The Gabonese government has quietly acknowledged a significant reduction in mining tax revenues as part of its revised 2025 budget, passed on July 17. The corporate tax expected from the mining sector has plummeted by 97%, dropping from 53.2 billion to just 1.47 billion CFA francs. This unprecedented adjustment—unmatched by any other taxpayer category—translates into a staggering loss of 51.8 billion CFA francs, equivalent to nearly 80 million euros, for a single fiscal category.

Budget revision challenges Gabon’s post-oil mining ambitions

Manganese has emerged as a cornerstone of Gabon’s economic diversification strategy alongside timber and oil. Positioned as the world’s second-largest producer of the mineral, the country extracts most of its manganese in the Haut-Ogooué region through two key operators: Comilog, a subsidiary of French conglomerate Eramet, and Nouvelle Gabon Mining. While the military-led Committee for the Transition and Restoration of Institutions (CTRI) has repeatedly emphasized the need to maximize fiscal returns from mining concessions since 2023, the revised budget starkly contradicts this objective.

The sharp decline in mining tax revenue can be attributed to multiple factors. International manganese prices have experienced a steep correction since late 2024, following a supply shock caused by a mine fire in Australia earlier that year. This price collapse has directly impacted the profitability of Gabon’s mining operators, shrinking their taxable income. Yet the gap between initial projections and actual collections raises questions about the accuracy of the assumptions used in the original budget framework.

Fiscal transparency under scrutiny as Gabon re-engages with extractive transparency

The issue carries heightened significance as Gabon re-engages with the Extractive Industries Transparency Initiative (EITI) following a years-long hiatus. The 51.8 billion CFA franc shortfall is comparable to several months’ worth of salaries for certain government ministries. This revenue loss comes at a critical juncture, as Libreville negotiates a new financial support framework with the International Monetary Fund while facing liquidity constraints and increased reliance on regional BEAC markets to cover monthly expenses.

Local analysts highlight a glaring inconsistency between the government’s stated commitment to renegotiating unfavorable mining and petroleum agreements and the actual fiscal outcomes reflected in the revised budget. Transition authorities had pledged in late 2023 to review all mining and oil conventions with the goal of securing more favorable fiscal terms for the state. Yet two years later, the effective corporate tax yield from the mining sector barely reaches 3% of original projections, with no official explanation provided regarding the macroeconomic or contractual assumptions behind this drastic revision.

A mixed message to investors and development partners

This fiscal adjustment arrives at a pivotal moment, as the country prepares to unveil its multi-year budget framework and make critical decisions between advancing major infrastructure projects and controlling the fiscal deficit. A revenue shortfall of this magnitude forces the government to reconsider its budgetary priorities, either through spending cuts or increased domestic borrowing. Multilateral lenders will closely monitor how the transitional government justifies this discrepancy to the National Transitional Council.

The move sends conflicting signals to mining investors. On one hand, the reduced tax burden provides temporary relief in a period of depressed commodity prices. On the other, it fuels national debates about the equitable distribution of resource wealth. As Gabon prepares the 2026 budget—expected this autumn—the upcoming fiscal document must clarify whether this adjustment reflects a temporary anomaly or a permanent shift in the tax yield from the mining sector.

By Mariama Hamani — Analyst