The extractive industries in Gabon entered 2026 with mixed fortunes. Overall sector activity shrank by 2.9%, largely dragged down by a sharp decline in oil output, while the manganese segment continued its upward trend. These findings, drawn from the sectoral economic outlook report by the Directorate General of Economics and Fiscal Policy, highlight Gabon’s enduring structural reliance on its petroleum sector for economic stability.

Gabon’s extractive sector struggles under oil sector pressures

The downturn in oil production is a major factor in the sector’s decline. In Libreville, crude output has been faltering for several quarters due to aging oil fields, prolonged maintenance of key infrastructure, and insufficient upstream investment to offset the natural depletion of reserves. The 2.9% contraction in extractive industries during the first quarter of 2026 mirrors this persistent erosion, particularly concerning given Gabon’s reliance on oil as its top export revenue source.

Government officials are closely monitoring these developments, as the national budget remains highly sensitive to fluctuations in production volumes and global market prices. The underperformance of oil coincides with a regional shift, as major international firms redirect exploration and production capital toward basins perceived as more profitable or less mature. Gabon’s long-standing sedimentary basin, once the backbone of its economy, now faces intensified competition for exploration and production funding.

Manganese emerges as a stabilizing force amid economic shifts

In contrast to the oil sector’s struggles, the mining industry provides a stabilizing effect. Gabon, one of the world’s leading manganese producers, saw sustained growth in the sector during the period. This upward trajectory aligns with a decade-long rise in manganese demand, driven by Asian steel production and growing requirements for next-generation battery components, particularly in cathodes.

The manganese sector’s increasing contribution to Gabon’s extractive value-added reflects a gradual rebalancing of its mining portfolio. Authorities are leveraging this momentum to diversify revenue streams and promote local processing through projects focused on agglomeration and silicomanganese production. These efforts aim to capture greater value within the country rather than exporting raw ore, a strategy increasingly adopted by mineral-rich nations across Central and West Africa.

Diversification and local processing take center stage in Gabon’s economic strategy

The outlook underscores a critical challenge for the transitional government: balancing reliance on oil revenues with exposure to volatile global markets. The rise of the Equatorial Mining Company (SEM), which holds stakes in key projects, signals a push to strengthen national control over strategic segments of the extractive industry.

Meanwhile, the question of reviving upstream oil production remains pressing. Offshore bidding rounds, modernization of contractual frameworks, and fiscal incentives for exploration are among the tools being considered to reverse the decline. However, the lengthy timelines between discovery and production—often exceeding five years—demand a medium-term perspective from policymakers.

Ultimately, Gabon faces a trilemma: revitalizing oil to safeguard immediate fiscal stability, solidifying manganese’s role for stable mineral revenues, and preparing for the post-oil era through local processing and diversification. The first-quarter 2026 figures serve as a stark reminder that this balancing act leaves little room for error.