World Bank Group - Gabon Partnership Strategy 2012-2016

1. World Bank Group - Gabon PartnershipStrategy 2012-2016 1st UK/Gabon Investment Forum London, UK November 29, 2012

2. What the World Bank Group does Combination of various public and privatesector interventions tailored to the country’sspecificcontext – IBRD, IDA, IFC, MIGA Knowledge to support public policydebates Developmentsupport and provide a platform for more efficient use of the country’sownresources The Bank’sconvening power enables us to mobilizeotherfunds for the benefit of our client countries.

3. Gabon Country Context Gabon is the fifth-largest oil producer in Sub-Saharan Africa and the second-largest exporter of manganese. Well endowed with arable land, forest and mineral resources Gabon’s oil production over the past 40 years has transformed it into a middle-income country, with a 2011 gross domestic product (GDP) per capita of US$11,113 As such, Gabon is one of the few IBRD countries in Sub-Saharan Africa. Population is 1.5Mn

4. Challenges Gabon’s human development indicators are well below those of countries with similar GDP per capita, and income inequality remains high. Governance and Public Sector Capacity can be strengthened Investment Climate needs to be improved

5. Economic Prospects While economic prospects are broadly favorable, Gabon’s economy is vulnerable to external shocks. Gabon is recovering from the global financial crisis (2008–09), thanks largely to a rebound in international demand for raw materials and an expansionary fiscal policy. However, its dependence on oil makes the economy vulnerable to external shocks. Gabon’s plans to compete globally will depend largely on efforts to diversify economic growth

6. It is no longer business as usual in Gabon . In 2009, the government introduced its economic development plan, the Plan Stratégique Gabon Emergent (PSGE), with the stated goal of transforming Gabon into an emerging economy by 2025. In 2010, the government decided to triple expenditure to accelerate investments in infrastructure and to improve the investment climate

7. Governance Improvement Measures • Implementing public procurement reform; • Creation of a commission mandated to fight corruption, the illicit diversion of funds, and capital flight ; • Hiring an independent auditor to assess the oil companies’ performance vis-à-vis the stated agreements and ensuring that those agreements are in fact beneficial to Gabon; and • Procuring World Bank Group advice and technical assistance to strengthen areas such as public financial management, debt management, and taxation systems as well as the petroleum and mining codes.

8. World Bank Group strategy for Gabon Gabon has been a member of the WB since 1963. Since then, $267 Mn invested by the Bank in Gabon Country Partnership Strategy (CPS) 2012-2016 comes at a time of renewed engagement between Gabon and the WB – evidenced by $250-300 Mn in investments over the next 4 years Demand driven partnership based on supporting Gabon’s PSGE strategy Focus on infrastructure (telecom, energy, education), and private sector development Investments by IFC, guarantees by MIGA

9. World Bank Group Strategy for Gabon • The CPS is selective and provides a framework for WBG support to Gabon’s effort to transition from a highly oil dependent economy to a diversified one that harnesses inclusive private sector growth and makes progress in poverty reduction. • Consistent with the World Bank Africa Strategy, the Gabon CPS is built around two strategic themes: • increasing Gabon’s competitiveness and employment by promoting economic growth and diversification; and • providing greater opportunities for all by focusing on vulnerability and resilience and building a foundation for good governance and public sector capacity. Gender equity is the cross-cutting theme.

10. World Bank Themes aligned with Emerging Gabon Strategy Reform and Modernization of the State Diversification of the Economy infrastructure dev and Regional Planning Improving the Investment Climate Development of Human Capital and fight against exclusion and vulnerability Gender Equity Theme 1: Competitiveness and Jobs Theme 2: Vulnerability and Resilience Foundation: Governance and Public Sector Capacity

11. IFC Investment and Advisory Strategyin close coordination with the WB in Gabon and in the whole of Africa InvestmentClimate Proactive Project Development MSME Support Increase focus on reaching Micro & SMEs in priority sectors and continuing with the programmatic roll out of successful pilots (AMSME) branching out to BOP Continue to improve the investment climate in Africa , at national (DB Reform) and regional level (OHADA…) upstream work on priority sectors (agri, Infra PPP, health) Strategic Initiatives in priority areas where private sector participation or access is low. Health, Infra & Agri. Mobilization for significant impact in transformational projects Post-conflict, poorest IDA Climate Change Regional Integration South-South Investments E&S Standard Setting • In Gabon: • IFC is currently considering investments in the Manufacturing, Agribusiness and Infrastructure Sectors • IFC developing a program for SME Capacity Building • IFC is supporting the GoG in its efforts to improve the Investment Climate

12. Conclusion A re-energized and renewed relationship between Gabon and the World Bank Group An innovative approach drawing leveraging partnerships, knowledge and financing In lending, a scaled up engagement for a transformative impact ( increase in investment portfolio from US$50m to US$ 250-300m from 2012-2016) A more comprehensive representation of strategic sectors (infrastructure, investment climate improvement,, telecommunications, governance and public financial management) Engagement and projects by both IFC and MIGA Close alignmentwith national priorities (le Plan Stratégique Gabon Emergent)

13. Thank you for your kind attention ZoueraYoussoufou WB Country Manager for Gabon www.worldbank.org/Gabon