Gabon

Economy

Since the 1970s the Gabonese economy has been centered on the oil industry, which has provided it with one of the highest per capita incomes in sub-Saharan Africa and accounts for almost 80% of its export income and 50% of its GDP. Oil wealth, however, led to government corruption, and the population at large has failed to benefit from oil profits. Gabon's economy also is subject to fluctuating oil prices, and it must contend with diminishing reserves. Decreases in production since the mid-1990s have hurt the economy, although it benefited from oil price increases after 2000. The exploitation of forest products and the mining of manganese, which formed the backbone of the economy until oil became predominant, remain relatively important today, and in 2010 the government began taking specific steps to further diversify the oil-reliant economy. The country's most significant forest products are okume (a softwood used in making plywood), mahogany, ebony, and rubber. Other minerals extracted are gold, uranium, and iron ore.

The chief products of Gabon's industrial sector include refined petroleum, chemicals, food and beverages, textiles, and wood products. Despite this economic activity, the majority of Gabonese workers are engaged in subsistence farming, with sugarcane, cassava, plantains, and taro the chief crops. There is also fishing. However, food must be imported to meet the country's needs. Cocoa, coffee, and palm products are produced for export. Few animals are raised, partly because of the prevalence of the tsetse fly.

Gabon's main exports are crude petroleum, forest products, manganese and uranium ores, and cocoa; the principal imports are machinery and equipment, foodstuffs, chemicals, and construction materials. The leading trade partners are the United States and France. Gabon's limited transportation network was improved with the construction (1986) of the Trans-Gabon railway, which links the deepwater port of Owendo with iron ore and manganese deposits.

The Columbia Electronic Encyclopedia, 6th ed. Copyright © 2012, Columbia University Press. All rights reserved.

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