The mining industry in Gabon started 2026 with mixed results, as overall extractive activity contracted by 2.9%, primarily dragged down by a downturn in oil production. Meanwhile, the manganese sector continued its upward trajectory, offering a glimmer of resilience in an otherwise challenging landscape. These findings, outlined in the sectoral outlook report by the General Directorate of Economics and Fiscal Policy (DGEPF), underscore Gabon’s entrenched reliance on its petroleum sector for economic stability.
Oil sector decline casts shadow over Gabon’s extractive industries
The sharp decline in oil output is a major contributor to the sector’s overall contraction. In Libreville, crude production has been steadily weakening due to aging oil fields, prolonged maintenance shutdowns, and insufficient upstream investment to offset the natural depletion of reserves. This 2.9% decline in extractive activity during the first quarter of 2026 highlights a persistent trend, particularly as oil remains Gabon’s top export revenue generator.
Government officials are closely monitoring the situation, given the country’s heavy fiscal reliance on both production volumes and global oil prices. The downturn in hydrocarbons coincides with a broader regional shift, as major international energy firms redirect exploration and production capital toward basins perceived as more lucrative or less mature. Gabon’s traditional sedimentary basin, long the backbone of its economy, now faces intensified competition for exploration funding.
Manganese emerges as a key driver amid economic transition
As oil falters, the mining sector—particularly manganese—acts as a stabilizing force. Gabon, one of the world’s leading manganese producers, saw continued growth in production and exports during the period. This upward trend reflects a decade-long expansion, fueled by rising demand from Asian steelmakers and the growing use of manganese in next-generation battery technologies, especially in cathode production.
The increasing contribution of manganese to Gabon’s extractive value-added marks a gradual shift in the country’s mineral portfolio. Policymakers are banking on manganese to diversify revenue streams and promote local value addition through projects focused on agglomeration and silicomanganese production. These efforts align with a broader regional strategy adopted by several Central and West African mining nations to move beyond raw material exports.
Economic resilience hinges on diversification and strategic investment
The DGEPF’s findings highlight a critical challenge for Gabon’s transitioning economy: its dual dependency on oil revenues and external mineral markets. Addressing this calls for a more robust strategy to build economic resilience. The accelerated involvement of the Société équatoriale des mines (SEM) in key projects signals a push toward greater national control over critical mineral segments.
At the same time, questions linger about reviving the oil sector. Measures under consideration include new offshore licensing rounds, updates to contractual frameworks, and fiscal incentives to spur exploration. However, the lengthy timelines between discovery and production—often exceeding five years—necessitate a medium-term perspective from policymakers.
In practice, Gabon faces a delicate balancing act: stabilizing oil output to protect short-term fiscal health, strengthening the manganese industry to secure steady mineral revenues, and investing in downstream processing and economic diversification to prepare for a post-oil future. The first-quarter 2026 outlook serves as a reminder that this high-stakes balancing act leaves little room for miscalculation.
