Overview

  • Equatorial Guinea, also referred to as EQG, is the only former Spanish colony in Sub-Saharan Africa. It is composed of a mainland, Rio Muni, and small islands including Bioko, where the capital Malabo is located, and others such as Annobon, Corisco, Elobey. According to the 2015 population census, the country’s population is 1.2 million people.

    EQG is bordered in the north by Cameroon, in the east and south by Gabon, and to the west by the Gulf of Guinea. It is well endowed with arable land and mineral resources ranging from gold, oil, uranium, diamond, and columbite-tantalite, and notably petroleum discovered in the 1990s.

    Political Overview

    President Teodoro Obiang Nguema Mbasogo has served for 39 years, making him the longest-serving head of state in Sub-Saharan Africa. His position was bolstered by his landslide victory in the last presidential election in November 2009. The absence of real checks and balances grants his party (Partido democratico de Guinea Ecuatorial - PDGE) absolute executive power.

    The country’s constitution was amended following the November 2011 referendum and a new government was appointed in May 2012.  Legislative, senatorial and municipal elections were held in May 2013 and confirmed the domination of the ruling party (PDGE). However, legalized opposition parties continue to voice their discontent over the country’s governance but their capacity to influence policy is limited.

    In November 2017, a government reshuffle took place, and Lucas Abaga Nchama, former Bank of Central African States (BEAC) governor, was appointed the new minister of Finance, the Economy and Planning.

    Economic Overview

    After the discovery of large oil reserves in the 1990s, Equatorial Guinea became the third-largest producer of oil in Sub-Saharan Africa, after Nigeria and Angola, and has been one of the fastest growing economies in Africa in the past decade. More recently, substantial gas reserves have also been discovered. However, the country macroeconomic and fiscal situation has deteriorated following the oil price drop.

    EQG experienced the full extent of the Central Africa Economic and Monetary Community (CEMAC) crisis because of its large dependence on oil exports and lack of sufficient buffers, such as government deposits and international reserves and while it has announced plans for adjustment is has not yet reached an agreement with the International Monetary Fund (IMF).

    The government’s development agenda is guided by a medium-term strategy paper, the National Economic Development Plan: Horizon 2020, which targets economic diversification and poverty reduction. The first phase of Horizon 2020, which focused on infrastructure development, was concluded in 2012.

    The second phase will focus on economic diversification, targeting strategic new sectors such as fisheries, agriculture, tourism and finance. The

    government is planning to redirect public investment from infrastructure towards the development of new economic sectors.

    Equatorial Guinea is largely dependent on oil. The significant economic impact of the recent drop in international oil prices has underscored the importance of promoting non-oil growth and increasing efficiency of spending.

    Equatorial Guinea is among the countries worst hit by the CEMAC crisis which started in 2014, facing twin deficits and a rapid loss of international reserves stemming from dependence on oil exports, lack of sufficient buffers, and weak public financial management (PFM) procedures.

    To restore its external and fiscal imbalances, Equatorial Guinea is undertaking a number of reforms and entered into an IMF Staff Monitored Program (SMP) in May 2018. Reforms include raising non-hydrocarbon tax revenues and reducing the non-hydrocarbon primary deficit, improving public financial management (PFM) in coordination with the other CEMAC countries, supporting social sectors, protecting the banking sector through the non-accumulation of new arrears, and improving governance. 

    EQG became member of Organization of the Petroleum Exporting Countries (OPEC) in May 2017. For the government, joining OPEC could be an attempt to bolster foreign investment and technology transfers from other member countries, especially from the Gulf.  

     

    Last Updated: Nov 01, 2018

  • The country’s main development challenge lies in transforming its oil producing economy into a more diversified one. The main challenge facing the authorities is to restore macroeconomic stability. Fiscal buffers, including BEAC’s international reserves, have declined rapidly.

    Given the Central Africa Economic and Monetary Community (CEMAC) countries’ commitment to maintaining the currency peg, the burden of the adjustment will fall on fiscal policy. Successful fiscal consolidation, non-accumulation of new arrears, and reduction in off-budget spending will be critical to restore macroeconomic sustainability and avoid a disorderly adjustment.

     

    Last Updated: Nov 01, 2018

  • World Bank Group Engagement in Equatorial Guinea

    Reimbursable Assistance Services Agreements have been undertaken to provide technical assistance to ‘Agencia 2020’ and the Public Investment Division of the Ministry of Economy, Planning and Public Investment to improve their capacity to monitor the implementation of the National Development Plan (NDP) Horizon 2020 and strengthen their public investment management systems. Also, support has been provided to enhance the country’s capacity to produce timely and accurate statistics data. 

    The World Bank Group is engaged in the country through a technical assistance program targeting the following activities: 

    Strengthening Public Investment Management

    The World Bank provides technical assistance to ‘Agencia 2020’ and the Public Investment Division of the Ministry of Economy, Planning and Public Investment (MEPPI) to improve their capacity to monitor implementation of the National Development Plan (NDP) Horizonte 2020 and strengthen their public investment management systems.

    Improving the National Statistical Program

    World Bank support has focused on statistical development in Equatorial Guinea including setting-up and operationalization of the National Statistical Office (INEGE) through a $6 million, five-year, Reimbursable Advisory Services (RAS) Program agreed in 2013.

    World Bank technical assistance supports statistical development in Equatorial Guinea along three dimensions: (i) production of national accounts data and support prioritization of statistical data production; (ii) institutional development – strengthening of the newly established National Statistics Institute (INEGE); (iii) promoting the use of data for decision and policy making.

    Last Updated: Nov 01, 2018

  • The main partners in the country are the United States, Spain, France, and China. The World Bank works closely with Equatorial Guinea through its office in Libreville, Gabon.

    Last Updated: Apr 30, 2018

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LENDING

Equatorial Guinea: Commitments by Fiscal Year (in millions of dollars)*

*Amounts include IBRD and IDA commitments


PHOTO GALLERY

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Additional Resources

Country Office Contacts

Main Office Contact
Quartier palais de Justice
BP 4027
Libreville, Gabon
+237-2-22-50-38-15
For general information and inquiries
Odilia R. Hebga
Communications Associate
Yaoundé, Cameroon
+237-2-22-50-80-45
ohebga@worldbank.org
For project-related issues and complaints
equguineaalert@worldbank.org