GABON SPECIAL ECONOMIC ZONE

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Lilian Short
6 years ago
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1 INTRODUCTION: Gabon is a picturesque and oil rich country in West Central Africa. With the Atlantic Ocean on the West, it shares the Northern boundary with Cameroon & Equatorial Guinea and the Eastern and Western boundary with the Republic of Congo. Gabon is one of the Africa's most stable country with a growth rate of 5.3% and a GDP of 27.1 billion in Witnessing a favorable investment climate, Olam International Ltd in partnership with the Gabonese Republic decided to develop a Special Economic Zone. Started in 2010, the Special Economic Zone (SEZ) at Nkok is spread over 1126 Hectares and is one of the largest industrial park in sub-saharan Africa, which aims to promote the sustainable production and processing of timber and various other products within the country. This successful public private partnership project, with 40% stake of Gabonese Government and 60% of Olam International Ltd., is located just 20 km away from the capital city Libreville. PROJECT OBJECTIVES: The project, which is high on government s agenda, aims to develop and promote Gabon as an economic Hub in West Central Africa. The objectives of this project are mainly: The promotion and attraction of multisectoral industrial investment such as commercial and services by promoting the establishment of businesses To increase exports and investment (from Abroad as well as Gabonese) The development of national production and natural resources; Providing enabling environment to manufacturing industries Job creation PROJECT STATUS: Special Economic Zone (SEZ) at Nkok currently has 77 customers and foreign direct investment expected is more than USD$ 1.7 billion. The industries making SEZ as base are mainly industries into wood, ferro-alloys, construction material, pharmaceutical, food processing, waste recycling and warehouses. As on date 12 companies are in different stages of construction and 4 companies are already under production. It is expected that about 25 companies will begin commercial production by March 2014.

2 A Special Economic Zone (SEZ) generally requires 5-7 years to be operational. However, started in 2010 the first phase of SEZ spread over 450 Hectares is operational with few companies already under production. The main technical achievements on the infrastructure development front are: Environment: The Environmental and Social impact assessment study was completed in 2010 and the project has the approval of the Ministry of Environment and Forest. Connectivity: The project site has access from trans Gabonese National Highway-1 and plots have a connectivity through a ready network 2, 3, 4 and 6 lane roads with total lane length of 42km. Electricity: Dual fuel (gas/diesel) power plant at Alenakiri with a capacity of 70 MW is operational and is the source of power to NKOK SEZ. Later SEZ will be connected with the national grid. The Main Receiving Sub Station, 5 Zonal Sub stations and a network of 24km long 20KV HT and LT lines is ready. The zone is well lit with a network of 662 conventional and energy efficient solar powered streetlights. Water supply: 7 bore wells are the source of water. The 11 kms long water pipe line network is in place and provides Industrial water to all plots. 2 water tanks with a daily capacity of 6 million liters are ready. Waste Water: The Common Effluent Treatment Plant with a daily treatment capacity of 6 Million Liters is under construction and will be operational by end of A 12km long sewer line exists in the whole Zone. Facilities: Following facilities are added advantage to the SEZ customers o First Aid Centre: A First Aid Centre has been constructed to provide primary health facility to Industrial workers. This facility would be available to investors on user basis. o Police Station: The Police Station building is ready and government has agreed to operationalize a 24 x 7 Police station. o Fire Station: The Fire Station Building is nearing completion. There is a provision for residential accommodation for 130 firemen and stationing multiple fire tenders within the campus to ensure 24x7 alert. o Log Park: A log park exists within project site for storing logs and providing a platform to companies with forest concessions to do trading of species not of their use. o Container Terminal & Railway Siding: A Container terminal complete with railway siding on the railway line connecting Owendo Port (on Atlantic side) with the city of Franceville (on the Western part of the country), will ensure movement of raw material from within the country to SEZ and transport of finished product from SEZ to port. o Water Access: A Quay with 200m long front, sufficient to dock four 1000 Ton barges at the same time will provide quick and easy access to Owendo Port. o Kiln Drying Plant: A common Kiln drying plant is under construction for companies in timber processing. Telecommunication facility: Telecommunication facility will be provided by private operators. There are many prominent players active in the region like AIRTEL (Bharti Airtel), MOOV (Etisalat), LIBERTIS (Gabon Telecom) and Azur (Saudi Binladin Group).

INCENTIVES TO INVESTORS: Special Economic Zone (SEZ) has three sub zones - Industrial zone, residential zone and commercial zone and it offers different development

import of equipment and machinery for the industry, No VAT No Property Tax, Electricity at a discounted price (FCFA 45/unit) Flexibility in employing expatriates Permission to

3 INCENTIVES TO INVESTORS: Special Economic Zone (SEZ) has three sub zones - Industrial zone, residential zone and commercial zone and it offers different development opportunities in Industrial zone through following fiscal incentives No Income tax for first 10 years and a preferential rate of 5% over the next 5 years, No Customs Duty on the import of equipment and machinery for the industry, No VAT No Property Tax, Electricity at a discounted price (FCFA 45/unit) Flexibility in employing expatriates Permission to sell 75% produce in local market If the industry is first of its kind in Gabon. Other Incentives: Free Forest Concessions to Industries into Timber processing (on minimum purchase of 2Ha land).

SPECIAL SUPPORT - THE SINGLE WINDOW CLEARANCE: To expedite government approvals, a single window approval facility is extended to all industrialists setting up base within the SEZ.

4 SPECIAL SUPPORT - THE SINGLE WINDOW CLEARANCE: To expedite government approvals, a single window approval facility is extended to all industrialists setting up base within the SEZ. To ensure that the investors do not have to run from one office to another, all departments and agencies from which approvals are required (listed below) will be housed within the SEZ in a special building, which is already nearing completion. Department of Tax Department of Commerce Department of Labor and employment Department of Customs and Excise Department of Immigration Department for Promotion of Investments Department of Consumer Affairs Department of Environment Department of Forest Department of Industries and Trade Port Authority PROJECT STATISTICS: Total Project Area: 1126 Hectares First Phase extent: 600 Hectares Industrial zone: 80% of area sold Commercial zone: 100% area sold Residential zone: 100% area sold New pockets to be launched soon Total Customers: 77 Approximate likely Investment by Investors: USD$ 1.7 Billion

Employment Generation (Construction Phase): 1400 jobs Employment Generation (Operation Phase): 7,500 jobs LAND PRICE: OPTION 1 - Sale : Industrial : FCFA 50,000/sqm. Commercial : FCFA 65,000/sqm.

5 Employment Generation (Construction Phase): 1400 jobs Employment Generation (Operation Phase): 7,500 jobs LAND PRICE: OPTION 1 - Sale : Industrial : FCFA 50,000/sqm. Commercial : FCFA 65,000/sqm. Residential : FCFA 65,000/sqm. Payment Terms: 20% Booking and balance in 12 equal installments OPTION 2 - Rental: Industrial : FCFA 5,000/sqm/year Payment Terms : Six Months Rental as Security : Six Months Rental as Advance TYPE OF INDUSTRIES THAT HAVE ALREADY TAKEN LAND AT NKOK: Saw Mills Veneer Plant Ply Wood Plant Moldings Furniture plant

6 Mineral Ferro Alloys Computer Assembly Glass Manufacturing Construction Material Electrical Cable manufacturing Waste Recycling Ferrous Scarp recycling Non-Ferrous Scarp recycling Cement manufacturing Warehousing CONTACT DETAILS: ( ) ( ) ( ) ( ) ( ) Jasveer Singh - SEZ Business Head Mobile: (Gabon) jasveer.singh@olamnet.com

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