III -  ECONOMIC TRENDS AND OUTLOOK

MAJOR TRENDS AND OUTLOOK

GABON'S ECONOMIC AND FINANCIAL PERFORMANCE IN 1993 WAS
MARKED BY A DETERIORATION OF ITS EXTERNAL POSITION WHICH WAS
ACCENTUATED BY THE SUSPENSION OF DEBT SERVICE, THE DECREASE OF
ITS MINERAL EXPORTS AND THE CANCELLATION OF THE 1991 PARIS CLUB
RESCHEDULING AGREEMENT.   AS A RESULT OF THESE NEGATIVE FACTORS,
GABON HAS NOW A LARGE OVERHANG OF EXTERNAL AND DOMESTIC PAYMENTS
ARREARS.  AFTER 5 YEARS OF DEBT RESCHEDULING  AND CONSULTATION
WITH THE IMF, PROMISED STRUCTURAL ADJUSTMENT HAS FAILED TO TAKE
PLACE.  CONSEQUENTLY, THE GOALS SET BY THE IMF STAND-BY AGREEMENT
COULD NOT BE ACHIEVED IN 1993. IN ADDITION, PAST EFFORTS AT
ECONOMIC RESTRUCTURING HAVE BEEN UNDONE BY POLITICALLY DRIVEN
EXPENDITURES SUCH AS WAGE INCREASES TO PREVENT STRIKES AND THE
UNWILLINGNESS TO FIRE EXTRA LABOR FORCE FOR POLITICAL REASONS.

ON JANUARY 11TH, 1994, THE CFA FRANC WAS DEVALUATED.  THIS
DECISION CONCERNED ALL FORMER FRENCH COLONIES, USING THE CFA
FRANCS AS MONETARY UNIT. 100 CFA FRANC EQUALS ONE FRENCH FRANC,
INSTEAD OF 0.50 FRENCH FRANC AS BEFORE.  DESPITE THE POOR
PERFORMANCE OF ITS ECONOMY, GABON CONTINUES TO BE ONE OF THE
RICHEST COUNTRIES IN AFRICA WITH A PER CAPITA INCOME AFTER THE
DEVALUATION OF APPROX. US DOLS 3,900 DUE TO ITS CRUDE OIL,
MINERAL AND WOOD RESOURCES AND AN ANNUAL MERCHANDISE TRADE
SURPLUS OF APPROX. US DOLS 1.6 BILLION IN 1993. IN MARCH 1994,
GABON AND THE IMF AGREED ON A 12 MONTH STAND-BY ACCORD WHICH WAS
FOLLOWED BY AGREEMENTS WITH PARIS AND LONDON CLUB CREDITORS TO
RESCHEDULE GABON'S DEBT. AS OF JUNE 30, 1994 GABON HAD MET
INITIAL IMF TARGETS RELATING TO WAGE INCREASES AND INFLATION.
THERE ARE TWO LARGE "BALLOON" PAYMENTS FOR PARIS CLUB ARREARS DUE
OCTOBER 31, 1994 AND MARCH 31, 1995 WHICH WILL TEST THE GOVERMENT
OF GABON'S RESOLVE TO HONOR ITS COMMITMENTS.

PRINCIPAL GROWTH SECTORS

PETROLEUM:  OIL AND ITS RELATED INDUSTRIES ARE THE KEY SECTOR OF
THE GABONESE ECONOMY.  PETROLEUM ACTIVITIES GENERATED 30 PERCENT
OF GROSS DOMESTIC PRODUCT IN 1993.  OIL PRODUCTION REACHED 15.5
MILLION TONS EXACTLY THE SAME AS IN 1992.  MUCH OF THE OIL CAME
FROM THE ONSHORE ZONES, ESPECIALLY THE RABI KOUNGA OILFIELD IN
SOUTHWESTERN GABON, WHICH WAS BROUGHT INTO PRODUCTION IN 1989 AND
FURTHER DEVELOPED SINCE.   RABI'S DAILY PRODUCTION OF 155,000
BARRELS OFFSET FALLING OUTPUT ON THE MANDJI, GAMBA, AND LUCINA
FIELDS.  GABON HAS THE TECHNICAL CAPABILITY TO CONTINUE TO
INCREASE OUTPUT IN THE NEXT FIVE YEARS, EXCEPT FOR TWO LIMITING
FACTORS:

-FURTHER EXPANSION OF RABI KOUNGA'S CAPACITY IS CONTINGENT ON AN
 INCREASE IN OIL PRICES (CURRENT LEVELS OF $14/BBL DO NOT JUSTIFY
 ADDITIONAL INVESTMENT);

-GABON HAS BEEN CUTTING ITS OUTPUT MARGINALLY IN RESPONSE TO OPEC
 MARKETING POLICY GUIDELINES.

FORESTRY SECTOR: FORESTRY PRODUCTS ARE EXPECTED TO REGISTER
MEASURABLE IMPROVEMENT IN THE NEAR FUTURE AS A RESULT OF THE
REORGANIZATION OF THE STATE COMPANY SNBG, THE DECREASE OF EXPORTS
OF SOUTH EAST ASIAN TIMBERS, AND IMPROVING PRICE COMPETITIVENESS
DUE TO THE CURRENCY DEVALUATION.  A POSITIVE DEVELOPMENT SHOULD
BE EXPECTED FROM THIS SECTOR SINCE  80 PERCENT OF THE COUNTRY IS
COVERED BY DENSE FOREST AND THE GABONESE GOVERNMENT IS ACTIVELY
TRYING TO DIVERSIFY ITS EXPORT EARNINGS. GABON'S FORESTRY SECTOR
IS THE COUNTRY'S THIRD LARGEST INDUSTRY, PRODUCING ABOUT ONE
MILLION CUBIC METERS OF WOOD ANNUALLY, ABOUT 75 PERCENT OF WHICH
IS EXPORTED. FORESTS COVER 75 PERCENT OF THE COUNTRY; COMMERCIAL
WOOD RESERVES COVER AN AREA OF 50 MILLION ACRES AND ARE ESTIMATED
TO BE 300 MILLION CUBIC METERS (M3). OKOUME REPRESENTS 72 PERCENT
OF WOOD PRODUCTION; OZIGO REPRESENTS THREE PERCENT; BOTH ARE FAST
GROWING, SOFT MAHOGANIES WHICH ARE PRIMARILY USED FOR PLYWOOD.
THE REMAINING 25 PERCENT IS SPREAD OVER A WIDE VARIETY OF EXOTIC
HARD WOODS WHICH HAVE NOT BEEN EXTENSIVELY LOGGED.  THE GABONESE
GOVERNMENT HAS A MONOPOLY OVER THE MARKETING OF OKOUME AND OZIGO.

TELECOMMUNICATIONS: THE OFFICE DES POSTES ET TELECOMMUNICATIONS
DU GABON (OPT), A PARASTATAL, HAS A MONOPOLY ON THE
TELECOMMUNICATIONS NETWORK AND MOST TELECOMMUNICATION SERVICES
IN GABON.  SCIENTIFIC ATLANTA SUCCESSFULLY INSTALLED 13 EARTH
STATIONS FOR THE DOMESTIC NETWORK CALLED DOMSAT (DOMESTIC
SATELLITE NETWORK).  THE CELLULAR COMMUNICATION SYSTEMS FROM
MOTOROLA ARE IN OPERATION IN LIBREVILLE AND PORT GENTIL.  THE
CELLULAR SYSTEM WILL BE EXTENDED TO OTHER MAJOR CITIES.  HUGHES
NETWORK SYSTEMS HAS SUCCESSFULLY INSTALLED A VSAT (VERY SMALL
APERTURE TERMINAL) NETWORK USING SMALL ANTENNA FOR RURAL
TELEPHONY AND DATA COMMUNICATION. THERE ARE PLANS TO EXPAND AND
UPGRADE THE PSTN TO BE ISDN COMPATIBLE WHICH WILL REQUIRE SEVERAL
NEW SWITCHING CENTERS.  CONNECTION BETWEEN SUBSWITCHES TO REDUCE
DEMANDS ON THE CENTRAL SWITCH WILL NECESSITATE EXTENSIVE NEW
CABLE AND AMPLIFICATION INSTALLATIONS.  THE EXPANSION WILL
INCLUDE SUBURBS NORTH OF LIBREVILLE WHICH ARE THE SITE OF NEW
HOUSING CONSTRUCTION AS WELL AS A FEW OTHER CITIES.

A FIBER OPTIC SYSTEM WILL BE INSTALLED TO FACILITATE ELECTRONIC
DATA TRANSFER AND TO REPLACE THE PRESENT MICROWAVE LINK SYSTEM.
OTHER PRIORITIES INCLUDE DIGITIZING THE CURRENT SCIENTIFIC
ATLANTA DOMSAT, EXPANDING THE HUGHES NETWORK SYSTEMS VSAT NETWORK
AND EXPANDING MICROWAVE LINKS. OPT INDICATES THAT BEST PROSPECTS
INCLUDE DIGITAL EQUIPMENT FOR THE PUBLIC EXCHANGE, AND FIBER
OPTICS FOR TRANSMISSION EQUIPMENT TO BE USED WITH GROUND-BASED
MICROWAVE LINKED TO DIGITAL EQUIPMENT (THE FRENCH FIRMS ALCATEL
AND JEUMONT SCHNEIDER SEEM TO HAVE A STRONG CONTROL ON THAT
MARKET). FOR CELLULAR SERVICE, OPT INDICATED THAT IT WILL
CONTINUE TO USE MOTOROLA BUT WILL FOCUS ON GSM EQUIPMENT.  RIGHT
NOW THE MOTOROLA CELLULAR SYSTEM IS BADLY MANAGED AND MARKETED.
FASTER GROWTH CAN BE EXPECTED IF MANAGED PROPERLY.  THE VSAT
NETWORK IS EXPECTED TO EXPAND FURTHER.

MINING: ALTHOUGH ONLY TWO MINES ARE UNDER OPERATION IN GABON, THE
MINING SECTOR SHOULD BE CONSIDERED AS A MAJOR SECTOR, BECAUSE OF
THE GABONESE MINING POTENTIAL. THE MINING INDUSTRY IN GABON IS
TWO MINES IN THE HAUT OGOOUE AREA: THE COMILOG'S MANGANESE
OPERATIONS IN MOANDA, AND THE URANIUM MINE OF COMUF IN MOUNANA.
BOTH COMPANIES ARE EFFICIENT AND HAVE IMPORTANT RESERVES BUT HAD
TO RESTRICT OUTPUT IN RESPONSE TO WEAK WORLD MARKET. MANGANESE
ESTIMATED RESERVES OF THE MOUNANA OPERATION REPRESENT 200 MILLION
TONS, AROUND 25 PERCENT OF KNOWN WORLD RESERVES OF HIGH
CONCENTRATE MANGANESE ORE.  THE MINE IS OPEN CAST AND THE HIGH
CONCENTRATE ORE IS ENRICHED ON SITE BY MECHANICAL OPERATION,
YIELDING THE MAIN PRODUCT WHICH CONTAINS 51 PERCENT  MANGANESE.
COMILOG POTENTIAL IS 2.5 MILLION METRIC TONNINGS PER YEAR OF
FINISHED PRODUCT BUT THE COMPANY IS SHIPPING ONLY 1.6 MILLION
METRIC TON A YEAR BECAUSE OF LACK OF DEMAND IN THE STEEL
INDUSTRY. THE MANGANESE ORE IS EVACUATED TO LIBREVILLE (APPROX.
650 KMS) THROUGH THE TRANSGABON RAILROAD.

PROVEN URANIUM RESERVES IN THE MOUNANA MINE ARE 35,000 TONS. THE
ORE WHICH HAS A HIGH URANIUM CONTENT OF 3.6 PER THOUSAND IS
PROCESSED AT MOUNANA TO PRODUCE THE FINISHED PRODUCT CALLED
"YELLOW CAKE", WHICH CONTAINS 73.5 PERCENT URANIUM CONTENT AND
IS EVACUATED TO LIBREVILLE THROUGH THE TRANSGABON RAILROAD.
COMUF'S PRODUCTIVE CAPACITY PER YEAR IS 1,500 TONS OF URANIUM
METAL. 1993 COMUF PRODUCTION WAS AROUND 550 TONS.

BESIDES THESE TWO WELL ESTABLISHED MINING OPERATIONS,GABON HAS
CONSIDERABLE OTHER POTENTIAL FOR MINING PROSPECTS INCLUDE IRON
ORE DEPOSITS WITH OVERALL RESERVES ESTIMATED AT 850 MILLION TONS.
THE BELINGA IRON ORE DEPOSITS ARE LOCATED IN THE SOUTH OF THE
HAUT IVINDO REGION ALONG THE BORDER BETWEEN GABON AND CONGO.  THE
MAIN DISADVANTAGE TO OPENING A MINE AT BELINGA IS THAT A 200 KMS
RAIL SPUR LINK MUST BE BUILT TO THE TRANSGABON RAILWAY.

GOLD PRODUCTION IS ARTISANAL BUT THE PROSPECTS ARE PROMISING.
GOLD RESOURCES ARE FOUND IN FOUR MAIN DEPOSITS.  DANGUI CONTAINS
14 TONS OF GOLD IN FOUR MINERALIZED STRUCTURES, OVALA CONTAINS
2 TONS OF GOLD, AND TWO OTHER SMALL DEPOSITS CONTAIN EACH 700 KGS
OF GOLD.

AN INCREASING NUMBER OF GEM-QUALITY DIAMONDS, SOME AS LARGE AS
THREE CARATS, ARE BEING COLLECTED BY ARTISANAL MINERS NEAR
MAKONGONIO IN SOUTHERN GABON.

BARYTE RESERVES OF AROUND 1.2 MILLION TONS HAVE BEEN FOUND NEAR
MAYUMBA.  ANNUAL DEMAND OF BARYTES IN THE AREA SOUTH OF THE GULF
OF GUINEA IS ABOUT 50,000 TONS.

A MINERAL INVENTORY, CONDUCTED LAST YEAR, OF THE ZONE SERVED BY
THE TRANSGABONESE RAILWAY LED TO THE DISCOVERY NEAR LAMBARENE OF
A BED OF NIOBIUM ASSOCIATED WITH DEPOSITS OF PHOSPHATE, RARE
EARTHS AND TITANIUM.  THIS PROSPECT HAS THE ADVANTAGE OF BEING
WITHIN 10 KMS OF A RIVER TRANSPORT ON THE OGOOUE. A TALC DEPOSIT
OF AROUND 2 MILLION TONS IS LOCATED IN THE NYANGA AREA.

CONSUMER GOODS AND FOOD PRODUCTS:  THOUGH IT IS A DEVELOPING
COUNTRY, GABON'S RELATIVELY HIGH PER CAPITA INCOME PUTS A CERTAIN
PURCHASING POWER IN THE HANDS OF LOCAL CONSUMERS.  IN ADDITION,
THE NUMEROUS FRENCH AND OTHER EXPATRIATES LIVING IN THE COUNTRY
ARE WELL PAID AND TEND TO BE SOPHISTICATED CONSUMERS.  AS A
RESULT, THERE IS A MARKET OPENING FOR U.S. CONSUMER GOODS SUCH
AS COSMETICS, CLOTHING, AND FOOD PRODUCTS.  TO SUPPORT THIS
MARKET EFFORT, THE U.S. DEPARTMENT OF AGRICULTURE IS ESTABLISHING
A GSM-102 PROGRAM WHICH WILL PROVIDE PREFERENTIAL LENDING TERMS
TO LOCAL IMPORTERS WISHING TO BRING U.S. FOOD PRODUCTS INTO THE
MARKET.  SEVERAL SMALL LOCAL COMPANIES ARE ALREADY EXPLOITING
THIS MARKET, AND HAVE BEEN SUCCESSFUL ENOUGH TO ATTRACT THE
ATTENTION OF THE ESTABLISHED LARGE IMPORTERS, WHO HAVE RESPONDED
BY BEGINNING TO SHOW AN INTEREST IN THESE PRODUCTS THEMSELVES.
AS A RESULT, AMERICAN FOOD PRODUCTS RANGING FROM CEREALS TO FRUIT
JUICES TO CANDY BARS ARE INCREASINGLY AVAILABLE IN LIBREVILLE
STORES.

GOVERNMENT ROLE IN THE ECONOMY

RECOGNIZING THE NEED TO ATTRACT FOREIGN SKILLS AND TECHNOLOGY TO
ASSIST IN THE ECONOMIC DEVELOPMENT OF THE COUNTRY, THE GOVERNMENT
OF GABON ACTIVELY PURSUES FOREIGN INVESTMENT.

THE GOVERNMENT MONITORS THE ECONOMY THROUGH THE GABONESE MINISTRY
OF PLANIFICATION AND DIFFERENT GOVERNMENTAL AGENCIES.  THE
MINISTRY OF PLANIFICATION IS RESPONSIBLE OF THE ECONOMIC, AND
SOCIAL DEVELOPMENT IN GABON'S NINE PROVINCES.  A DOCUMENT
PUBLISHED BY THE PLANIFICATION, EVERY FIVE YEARS CALLED "LE PLAN
QUINQUENNAL", SUMMARIZES INVESTMENTS MADE DURING THE LAST FIVE
YEARS AND WHAT WILL BE THE PROSPECTS FOR THE NEXT FIVE YEARS, FOR
ALL THE SECTORS OF THE NATIONAL ECONOMY.  PRICING AND SALARY
DECISIONS WILL COME UNDER THE CONSTRAINTS OF THE GOVERNMENT OF
GABON IMF PROGRAM.  CURRENTLY THE PROGRAM REQUIRES SALARY CAPS,
AND IN SOME CASES, PRICE FREEZES WHICH ARE AFFECTING THE
OPERATIONS OF FOREIGN INVESTORS.

BALANCE OF PAYMENTS SITUATION

AFTER 5 YEARS OF DEBT RESCHEDULING AND CONSULTATION WITH THE IMF,
THE GABONESE ECONOMIC SITUATION HAS NOT RECOVERED AND THE IMF
PROGRAM GOALS COULD NOT BE ACHIEVED IN 1993.  GABON HAD AT THE
END OF 1993 A LARGE EXTERNAL PAYMENTS ARREARS (APPROXIMATELY U.S.
DOLS 940 MILLION), AS WELL AS LARGE DOMESTIC ARREARS ESTIMATED
TO BE AROUND U.S. DOLS 225 MILLION.  ON JANUARY 11, 1993, THE CFA
FRANC WAS DEVALUATED. GABON'S LATEST ECONOMIC ESTIMATES SHOW THAT
THE REAL GDP GROWTH RATE IN 1993 DECREASED - 0.90 PERCENT IN
1993.  OIL AND NON OIL GDP RECORDED MINIMAL GAINS.  GROWTH IN THE
MINING SECTOR WAS NEGATIVE.

DURING THAT PERIOD, GABON'S FISCAL POSITION CAME UNDER PRESSURE
SINCE NO EXCEPTIONAL RESOURCES WERE RECEIVED AND AT THE SAME TIME
NON-OIL REVENUE DECLINED DUE TO LOWER PRICE EXPORTS.  BUDGETARY
RECEIPTS DECLINED 14.3 PERCENT WHEN  TO PREVENT STRIKES AND
SOCIAL DISTURBANCES, THE GOVERNMENT BILL ROSE 1.2 PERCENT: AS A
CONSEQUENCE, THE FISCAL DEFICIT WIDENED TO 2.7 PERCENT OF GDP AND
GABON WAS UNABLE TO SETTLE ITS DEBT ARREARS TO ITS CREDITORS.
IN 1993 THERE WAS A 7.9 PERCENT DECLINE IN THE MONEY SUPPLY AND
A DETERIORATION IN THE NET ASSETS POSITION OF THE BANKS, DUE TO
RUMORS OF A CHANGE OF PARITY OF THE CFA FRANC VIS-A-VIS THE
FRENCH FRANC.  THE GABONESE OVERALL BALANCE OF PAYMENTS RECORDED
IN 1993 A DEFICIT OF APPROXIMATELY US DOLS 458.0 MILLION.

TRADE AND INVESTMENT BARRIERS

IN ORDER TO PROTECT SOME GABONESE INDUSTRIES, SOME MINERAL
WATERS, CEMENT, COOKING OIL, SUGAR, AND SOME WASHING SOAPS CANNOT
BE IMPORTED IN GABON (LAW 540, DATED MAY 24, 1989).  ACCORDING
TO THE MINISTRY OF COMMERCE, WITH THE LIBERALIZATION OF TRADE,
THIS LAW SHOULD CHANGE AT THE BEGINNING OF 1995.

IN THE CRUDE OIL SECTOR, WHERE U.S. FIRMS ARE INVOLVED,
GOVERNMENT BARRIERS ARE FEW.  HOWEVER, THERE HAVE BEEN PROBLEMS
RELATING TO CUSTOMS PAYMENT OF EXPLORATION EQUIPMENT.  BARRIERS
COMING FROM OTHER SUPPLIERS OF SERVICES ARE HIGH SINCE
ESTABLISHED COMPANIES TRY TO PRESERVE THEIR POSITION.

LABOR FORCE

LABOR FORCE IS ESTIMATED TO 85,000 THOUSAND PEOPLE IN 1994.
GABON'S LABOR MARKET IS CHARACTERIZED BY THE CONTRASTING PRESENCE
OF, ON THE ONE HAND, A POOL OF SKILLED WHITE COLLAR WORKERS AND,
ON THE OTHER HAND, A PERSISTENTLY HIGH UNEMPLOYMENT RATE (AROUND
20 PERCENT).  GABONESE NATIONALS EXHIBIT A PREFERENCE FOR
MANAGERIAL AND OFFICE WORK, AND THE RELATIVE WEALTH OF THEIR
COUNTRY HAS ENABLED THEM TO STUDY MANAGEMENT, LAW, ENGINEERING
AND THE LIBERAL PROFESSIONS AT PRESTIGIOUS FOREIGN INSTITUTIONS.
THE DEMAND FOR BLUE COLLAR POSITIONS IS LESS AMONG GABONESE,
ALTHOUGH SUCH POSITIONS ARE ESSENTIAL TO THE OIL, TIMBER AND
MINING INDUSTRIES WHICH MAKE UP THE BACKBONE OF THE GABONESE
ECONOMY.  THE RESULTING DISCONTINUITY BETWEEN THE SUPPLY OF AND
THE DEMAND FOR LABOR HAS TRADITIONALLY BEEN BRIDGED BY NON-
GABONESE AFRICANS, THOUGH POLITICAL PRESSURE HAS MORE RECENTLY
MOUNTED ON THE GABONESE AUTHORITIES TO REDUCE THE PRESENCE OF
FOREIGNERS IN THE WORKFORCE.

MAJOR LOCAL AND THIRD COUNTRY COMPETITORS IN SPECIFIC SECTORS

GABON'S STRONG TIES WITH FRANCE ARE ANOTHER IMPORTANT ELEMENT OF
THE COMMERCIAL SETTING.  FRANCE FURNISHES OVER HALF OF GABON'S
IMPORTS, FRENCH FIRMS AND SUBSIDIARIES DOMINATE THE LOCAL PRIVATE
SECTOR, AND OVER 12,000 FRENCH CITIZENS LIVE IN THE COUNTRY.
FRANCE'S ABILITY TO OFFER CONCESSIONAL FINANCING IS A SERIOUS
HURDLE TO U.S. COMPETITORS.

ALSO, FRENCH BUSINESSMEN DO NOT NEED VISAS TO ENTER GABON, VISAS
MAY OFTEN TAKE SEVERAL WEEKS TO OBTAIN FROM GABON'S EMBASSY IN
WASHINGTON.  IN THE PETROLEUM SECTOR. U.S. SUPPLIERS ARE WELL
KNOWN TO OPERATING COMPANIES HERE AND SEVERAL AMERICAN FIRMS HAVE
BEEN WORKING IN THE EXPLORATION ACTIVITY IN GABON. THE OIL SECTOR
IS DOMINATED BY ELF GABON, BRANCH OF THE FRENCH COMPANY ELF
ACQUITAINE AND BY SHELL GABON BRANCH OF THE BRITISH-DUTCH
COMPANY, ROYAL-SHELL.

IN THE MINING SECTOR FRENCH INTERESTS REPRESENT MORE THAN 50
PERCENT OF THE CAPITAL OF THE TWO MAIN COMPANIES WORKING IN THIS
SECTOR. IN THE VEHICLE SECTOR IN GABON, 60 PERCENT OF PERSONAL
CARS SOLD IN GABON ARE JAPANESE. IN THE TIMBER INDUSTRY SECTOR
THE MAIN OPERATING FIRMS WORKING IN GABON ARE BRANCHES OF
EUROPEAN FIRMS SUCH AS ROUGIER, NORDISK, OR LEROY GABON.

ALL TELECOMMUNICATION EQUIPMENT SOLD IN GABON IS IMPORTED.  U.S.
EQUIPMENT MUST COMPETE WITH THOMPSON CSF, ALCATEL AND JEUMONT
SCHNEIDER WHICH ARE REPRESENTED BY LIBREVILLE-BASED TRADING
HOUSES OFFERING INSTALLATION AND AFTER-SALES SERVICE.  U.S. MADE
TELECOM EQUIPMENT IS WELL REGARDED AND 3 LOCAL IMPORTERS HAVE
CARVED OUT NICHE MARKETS REPRESENTING U.S. BRANDS.  SCIENTIFIC
ATLANTA, MOTOROLA AND HUGHES NETWORK SYSTEM HAVE BEEN ACTIVE IN
SUPPLYING TELECOM EQUIPMENT TO OPT.

GABON, BEING A FORMER FRENCH COLONY, APPLY TECHNICAL AND OTHER
STANDARDS TEND DRAWN DIRECTLY FROM THE RELEVANT FRENCH STANDARDS.

INFRASTRUCTURE

THE 433-MILE TRANSGABON RAILWAY, LINKING LIBREVILLE WITH
FRANCEVILLE IN THE FAR SOUTHEAST, WAS COMPLETED IN 1986. THIS
RAILWAY IS USED FOR THE TRANSPORT OF MANGANESE, URANIUM, TIMBER,
CONSUMER GOODS AND PASSENGERS.  THE MINERALS PORT OF OWENDO, WAS
OPENED IN 1988. 1.6  MILLION TONS OF MANGANESE ORE WERE SHIPPED
IN 1993.  THE CAPACITY OF THE MINERAL PORT IS AROUND 2.0 MILLION
TONS OF MANGANESE PER YEAR.

PRESENTLY, GABON HAS ONLY 460 MILES OF PAVED ROADS IN ITS
4,300-MILE EXISTING ROAD NETWORK, BUT THIS NUMBER IS TO INCREASE
BY THE UPGRADING FUNDED BY INTERNATIONAL LOANS FROM AFRICAN
DEVELOPMENT BANK.

GABON'S TWO MODERN PORTS (OWENDO AND PORT-GENTIL) HANDLED OVER
7.6 MILLION TONS OF CARGO, WITH PORT-GENTIL HAVING ABOUT 85
PERCENT OF THE TRAFFIC BY VOLUME.  GABON IS A FREQUENT PORT OF
CALL FOR MAJOR SHIPPING LINES, PARTICULARLY THOSE PLYING THE WEST
COAST OF AFRICA TO AND FROM EUROPE.

GABON'S TELECOMMUNICATIONS SYSTEM IS ONE OF THE MOST ADVANCED IN
AFRICA, AND ONE CAN DIRECT DIAL ALMOST ANYWHERE IN GABON OR THE
REST OF THE WORLD FROM LIBREVILLE.  GABON HAS MORE THAN 30 PUBLIC
AIRFIELDS, AN ESTIMATED 100 PRIVATE LANDING STRIPS, AND ONE OF
THE LARGEST CIVIL AVIATION FLEETS IN AFRICA.  WITH MORE THAN TEN
INTERNATIONAL AIR CARRIERS SERVING LIBREVILLE, THERE ARE DAILY
AIR CONNECTIONS TO EUROPE AND ELSEWHERE IN AFRICA.

MAJOR INFRASTRUCTURE PROJECTS UNDERWAY

TWO LOANS WERE GRANTED TO GABON FOR ROAD CONSTRUCTION PROJECTS
IN 1993.  THESE PROJECTS CONCERN THE  131.7 MILLION DOLLAR
FRANCEVILLE - KELLE - LECONI ROAD PROJECT FINANCED BY THE AFRICAN
DEVELOPMENT BANK AND THE WORLD BANK AND THE 70.0 MILLION DOLLAR
BIFOUN NDJOLE - BIFOUN LAMBARENE- NSILE BIFOUN ROAD PROJECT,
FINANCED BY THE WORLD BANK.  ALL THE CONSTRUCTION PROJECTS ARE
DEVELOPED AND CONTROLLED BY THE MINISTRY OF EQUIPMENT AND
CONSTRUCTION, B.P. 49; LIBREVILLE; GABON - TELEPHONE: (241)
763856 - TELEFAX: (241) 748092