Economic Diversification in Gabon

Gabon is one of the most economically developed countries in Africa. Yet, there is still a major disparity in income among its residents. This is mainly due to the fact that Gabon's main source of production is oil. When a country has mainly one source of production, the economy isn't very stable because the economy fluctuates, so demand for their good will constantly go up and down. This is why economic diversification is a key factor to maintaining a country's economic stability. President of Gabon, Ali Bongo Ondimba understands the importance of  diversification and this is why he has new plans to expand the economy into other sectors outside of oil production.

President of Gabon, Ali Bongo Ondimba

President Ondimba recently discussed some of his initiatives to expand the economy of Gabon with Oxford Business Group. He mentions in his interview a current program his administration has created to close the gap between the wealthy and poor called "Achieving Agricultural Outcomes with Engaged Citizenry". The purpose of this program is to provide land grants to residents. Allowing for more people to obtain land will be an effective way for more residents to earn a living from farming. Aside from this program, the country is also working to boost tourism. Additionally, Gabon is working on getting more international investors to do business in the country.

The new strives that President Ondimba are making to close the gap between the wealthy and the poor will surely make a difference in allowing low income residents of Gabon to improve their lifestyles. The oil industry in Gabon is dominated by the wealthy. However, by introducing new programs such as the "Achieving Agricultural Outcomes", more residents will have the opportunity to contribute to the economy and earn a decent living. One of most vital pieces of any economy is an investment in human capital. Initiatives such as this are certainly an investment in the people of Gabon, and it will make all the different for the residents of Gabon and the country as a whole. Expanding tourism will also be a new form of job creation for Gabonese people, as more more residents can take jobs as tour guides, etc. Not to mention that expanded tourism will also create a larger demand for hotels and resorts within the country. Lastly, working on international investment is a strategic way to diversify the economy as more countries will be willing to loan the capital needed to create new opportunities. 

Gabon is already making progress in improving their economy just by even planning ways to diversify their economy. With the combination of economic diversification and investing in its human capital, the country's wealth will improve and offer a higher standard of living for more residents and a better quality life. 

Source(s):

Oxford Business Group. "Ali Bongo Ondimba, President of Gabon, on economic reform and diversification". 26 August 2016.
http://www.oxfordbusinessgroup.com/views/ali-bongo-ondimba-president-gabon-economic-reform-and-diversification.