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| An oil palm nursery in Kango, 60 kilometers from Libreville. |
This
Western African nation’s success or failure could dictate Africa’s palm oil
plans. Sitting on the terrace of his presidential palace overseeing
Libreville’s beachfront avenue, Ali Bongo contemplates the
growth of Gabon’s capital. “Everything you see today wasn’t here 10 years ago,”
says Gabon’s 59-year-old president, sporting a perfectly tailored camel suit
and a gleaming Rolex watch.
Western African nation’s success or failure could dictate Africa’s palm oil
plans. Sitting on the terrace of his presidential palace overseeing
Libreville’s beachfront avenue, Ali Bongo contemplates the
growth of Gabon’s capital. “Everything you see today wasn’t here 10 years ago,”
says Gabon’s 59-year-old president, sporting a perfectly tailored camel suit
and a gleaming Rolex watch.
Libreville’s
expansion has been fueled by Gabon’s decade-long boom in oil production. But
with oil prices plummeting and reserves declining, the central African country
is scrambling to find a less volatile source of income. Bongo’s solution? Palm
oil. Gabon’s government has partnered with agricultural giant Olam to set up
the largest palm oil plantation in Africa — over 82,000 hectares. The move
promises to generate thousands of jobs, millions in revenue — and some serious
controversy.
expansion has been fueled by Gabon’s decade-long boom in oil production. But
with oil prices plummeting and reserves declining, the central African country
is scrambling to find a less volatile source of income. Bongo’s solution? Palm
oil. Gabon’s government has partnered with agricultural giant Olam to set up
the largest palm oil plantation in Africa — over 82,000 hectares. The move
promises to generate thousands of jobs, millions in revenue — and some serious
controversy.
Nobody
doubts the country needs to diversify its economy. Despite being a
middle-income nation with fewer than 2 million citizens, poverty remains high
and youth unemployment is at 36 percent. Employment is the only way to bring
the country’s people out of poverty, says Bongo, who is keen to deliver results
after his 2016 re-election was marred by accusations of fraud and violent
street protests. But palm oil comes with its own set of ghosts. After decades
of mass production in Malaysia and Indonesia, the industry has become
synonymous with deforestation, labor exploitation and chimpanzee murder.
Showing Gabon can do better will be
no easy feat.
doubts the country needs to diversify its economy. Despite being a
middle-income nation with fewer than 2 million citizens, poverty remains high
and youth unemployment is at 36 percent. Employment is the only way to bring
the country’s people out of poverty, says Bongo, who is keen to deliver results
after his 2016 re-election was marred by accusations of fraud and violent
street protests. But palm oil comes with its own set of ghosts. After decades
of mass production in Malaysia and Indonesia, the industry has become
synonymous with deforestation, labor exploitation and chimpanzee murder.
Showing Gabon can do better will be
no easy feat.
I refuse
to hear that sustainability and economic progress are incompatible.
to hear that sustainability and economic progress are incompatible.
Ali
Bongo, president of Gabon
Bongo, president of Gabon
Enter
Olam’s CEO, Gagan Gupta. Based in Singapore, Olam is a giant multinational
operating in 70 countries selling commodities like coffee, cocoa, rice and
cotton. But Gupta’s small corner office feels like that of a high school
baseball coach, with walls covered in motivational slogans like “We always
strive to do the right thing” and “We dare to dream.”
Olam’s CEO, Gagan Gupta. Based in Singapore, Olam is a giant multinational
operating in 70 countries selling commodities like coffee, cocoa, rice and
cotton. But Gupta’s small corner office feels like that of a high school
baseball coach, with walls covered in motivational slogans like “We always
strive to do the right thing” and “We dare to dream.”
“Growing
palm oil does not need to hurt the environment or the workers,” Gupta says with
enthusiasm. “We are proof of that.” The young CEO says Africa is the perfect
place to show this can be done because it hasn’t inherited the painful
practices of Southeast Asia and the oil palm is native to the continent.
palm oil does not need to hurt the environment or the workers,” Gupta says with
enthusiasm. “We are proof of that.” The young CEO says Africa is the perfect
place to show this can be done because it hasn’t inherited the painful
practices of Southeast Asia and the oil palm is native to the continent.
Using
foreign multinationals to help foster Gabon’s development is a “win-win,”
argues economic analyst Emmanuel Leroueil, head of Central African operations
for the Performance Group consultancy. The Gabonese government obtains access
to Olam’s deep pockets and agricultural know-how while the multinational gets
priority access to a new market. “It is an innovative model but it is proving
successful,” says Leroueil.
foreign multinationals to help foster Gabon’s development is a “win-win,”
argues economic analyst Emmanuel Leroueil, head of Central African operations
for the Performance Group consultancy. The Gabonese government obtains access
to Olam’s deep pockets and agricultural know-how while the multinational gets
priority access to a new market. “It is an innovative model but it is proving
successful,” says Leroueil.
Yet there
is something standing in the way of Gabon’s palm oil dreams: trees. The country
is the size of the U.K. and over 80 percent of it is covered in dense tropical
forest, which is not only a major carbon sink but also home to hundreds of
endemic species — including many protected ones like forest elephants, chimpanzees
and pangolins. A diverse and fragile ecology is something many other African
countries investing in palm oil — such as Cameroon, the Central African
Republic, Ivory Coast and the Democratic Republic of the Congo — also share,
which is why Gabon’s experiment matters way beyond the borders of the small nation.
is something standing in the way of Gabon’s palm oil dreams: trees. The country
is the size of the U.K. and over 80 percent of it is covered in dense tropical
forest, which is not only a major carbon sink but also home to hundreds of
endemic species — including many protected ones like forest elephants, chimpanzees
and pangolins. A diverse and fragile ecology is something many other African
countries investing in palm oil — such as Cameroon, the Central African
Republic, Ivory Coast and the Democratic Republic of the Congo — also share,
which is why Gabon’s experiment matters way beyond the borders of the small nation.
Olam and
the government say preserving the environment is their biggest priority. The
company’s palm oil plantations are the first in Africa to be certified as
“sustainable” by the Roundtable on Sustainable Palm Oil, and Bongo is adamant
about Olam’s activities not hurting Gabon’s precious biodiversity. “I refuse to
hear that sustainability and economic progress are incompatible,” he says. “We
have planted thousands of hectares of palm oil without touching our forest!”
the government say preserving the environment is their biggest priority. The
company’s palm oil plantations are the first in Africa to be certified as
“sustainable” by the Roundtable on Sustainable Palm Oil, and Bongo is adamant
about Olam’s activities not hurting Gabon’s precious biodiversity. “I refuse to
hear that sustainability and economic progress are incompatible,” he says. “We
have planted thousands of hectares of palm oil without touching our forest!”
That’s
not exactly true. Visiting Olam’s 20,000-hectare palm oil plantation in Awala,
a couple hours’ drive inland from Libreville, signs of logging are everywhere.
Huge piles of timber stand by the side of dirt roads. Among the palm trees, one
can still see the muddy tracks of bulldozers. When asked about it, Olam admits
to chopping trees to make room for the plantations but says they make up for
the loss by identifying and protecting the most biologically rich stretches of
the forest — what they call “High Conservation Value” areas.
not exactly true. Visiting Olam’s 20,000-hectare palm oil plantation in Awala,
a couple hours’ drive inland from Libreville, signs of logging are everywhere.
Huge piles of timber stand by the side of dirt roads. Among the palm trees, one
can still see the muddy tracks of bulldozers. When asked about it, Olam admits
to chopping trees to make room for the plantations but says they make up for
the loss by identifying and protecting the most biologically rich stretches of
the forest — what they call “High Conservation Value” areas.
Not
everybody buys into this theory. Marc Ona Essangui, a renowned activist and
executive secretary of the Gabonese NGO Brainforest, says “sustainable palm
oil” is an oxymoron. Essangui insists that “Olam is cutting down more trees
than they’re allowed to, and their pesticides are filtering into the water
stream of neighboring communities.”
everybody buys into this theory. Marc Ona Essangui, a renowned activist and
executive secretary of the Gabonese NGO Brainforest, says “sustainable palm
oil” is an oxymoron. Essangui insists that “Olam is cutting down more trees
than they’re allowed to, and their pesticides are filtering into the water
stream of neighboring communities.”
Despite
the ecologist’s criticism, Bongo is committed to seeing Gabon become a palm oil
pioneer. So far, the industry has already generated 7,700 jobs for locals and,
despite the drop in oil revenue, the World Bank estimates the country’s economy
will continue to grow at a yearly 5 percent — thanks, in part, to palm oil.
the ecologist’s criticism, Bongo is committed to seeing Gabon become a palm oil
pioneer. So far, the industry has already generated 7,700 jobs for locals and,
despite the drop in oil revenue, the World Bank estimates the country’s economy
will continue to grow at a yearly 5 percent — thanks, in part, to palm oil.
Meanwhile,
investors are slowly buying into the idea of Africa as the next palm oil
frontier. Two-thirds of the vegetable oil used in sub-Saharan Africa is already
palm oil and consumption is expected to grow up to 10 percent annually. Sierra
Leone and Benin are also investing in its production, trusting the continent
can go from buyer to exporter. Gabon’s example, whether good or bad, could set
the tone for a new kind of oil rush.
investors are slowly buying into the idea of Africa as the next palm oil
frontier. Two-thirds of the vegetable oil used in sub-Saharan Africa is already
palm oil and consumption is expected to grow up to 10 percent annually. Sierra
Leone and Benin are also investing in its production, trusting the continent
can go from buyer to exporter. Gabon’s example, whether good or bad, could set
the tone for a new kind of oil rush.
