The Minister of Petroleum, Gas, Hydrocarbons, and Mines of Gabon stated that Gabon has realized that the energy transition requires a much greater use of gas. He added that initially the country lacked the infrastructure to fully utilize gas. But today, all efforts are being made to move in that direction.
Gabon holds proven natural gas reserves amounting to 29 billion cubic meters, primarily in the form of associated gas. However, the country currently makes only limited use of it. Nearly 90% of its production is reinjected into the ground or flared due to a lack of economic outlets. The effort is to make “local content” a reality, offering more opportunities to Gabonese companies and workers in the sector.
In response to the economic impact of the Covid-19 crisis, Gabon has embarked on preparing its productive sectors, including hydrocarbons. The objectives are to boost oil production, diversify the sector, and improve governance. Gabon is the first African country to be paid for reducing carbon emissions.
In its monthly outlook for the Middle East and North Africa (MENA) region, the rating agency maintained that the interest rate until the end of 2021 for the region would be 9.2%. The agency estimated this rate while keeping its forecast for the US dollar against the Egyptian pound at 15.7 EGP.
The report indicates that the real GDP of countries in the region is expected to grow by 4.7% in 2021. This follows a contraction of 3.9% in 2020. The region’s growth is set to exceed that of the Gulf Cooperation Council (3.2%), North Africa (3.8%), and the broader MENA region (3.1%), according to the report.
The report argues that Israel and Jordan will be the only states in the region whose growth will exceed their pre-COVID 10-year growth trends in 2021. Overall, the real GDP growth of Levant countries is expected to slow to 3.9% in 2021, according to the report. The report added that these economies will see their growth accelerate in 2022. Lebanon, Jordan, the West Bank and Gaza, and Syria are all expected to experience stronger growth compared to 2021.
Egypt is targeting 5.4% growth in its real GDP for the 2021-22 fiscal year. It experienced a slowdown in the 2020-21 fiscal year, estimated at 2.8%. There is now a gradual recovery from the COVID-19 pandemic and its associated severe impacts. Egypt has set a range of 7% (±2%) to contain inflation.