• Gabon allocates $6.9 million to acquire 35% stake in ABG

• Move aims to stabilize firm and protect 800 jobs

• Company faced cash issues, delisted from regional exchange in 2023

Gabon has allocated 3.9 billion CFA francs (approximately $6.9 million) in its 2026 budget to complete the acquisition of a 35% stake in Agro Business Group (ABG), formerly known as Siat-Gabon, a subsidiary of Belgian group SIAT. The measure is included in the 2026 budget law.

The planned disbursement completes a process launched in May 2024, when an agreement was signed for the purchase of 2,590,000 shares. No details were given on the timeline or financing.

Through the stake, the government intends to play a direct role in managing ABG, including appointing representatives to its board of directors. The aim is to stabilize the company, protect about 800 jobs across the towns of Bitam, Mitzic, Nzilé and Kango, and safeguard its industrial operations. In return, the company has committed to maintaining and modernizing its production facilities in Gabon.

The company, which specializes in rubber, palm oil and livestock farming, has struggled for several years with cash flow problems, leading to a temporary suspension of operations. It was later delisted from the Bourse des valeurs mobilières de l'Afrique centrale (BVMAC), the regional stock exchange, on Feb. 17, 2023, following a decision by the Commission de surveillance du marché financier d'Afrique centrale (Cosumaf) over breaches of market rules.

The acquisition is expected to revive the agro-industrial sector and strengthen the local value chain. In that context, the Banque pour le commerce et l'entrepreneuriat du Gabon (BCEG), working with the government, has established the Fonds de crédit agricole à taux réduit (CATR). The fund, endowed with 6.8 billion CFA francs (approximately $12 million), aims to improve access to financing for entrepreneurs in the poultry and agricultural sectors.

Sandrine Gaingne