Photo: PM Marape being shown around the Gabon SEZ (GSEZ) at Nkok.-Pictures by PM’s Office Media
Prime Minister Hon. James Marape says there is so much Papua New Guinea can learn from Gabon in Central Africa about Special Economic Zones (SEZs).
An impressed PM Marape said this today after visiting the Gabon SEZ (GSEZ) at Nkok, a multi-sectoral industrial park established in 2010, and located 27 km from capital Libreville. On 1126 hectares (ha), it includes an industrial zone, a commercial zone and a residential zone. The SEZ brings together 144 companies from 19 countries operating in 22 industrial sectors, including a cluster dedicated to wood processing which brings together 84 companies.
PM Marape was given a comprehensive briefing by Gabonese managers of GSEZ before a tour of the wood processing cluster.
The Gabon SEZ has:
• Created 16,000 direct and indirect jobs;
• Exported US$265 million worth of products exported annually;
• Processed 820,000 cubic metres (m3) of timber in 2020; and
• Generated US$1.7 billion in direct foreign investments.
“This is the path I have been envisaging since I took office and I now ask those in the forestry industry to switch to downstream . We will still stick to 2025 as cut off mark for round log exports,” PM Marape said.
“We will have four log ponds in our country – Port Moresby , Rabaul/Gazelle , Lae and Vanimo – and State will start off by exercising its rights to get 30 per cent of all round logs harvested to feed our downstream ambitions.
”I am aware the industry is feeling the pinch of extra taxation and there will be a meeting this month on the tax issue as well as the push for downstream and sustainable logging in PNG.
”Logging, fisheries , livestock and agriculture are sectors of the economy that can create more businesses opportunities and employment for our people.”
GSEZ started in 2010 as a joint venture between Olam International Ltd, the Republic of Gabon, and Africa Finance Corporation with a mandate to develop infrastructure, enhance industrial competitiveness and build a business-friendly ecosystem in Gabon.The SEZ offers a unique fiscal status which provides a stable and competitive economic climate for companies intending to settle. Presently, the zone is home to more than 144 investors coming from 19 different countries. GSEZ is rapidly emerging as West Central Africa’s manufacturing hub.
NKOK SEZ was ranked the best industrial zone of the world in wood sector by FDI Intelligence-Financial Times in 2020.
“There is so much that PNG can learn from Gabon about SEZs. PNG has so much forest resources in PNG, which is exported as round logs, rather than going into downstream processing as Gabon is doing,” PM Marape said.
“My visit to Gabon is very timely, given our vast forest resources, and that we are now venturing into establishment of SEZs.
“We will be looking to draw from the experience of Gabon in establishment of our own SEZs dedicated to downstream processing of our forest resources.”
Covered 85 per cent by forest, on 22 million hectares, Gabon has a stock of exploitable wood of 130 million cubic metres (m3) of Okoumé and 270 million m3 of other species. GSEZ has enabled the country to develop and modernise a wood sector that was previously not very promising by relying on specialisation, one-stop services and alignment with the national development strategy. With 3.4 million m3 produced each year, Gabon has become Africa’s leading producer and exporter of tropical plywood, and the world’s second largest exporter. The country intends to go further in adding value to its wood products by transforming GSEZ into a centre for the manufacture of “Made in Gabon” furniture by 2025.
