Construction & Real Estate

Construction has been at the heart of government plans for economic development, with the expansion of energy and transport infrastructure intended to help realise the goal of diversifying the economy. The government seeks to generate over $13bn in infrastructure investments by 2016. The high cost of construction materials, limited transport infrastructure and delays on payments from the public sector will likely translate into a higher construction costs in the short to medium term. In the long term, however, the price of projects could come down. Real estate activity in Gabon has decreased slightly since 2012, but remains on an upward path nonetheless, with demand across all market segments driving growth. Recent government initiatives to cut back on red tape should help to speed up project delivery. Demand for housing is likely to continue providing opportunities for investment for local and international companies, although the implementation of projects could still face obstacles as plans for urban regeneration and expansion confront sporadic and informal urban development on the ground. This chapter contains an interview with Jim Dutton, Director-General, National Agency for Public Works.