France’s Investment of 525 Billion FCFA in Gabon: Strengthening Infrastructure and Economic Growth

France has pledged an investment of 525 billion FCFA (approximately 800 million euros) in Gabon, highlighting its commitment to fostering economic growth and reinforcing bilateral ties. This investment, discussed during a meeting on October 24, 2024, in Libreville, between France's ambassador to Gabon, Fabrice Mauries, and Gabonese Transport Minister Dieudonné Loïc Ndinga Moudouma, aims to enhance transportation infrastructure and support the country’s National Recovery Plan (PRN).

A significant focus of the investment is the modernization of Gabon’s railway infrastructure, crucial for transporting minerals. The project seeks to boost rail capacity, increasing the rail strength from 50 kg to 60 kg per track to handle up to 20 million tons of minerals. The discussions emphasized the importance of ensuring modernity and safety in Gabon’s transport infrastructure, aligning with the vision of Gabon’s transitional leader, Brice Clotaire Oligui Nguema.

While the details of the financial arrangements are still under negotiation, the initiative is expected to reinvigorate the mining sector, particularly the operations of the French company Eramet. Through its subsidiaries, the Compagnie Minière de l’Ogooué (Comilog) and the Société d’Exploitation du Transgabonais (Setrag), Eramet plays a pivotal role in Gabon’s mining and rail transport sectors.

However, challenges persist. On October 15, 2024, Eramet announced a temporary suspension of manganese production at the Moanda mine due to a downturn in global demand, particularly from China. This market imbalance, caused by reduced steel production and increased supply of low-grade manganese, has pressured Gabon’s high-grade manganese sales and impacted production forecasts. Comilog, Gabon’s leading manganese producer, expects its annual output to drop to 7 million tons, down from the previous estimate of 7.5 million tons.

Despite these challenges, the French investment represents a strategic effort to stabilize and modernize Gabon’s key industries. With improvements in infrastructure and renewed focus on sustainability, Gabon stands to benefit from this robust financial partnership, fostering long-term economic growth and development.

All cargo shipments to Gabon must include the BIETC (Bordereau d’Identification Électronique de Traçabilité des Cargaisons)

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