Equatorial Guinea is composed of a mainland, Rio Muni, and the small islands of Annobon, Corisco, Elobey, and Bioko, where the capital Malabo is located. It is the only former Spanish colony in Sub-Saharan Africa. According to a 2015 population census, Equatorial Guinea’s population is approximately 1.2 million people. The country 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 endowed with arable land and mineral resources ranging from gold, oil, uranium, diamonds, and columbite-tantalite (coltan), and notably petroleum discovered in the 1990s.
The president, Teodoro Obiang Nguema Mbasogo, is the longest-serving head of state in Sub-Saharan Africa. He won the last presidential elections in November 2009 by a landslide. The absence of a real checks and balances system 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. The 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.
The government’s development agenda is guided by a medium-term strategy, the National Economic Development Plan: Horizon 2020, which targets economic diversification and poverty reduction. The first phase of Horizon 2020, 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.
EQG’s economy is hit hard by the protracted oil price shock. Despite efforts to foster diversification in recent years, the economy remains heavily dependent on hydrocarbons. Gross domestic product (GDP) declined by 8.3% during 2015, the combination of lower hydrocarbon production, and a drop in public investment and private sector construction. Growth is projected to average -6% during 2016-18. The price shock resulted in a widening of the current account deficit to 16.8% of GDP, and a decline of international reserves by nearly 35% since end-2014.
As the country moves into the second phase of the National Development Plan, 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. To take into account the lower oil prices, the government presented ambitious plans to curtail capital spending. The lack of available and accurate data persists and makes it difficult to track progress on socioeconomic indicators.
Last Updated: Oct 11, 2016