Top-Rated Debt Collection Agency in Gabon

The economic risk in Gabon

Our conclusion based on the economic risk factors, is that the economic risk in Gabon is very high (6 out of 6). An economic risk of 6 out of 6 is relatively high in Africa.

GDP and economic growth are critical drivers for economic risk.
The GDP of Gabon is 18,27 bn. USD (2021), growing by 1,51% per year.

In terms of the size of its economy, Gabon ranks #114 out of 183 countries and has a medium-sized economy.

Having a view at the growth rate, it is ranked #150 out of 183 countries and is therefore considered a slow-growing economy.

GDP per capita is 8017 USD, ranking Gabon number #74 out of 183 countries. This means the purchasing power of citizens in Gabon is average compared to the rest of the world.

You can see a more detailed picture of GDP and economic growth in Gabon in the table below:

Another critical driver for the economic risk score is the inflation rate and the interest rates. You can see a more detailed picture of monetary KPIs in Gabon in the table below:

The business environment risk in Gabon

Our analysis shows that the business environment risk in Gabon is very high (6 out of 6), which is a high risk score in Africa.

Economic freedom and rights determine the business environment risk in a country. You can see the critical facts for Gabon in the table below:

Economic freedom indexLatest valueProperty rights index (0-100)24Freedom from corruption index (0-100)36Fiscal freedom index (0-100)78Business freedom index (0-100)55Monetary freedom index (0-100)84,5Trade freedom index (0-100)57Investment freedom index (0-100)60Financial freedom index (0-100)40Economic freedom, overall index (0-100)58

As you can see in the table, the property rights index is 24 in Gabon, which is considered low in Africa.

The business freedom index is based on 10 indicators, using data from the World Bank’s Doing Business study. The Index is 55 in Gabon, a quite average score for a country in Africa.

Gabon's overall economic freedom index is 58 out of 100 and is based on factors such as the rule of law, regulatory efficiency, and market openness.

The political risk in Gabon

The political risk in Gabon is high, with a score of 5/6. This is a pretty average political risk score in Africa.

The governance and political stability indicators are important drivers for political risk. An overview of Gabon can be seen in the table below:

Governance and political stability indicatorsLatest valueRule of law index (-2.5 weak; 2.5 strong)-0,7Government effectiveness index (-2.5 weak; 2.5 strong)-0,78Control of corruption (-2.5 weak; 2.5 strong)-0,85Political stability index (-2.5 weak; 2.5 strong)-0,09Corruption Perceptions Index, 100 = no corruption31Shadow economy, percent of GDP52,01%

The rule of law index analyses to which extent agents have confidence in and abide by the rules of society, in particular the quality of contract enforcement, property rights, the quality of the courts, and the police's ability to enforce court orders.

When trading with businesses in a country, the rule of law index is critical as it describes your ability to enforce commercial contracts.

In Gabon, the rule of law index is at -0,7 points, with the score going from -2.5 (weak) to 2.5 (strong). Gabon has, therefore, a very low rule of law index, which means it is often close to impossible to enforce your contracts. We, therefore, recommend avoiding credits and recommend charging upfront payment instead.

Other drivers for the high political risks are the very weak control of corruption, the weak political stability index, and the very large shadow economy that is 52,01% of Gabon's GDP.

The commercial risk in Gabon

In Gabon, the commercial risk score is 2/4, which in our model is a low score. This low commercial risk score is pretty average compared to the average in Africa.

The commercial risk is impacted by a country's international trade relationships. You can see some of the key facts for Gabon in the table below:

International trade and investmentLatest valueExports of goods and services as percent of GDP53,2%Exports of goods and services, annual growth0,63%Imports of goods and services as percent of GDP20,47%Trade balance as percent of GDP32,74

Gabon has a positive trade balance of 32,74% of GDP. The meaning of this is that Gabon imports fewer goods and services than the country exports.

The annual growth of exports of goods and services has been growing 0,63% annually - now 53,2% of GDP. Import of goods and services represents 20,47% of the GDP in Gabon.

The financing risk in Gabon

We have calculated the financing risk to be 3/4, which equals a medium risk. A medium financing risk score is pretty average for countries in Africa.

The country's banking system, efficiency, and stability influence the financing risk. Additional facts and info can be found for Gabon in the table below:

Banking system efficiency and stabilityLatest valueIndex of legal rights for creditors and borrowers (0 = weak to 12 = strong)6Credit information sharing index, 0 (low) - 8 (high)2

In Gabon, the credit information sharing index is 2 on a scale from 0 (low) to 8 (high). The result of this, is that the access and trustworthiness of the credit information in Gabon is low.

This makes it very difficult for you to understand the credit risk of your counterpart in Gabon. Unless you have a strong relationship with your customers in Gabon, we highly recommend charging payment upfront or using credit insurance.

Your rights as a creditor are 6 out of 12 and, therefore, weak.

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