Opposition surge raises instability risks in Gabon

Subject Political economy outlook for Gabon. Significance Gabon earlier this month issued a 500 million dollar ten-year euro-bond at a 6.95% yield to support the government's economic policies. President Ali Bongo faces growing opposition to his family's nearly 50-year rule ahead of elections scheduled for 2016. He hopes a largely debt-funded stimulus programme will mitigate this, but results may only be felt in the medium term. Impacts The Moroccan king's state visit could lay the foundations for new investment, notably in finance and telecommunications. New military equipment purchases and pay rises for soldiers will reinforce the army's support for Bongo, assisting regime continuity. Planned expansion from French consumer goods firm CFAO will help it retain strong market position across multiple sectors. Logging sacred Kevazingo trees for export to China could spur Sinophobic sentiment.