Business environment

High oil cash flows have caused profound structural changes in Equatorial Guinea over the past twenty years, particularly in the construction and development of basic infrastructure. These cash inflows have enabled public spending, estimated at XFA 4,066 billion (approximately USD 8.36 billion) to develop cutting-edge infrastructure, including the new town of Djibjoho (or Oyala) on the continent, and your goals of long-term economic diversification.

To position itself as a regional center for the supply of transport and electricity, the country has considerably improved port and airport services to become a regional center for the transport of goods and passengers. The port of Malabo can serve as a stopover for ships from Asia and Europe to Central and West Africa, since its construction was carried out to accommodate ships of 16 meters draft and a capacity loading of 10,000 containers.

These infrastructure improvements allow the country to take advantage of its favorable strategic location and access a market of more than 130 million people.

As part of the “Coast from Africa to Europe” project, initiated by France Telecom-Orange which will allow 23 countries to access a high-speed Internet connection, Equatorial Guinea recently benefited from its connection with cable in fiber that stretches along 17,000 kilometers of the African coast.

The country is also improving its regulatory environment. It is in the process of setting up the National Council for Social and Economic Development and the Court of Auditors to ensure the effective implementation of Vision 2020 (National Economic and Social Development Plan for the emergency of Equatorial Guinea in the horizon 2020). The government recently requested the support of the World Bank for the process of implementing the project to create the single window, which will guarantee the speed and simplification of the administrative procedures for opening and creating new businesses in our country.

In addition, the President of the Republic is committed to strengthening the regional role of Equatorial Guinea, by developing a proactive economic policy for the attractiveness of the small state.

Foreign presence

The Gulf of Guinea supplies more than 5% of the world’s oil production, as all the major oil companies in the world are present in this area. Approximately 340,000 barrels / day of oil is extracted in Equatorial Guinea by the main oil extraction companies, including Hess, ExxonMobil, Marathon Oil and Noble Energy, in association with GePetrol.

The international presence in oil exploration is very diverse, with companies from Switzerland, the UK, the United States, China, Spain, Russia and Nigeria. Deep-water exploration permits were also granted to Total Fina Elf, for drilling in 2013. In addition, the Japanese companies Mitsui and Marubeni are active in gas liquefaction.

The presence of Chinese, French, Brazilian, Spanish and German companies is also notable in other sectors such as construction, transport or banking and insurance.

Projects

Agriculture

Equatorial Guinea has a strong potential for the development of agricultural production, it has a favorable climate for all types of tropical and subtropical crops, fertile soil, favorable rainfall and abundant water reserves. This sector offers exceptional opportunities for the development of small local industrial initiatives. Crops grown in Equatorial Guinea include, among others:

Main investment opportunities in the agricultural sector:

• Production and processing of cocoa and coffee.
• Processing of juices and derivative.
• Production and processing of palm oil.
• Production and processing of coconut oil.
• Soap making.
• Manufacture of fertilizers.
• Cassava production and processing.
• Production and processing of sugar cane.
• Salt refineries.
• Agribusiness.

Cattle breeding

Animal production includes chickens, ducks, pigs, goats, sheep, rabbits and guinea pigs.

Main investment opportunities in the livestock sector:

• Slaughterhouse and animal vaccination center.
• Integral pig production.
• Integral egg production.
• The complete production of broilers.
• Animal production.

Fishing

With 644 km of coastline and 314,000 exclusive economic zone, Equatorial Guinea has an abundant variety of marine species thanks to the structure of the marine sector and a well-developed river network.

Equatorial Guinea intends to develop the fishing industry to obtain supplies on the domestic market. Transform the country into a regional leader in marine production and marketing, thus becoming the main supplier of fishery products for the sub-region.

Main opportunities in the fishing sector:

• Development of aquaculture in salt and fresh water.
• Seafood processing plant.
• Fishing production.
• Supply of fishing boats.
• Artisanal fishing.
• Assembly and repair of nets and rigging.

Petrochemicals

Equatorial Guinea is the largest oil producer in the CEMAC zone and the third in all of Africa. Currently, proven reserves stand at 1.7 trillion barrels, which equates to about 10 years of production at the current rate. In addition, it should be noted that there are many areas that still need to be explored in detail. Eight new exploration contracts have recently been signed, including four on land.

At present, Equatorial Guinea is committed to developing its full potential in the petrochemical sector, working with the private sector to create a highly developed and vertically integrated national industry.

Main opportunities in the petrochemical sector:

• Refining and recycling of industrial waste.
• Paint industry.
• Asphalt industry.
• Tire retreading.
• Recycling of plastics.

Tourism

With a vast expanse of unspoiled landscapes and seascapes, a developed basic infrastructure, and an attractive climate, Equatorial Guinea could become one of Africa’s top ecotourism destinations. In recent years, work has been carried out on the development of hotel infrastructure and priority has been given to removing obstacles to the development of this sector, including administrative procedures, difficulties in obtaining visas, insecurity and corruption.

In addition to the opportunities offered by Equatorial Guinea, as the main ecotourism destination for the development of tropical tourism activities, the country also has opportunities to develop high-level tourism.

Transport

The strong investment in quality infrastructure promoted by the first phase of the “2020 Development Plan” has provided Equatorial Guinea with a modern network for the growth of this sector.

The country’s main port located in the capital, Malabo, has been redeveloped to expand its capacity, accommodating ships with a draft of up to 16 meters.

The airports of the main cities, Malabo and Bata, have also been redeveloped with the construction of modern terminals. In addition, three new airports were built in Annobón, Mongomeyen and Corisco with the aim of improving communications and transport with the rest of the cities.

A modern network of roads and highways has been built throughout the country. This network, in addition to shortening travel times, has enabled inaccessible rural areas to escape the isolation they have experienced.

Main opportunities in the transport sector:

• Commercial airlines.
• Freight transport.
• Intercity transport network.
• Taxi companies.