Gabon Economy Profile - Doing Business 2019
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Doing Business 2019 Gabon Economy Profile of Gabon Doing Business 2019 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality Page 2
Doing Business 2019 Gabon About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. More about Doing Business (PDF, 5MB) Page 3
Doing Business 2019 Gabon Ease of Doing Business in DB 2019 Rank Region Sub-Saharan Africa 190 1 Gabon Income Category Upper middle income 169 DB 2019 Ease of doing business score Population 2,025,137 0 100 City Covered Libreville 45.58 DB 2019 Ease of Doing Business Score 0 100 51.61: Regional Average (Sub-Saharan Africa) 47.78: Cameroon (Rank: 166) 45.58: Gabon (Rank: 169) 43.86: Angola (Rank: 173) 36.90: Central African Republic (Rank: 183) 36.85: Congo, Dem. Rep. (Rank: 184) Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100 represents the best performance. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Gabon 1 28 55 82 Rank 109 124 124 129 136 144 161 161 163 170 178 180 183 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Ease of Doing Business Score on Doing Business topics - Gabon 100 82.59 80 59.23 Score 60 49.58 43.94 40.00 38.33 40 37.09 35.92 36.29 32.84 20 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Page 4
Doing Business 2019 Gabon Starting a Business This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and formally operate in each economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the a company (number) business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay no bribes. • Preregistration (for example, name verification or reservation, notarization) The business: • Registration in the economy’s largest business - Is a limited liability company (or its legal equivalent). If there is more than one type city of limited liability company in the economy, the most common among domestic firms • Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation registration, company seal) lawyers or the statistical office. - Operates in the economy’s largest business city. For 11 economies the data are • Obtaining approval from spouse to start a business or to leave the home to register the also collected for the second largest business city. company - The entire office space is approximately 929 square meters (10,000 square feet). - Is 100% domestically owned and has five owners, none of whom is a legal entity; • Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least company registration and operation or national 100 times income per capita. identification card - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does not perform foreign trade Time required to complete each procedure activities and does not handle products subject to a special tax regime, for example, (calendar days) liquor or tobacco. It does not use heavily polluting production processes. • Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the information amount of the annual lease for the office space is equivalent to the income per capita. • Each procedure starts on a separate day (2 procedures cannot start on the same day) - Does not qualify for investment incentives or any special benefits. - Has at least 10 and up to 50 employees one month after the commencement of • Procedures fully completed online are recorded operations, all of whom are domestic nationals. as ½ day - Has a company deed that is 10 pages long. • Procedure is considered completed once final document is received The owners: • No prior contact with officials - Have reached the legal age of majority. If there is no legal age of majority, they are assumed to be 30 years old. Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record. income per capita) - Are married and the marriage is monogamous and registered with the authorities. - Where the answer differs according to the legal system applicable to the woman or • Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the • No professional fees unless services required by answer used will be the one that applies to the majority of the population. law or commonly used in practice Paid-in minimum capital (% of income per capita) • Funds deposited in a bank or with third party before registration or up to 3 months after incorporation Page 5
Doing Business 2019 Gabon Starting a Business - Gabon Standardized Company Legal form Société à Responsabilité Limitée (SARL) - Limited Liability Company Paid-in minimum capital requirement XAF 100,000 City Covered Libreville Indicator Gabon Sub-Saharan OECD high Best Regulatory Africa income Performance Procedure – Men (number) 7 7.4 4.9 1 (New Zealand) Time – Men (days) 31 23.3 9.3 0.5 (New Zealand) Cost – Men (% of income per capita) 6.1 44.4 3.1 0.0 (Slovenia) Procedure – Women (number) 7 7.6 4.9 1 (New Zealand) Time – Women (days) 31 23.4 9.3 0.5 (New Zealand) Cost – Women (% of income per capita) 6.1 44.4 3.1 0.0 (Slovenia) Paid-in min. capital (% of income per capita) 2.5 10.0 8.6 0.0 (117 Economies) Figure – Starting a Business in Gabon and comparator economies – Ranking and Score DB 2019 Starting a Business Score 0 100 90.24: Congo, Dem. Rep. (Rank: 62) 86.26: Cameroon (Rank: 92) 82.59: Gabon (Rank: 124) 80.52: Angola (Rank: 139) 78.52: Regional Average (Sub-Saharan Africa) 60.90: Central African Republic (Rank: 181) Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators. Page 6
Doing Business 2019 Gabon Figure – Starting a Business in Gabon – Procedure, Time and Cost Time (days) Cost (% of income per capita) 6 30 Cost (% of income per capita) 5 25 4 20 Time (days) 15 3 10 2 5 1 0 0 1 2 3 *4 5 *6 *7 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below. Page 7
Doing Business 2019 Gabon Details – Starting a Business in Gabon – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Deposit the legally required capital in a bank and obtain the deposit 2 days no charge evidence Agency : Bank The legally required capital must be deposited at a bank to register a company. Either the founder of the company or the notary public deposits the initial capital in a bank and obtains the deposit evidence. 2 Verify and reserve the company name 1 day XAF 35,000 Agency : Industrial Property Center (Centre de la propriété industrielle du Gabon - CEPIG) It is necessary to verify and reserve the company name with the Industrial Property Center (Centre de la propriété industrielle du Gabon - CEPIG). To avoid future lawsuits, the business founders must pick a name not already in use. 3 Register the company and request the publication of a notice of 23 days XAF 50,000 (ANPI- incorporation Gabon fees) + XAF Agency : National Investment Promotion Agency (Agence Nationale de 60,000 (registration Promotion des Investissements - ANPI-Gabon) fees) + XAF 80,000 The company must be registered with the National Investment Promotion Agency, or (stamps) + XAF Agence Nationale de Promotion des Investissements (ANPI-Gabon). Upon receipt of a 15,000 (publication) registration request, ANPI-Gabon registers the company statutes with the Ministry of Finance (Administration de Domaines) and completes the company registration with the court clerk (greffier du tribunal) at the Ministry of Justice, to obtain the registration number and k-bis. ANPI-Gabon also registers the company with the Tax Authority, providing a statistical number, but the Tax ID (NIF) must be obtained after the company registration. At the moment of registration, the entrepreneur also requests the publication of a notice of company incorporation at the Official Journal (Journal Officiel de la République Gabonaise). The publication is managed by ANPI-Gabon. To complete the registrations, ANPI-Gabon must forward the documents to the relevant agencies. At the end of the process, the General Director at ANPI-Gabon certifies that the registration is complete. 4 Pay the company registration fees and obtain a receipt 1 day (simultaneous included in procedure Agency : Cashier with previous 3 After depositing the documents at ANPI-Gabon, the business founder must pay the procedure) relevant fees at the cashier and obtain a receipt. 5 Obtain a Tax ID (NIF) 5 days no charge Agency : Tax Authorities (Direction Générale des Impôts) A new company must obtain a Tax ID (Numéro d'Identification Fiscal or NIF). For this, a request is made by the entrepreneur or by the company's legal representative to the Tax Authorities' Registration Office (Bureau des Immatriculations de la Direction Générale des Impôts). 6 Register the employees with the Social Security Authorities 1 day (simultaneous no charge Agency : Social Security (Caisse Nationale de Sécurité Sociale - CNSS and with previous Caisse nationale d'assurance maladie et de garantie sociale -CNAMGS) procedure) A new company must register its employees with the relevant Social Security Authorities, the National Social Security Fund (Caisse Nationale de Sécurité Sociale - CNSS) and the National Health Insurance and Social Welfare Fund (Caisse nationale d'assurance maladie et de garantie sociale - CNAMGS). 7 Submit an employment declaration to the Labor Inspectorate 1 day (simultaneous no charge Agency : Labor Inspectorate with previous The business founder must submit a declaration of employment to the Labor Inspectorate, procedure) as per article 256 of the Labor Code and by General Decree 3,019 of September 29, 1963. Takes place simultaneously with previous procedure. Page 8
Doing Business 2019 Gabon Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of data collection was completed in May 2018. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the (number) construction company, the warehouse project and the utility connections are used. • Submitting all relevant documents and obtaining The construction company (BuildCo): all necessary clearances, licenses, permits and certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s largest business city. For 11 economies the data are also collected for the second • Submitting all required notifications and receiving largest business city. all necessary inspections - Is 100% domestically and privately owned; has five owners, none of whom is a • Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with sewerage the local association of architects or engineers. BuildCo is not assumed to have any • Registering and selling the warehouse after its other employees who are technical or licensed experts, such as geological or completion topographical experts. - Owns the land on which the warehouse will be built and will sell the warehouse Time required to complete each procedure upon its completion. (calendar days) The warehouse: • Does not include time spent gathering information - Will be used for general storage activities, such as storage of books or stationery. - Will have two stories, both above ground, with a total constructed area of • Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3 though procedures that can be fully completed meters (9 feet, 10 inches) high and will be located on a land plot of approximately online are an exception to this rule 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the • Procedure is considered completed once final warehouse is valued at 50 times income per capita. document is received - Will have complete architectural and technical plans prepared by a licensed architect. If preparation of the plans requires such steps as obtaining further • No prior contact with officials documentation or getting prior approvals from external agencies, these are counted Cost required to complete each procedure (% of as procedures. income per capita) - Will take 30 weeks to construct (excluding all delays due to administrative and regulatory requirements). • Official costs only, no bribes The water and sewerage connections: Building quality control index (0-15) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there • Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is • Quality control before construction (0-1) no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. • Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average • Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300 • Liability and insurance regimes (0-2) gallons) a day. • Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Page 9
Doing Business 2019 Gabon Dealing with Construction Permits - Gabon Standardized Warehouse Estimated value of warehouse XAF 196,633,716.60 City Covered Libreville Indicator Gabon Sub-Saharan OECD high Best Regulatory Africa income Performance Procedures (number) 14 14.7 12.7 None in 2017/18 Time (days) 276 145.7 153.1 None in 2017/18 Cost (% of warehouse value) 1.0 8.8 1.5 None in 2017/18 Building quality control index (0-15) 7.5 8.5 11.5 15.0 (3 Economies) Figure – Dealing with Construction Permits in Gabon and comparator economies – Ranking and Score DB 2019 Dealing with Construction Permits Score 0 100 68.93: Angola (Rank: 87) 62.04: Cameroon (Rank: 132) 59.23: Gabon (Rank: 144) 58.59: Regional Average (Sub-Saharan Africa) 53.67: Congo, Dem. Rep. (Rank: 165) 40.75: Central African Republic (Rank: 181) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores are the simple average of the scores for each of the component indicators. Figure – Dealing with Construction Permits in Gabon – Procedure, Time and Cost Time (days) Cost (% of warehouse value) 0.7 250 0.6 Cost (% of warehouse value) 200 0.5 Time (days) 0.4 150 0.3 100 0.2 50 0.1 0 0 1 *2 *3 4 5 6 7 8 9 10 11 * 12 13 14 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below. Page 10
Doing Business 2019 Gabon Figure – Dealing with Construction Permits in Gabon and comparator economies – Measure of Quality 15 13.0 Index score 10 8.0 8.5 7.5 6.0 6.0 5 0 Gabon Angola Cameroon Central African Republic Congo, Dem. Rep. Sub-Saharan Africa Details – Dealing with Construction Permits in Gabon – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Obtain a topographical survey 7 days XAF 125,000 Agency : Private Firm For the requirement of establishing the site plan, a topograhical survey is required to obtain a better understanding of the land plot. 2 Obtain a fire safety approval from the Fire Department 7 days XAF 50,000 Agency : Fire Department BuildCo must obtain a fire safety report (rapport Sapeur-Pompier) prior to requesting the building permit. 3 Buy 2 municipal stamps from City Hall to attach to building permit 1 day XAF 2,000 application Agency : City Hall (Mairie) Once BuildCo is ready to submit its building permit application, it must go to City Hall (Mairie) to purchase 2 municipal stamps (timbres fiscaux). These stamps cost FCFA 1,000.00 each and will be used to legalize the building permit. 4 Request the building permit at the Agence Nationale de l'Urbanisme 60 days XAF 55,000 Agency : Agence Nationale de l’Urbanisme, des Travaux Topographiques et du Cadastre (ANUTTC) BuildCo must request the building permit at the Agence Nationale de l’Urbanisme. First the application form must be bought. When applying, the following documents must be provided: 5 copies of the building plan, one copy of the title, and other documents depending on the usage, the complexity and location of the project (fire report, plans safety and fire, soil studies, studies of environmental impact review of civil aviation etc.). The application must include either a land title or a provisional decree, a certificate from the Directorate of Taxes which certifies that the company is currently in the process of obtaining a land title, with single copies of cadaster enough that a final deed of sale. The examination of the file is FCFA 50,000. Once the request has been approved, the file is transmitted to the City Hall for further examination. There is a site visit by the City Hall and the final approval is given. The cost is FCFA 5,000. 5 Obtain the building permit from City Hall 30 days XAF 50,000 Agency : Municipality of Libreville The building permit application is reviewed by a committee of the building which includes 14 representatives and is chaired by the mayor. The Commission meets every Wednesday and usually works on 10 files each time. On average, the Commission received 15 applications a week. So if BuildCo submits an application on a Monday and among the first 10 applicants, the application will be considered during that week. Otherwise, the application will be discussed the following week. BuildCo can therefore provide between 3 and 10 days to see its application approved by the Commission. The Commission will verify, among other things, that the plans have been designed by an architect who is either a member of the Order of Architects of Gabon and is a graduate of one of the leading universities in the region. If the request is approved, the Head of Department will send a "be transmitted" to the cadastre asking him to conduct an inspection (implantation). The topographer will visit the proposed site for the construction and mark the location of the building on the lot to ensure that the plans conform to the plan of the lot (boundary plan) that was submitted. If the service manager sends the "be sent" a Thursday, it usually happens on Friday. The Cadastre will then send a bill for the establishment to the applicant. Zoning is one of the stages of the Commission's evaluation process that takes more time. There is no separate zoning process, but applicants must indicate in their application the usage of the building: residential, commercial or industrial purposes, and must verify that this is consistent with the zoning map Planning the city. Page 11
Doing Business 2019 Gabon 6 Receive random inspection by City Brigade - I 1 day no charge Agency : City Brigade In addition to the checks done by the Direction General de l’Urbanisme, 2 city brigades (one located in the south and one in the north of the city) will randomly check companies to ensure they are building legally. A project such as the warehouse assessed by Doing Business will likely receive 2 such random inspections. 7 Receive random inspection by City Brigade - II 1 day no charge Agency : City Brigade In addition to the checks done by the Direction General de l’Urbanisme, 2 city brigades (one located in the south and one in the north of the city) will randomly check companies to ensure they are building legally. A project such as the warehouse assessed by Doing Business will likely receive 2 such random inspections. 8 Receive inspection after construction is completed by the Direction 1 day no charge Generale de l'Urbanisme Agency : Agence Nationale de l’Urbanisme, des Travaux Topographiques et du Cadastre (ANUTTC) When the construction is completed, a representative from the Direction générale de l’Urbanisme will inspect the warehouse to verify that it was built according to the plans. 9 Obtain certificate of conformity 14 days no charge Agency : Agence Nationale de l’Urbanisme, des Travaux Topographiques et du Cadastre (ANUTTC) Without the certificate of conformity, BuildCo cannot start using the building. 10 Receive on-site visit by the Cadastre for the "constat de mise-en-valeur" 10 days no charge Agency : Cadastre The Cadastre will inspect the property to check that there is a building on the land (Constat de mise en valeur de la propriété). After that, they will issue a certificate of "mise en valeur." 11 Register the property with the Land Registry 120 days XAF 1,199,802 Agency : Land Registry With the final decree (Decret final du certificat de mise en valeur), the owner will register the building with the Land Registry (Service des Domaines) and a property title is issued to the owner. The following documents must be presented at the Land Registry: • Decret definitif (final decree) • Survey of the land (plan de bornage definitif) • Proces verbal definitif Apply for water connection 1 day XAF 500,000 12 Agency : Société d'Electricité et d’Eaux du Gabon 13 Receive water inspection 1 day no charge Agency : Société d'Electricité et d’Eaux du Gabon 14 Obtain water connection 30 days no charge Agency : Société d'Electricité et d’Eaux du Gabon Takes place simultaneously with previous procedure. Page 12
Doing Business 2019 Gabon Details – Dealing with Construction Permits in Gabon – Measure of Quality Answer Score Building quality control index (0-15) 7.5 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer. Quality control during construction index (0-3) 0.0 What types of inspections (if any) are required by law to be carried out during construction? Unscheduled 0.0 (0-2) inspections. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 0.0 inspections are not always done in practice during construction. Quality control after construction index (0-3) 2.0 Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0 with the approved plans and regulations? (0-2) inspection is done by government agency. Do legally mandated final inspections occur in practice? (0-1) Final inspection 0.0 does not always occur in practice. Liability and insurance regimes index (0-2) 0.5 Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or 0.5 once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer. Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0 structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law or Decennial Insurance)? (0-1) to obtain insurance . Professional certifications index (0-4) 2.0 What are the qualification requirements for the professional responsible for verifying that the Minimum number 2.0 architectural plans or drawings are in compliance with existing building regulations? (0-2) of years of experience; University degree in architecture or engineering; Being a registered architect or engineer. What are the qualification requirements for the professional who supervises the construction There are no 0.0 on the ground? (0-2) specific requirements. Page 13
Doing Business 2019 Gabon Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the (number) warehouse, the electricity connection and the monthly consumption are used. • Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. • Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are receiving all necessary inspections also collected for the second largest business city. • Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an purchasing material for these works area with no physical constraints. For example, the property is not near a railway. - Is a new construction and is being connected to electricity for the first time. • Concluding any necessary supply contract and - Has two stories with a total surface area of approximately 1,300.6 square meters obtaining final supply (14,000 square feet). The plot of land on which it is built is 929 square meters Time required to complete each procedure (10,000 square feet). (calendar days) The electricity connection: • Is at least 1 calendar day - Is a permanent one with a three-phase, four-wire Y connection with a subscribed • Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 • Does not include time spent gathering kilowatt (kW). information - Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution network and is either overhead or underground, whichever is more • Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve follow-up and no prior contact with officials the crossing of a 10-meter road (such as by excavation or overhead lines) but are all carried out on public land. There is no crossing of other owners’ private property Cost required to complete each procedure (% of income per capita) because the warehouse has access to a road. - Does not require work to install the internal wiring of the warehouse. This has • Official costs only, no bribes already been completed up to and including the customer’s service panel or • Value added tax excluded switchboard and the meter base. The reliability of supply and transparency of The monthly consumption: tariffs index (0-8) - It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 • Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that • Tools to monitor power outages (0–1) there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh. • Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest • Regulatory monitoring of utilities’ performance supplier. (0–1) - Tariffs effective in January of the current year are used for calculation of the price of electricity for the warehouse. Although January has 31 days, for calculation • Financial deterrents limiting outages (0–1) purposes only 30 days are used. • Transparency and accessibility of tariffs (0–1) Price of electricity (cents per kilowatt-hour)* • Price based on monthly bill for commercial warehouse in case study *Note: Doing Business measures the price of electricity, but it is not included in the ease of doing business score nor the ranking on the ease of getting electricity. Page 14
Doing Business 2019 Gabon Getting Electricity - Gabon Standardized Connection Price of electricity (US cents per kWh) 18.9 Name of utility Société d’Energie et d’Eau du Gabon (SEEG) City Covered Libreville Indicator Gabon Sub-Saharan OECD high Best Regulatory Africa income Performance Procedures (number) 7 5.2 4.5 3 (25 Economies) Time (days) 148 112.0 77.2 18 (3 Economies) Cost (% of income per capita) 1294.9 3456.5 64.2 0.0 (3 Economies) Reliability of supply and transparency of tariff 3 1.6 7.5 8.0 (27 Economies) index (0-8) Figure – Getting Electricity in Gabon and comparator economies – Ranking and Score DB 2019 Getting Electricity Score 0 100 61.04: Cameroon (Rank: 129) 54.08: Angola (Rank: 152) 49.58: Gabon (Rank: 161) 49.00: Regional Average (Sub-Saharan Africa) 34.67: Congo, Dem. Rep. (Rank: 174) 24.64: Central African Republic (Rank: 184) Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the scores for all the component indicators except the price of electricity. Page 15
Doing Business 2019 Gabon Figure – Getting Electricity in Gabon – Procedure, Time and Cost Time (days) Cost (% of income per capita) 1400 140 1200 Cost (% of income per capita) 120 1000 100 Time (days) 800 80 600 60 40 400 20 200 0 0 1 *2 3 *4 5 *6 7 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below. Figure – Getting Electricity in Gabon and comparator economies – Measure of Quality 8 7 6 Index score 5 4 3 3 3 2 1.6 1 0 0 0 0 Gabon Angola Cameroon Central African Republic Congo, Dem. Rep. Sub-Saharan Africa Page 16
Doing Business 2019 Gabon Details – Getting Electricity in Gabon – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Submit application to SEEG and await technical requirements 30 calendar days XAF 4,500,000 Agency : Société d'Energie et d'Eau du Gabon (SEEG) The client applies for an electricity connection from the Société d’Energie et d’Eau du Gabon (SEEG) and pays the fees for the initial study. For non-standard connections (as is the case), it is necessary count about 30 calendar days between the full application and the production of the quantitative description (DQ) by the SEEG - after which the works can then be performed by one of the subcontractors referenced by the SEEG. 2 Receive external inspection and quantitative description by SEEG 1 calendar day XAF 0 Agency : Société d'Energie et d'Eau du Gabon (SEEG) After receiving the application, the Société d’Energie et d’Eau du Gabon (SEEG) inspects the customer’s site to determine the technical requirements for the connection. 3 Hire private firm to design and carry out external works 90 calendar days XAF 45,000,000 Agency : Accredited Electrical Contractor The customer is given a list of accredited electrical companies to carry out the external works for him. There are about 10 such companies in Libreville. The customer then picks the best offer. In parallel, SEEG sends to the client an invoice for the supervision of the works. Once the bill is paid, the contractor retained by the customer transmits to SEEG the plan for external works. After agreement by SEEG on the plan for external works, the contractor signs a certificate of non-commencement of work and lodges a request to picket to SEEG. The subcontractor then performs the work, equips the transformer substation, carries out the opening of the trench and rehabilitates the road. Subsequently, the contractor begins the application process to connect to the existing network. SEEG and the contractor should then proceed with the provisional approval of the site. 4 Obtain excavation permit 14 calendar days XAF 0 Agency : Ministry of Public Works or Libreville Municipality The private contractor requests and obtains an excavation permit in order to cut the road and carry out the works 5 Obtain inspection of external works by SEEG and await estimates for 21 calendar days XAF 0 supply contract and security deposit Agency : Société d'Energie et d'Eau du Gabon (SEEG) A few days before the expected end date of the works the client's contractor requests from the Société d’Energie et d’Eau du Gabon (SEEG) to inspect the site. Upon provisional acceptance of the works, SEEG establishes the electricity supply contract and the amount of the security deposit. 6 Sign supply contract and pay security deposit 7 calendar days XAF 1,424,448.53 Agency : Société d'Energie et d'Eau du Gabon (SEEG) The client pays a deposit and signs a supply contract with the utility, so that the meter can be installed and supply can be turned on. 7 Receive meter installation and turn-on of electricity 7 calendar days XAF 0 Agency : Société d'Energie et d'Eau du Gabon (SEEG) When the supply contract has been signed and paid, and the security deposit has been made, the meter is installed and the final connection is carried out. The customer is then connected. Takes place simultaneously with previous procedure. Page 17
Doing Business 2019 Gabon Details – Getting Electricity in Gabon – Measure of Quality Answer Reliability of supply and transparency of tariff index (0-8) 3 Total duration and frequency of outages per customer a year (0-3) 0 System average interruption duration index (SAIDI) 58.2 System average interruption frequency index (SAIFI) 45.0 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 5.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages No exceed a certain cap? Communication of tariffs and tariff changes (0-1) 0 Are effective tariffs available online? Yes Link to the website, if available online https://www.seeg.ga/ relation- clientele/nos-tarifs Are customers notified of a change in tariff ahead of the billing cycle? No Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Page 18
Doing Business 2019 Gabon Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the immovable property (number) parties to the transaction, the property and the procedures are used. • Preregistration procedures (for example, The parties (buyer and seller): checking for liens, notarizing sales agreement, paying property transfer taxes) - Are limited liability companies (or the legal equivalent). - Are located in the periurban area of the economy’s largest business city. For 11 • Registration procedures in the economy's largest economies the data are also collected for the second largest business city. business city. - Are 100% domestically and privately owned. • Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals. title with municipality) - Perform general commercial activities. Time required to complete each procedure The property (fully owned by the seller): (calendar days) - Has a value of 50 times income per capita, which equals the sale price. • Does not include time spent gathering - Is fully owned by the seller. information - Has no mortgages attached and has been under the same ownership for the past • Each procedure starts on a separate day - 10 years. though procedures that can be fully completed - Is registered in the land registry or cadastre, or both, and is free of title disputes. online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required. - Consists of land and a building. The land area is 557.4 square meters (6,000 • Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is document is received located on the land. The warehouse is 10 years old, is in good condition, has no • No prior contact with officials heating system and complies with all safety standards, building codes and legal requirements. The property, consisting of land and building, will be transferred in its Cost required to complete each procedure (% of entirety. property value) - Will not be subject to renovations or additional construction following the purchase. • Official costs only (such as administrative fees, - Has no trees, natural water sources, natural reserves or historical monuments of duties and taxes). any kind. - Will not be used for special purposes, and no special permits, such as for • Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural payments are excluded activities, are required. - Has no occupants, and no other party holds a legal interest in it. Quality of land administration index (0-30) • Reliability of infrastructure index (0-8) • Transparency of information index (0–6) • Geographic coverage index (0–8) • Land dispute resolution index (0–8) • Equal access to property rights index (-2–0) Page 19
Doing Business 2019 Gabon Registering Property - Gabon Indicator Gabon Sub-Saharan OECD high Best Regulatory Africa income Performance Procedures (number) 6 6.2 4.7 1 (4 Economies) Time (days) 102 53.9 20.1 1 (New Zealand) Cost (% of property value) 11.5 7.6 4.2 0.0 (Saudi Arabia) Quality of the land administration index (0-30) 4.5 8.8 23.0 None in 2017/18 Figure – Registering Property in Gabon and comparator economies – Ranking and Score DB 2019 Registering Property Score 0 100 52.62: Regional Average (Sub-Saharan Africa) 47.14: Congo, Dem. Rep. (Rank: 156) 43.16: Angola (Rank: 170) 41.94: Central African Republic (Rank: 172) 37.93: Cameroon (Rank: 176) 37.09: Gabon (Rank: 178) Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of the scores for each of the component indicators. Figure – Registering Property in Gabon – Procedure, Time and Cost Time (days) Cost (% of property value) 100 12 10 Cost (% of property value) 80 8 Time (days) 60 6 40 4 20 2 0 0 1 *2 3 4 5 6 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below. Page 20
Doing Business 2019 Gabon Figure – Registering Property in Gabon and comparator economies – Measure of Quality 30 25 Index score 20 15 10.0 10 8.8 7.0 7.0 4.5 5 3.0 0 Gabon Angola Cameroon Central African Republic Congo, Dem. Rep. Sub-Saharan Africa Details – Registering Property in Gabon – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Search the title at the property registry (Conservation Foncière) 45 days no charge Agency : Property Registry (Conservation de la Propriété Foncière et des Hypothèques) The Notary obtains an official copy of the title (livre foncier) from the registry. The title includes all relevant information on the property, such as its history of ownership, boundaries of the property and the building. 2 Parties obtain a survey from an expert Architect to estimate the value of the 14 days XAF 1,966,337.17; property (1% of the property Agency : Architect value) The Tax Code of Gabon imposes the obligation to the capital gains tax when transferring a property (Art. 446 of the Tax Code). However, actual implementation of capital gains tax did not occur until early 2017. In order to calculate the tax base of the Capital Gains Tax (the value of the property), Tax Authorities require proof of the current value of the property. Thus, notaries are commonly attaching to the property transfer deed to be registered a survey of the property carried out by an expert Architect. 3 Check for unpaid utilities bills at the SEEG (Service de l’Eau et de 1 day no charge l’Electricite de Gabon) Agency : Utility company (SEEG, Service de l’Eau et de l’Electricite de Gabon) It is standard practice for the Notary to check for any unpaid utilities bills associated with the property prior to the transfer. The parties can also carry out this procedure. 4 Notary drafts and parties execute the sale-purchase agreement 1 day XAF 20,646,540.24; Agency : Notary (10.5% property It is standard practice for the buyer and the seller, as companies, to contract a notary to value, including conduct all Procedures. They pay his fees and the transfer taxes/fees to be incurred at the notary fees+ search time of contracting him. After carrying out all the necessary due diligence procedures, the fees (procedure 1) + notary drafts the sale-purchase agreement for the parties, which they then sign. The 8% of the property notary then notarizes the signed agreement. value (procedure 5) + 0.6% property value for the registration fees (procedure 6)) 5 Register the sale purchase agreement at the land administration (Service 10 days no charge des Domaines) Agency : Direction Generale des Impots, Service de l’Enregistrement et timbres The transfer deed is registered at the Direction Generale des Impots, Service de l’Enregistrement et timbres, or the administrative authority that keeps the technical records on lands. The notary will then prepare all the necessary documents to request a change of name on the property title at the Conservation Foncière. Note: If there is a mortgage on the property, there is an additional cost of 0.3% property value fee. 6 Register the sale-purchase agreement at the property registry 45 days no charge (Conservation Foncière) Agency : Property Registry (Conservation de la Propriété Foncière et des Hypothèques) The registrar transcribes the transfer and publishes it in the registry books under the name of the new owner. Two copies of the transfer deed are submitted: one without stamps for the Conservation Fonciere, and one with stamps,which the buyer will receive back after registration. The original transfer deed stays with the notary. Takes place simultaneously with previous procedure. Page 21
Doing Business 2019 Gabon Details – Registering Property in Gabon – Measure of Quality Answer Score Reliability of infrastructure index (0-8) 0.0 What is the institution in charge of immovable property registration? La Conservation Foncière et des Hypothèques In what format are the majority of title or deed records kept in the largest business city—in a Paper 0.0 paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions No 0.0 and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Agence Nationale de l'Urbanisme, des Travaux Topographiques et du Cadastre In what format are the majority of maps of land plots kept in the largest business city—in a Paper 0.0 paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for recording boundaries, checking plans and providing No 0.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the cadastral Separate 0.0 or mapping agency kept in a single database, in different but linked databases or in separate databases databases? Do the immovable property registration agency and cadastral or mapping agency use the No 0.0 same identification number for properties? Transparency of information index (0–6) 1.0 Who is able to obtain information on land ownership at the agency in charge of immovable Only 0.0 property registration in the largest business city? intermediaries and interested parties Is the list of documents that are required to complete any type of property transaction made Yes, online 0.5 publicly available–and if so, how? Link for online access: https://www.cons ervationfonciere. ga/mutations/ Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 immovable property registration in the largest business city made publicly available–and if so, how? Link for online access: https://www.cons ervationfonciere. ga/frais-divers/ Does the agency in charge of immovable property registration commit to delivering a legally No 0.0 binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? Link for online access: Is there a specific and separate mechanism for filing complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available official statistics tracking the number of transactions at the 0.0 immovable property registration agency? Number of property transfers in the largest business city in 2017: Who is able to consult maps of land plots in the largest business city? Only 0.0 intermediaries (notaries, lawyers, etc.) Page 22
Doing Business 2019 Gabon Is the applicable fee schedule for accessing maps of land plots made publicly available— No 0.0 and if so, how? Link for online access: Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0 specific time frame—and if so, how does it communicate the service standard? Link for online access: Is there a specific and separate mechanism for filing complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 0.0 Are all privately held land plots in the economy formally registered at the immovable property No 0.0 registry? Are all privately held land plots in the largest business city formally registered at the No 0.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city mapped? No 0.0 Land dispute resolution index (0–8) 4.5 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5 Is there a specific compensation mechanism to cover for losses incurred by parties who Yes 0.5 engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a property Yes 0.5 transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Notary; Lawyer; Does the legal system require verification of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar; Is there a national database to verify the accuracy of identity documents? No 0.0 For a standard land dispute between two local businesses over tenure rights of a property Le Tribunal de worth 50 times gross national income (GNI) per capita and located in the largest business Libreville city, what court would be in charge of the case in the first instance? How long does it take on average to obtain a decision from the first-instance court for such a Between 2 and 3 1.0 case (without appeal)? years Are there any statistics on the number of land disputes in the first instance? No 0.0 Number of land disputes in the largest business city in 2017: Equal access to property rights index (-2–0) -1.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes Do married men and married women have equal ownership rights to property? No -1.0 Page 23
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