The Mahaboboka gas field could create jobs and generate revenue for Madagascar. Its impact will depend on how this resource is leveraged for the benefit of the population.
Located in the southwest of the country, the Mahaboboka natural gas project represents an economic opportunity for Madagascar. It could attract investment, create jobs, and boost the local economy. However, the economic benefits will depend on exploitation conditions and the ability to utilize this resource for the public good.
The National Office of Mines and Strategic Industries (OMNIS) introduced the Nigerian company Aiteo to relevant stakeholders on October 27, 2026. The company is linked to the Malagasy state through a production-sharing contract for the Mahaboboka natural gas field, located in the Sakaraha district, Atsimo-Andrefana region.
Discovered in 2011, the field has an estimated potential of between 20 and 25 billion cubic meters. Further drilling is required to confirm exploitable reserves and determine technical production conditions. According to the Ministry of Mines, the request to begin exploitation has been approved, though the production timeline has not yet been specified.
Gas exploitation could contribute to public revenue through taxes, duties, and royalties. It could also foster job creation and stimulate economic activity around the site, with local businesses potentially benefiting from the demand for goods and services.
The Ambatovy project illustrates the potential impact of extractive activities. In 2025, this mining operation contributed $28 million to public finances in taxes and royalties and employed approximately 3,500 direct staff, over 90% of whom were Malagasy nationals, according to data published in December 2025.
Extractive revenues can also support local authorities through rebates. However, their utilization remains a major challenge. The Court of Audit noted in its 2022 public report that only 28 billion ariary, or 43% of the mining rebates paid by Ambatovy, were utilized by beneficiary communities between 2018 and 2020.
In Mahaboboka, the challenge is not limited to extracting gas. It also involves transforming this resource into concrete benefits for the inhabitants. Creating jobs accessible to locals, fostering dynamic local businesses, and ensuring transparent revenue management will be essential factors in converting this natural wealth into sustainable benefits for the population.
Captured & Published at: 2026-10-31 05:54:25 (Madagascar Local Time EAT)
Original Source: https://www.lexpress.mg/2026/10/energie-le-gaz-de-mahaboboka-ouvre-des.html
