Why many foreign companies are on the verge of leaving Gabon

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Gabon's wealth, derived from its abundance of natural resources, masks the fact that it is one of Africa's worst-run countries

said of countries that their real wealth lies in their people. Few say this about Gabon. With 2m people and twice the land mass of England, it is among Africa’s richest countries, with aper person of $8,300. Almost all of this comes from natural resources. Gabon exports oil, timber and palm oil. It is also the world’s third biggest producer of manganese, a metal used in producing stainless steel.

A big new scam has targeted foreign businesses in Libreville, the capital. It relies on a law inherited from France, the former colonial power, that allows courts to order companies to pay their debts. That might make sense when the debts are genuine. But oil companies, banks and supermarkets have been targeted by firms that appear from nowhere, demanding payment of fictitious debts.

Other firms have been hit harder. An international oil company says it is being targeted at least four times a week, with seizures of as much as $10m.

 

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