Negotiated since 2025, the deal aims to rehabilitate the 650-kilometer rail line connecting the manganese mines of Moanda to the port of Owendo a strategic corridor that carries roughly 80% of Gabon’s mining exports. Under the leadership of President Brice Clotaire Oligui Nguema, Gabon is accelerating its industrialization agenda, including a planned ban on raw manganese exports by 2029. The railway upgrade is therefore not merely an infrastructure project, but a cornerstone of the country’s value-addition strategy.
Commissioned in 1987, the Transgabonais railway is Gabon’s economic backbone. Stretching 649 kilometers across the country, it transports approximately 25 million tons of freight annually, including 6-7 million tons of manganese extracted by the Compagnie minière de l’Ogooué (Comilog), a subsidiary of Eramet. The network includes 24 stations and supports not only mineral exports, but also timber, general cargo, and passenger traffic. Since 2021, Setrag’s ownership structure has reflected a strategic balance: 51% held by Eramet/Comilog, 40% by Meridiam, and 9% by the Gabonese state. While generating annual revenues of approximately CFA 150 billion and an estimated EBITDA of CFA 40 billion, the railway suffers from aging infrastructure. Worn rails and degraded sleepers have reduced operational capacity to around 30 trains per day, well below the system’s potential of 50. This bottleneck directly affects the competitiveness of Gabon’s mining exports.
A CFA 700 billion modernization program
Phase III of the rehabilitation plan, scheduled for 2026-2030, includes the replacement of 561 kilometers of rail tracks and 324 kilometers of sleepers. The objective is to increase annual transport capacity to 40 million tons and reduce operational disruptions by 20%. The total investment program amounts to CFA 700 billion, with the $350 million financing package acting as the pivotal leverage component. Earlier in 2025, Eramet had already injected CFA 85 billion into emergency repairs, supported by financing from the French Development Agency and European Union initiatives.
The financing structure is anchored by a senior loan from the IFC, representing 70% of the package. The remaining 30% combines European grants and equity contributions from Eramet and Meridiam. The loan carries a 12-year maturity with a three-year grace period, priced at LIBOR plus 350 basis points. Security is backed by Setrag’s cash flows and Comilog’s royalty streams. Governance mechanisms will be strengthened through IFC board representation and annual performance indicators covering safety and sustainability. A buy-back clause allows the Gabonese state to increase its stake after fifteen years. This hybrid model significantly limits sovereign debt exposure currently around 45% of GDP while aligning the interests of industrial operators, infrastructure investors, and multilateral financiers.
Transformational impact on Gabon’s manganese industry
Manganese accounts for roughly 25-30% of Gabon’s exports and 6-8% of GDP. The country controls about 25% of global supply, largely due to the high-grade deposits in Moanda operated by Comilog. Currently, rail inefficiencies push transport costs to $15-20 per ton. Following modernization, costs are expected to fall to $8-10 per ton, potentially freeing up CFA 200-300 billion annually for reinvestment.
Production capacity could expand from 6-7 million tons to 12 million tons per year. At an average price of $120 per ton, net export revenues could increase by approximately CFA 1,500 billion annually. Crucially, the railway upgrade supports Gabon’s 2029 ban on raw ore exports, reinforcing the country’s ambition to expand domestic processing, including manganese alloys and battery-grade materials for electric vehicles.
Economic projections suggest a multiplier effect of 3.5, meaning each dollar invested could generate $3.5 in GDP through employment, local procurement, and downstream services. The project could add up to 1.5 percentage points to annual GDP growth, supporting Gabon’s medium-term growth target of 5%. Eramet and Comilog already employ more than 10,000 people directly and around 20,000 indirectly. Fiscal contributions from royalties, taxes, and dividends amount to CFA 400-500 billion annually, representing a significant share of public mining revenues.
Risk factors and structural challenges
Despite its strong fundamentals, the project remains exposed to commodity price volatility manganese prices fell by 60% in 2022 as well as execution risks linked to past delays and equatorial climate conditions that accelerate infrastructure wear. Financial covenants tied to transport volumes and global interest rate fluctuations also represent potential constraints. However, IFC’s ESG oversight, partial integration of solar energy for station operations, and workforce training initiatives enhance the project’s resilience and sustainability profile.
Beyond Gabon, the Setrag,Eramet, Meridiam and IFC partnership may serve as a benchmark for financing critical extractive infrastructure across Africa. It combines private capital, industrial expertise, and multilateral backing while minimizing sovereign borrowing. As Central African countries compete to develop mining corridors, Gabon is consolidating its position as a logistics hub within the CEMAC region.
If execution remains on track, the modernization of the Transgabonais could mark the turning point from a resource-export model to an integrated industrial economy transforming a structural bottleneck into a long-term competitive advantage.
