Gabon - Economic Diversification Support Project (PADEG)

The Economic Diversification Support Project (PADEG) focuses on creating conditions conducive to improving the investment climate and Gabonese economic diversification through better promotion of domestic and foreign private investment. The project will therefore address the constraints hampering the diversification and competitiveness of the Gabonese economy. These include weaknesses in the investment environment, the low competitiveness of Gabonese SMEs and the craft sector in a context of increased economic liberalisation, the high cost of factors of production and the lack of a critical mass of skilled labour. PADEG is complementary to the reforms implemented through the recent Bank-supported budget support (PAREF) whose aim is to create room for labour force for the sustainability of public finances and diversification of the economy, with particular emphasis on strengthening revenue mobilization. The project will be implemented over a four-year-period, and aims mainly to consolidate the achievements of the Bank's previous operations and support efforts to structurally transform the Gabonese economy. It is divided into three complementary components presented in detail in the table below: (i) support investment climate reforms to strengthen economic competitiveness, and mobilize internal resources for economic diversification; (ii) support reforms in the priority mining and timber sectors to diversify the sources of growth; and (iii) support the project’s operational management.