Panama Enabling Environment Snapshot

Reporting period: January - June 2026

Panama has maintained a relatively stable regulatory environment for civil society over the last decade. However, significant challenges remain, such as low levels of organisational participation and funding difficulties, which weaken the sector. The current context is characterised by growing hostility towards social leaders, which has led to a deterioration in public dialogue. At the same time, the business sector continues to exert a strong influence on government decisions without facing any restrictions that affect its activities. The climate of confrontation that emerged in 2025 has not ended, and tensions are expected to continue in the coming months of 2026 as the underlying causes remain, leaving civic space in a state of extreme ‘fragility’ and polarisation.

The country is preparing for the possible reopening of First Quantum’s copper mine, located in Donoso, Colón province, and the continuation of plans to build a reservoir in the Indio River basin, which aims to guarantee water supply for the interoceanic highway but would affect more than 2,000 people who would need to be relocated. The construction of the reservoir on the Indio River, which directly affects rural and indigenous communities, has sparked organised resistance and warnings of protests. At the same time, the threat of the Donoso mine reopening has reignited public opposition to metal mining, which is seen as a risk to the environment and public health. These factors point to further protests and tensions between the government, local communities and civil society organisations, against a backdrop characterised by the defence of local territory and demands for transparency in public decision-making.