General Information
Capital(s): Malabo
Population: 486,060 (2001)
Area: 28,051 Km²
Currency: 1 CFA Franc (CFAF) = 100 centimes
Language(s): Spanish
Time Zone: GMT-2h00
ISO Code: GQ
Dialing Code: +240
Continent: Africa
Introduction
.This profile of Equatorial Guinea and doing business there is an overview. From the drop-down menus at the top of this page, you can access a wide range of additional business information on Equatorial Guinea provided both by clients and partners.
The first drop-down menu provides access to more detailed pages on the country’s economy, as well as to profiles of Equatorial Guinea’s major industry sectors, particularly oil and gas,and mining
The second drop-down menu allows you to access profiles similar to this one for other countries of the world.
The third drop-down menu allows you to search our various databases of Equatorial Guinea business information. This includes companies, organisations including government departments, personalities, projects and facilities.
Finally, the fourth drop-down menu allows you to access a range of Internet applications aimed at assisting you to conduct business more effectively.
The news headlines on this page are updated on a daily basis. You can click on Other News at the end of the headlines in order to get the country’s business news stretching back over several years. Because this overview is only updated every few months, you should use recent news items to build an up to date picture of the Equatorial Guinea business environment.
Geography
Equatorial Guinea is situated in Western Africa. It comprises a mainland portion and five inhabited islands. The country lies between Cameroon and Gabon and borders the Bight of Biafra.
Malobo is the capital city and a port. Other important ports are Luba and Bata.
Politics
President Teodoro Obiang Nguema Mbasogo was reelected to office in 1996 for a seven year term and the next election is scheduled for 2003. The President’s rule has been classified by some analysts as a dictatorship. There is evidence of an overall disregard for human rights. The President has held a firm hand over the government for many years and although there is a parliament in place, the President has extensive executive powers.
The opposition parties in the country are advocates for democracy and are often at odds with the government. Ethnic divisions in the country also play a role in the political arena, although they are not as pronounced as in some other African countries. The political situation is relatively stable and many contribute this to the fact that there is a large degree of political repression.
Details of government offices can be found via our organisation search and of government officers via our personality search>. These details are difficult to maintain and we welcome feedback on changes and missing information.
Economy
Historically Equatorial Guinea’s economy has been dependant upon agriculture. This situation was drastically altered with the discovery of large oil reserves. This discovery is fortunate as the continuance of unfavourable political and social conditions meant that the agricultural sector would not have promoted sustainable growth for the country. The rise in oil prices; accompanied by increased production have had favourable consequences for the country’s economy.
Despite the beneficial economic performances, the country’s social indicators still remain weak. Corruption posed a problem for the economy and resulted in IMF and World Bank programmes being suspended in 1994. These organizations continue to review the situation. Although the cash-flow for the government has improved drastically, the fiscal performance has not. The government’s fiscal practices are not transparent and the mismanagement of funds is still a very serious problem.
Industry Sectors
The discovery of oil reserves has made the oil sector the most important one for the country. Agriculture mainly in the, forestry and fishing are also important sectors
Investment
The government has begun to take steps to liberalise the economy. A programme was implemented aimed at furthering this cause as well as the implementation of long term incentives for training, job-creation, promotion of non-traditional export products among other things. An important aspect of these efforts is the fact that the repatriation of profits is guaranteed by the government through legislation. The President has made it known that he would like to encourage US investment.
The most promising areas for investment could be identified in the agricultural sector. This would however be a long term investment since the sector needs much improvement. But success if foreseeable. But success is foreseeable. The oil and gas industries are also obvious choices as a result of the continuously increasing production in these sectors. Another possibility lies in the recent discovery of minerals in the region.
Trade
Equatorial Guinea’s main export partners are the US, China, Japan, France and Spain. These partners buy products such as timber, petroleum and cocoa from the country.
The country’s main import partners are France, the US, Cameroon, Spain and the UK. The products that are imported include manufactured goods and equipment.
Business Travel
There is one flight a week from Madrid, Spain that takes one to the capital of Malabo. If traveling from the US, this is the most advisable route to take although there are alternatives. These include regular flights to Douala in Cameroon which link to direct flights to various European cities. Travel in the country can be done by means of ferries or taxis which are also quite efficient.
Visitors will require a visa which is usually valid for 30 days. It is easy to get these in the countries of Gabon and Cameroon if one is in Africa.
Immunisations are required and in some case proof of these. The diseases to be immunised against include yellow fever, cholera, tetanus, typhoid, meningitis, polio and hepatitis A. It is also advisable to be aware of the dangers of giardia, dysentery, malaria and typhus. Although pharmacies in Malabo and Bata are well-stocked, the medical facilities in the country are not always reliable.
It is advisable to contact the country’s embassy to ensure that one has the essential information with regard to the abovementioned requirements.
Communications and Infrastructure
The telephone system in Equatorial Guinea is quite poor with the existing phone lines being just adequate enough for government communication. However there are facilities available for international communication to African as well as European countries from Bata and Malabo.
The country’s roads are not in a favourable condition and investment is needed in order to improve the situation. There is little more than 600km of paved road. This makes surface transport all but impossible.
Risk
The problem of corruption persists in the country. The evidence for this lies in the fact that although there has been an increase in the government’s cash flow, the social conditions under which most of the population lives have not improved. This is not a new trend. Various international aid organisations suspended their contact with the country because of the fact that their money was not utilised in the intended manner. This is the same threat that would face foreign investors if they do not maintain tight control over the administration of their money.
The security situation in the country is relatively stable and the climate is temperate and suitable for agricultural activities is one of the most promising areas for investors.
Business Assistance
Equatorial Guinea has a number of chambers of commerce and industry and details of these can be found via our Organisation Search, as can details of relevant government departments. MBendi’s A HREF=”/a_sndmsg/search_menu.asp”>Company Search allows interested parties to find details of many of the country’s companies
