to CFAF 11.8 billion, of which some CFAF 2.8 billion have already been committed or disbursed, and sone CFAF 4.8 billion seem to be ready for conmitment. Considering that another CFAF 530 million bave already been E - Page 2 - spent on two road projects not included in the plan (Libreville- Coco- beach and Libreville - Cap Esterias), one may conclude that the Plan figure for road expenditure will probably be attained and that - witb thqexception of the previously envisaged road from Mitzic to Oyem - aIl major road projects iwill be realized.

5. FAC is presently financing a study undertaken in connection with the road network which would be required in order to make the pulp plant project practicable. This road system, wbich would include 100 km. of main road as well as a network of feeder roads, would cost some CFAF 3 billion, not envisagedin the plan document. Inclusionof these roads in the program would raise the actual achievementin road sector above the Plan targets, but - as explained above - the realizationin the near future of the pulp project has become bighly uncertain.

6. At present Gabon bas two ports, one at Libreville (including Gwendo) and one at Port-Gentil. Total freight handled by these two ports bas increased from 1.5 million tons in 1960 to 2.3 million tons in 1966. As a result primarily of the lumbering industry's movement into the second forest zone and the expansion of the petroleur.industry on the island of IIandji,the relative importance of the Port-Gentilport bas steadily increased: its share in incoming freight rose from 45 per- cent in 1960 to 49 percent in 1966, while its share in outgoing freigbt increased in the sane period from 74 to 87 percent. In fact, the freight handled at Libreville bas been steadily decliningin the last three years, from 656,Ooo tons in 1963 to 380,000 tons in 1966.

7. In view, however, of the projected Mekambo railway and the industrialexpansion of the Libreville area, the Gabonese Governmentbas decided to go abead witb the constructionof the Owendo deep water port. This project, which includes the infrastructureof a new industrial zone, the town plans for the area, the constructionof several quays and of a two-lane road to Libreville,will cost about CFAF 3.5 billion. It will be one of tbe largest investmentsrealized in the plan period and tbe larg- est project ever to be financed by FED. Constructionis expected to start by the end of 1968.

8. Due to the difficultiesof penetratingGabon's forests and the consequent deficienciesin land transportation,the country bas had, since the early 'sixties,a rather well-developedair transportnetwork, with a density of approximatelyone airstrip per 2,200 square kilometers. Out of an approximate total of 120 airstrips, 14 are privately owned, while 75 are given in concessionto forestry or mining enterprises.

9. The growth of air traffic bas considerably accelerated in the last three years, especiallywith regard to passengers. Total passenger traffic handled at the Libreville and Port Gentil airports,whicb increased at annual rates of 13 and 1.7 percent respectivelybetween 1960 and 1963, rose at an annual rate of 19 percent between 1963 and 1966. IWbilegrowtb of freight traffic in Libreville slowed down from an annual rate of 16 per- cent between 1960 and 1963 to an annual rate of 11 percent between 1963 and 1966, in Port-Gentil, the rate of growth increased from 5 percent in the first period to 16 percent in the latter period. APPENDIXF

STATISTICALTABLES

List of Tables

Table No. 1. ActivePopulation in 196h

2. SchoolEnrollment (on the firstof January)

3. Productionof TropicalW^Tood Varieties other than Okoumé

4. Air Traffic

5. Port Traffic

6. Importsof PrincipalComnmodities, 1960-66

7. Imports by Countr-y of Origin, 1960-66

8. Imports by Commodity Groups, 1960-66

9. Exporta by CommodityGroups, 1960-66 10. Exportsof PrincipalComnmodities, 1960-66

il. Exports by Country of Destination, 1960-66 12. TradeBalance

13. Loans Grantedby the BanqueGabonaise de Développer.ent

1h. PriceMovements in Libreville

15. OkouméPrices 16. Evolutionof the MinimumIndustrial Wage (SMIG) 17. ForeignAid Disbursements

18. Pubblic De7ot

Part 1: Fxternal Medium- and Long-Term Public Debt Outstanding including Undiabursed as of December 31, 1967 Part 2: Estimeated contractual service payments due in future on above debt. IPle 1: ACTIVE POPULATIONIN 1964

(age group 15-49)

in thousands

Sector Gabonese Non-Africans Total and other Africans

Agriculture,fishing 0.3 00.3 Lumbering 10.5 0.2 10.7 Timber industry 2.5 0.1 2.6 Wood working 0.5 - 0.5 Mechanical industries 0.5 0.1 o.6 Mining 3.1 0.4 3.5 Building, public works 4.7 0.3 5.0 Transport 2.8 0.2 3.0 Water and electricity 0.3 - 0.3 Trade 3.1 0.5 3.6 Banking, Insurance 0.2 0.1 0.3 Private teaching 1.0 0.2 1.2 Artisans 0.3 - 0.3 Household help 2.5 - 2.5 Government Services 10.8 0.7 11.5 Semi-governmental institutions 1.3 0.1 1.4 Other 3.1 0.4 3.5

Total modern sector 47.5 3.3 50.8

Traditionalagriculture 177.5 - 177.5

Total active population 225.0 3.3 228.3

Source: Employment Survey, SEDES, 1964 Table 2: SCHOOLEN1OELLMENT (on the first of January)

In thousands

1955 1960 1961 1962 1963 1964 1965 1966 1967

Primary schools Boys 20.4 32.1 35.2 38.1 35.3 37.4 40.2 43.1 h3.4 Girls 8.4 18.5 21.7 25.8 26.0 29.3 32.8 36.0 37.7

Total 28.8 50.6 56.9 63.9 61.3 66.7 73.0 79.1 81.1 $econidary schools General: Boys 0.4 1.2 1.6 1.9 2.3 2.6 2.8 3.4 3.8 Girls - 0.2 0.4 0.6 0.6 0.9 1.0 1.4 1.4

Total 0.4 1.4 2.0 2.5 2.9 3.5 3.8 4.8 5.2 Teacher training: Collêges & Centres d'Enseignement Pedagogique 0.2 0.8 0.7 0.7 0.9 0.7 o.6 o.4 0.2

Technical schools: (in units) Lycée and Collèges d'Enseignement Technique 78 90 165 271 385 757 830 983 1002 Centres d'apprentissageand Centre d' Ar-t Menagers - - - 220 300 377 h5o 596 502

Total 78 90 165 591 685 1134 1280 1579 1504

Agriculture & forestry: - 10 15 20 20 28 30 30 14

(continued) Table 2: SCHOOL ENROLLDNIET- continued

Nursing: - - - 60 70 80 90 100 136

School of Administration: - - - - - 30 30 40 43

Students Abroad 1/ n.a. n.a. n.a. n.a. 271 255 302 331 472

1/ Secondary and higher education students included.

Source: Ministere de ltEducationNationale Table 3 : PRODUCTIONOF TROPICAL ,100D VARIETIES OTHERTHAN OKOUME

In thousands of cubic meters

1958 1959 1960 1961 1962 1963 1964 1965 1966 ozigo 1/ 24.6 26.6 47.4 45.1 35.2 53.6 72.2 65.0 50.0 Acajou72/ 71.6 45.1 65.8 71.7 47.3 31.1 34.0 n.a. n.a. Douka 29.0 21.9 29.4 18.6 18.4 20.1 25.5 n.a. n.a. Niangon 16.2 17.1 14.0 15.4 13.1 18.0 16.4 n.a. n.a, Limba 14.1 20.0 22.1 17.1 - 0.4 14.2 n.a. n.a, Ilomba 15.5 15.5 19.1 17.0 0.1 16.7 10.3 n.a. n.a. Zingana 6.1 2.8 5.5 10.4 7.5 0.8 3.1 n.a. n.a. Alep 4.1 4.3 1.4 1.1 9.9 4.5 9.1 n.a. n.a. Igaganga 3.0 1.8 2.4 6.3 3.1 1.2 3.1 n.a. n.a. Bilinga 2.9 3.1 2.8 1.7 1.2 2.2 1.3 n.a. n.a. Canarium 1.5 1.2 2.9 3.7 0.1 1.0 1.7 n.a. n.a. Kevanzingo 2.3 2.1 0.7 8.6 - 1.3 5.0 n.a. n.a. Olan 2.9 3.3 4.6 3.6 1.6 1.5 0.8 n.a. n.a. Others 22.5 13.9 10.3 13.4 16.1 21.6 30.1 n.a. n.a.

Total 1/ 216.3 178.7 228.4 233.7 153.6 174.0 226.8 210.0 190.0

1/ Esti-matesfor 1965 and 1966 are based on data provided by the Gabonese authorities. 2/ The general heading for Acajou includes the varieties Kaya, Kosipo, Sappelli, Sipo, and Tiama.

Source: Annuaire Statistique1964. Table 4: AIR TRAFFIC

1955 1960 1961 1962 1963 1964 1965 1966

LIBREVILLE Number of passengers (in thousands)l/ at arrival 9.5 13.9 18.3 19.0 20.5 30.2 3h.9 36.5 at departure 9.6 15.6 21.2 21.6 22.0 31.0 36.6 34.9 freight (in thousand tons)l/ at arrival 0.6 1.4 1.2 0.9 2.1 2.7 2.2 2.7 at departure 0.5 0.7 0.8 0.8 1.2 2.0 1.9 1.8

PORT GENTIL Number zf passengers (in thousands)-= at arrival 4.7 11.5 10.4 12.3 12.0 13.3 16.0 20.7 at departure 4.9 12.3 11.8 13.2 13.0 i4.3 17.3 21.5 freight (in thousand tons)2/ at arrival 0.2 0.9 0.8 0.9 0.9 0.9 1.2 1.4 at departure 0.1 0.3 0.4 0.4 0. 1.0 0.6 0.8

1/ does not include transit passengers / does not include mail

Sources: Situationéconomique, financière et sociale de la Republique Gabonaise en 1964

Bulletinmensuel de statistiques

i

Table 6: IMPORTS OF PRINCIPAL COMMODITIES,1960-66

Quantity in thousand metric tons; value in million CFAF

1960 1961 1962 t of 1963 1 6f of 1965 1966

Q V Value Q V Value Q V Value Q V Value Q V Value Q V Value Q V Value 605.2 4.4 3.1 517.4 3.4 7.9 488.3 3.0 Meat and fish, fresh 3.2 410.5 5.2 3.4 487.8 5.5 3.4 510.6 5.1 3.5 552.6 4.7 3.5 and preserved 1.1 170.0 1.2 1.0 177.1 1.2 1.2 193.8 1.2 Dairy products and eggs 0.7 104.1 1.3 0.8 118.6 1.3 0.8 116.4 1.2 1.0 142.6 1.2 162.1 1.2 4.4 157.8 1.0 6.3 209.9 1.3 Wheat flour 2.3 77.9 1.0 3.9 112.2 1.3 4.0 145.4 1.4 3.7 138.1 1.2 4.4 253.1 1.8 2.6 266.4 1.7 2.8 301.8 1.8 legetables and fruit, 1.7 150.1 1.9 1.8 166.8 1.9 2.0 196.7 2.0 2.4 251.2 2.1 2.6 fresh and preserved 23.2 833.2 6.1 17.4 861.3 5.6 17.2 805.8 4.9 A1iono1ic Oeverages 13.2 553.7 7.1 16.3 614.0 6.9 16.9 737.9 7.3 15.0 717.0 6.o 166.1 1.2 0.2 167.8 1.1 0.2 206.0 1.3 Pharmaceuticais 0.1 89.9 1.1 0.1 106.8 1.2 0.2 150.1 1.5 0.2 181.5 1.5 0.2 169.6 1.2 0.4 184.3 1.2 0.6 243.1 1.5 Riubber tires and tubes 0.3 107.4 1.4 0.3 119.1 1.3 0.5 117.5 1.2 0.4 149.1 1.3 0.5 0.8 206.6 1.5 0.8 237.4 1.5 1.0 285.4 1.7 Paper and products 0.5 67.3 0.9 0.5 91.2 1.0 0.5 162.2 1.6 0.7 173.9 1.5 2.7 0.5 368.2 2.4 0.5 336.2 2.1 Cotton textiles 0.4 274.2 3.5 0.4 212.6 2.4 0.4 267.3 2.6 05 380.2 3.2 0.5 374.4 5.0 0.4 727.6 4.7 0.4 568.3 3.5 Clothes and shoes 0.3 339.5 4.3 0.4 349.3 4.0 0.4 442.6 4.4 0.4 571.4 4.8 0.5 683.8 181.5 1.3 32.5 212.2 1.4 39.6 256.2 1.6 Cement 16.9 84.1 1.1 23.0 111.7 1.3 35.3 183.4 1.8 32.1 174.2 1.5 31.2 60.9 652.4 4.2 75.1 814.9 4.9 Gasoline, gasoil and lubricants 47.2 497.8 6.4 36.2 457.1 5.2 38.2 444.5 4.4 48.6 572.3 4.8 54.8 602.3 4.4 10.2 22.3 1730.9 11.2 23.5 1755.3 10.7 Iron snd steel products 7.1 554.5 7.1 9.0 668.2 7.5 12.8 872.2 8.7 12.8 963.0 8.1 18.9 1396.1 14.2 6.3 2506.7 16.2 5.4 2354.1 14.3 Motor vehicles and parts 3.2 1172.6 15.0 4.9 1772.2 20.0 3.6 13'70.9 13.6 4.7 1935.2 16.3 4.8 1944.5 5.0 2971.3 19.2 5.2 3317.8 20.3 Machinery, electrical and 2.0 1099.4 14.0 2.7 1383.1 15.6 2.7 1663.7 16.5 3.3 1962.1 16.5 4.0 2353.3 17.1 non-electrical 1.4 0.1 180.8 1.2 0.1 196.9 1.2 Instruments 0.1 213.7 2.7 - 94.1 1.1 - 129.8 1.3 0.1 181.0 1.5 0.1 188.1 n.a. 3515.2 22.8 n.a. 4060.7 24.7 Oiher n.a. 2032.7 26.0 n.a. 1988.4 22.5 n.a. 2556.7 25.b n.a. 2830.4 23.8 n.a. 3452.7 25.1

191.9 15424.8 100.0 220.8 16384.5 100.0 TOTAL 121.9 7829.4 100.0 126.6 8853.2 100.0 147.2 10067.9 100.0 157.1 11875.8 100.0 191.8 137ù2.6 100.0

n.a. nsot avallable

Sources: Commerce yxtérieur, UDE, Statistiques Générales, 1960-65, data provided byj the Gabonese authorities. Table 7: IMfORTS iY COUNTRY OF ORIGIN, 1960-66

Value in million CFAF

Gri gi n 1960 1961 1962 1963 1964 1965 1966 % of a oio J of uof Tof Tof V Value V Valule V VTalue V Value V Value V Value V Value

France 4619.2 59.0 5289.0 59.7 6319.6 62.8 7093.5 59.7 8082.5 58.8 9021.6 58.5 9633.2 58.7

5EC (excl. France) 762.2 9.7 1111.9 12.6 1034.6 10.3 1422.6 12.0 1732.3 12.6 2032.8 13.2 2408.6 14.7

s-ermaony (475.6) 6.0 (722.6) 8.2 (595.1) 5.9 (823.5) 6.9 (823.8) 6.0 (1070.8) 6.9 (1206.5) 7.3

Italy ( 71.4) 0.9 (113.0) 1.3 (111.1) 1.1 (150.4) 1.3 (270.3) 2.0 ( 267.7) 1.8 ( 354.5) 2.2

Jetherlands (146.6) 1.9 (188.5) 2.1 (230.4) 2.3 (2 4 3.6) 2.1 (379.5) 2.7 ( 417.7) 2.7 (535.5) 3.3

5eigium - (68.6) o.9 ( 87.8) 1.0 ( 98.0) 1.0 (205.1) 1.7 (258.7) 1.9 ( 276.6) 1.8 ( 312.1) 1.9 linited States 989.2 12.6 1037.2 11.7 971.5 9.6 1404.6 11.8 1729.4 12.6 1802.7 11.7 1783.7 10.9

Africar, countries (excl. UDE) 554.4 7.1 579.9 6.6 779.2 7.7 786.1 6.6 939.6 6.8 1051.9 6.8 650.7 4.o

Rest Di ,o4rld 904.4 11,6 835.2 9.4 963.o 9.6 1169.0 9.9 1258.8 9.2 1515.8 9.8 1908.3 11.7

TOTAL 7829.4 100.0 8853.2 100.0 10067.9 100.0 11875.8 100.0 137h2.6 100.0 15424.8 100.0 16386.5 100.0

Soxrcem: ,aomerce ExLerieur, UDE, Statistiques Générales, 1960-65, ,iprovde ten Qabornese authorities. Table 8: IPMPOlTS Bv C0OSMDITV .ERDUPS,1960-66

Value in million CFAF

1960 1961 1962 1963 î96h 1965 1966

5roups V Valua V Value V Value V Value V Value V Value V Value

Food 158h 20.2 1794 20.3 2071 20,6 2160 18.2 2h59 17.9 2412 15.7 2h52 15.0

Primary materials 51 0.7 25 0.3 7h 0.7 70 0.6 90 0.7 106 0.7 129 0.8

Fuel and luoricants 998 7.6 54h 6.1 536 5.3 660 5.6 743 5.4 771 S.0 982 6.0

Semi- finished producte 1408 18.0 1154 13.0 1560 15.5 1816 15.3 2273 16.5 2767 17.9 3121 19.0

Consumer durables 1049 13.4 1623 18.3 1h59 14.5 1605 13.5 1823 13.3 1881 12.2 2116 12.9

Consumer non-durables 950 12.1 107? 12,2 127h 12.6 1652 13.9 1834 13.3 1881 12.2 1770 10,8

Equ3pment 2189 28.0 2636 29.8 3098 30.8 3912 32.9 h521 32.9 5607 36.3 581h 35.5

TOTAL 7829 100.0 8853 100.0 10068 100.0 11875 1000, 13743 100.0 19h2n 100.0 16385 100.0

Sourcees Comeerce Extérieur, UDE, Statastiques Génerales, 1960-65, data prbv!E5y}he Gabonese author:Lties. Table 9 EXPORTS BY COMMODITYGROUPS, 1960-66

Value in million CFAF

1960 1961 1962 1963 1964 1965 1966 X Or % Or % of % of %Tf% fT - Groups V Value V Value V Value V Value V Value V Value V Value

Food 505 4.3 426 3.2 374 2.6 360 2.0 529 2.3 482 1.9 547 2.1

Primary materials 1/ 138 1.2 1322 9.7 2657 18.2 5371 29.6 7124 31.6 11216 43.2 111s9 43.0

Fuel and lubricants 2466 20.8 2210 16.2 2533 17.3 2591 14.3 3129 13.9 3386 13.1 3866 14.9

Semi-finished producta 3/ 8627 1à.9 9531 69.9 8917 60.9 9626 53.0 11533 51.1 10567 4o.8 luI" 39.1

Consumer durables 2/ il 0.1 44 0.3 18 0.1 27 0.2 15 0.1 26 0.1 15 0.1

Consumer non-durables 3/ 31 0.3 27 0.2 34 0.2 31 0.2 80 o.4 80 0.3 67 0.3

Equipment 3/ 48 0.4 68 0.5 95 0.7 120 0.7 131 0.6 148 o.6 118 0.5

TOTAL 11826 100.0 13628 100.0 14628 100.0 18126 100.0 22541 100.0 25905 100.0 25920 100.0

1/ Composed almost entirely of exports of minerals and metals. 2/ Composed almost entirely of exports of wood and products. 3/ Composed primarily of re-exports.

Sources: Commerce Extérieur, UDE, Statistiques Générales, 1960-65, data provided by the Gabonese authorities. 1ab1e10: EXPORTIOF PRO'80IPAL1(1mm0080i90, 1960-66

*luentity in thonu.nd n,etriç toCS; Value (n ilt Ion GOFA

1960 1961 1962 1963 1964 1965 1966 Ool 9sf 8sf 90f bf bof 9s~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~f Q V Value I V Value Q V Value O V Value Q V Value Q V Value Q V Value tdood: 773.0 8601.1 72.7 787.0 9500.8 69.7 726.8 8901.8 60. 9 71.49 oË161. 52.2 882.5 11328.8 50.3 815.41 0462.4 40.1 796.8 1.0084.9 38.9

Loge 711.2 6832.8 57.7 756.2 7660.7 56.2 690.7 6817.2 h6.6 716.8 7123.0 39.3 835.1 8749.9 38.8 766.8 7868.9 32.8 7à5.7 7644.1 29.5 oicouee (627.6) (5917.3) 50.0 (648.7) (6678.1) 49.0o (607.2> (6095.9) hi. 7 (599.3) <6252.0) 34.5 <713.4>(7716.1) 34.1 (653.6) <6946.1) 29.0 (642.6) (660. 7) 25.6

ogker (113.6) ( 915.8) 7.7 (107.5) C 998.3) 7.2 83.5) C 771.3). 1.9 (112.)( 871.0) 1.8 (122.0) (1003.8) 4.1 (113.2) ( 922.8) 3.8 (103.1) (1003.4) 4.9

S.n timber ana wuud F,rud,ts 31.8 1768.3 15.0 30.8 1840.1 13.5 36.i 2087.6 lh.3 43.1 2338.0 12.9 17.1 2578.9 1118 16.2 2158.2 10.3 hg.] 2110.8 9.1 piyaond and veneer ( 6.3) (1658.2) 11.0 (26.8) (1740.1) 12.6 31.2) (i98o.6) 13.6 ( 31.2) (2140.9) 11.8 (31.5) (2319.8) 10.3 (38.9) (2260.4) 8.7 (31.5) (21-2i.9) 8.2

012cr 5.8) ( 110.1) 1.0 C .0) 100.0) 0.7 4 .9)( 107.0) 0.7 ( 8.9) ( 197.1) 1.1 12.6)( 259.4) 1.2 ( 18.8) ( 333.1) 1.4 14.6) ( 318.9) 1.2 minera16 ar,d metaînr C.~-a. 138.0 1.2 .a 12.6 9.7 c.a 2667.0 18.2 n.a. 5368.0 29.6 C.a 7123. 31.6 a.a 11216.0 43.3 n.a. 11149.o 13.o

Gold 1/ 507.5 137.8 1.2 406.2 97.8 0.7 408.9 92.6 0.6 10771 266.1 1.8 1236.2 287.8 1.3 1095.0 271.4 1.1 922.0 212.7 0.8

M-ae, 0.2 -5. 8.8 371.1 2.6 603.7 3362.5 i8.5 881.8 1882.1 21.6 1119.5 8802.3 34. 0 1181.0 8835.5 38,.l

ur0uam- - 0.8 1223.8 9.0 1.3 2193.3 18.0 .1.2 1739.1 9.6 1.4 1953.5 8.7 i.5 2Wa4.3 8.9 1.4 2100.8 8.1

9om.l and _u' ms-nc- L778.1 2466.5 20.9 737.8 2208 16.2 818-2 283. 7.3 943.8 2813 1.3 1068.1 3129.4 13.9 1281.2 3386.2 13.2 1108.2 386.2 14.9 rmr il 715.1 2466.2 20.9 737.8 2209.4 16.2 817.8 2526.6 13.3 943.8 2590.8 11.3 1o68.1 3129.0 13.9 1281.2 3384.7 13.1 1408.2 3866.2 11.9

bIner - ~~~~ ~~0.3- 1.1 - 0.4 6.7 - .5 - .4 1.5

'noua 3.~~~~3 110.1 3.7 3.2 331._0 2.4 3.4 265.0 1.8 3.0 245.1 1.4 3.6 308.7 1.3 3.3 258.6 1.1I 3.8 327.0 1.3 boffee 0.3~ 31-6 0.3 0.5 68.3 0.8 0.6 93.0 0.6 0.6 88.1 0.8 1.1 173.3 0.8 0.7 102.1 0.1 1.7 132.2 0.5

710CreX,nrto c.a. 112.8 1.2 .a-. 195.3 1.8 C.a 171.1 1.2 C.a 371.7 2.0 C.a 180.0 2.1 C.a ____ 2.6 c.a 360.9 1.1

T71'AL i556.8 11826.1 100.0 1533.2 13627.8 100.0 1626.8 1127.5 100.0 731. 18125.5 100.0 2841.9 22540.6 100.0 3286. 25905.2 100.0 '36. 25920.2 100.0

in k ulo:C, the quantity figurasfor 1960 and 1961 are u9pruxînate.

Source,:loonnert Ext;rieur, 8D8, Statistiques Généra1es, 1960-65, data prv-eided(-y the Gaboceme authoritiee. 'lable 11 VXPORTS DY C0UINTY OF DESTINATION, 1960-66

Value in million CFAF

1960 1961 1962 1963 1964 1965 1966 % of ~ ~ ~ ,r~of fof % of %of% Destination V Value V o Value V Value V Value V Value V Value V Value France 6051.2 51.1 7612.5 55.8 8753.1 59.8 9246.2 51.0 11404.4 50.5 11969.0 146.2 11277.4 43.5 E7C (excl. France) 3034.6 25.7 2943.7 21.6 2464.5 16.8 3237.5 17.9 3618.1 16.1 3738.7 14.4 4682.0 18.1 Germany (2330.3) 19.7 (2184.6) 16.0 (1863.3) 12.7 (2315.1) 12.8 (2564.5) 11.4 (2817.1) 10.8 (3491.3) 13.5 ( 124.9) 1.1 ( 84.o) o.6 ( 122.1) 0.8 ( 191.6) 1.1 ( 43.7) 0.2 ( 196.6) 0.8 ( 269.3) 1.0 Nfetherlands (490.7) 4.2 (548.7) 4.0 (324.2) 2.2 (492.7) 2.7 (744.3) 3.3 ( 560.o) 2.2 (601.9) 2.3 - Luxembourg ( 88.7) C.7 ( 126.4) 1.0 o 154.9) 1.1i 238.1) 1.3 ( 265.6) 1.2 ( 165.0) 0.6 ( 319.5) 1.2 Ucrited States 301.0 2.6 258.8 1.9 [i95.2 3.4 2381.0 13.1 3630.2 16.1 5f47.2 21.8 5873.1 22.6 African countries (excl. UDE) 865.1 7.3 779.5 5.8 788.5 5.4 786.9 4.4 1113.2 5.0 1307.6 5.1 1500.6 5.8 R-et of World 1574.2 13.3 2033.0 14.9 2126.2 14.6 2473.9 13.6 2774.7 12.3 3242.7 12.5 2587.1 10.8

TOTAL 11826.1 100.0 13627.5 100.0 li627.5 100.0 18125.5 100.0 22540.6 100.0 25905.2 100.0 25920.2 100.0

Sources: Commerce Extérieur, UDE, Statistiques Générales, 1960-65, data provided by the Gabonese authorities. Table 12: TRADEBALANCE 1/

in billion CFAF

Exports Imports Balance

1958 8.4 7.3 1.1 1959 11.1 6.8 4.3 1960 11.8 7.8 4.0

1961 13.6 8.9 4.7

1962 14.6 10.1 4.5 1963 18.1 11.9 6.2

1964 22.5 13.7 8.8 1965 25.9 15.4 10.5 19662/ 25.9 16.4 9.5

l/ Does not include trade with UDE countries or clandestine trade with Rio Muni.

2/ Figures for 1966 do not include trade with Cameroon. In 1965, exports to Cameroon amounted to CFAF347 million while imports from that country were estimated at OFAF485 million.

Sources: CommerceExté'rieur, UDE, Statistiques Generales, 1960-65.

Republique Gabonaise, Service National de la Statistique- Dix ans d'Econorie Gabonaise. Tablel: PRICE MOVEIMENTSIN LIBREVILLE

indices

1959 1960 1961 1962 1963 1964 1965 1966 1967 Retail Prices of European- April Type Consumption1/ base-1959

General Index 100 103.6 106.1 109.9 120.3 131.7 136,3 144.6 147.3

Food 100 102.7 104.2 107.4 117.7 126.6 129.9 139.0 141.7 Utilities 100 101.8 107.2 108.9 111.1 105.6 108.7 110.8 110.8 Household services 100 105.7 117.7 128.8 145.2 180.0 186.1 198.0 203.0 Clothing 100 105.0 101.3 100.1 114.3 140.7 157.6 164.6 165.6 Personal Care - - - - - 115.0 119.9 130.7 135.0 Transportation - - - - - 154.2 160.4 168.0 168.9 Niscellaneous 100 105.9 109.1 114.3 125.2 115.4 118.2 122.5 125.4

Retail Prices of African- Type Consumption2/ base=1962 April

General Index - - _ 100 107.4t 110.8 113.6 117.7 120.4

Food - - - 100 107.5 108.3 110.2 112.3 115.8 Housing - - - 100 122.3 134.4 136.7 144.6 141.7 Fuel - - - 100 105.8 109.4 106.4 107.1 109.4 Clothing - - - 100 106.2 123.5 130.0 139.0 141.7 Miscellaneous - - - 100 100.7 98.9 103.1 110.7 111.5

Wholesale Prices base=1958

General Index 105.2 110.5 117.6 i23.6 129.5 138.0 143.6 151.3 -

Food 103.4 106.3 102.9 113.8 122.5 133.6 138.8 145.7 - Fuel 106.7 107.0 127.1 138.3 142.7 154.9 167.2 183.5 - Manufacturee 105.5 113.1 121.1 123.9 129.1 135.6 139.7 145.6 - (continued) Table 13: LOANS ,RANTELBY TNE BANQUEGABONAISE DE DEVELOPPEWNT

In, illions of CFA francs

From 1948 to 1966 to Cumulated total on June 30, 1961 1961/1962 1962/1963 1963/1964 1964/1965 1965/1966 lMarch 31, 1967 March 31, 1967

No. Amount f 0 ; of No. Amount No. Amouint No. Amount No. Amount No. Amount No. Amount F of of of of total total of of of of of of of of of of of of of of total total Loans Loans %umber Value Loans Loans Loans Loans Loans Loans Loans Loans Loans Loans Loans Loans Loans Loans Number Value

Agvriculture 102 76.0 2.8 h.0 28 9.0 10 9.2 12 13.7 1 99.1 1 66.5 1 1.5 153 274.9 1.8 3.0

Rural improvements 69 32.6 1.9 1.8 6 ( 2.1) 3 0.6 - - 2 3.8 4 03 - - 84 35.3 1.0 0.4 uandicrafts 170 253.3 4.7 13.2 11 115.5 82 122.2 39 17.1 68 132.7 50 261.4 44 144.8 568 10h7.0 6.6 11.3 Industry 1 6.o - 0.3 - - 1 60.0 1 70.0 1 30.5 4 872.5 4 143.3 12 1182.3 0.1 12.7

Nunicipalities 1/ 31 74.3 0.9 3.9 10 48.8 2 7.0 il 122.5 5 275.5 4 22.1 3 174.2 66 724.5 0.8 7.8

Fc"nstry 27 57.0 0» 3.0 12 25.5 il 66.8 20 56.L 33 138.0 21 )46.4 23 88.4 167 476.5 1.7 5.1

Real Estate 2121 959.1 59.1 49.6 439 372.2 401 339.0 282 253.9 272 315.5 263 329.5 225 277.7 3983 2847.1 46.4 30.6

Credit 106h 38.1 29.7 1.5 272 12.3 449 19.8 536 25.7 376 28.3 344 h4.5 136 12.8 3177 181.3 37.0 1.9

Transport ------61 40.6 82 48.6 104 64.8 56 26.2 55 28.4 358 208.6 4.2 2.2

Coamnerce ------3 2.6 5 2.7 8 5.2 0.1 0.1

Public Works 2 436.5 0.1 22.6 h 379.8 6 311.0 10 974.7 _ 224.4 - ( 6.4) - _ 27 2320.0 0.3 24.9

TOTAL 3587 1932.9 100.0 100.0 886 961.0 1026 976.2 993 1580.6 865 1312.7 730 1665,6 496 873.8 8583 9302.7 100.0 100.0 of which: Short term 4002 3613.0 46.6 38.8 Mediui term 2181 2491.3 25.4 26.8 Long term 2400 3198.4 28.0 34.4

_/ Expenses of municipalities include some agricultural expenses.

Source: Banque Gabonaise de Developpement. Table 14: PRICE MOVEMENTS IN LIBREVILLE- continued

1/ Up to 1964 the European-Type consumptionprice index was based on a basket of 100 articles. In 1964 the basket was widened to include 135 articles and weights were altered. This should be kept in imind when making comparisons between the two periods. One should also bear in mind that these indices are based on budget studies pertaining to householdswith an average monthly income of CFAF 207,000 ($838). / This cost of living index pertains to householdswith an av!eragemonthly income of CFAF 25,000($101).

Source: Bulletin Mensuel de Statistique Table 15: OKOUME PRICES (in CFAF per ton)

A. Prices to Producers (prix d'achat - plage)

GRADE 1962Ù/ 19632/ 19632/ 196h42 1966"

Loyal et marchand 11,700 11,800 12,400 12,250 12,250 Excédent2ème choix 10,750 10,900 11,750 11,600 11,600 Qualitéseconde 8,800 9,000 9,940 9,800 9,800 Excédent 3ème choix 6,600 7,100 8,130 8,000 8,100 Sciage 5,700 6,ooo 6,500 6,400 6,500 Branchesler choix 7,100 7,500 8,1h00 8,400 8,400 Coursons ler choix 9,300 9,300 10,000 9,900 9,900 Coursons2ème choix 7,100 7,100 7,500 7,500 7,500 Petites raies ler choix 9,300 9,300 10,000 9,900 9,900 Petites raies 2ème choix 7,650 8,000 8,800 8,700 8,700 Petites raies 3ème choix 5,700 6,200 7,000 7,000 7,000 Déclassés 3,800 >4,200 4,600 4,50054,500 Rebuts 1,700 1,900 2,200 2,200 2,200

B. Export Prices (f.o.b.) 1959 196o06/ 1963/ 196>49/ Loyal et marchand 14,085 16,150 16,150 16,150 17,000 Excédent2ème 13,105 15,050 15,050 15,050 15,900 choix Qualitéseconde 10,575 12,300 12,300 12,650 13,500 Excédent3ème choix 8,250 9,850 9,850 10,500 11,100 Sciage 7,345 8,400 7,900 8,400 9,000 Branchesler choix 8.815 10,100 10,100 10,800 11,500 Coursonsler choix 10,575 12,300 12,300 12,650 17,250 Coursons2ème choix 7,345 8,1oo 7,900 8,400 13,300 Petitesraies 2ème choix 10,900 9,850 9,850 10,500 12,000 Petitesraies 3ème choix 6,500 8,850 8,850 9,hOO 10,000 Déclassés 4,700 5,150 5,150 6,ooo 6,500 Rebuts 2,585 2,850 2,850 3,1400 3,600

/ ~From January,12, 1962 onwards / FromJanuary, 1, 1966 onwards F/From January,21, 1963 onwards From October,15, 1960 onwards %/ From November,1, 1963 onwards 7 From May, 1, 1962 onwards From July,15, 1964 onwards From March,1, 1963 onwards 2/ From January,1, 1964 onwards Sources:Situation économique, financière et socialede la RépubliqueGabonaise. Table 16 EVOLUTION0F THE MINIUM INDUSTRIALWAGE (SUIG)1'

hourly rates in CFAF

Date of change Ist Zone 2nd Zone 3rd Zone 4th Zone

November 8, 1954 14.40 7.80 7.20 6.30 March 20, 1956 17.25 12.90 10.35 9.45 September 23, 1957 21.00 12.00 10.50 February 2, 1959 22.00 16.80 14.30 January 22, 1960 26.25 20.25 - April 29, 1963 33.00 28.87 - December 29, 1964 40.00 35.00 - August 1, 1966 4o.oo - - March 11, 1967 h2.50 - -

1/ The division of the Gabon territoryin zones has changed over tim.e: (a) 1954 to 1956 - lst zone: Librevilleand Port-Gentil (urban center) 2nd zone: Lambaréné (urban center) 3rd zone: Libreville,Port-Gentil, and Lamba- réné'(districts) 4th zone: Other (b) 1957 - lst zone: Libreville,Port-Gentil, Lambarené (urban center) 2nd zone: Bitam, Oyem, and Mouila; Libreville,Port-Gentil, and Lamba- rên6 (districts) 3rd zone: Other (c) 1959 - lst zone: Libreville,Port-Gentil, Lambar`ene (urban center plus circle of 5 km.) 2nd zone: Bitam plus all capitals of regions 3rd zone: Other (d) 1960 - lst zone: Libreville,Port-Gentil, Lambarene (urban center plus circle of 5 km.) 2nd zone: Other (e) 1966 - lst zone: all of Gabon

Source: Commissariatau Plan - Annuaire Statistique;and data provided by the Gabonese authorities. Table 17: FOREIGNAID DISBURSENENTS

In million CFAF

GRA$TTS 1960 1961 1962 1963 1964 1965 1966

FAC 1,084 1,533 1,551 1,821 1,551 1,509 1,681 (of which: tech- nical assistance) (650) (675) (700) (750) (800) (85() (900)

FED 2 92 521 607 779 737 422

AID 30 116 186 198 167 119

Formosa 60 60 60

United Nations n.a. n.a. n.a. 62 37 59 41

TOTAL 1,086 1,655 2,188 2,676 2,625 2,532 2,323

LOANS

IBRD 2,346 3,689 1,676 - - 1,408 1,424

CCCE 1,634 1,636 1,161 455 753 370 668

KfW- - - - 109 242 150

United Nations - - - 250 250 - 400

TOTAL ` 3,980 5,325 2,837 705 1,112 2,020 2,642 TOTALAID 5 502 6,980 5,O25 3,381 3,737 4.552 4965

Source: Material, was gathered from the various institutions mentioned. Table 18: PUBLICDESBT

Part 1: EXTERNALMEDIUM- AND LONG-TERMI PUBLICDEBT OUTSTANDING INCLUIHNGUNDISBURSED AS OF DECEMBER31, 1967 Debt Repayable in Foreign CurrencyL.

(Iii thousands of U.S. dollars) Debt outstanding December 31, 1967 Disbursed Including Item only undisbursed TOTALEXTERNAL PUBLIC DEBT 58,906 62,517 Publicly-issuedbonds 6,017 6,017

Privately-placeddebt - suppliersJcredits 2,199 2,199

IBRD loans 25,o59 25e266 Loans £rom governments of other IBRD mnerbers 25 631 ?9035 France 21.756 25ff16O Germany 3,875 3,875

1 D]ebtwith an originalor extendedmaturity of one year or more. /2 Definedto includethe CFA franc which is freelyconvertible into the Frenchfranc. Part 2: ESTIMATEDCONTRACTUAL SERVICE PAYSIETS LUEIN FUTUREON EXTERNALIErU=M- ANDLONG-TEFM PUBLIC DEBT OUTSTLNDING INCLUDING UNDISBURSED AS OF DECEMBER31, 1967-

Debt Repayable in Foreign Currency

(In thousands of U.S. dollars)

Debt outst. (Begin of Period) Year Including Payments Duzring Period Undisbursed Amortization Interest Total

GRANDTOTAL 1968 62,517 4,580 2,347 6,927 1969 57,936 4,986 2,213 7e199 1970 52,951 5,084 2,042 7,127 1971 47,867 5,181 1,859 7,040 1972 h2,685 5,528 1,658 7,186 1973 37,157 5,725 1,410 7,135 1974 31,432 5,625 1,147 6,772 1975 25,807 3,426 911 4,337 1976 22,381 3,436 772 4,208 1977 18,945 3,136 633 3,768 1978 15,809 1,828 515 2,344 1979 13,981 1,635 437 2,072 1980 12,346 1,619 364 1,983 1981 10,727 1,530 290 1,820 1982 9,196 1,289 218 1,508

PUBLICLY-ISSUEDBONDS 1968 6,017 405 304 710 1969 5,611 425 284 710 1970 5,186 446 263 710 1971 4,740 468 241 710 1972 4,272 491 218 710 1973 3,780 516 194 710 1974 3,625 541 169 710 1975 2,724 568 142 710 1976 2,156 596 114 710 1977 1,561 625 85 710 1978 936 217 54 271 1979 719 229 41 271 1980 489 243 28 271 1981 246 246 14 261

See footnote at end of table Part, 2: ESTIMATEDCONITRACTUAL SERVICE PAYMENTS DUE IN FUTUPEION EXTERNALMEDIUM- AND LONG-TEIM PUBLIC DEBTQUTSTANDING INCLUD¢NG UNDISBURSED AS OF DECEMBER31, 1967/1 (GONT.) P. 2

Debt Repayable in Foreign Currency

(In thousands of U.S. dollars)

Debt outst. (Begin of Period Including Payments Du.ring Period Year Undisbursed Amortization Interest Total

PRIVATELY-PLACEDDEBT - SUPPLIERST CREDITS 1968 2,199 529 2 530 1969 1,671 529 1 530 1970 1,142 529 1 529 1971 613 367 _ 368 1972 246 10 - 160 1973 87 87 _ 87

IBRD LOANS

1968 25,266 2,001 1,421 3,1422 1969 23,265 2,117 1,307 3,424 1970 21,1148 2,244 1,181 3,425 1971 18,904 2,380 1,046 3,426 1972 16,524 2,525 904 3,429 1973 13,999 2,673 753 3,426 1974 11,326 2,831 593 3,424 1975 8,495 660 459 1,119 1976 7,835 690 421 1,111 1977 7,145 730 383 1,113 1978 6,415 770 342 1,112 1979 5,645 820 299 1,119 1980 4,825 860 254 1,114 1981 3'e965 910 206 1,116 1982 3,055 960 155 1,115

See footnote at end of table. Part 2: ESlTIlATED CONTRACTUALSERVICE PAYNDIETSLUE IN FUTUREON MEMJAL MEDIUM ANDLONG TERS PIJBLIC DEBT OUTS AN:NG INCLUDIG UNDISBURSED AS OF DECEMBER31, 1967L. (CONT.) P. 3

IDebt Repayable in Foreign Currency

(In thousands of U.S. dollars) Debt outst. (Begin of Period Including Paynments Dlring Period Year Undisbursed Anortization Interest Total

LOANSFROM GOVEEMNTS OF OTHERIBRD BMERS 1968 29,o35 1,645 619 2,265 1969 27,f389 1,915 621 2,535 1970 25,4753 1,865 597 2,463 1971 23,609 1,966 571 2,537 1972 21,643 2,352 536 2,888 1973 19,291 2,450 463 2,913 1974 16,841 2,253 385 2,639 1975 14,588 2,198 310 2,509 1976 12,390 2,151 237 2,388 1977 10,239 1,781 165 1,9)45 1978 8,458 841 120 961 1979 7,617 585 97 682 1980 7,032 517 81 598 1981 6,515 374 70 443 1982 6,1)1 329 63 393

FRANCE 1968 25,160 1,141 503 1,9)45 1969 23,718 1,507 513 2,020 1970 22,211 1,457 502 1,960 1971 20,7154 1,558 489 2,047 1972 19,196 1,944 465 2,410 1973 17,252 2,042 405 2,447 197)4 15,210 1,845 339 2,185 1975 13,36)4 1,790 277 2,067 1976 11,574 1,7)43 215 1,958 1977 9,831 1,373 156 1,528 1978 8,458 841 120 961 -- 1979 7,617 585 97 682 1980 7,032 517 81 598 1981 6,515 374 70 443 1982 6,141 329 63 393

See footnote at end of table. Part 2: ESTllTED CONTRACTUALSERVICE PAYIMMTS DUE IN FUTUREON EXTERNAL IM)IUM- ANDLONG-TERM PUBLIC DEBT OUTSTeD1ING INCLUDING UNDISBURSED AS OF DC1BECR 31, 1967'- (CONT.) p. 4 Debt Repayable in Foreign Currency Debt Repayable in Foreign Currency

(In thousands of U.S. dollars)

Debt outst, (Begin of Period Including Payments During Period Year Undisbursed Amortization Interest Total

GERWANY 1968 3,875 204 116 320 1969 3,671 408 107 515 1970 3,263 408 95 503 1971 2,855 408 83 490 1972 2,447 4o8 70 478 1973 2,039 408 58 466 1974 1,632 408 46 454 197 1,224 408 34 442 1976 816 408 21 429 1977 408 408 9 417

/ Includes service on ail debt listed in Table 1 prepared IHarch 14, 1968. C A M E R O O N GABON TRANSPORTATIONPETROLEUM / AND FORESTRY - S

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