Equitorial Guinea, 49yrs after Independence

Africa’s top investment destination, celebrates its independence, amidst economic and corruption challenges.

A small country in Western Africa, with a population of approximately 779,000 people. Equitorial Guinea gained independence from Spain on October 12, 1968. Like most African countries, the nation experienced political challenges resulting in a third of the population fleeing the region. However, in 1979, a military coup brought relative calm with Mr. Teodoro Obiang Nguema becoming president. Since assuming office, Mr Obiang continues to rule the nation, making him one of the longest serving presidents.

Equitorial Guinea’s economy is highly dependent on Crude Oil resources, which accounts for 75% of the country’s Gross Domestic Product. Since discovering oil in 1995, the country’s production grew rapidly, becoming one of Sub-Sahara’s biggest Oil producers. At the height of their production capabilities, the country invested in infrastructural projects across various sectors. Some notable projects are the 200MW Sendje dam, Malabo International Airport, and Bioko Island LNG terminal.

The crash in crude oil prices had a major impact on the national economy, resulting in a renewed drive to diversify.  However, corruption plaguing the country has thwarted this effort. Corruption is embedded in the system so much that individuals and businesses do not complain. Industry sources say that Société Générale, the french banking and financial services company is actively looking to sell it’s 52.24% stake in the Société Générale de Banques en Guinée Equatoriale. 

Internationally, Equitorial Guinea avoids being party to international organisations that could disrupt the current system. In 2013, Mr. Obiang announced the country’s withdrawal from the International Criminal Court. However, when it comes to regional affairs, Equitorial Guinea continues to participate actively, especially in the African Union.

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