The Gabonese government’s revised 2025 budget reveals a striking adjustment in the mining tax sector, buried in the revenue projections of the July 17 finance law. The corporate tax revenue from mining is projected to plummet by 97%, dropping from 53.2 billion to just 1.47 billion CFA francs. This drastic reduction stands out as the most significant budgetary revision, with no other taxpayer category facing such a dramatic cut. For a nation that has relied heavily on extractive industries to diversify its economy beyond oil, this translates to a staggering loss of 51.8 billion CFA francs—nearly 80 million euros—on a single fiscal line item.
Budget revision challenges Gabon’s mining strategy
Manganese, alongside timber and oil, ranks as Gabon’s third-largest source of foreign exchange. The country holds the distinction of being the world’s second-largest producer of the mineral, primarily mined in the Haut-Ogooué region by Comilog, a subsidiary of the French conglomerate Eramet, and Nouvelle Gabon Mining. Since the 2023 military transition led by the Committee for the Transition and Restoration of Institutions (CTRI), authorities have repeatedly emphasized the need to extract greater fiscal returns from mining concessions. Yet, the budget revision starkly contradicts these ambitions.
Several factors may explain this discrepancy. The international manganese market has faced a sharp correction since mid-2024, following a surge triggered by a mine fire in Australia earlier that year. The resulting price drop has significantly weakened the profitability of Gabon’s mining operators, shrinking their taxable income. However, the wide gap between initial projections and actual execution raises questions about the accuracy of the budgetary assumptions made in the original finance law.
Fiscal transparency tested by extractive wealth
The issue is particularly sensitive given Gabon’s renewed commitment to the Extractive Industries Transparency Initiative (EITI) after years of inactivity. The 51.8 billion CFA franc shortfall is equivalent, for context, to several months’ worth of salaries for civil servants in certain ministries. This loss occurs as Libreville negotiates a new budgetary support framework with the International Monetary Fund, amid tightening liquidity conditions and increased reliance on regional BEAC markets to meet monthly financial obligations.
Local analysts highlight a stark contradiction between the government’s tough rhetoric toward multinational mining firms and the fiscal reality reflected in the revised budget. In late 2023, transitional authorities announced a comprehensive review of all mining and oil conventions, aiming to renegotiate fiscal regimes deemed unfavorable to the state. Yet two years later, the actual corporate tax revenue from the mining sector has barely reached 3% of the initial target, with no official explanation provided for the macroeconomic or contractual assumptions behind this revision.
Mixed signals for partners and investors
This development comes at a critical juncture as the country prepares to unveil its multi-year budget framework and must decide between advancing major infrastructure projects or reining in the deficit. A revenue shortfall of 51.8 billion CFA francs forces the government to reassess its priorities, either by slashing expenditures or increasing domestic borrowing. Multilateral lenders will closely scrutinize how the executive justifies this gap before the transitional parliament.
For mining operators, the episode sends conflicting signals. On one hand, the reduced tax burden provides much-needed relief during a downturn in commodity prices. On the other, it fuels political risk by intensifying national debates over fair resource compensation. Moving forward, the 2026 finance law, expected in the fall, must clarify whether this adjustment is a temporary anomaly or a permanent shift in the fiscal yield of Gabon’s mining sector.
