Over recent decades, this small African republic has made massive economic strides, ever since it discovered large offshore oil reserves in 1995. Oil and gas production dominated the next decade, leading to a substantial economic windfall that catapulted it to become the third largest oil exporter in sub-Saharan Africa.

In spite of its successes, the steep fall of global oil prices, first in 2008 and then in 2016, had prompted this tiny nation to diversify its economy by exploring other lucrative avenues of its thriving energy sector, notably gas and petrochemicals. It has good reason to do so — currently, apart from its proven reserves of 1.1 billion barrels of oil, the country also counts 1.34 trillion cubic ft of gas. Moreover, as one of the few remaining destinations outside the tourist trail, Equatorial Guinea has also recently advanced efforts to boost international tourism by promoting its isolated beaches, unique wildlife and sea life, and its impressive infrastructure funded by petrodollars. It is also looking to step up its role in regional affairs by hosting major international conferences and presenting itself as a services hub for Western Africa.

The economic outlook for Equatorial Guinea is on an upswing, particularly as it shifts gears in its 2019 campaign, “The Year of Energy”. As many as 11 new oil and gas wells will be constructed in 2019 with an investment of US$2.4 billion. The country continues to push a strong intra-regional diplomatic cooperation agenda, particularly in the energy sector.

This eBook explores the country´s current developments in its efforts to diversify its economy, with a focus on its innovative petroleum and gas projects to solidify its position as an energy powerhouse in the African region. As Equatorial Guinea moves past its 50th year anniversary of independence, the small African nation looms large, forging ahead with its vision to be an energy role model and important hub in the region.

Annobón

Area: 17 km2

Population: 5.200

This beautiful island holds over 34 billion barrels of oil within its maritime borders and is thus of strategic vitality to Equatorial Guinea. Its name literally meaning “Good Year” in Portuguese, out of the three official languages of Equatorial Guinea (Spanish, French and Portuguese) a creole version of Portuguese is the most common.

Litoral

Area: 6665 km2

Population: 400.415

Holder of Bata as province capital city, Litoral has the most population of all the provinces of Equatorial Guinea. It also holds the National University of Equatorial Guinea, specifically and among others, its prestigious faculty of medicine and the La Paz Medical centre, a referent in all of Central Africa.

Centro Sur

Area: 9.931 km2

Population: 141.903

This province of Equatorial Guinea shares the most borders, both national and international. Cameroon in the north and Gabon in the south for foreign borders and Kié-Ntem, Litoral and Wele-Nzas domestically. The capital is Evinayong, whose metropolitan area holds nearly a fourth of its total population.

Wele-Nzas

Area: 5.478 km2

Population: 191.383

Home province of His Excellency, Teodoro Obiand Nguema Mbasogo, President of the Republic of Equatorial Guinea. Wele-Nzas is also the province where the future where the future capital, Oyala is currently being built combining modernity and respect for the country’s cultural roots highlighting sustainability in all of its forms.

Kié-Ntem

Area: 3.943 km2

Population: 183.331

Kié-Ntem is the proud holder of one of the three currently operating cathedrals in Equatorial Guinea specifically the beautiful Cathedral of Ebebiyín and an African paradigm of gothic architecture. This province has extreme climatic differences between its dry and rainy seasons.

Bioko Sur

Area: 1.241 km2

Population: 35.000

With Luba as its province capital city, the south of Bioko island is even more densely covered by jungle than its northern counterpart. The sheer amount of biodiversity, both animal and vegetable it holds makes it a veritable ecologic crown jewel.

Bioko Norte

Area: 776 km2

Population: 300.000

Bioko Norte is the second of the 7 provinces of Equatorial Guinea in terms of population. It holds the National capital of Equatorial Guinea, Malabo and the stupendous National Park Pico Basilé. Heavily dominated by tropical rainforest, its lush vegetation bears striking contrast with its incredible beaches.

Corisco

Area: 15 km2

Population: 1.004

GDP IN BILLIONS (purchasing power parity)

GDP - REAL GROWTH RATE

GNI Per Capita
(ppp)

“Transformational Phase” (from 2008-2012), wherein massive investments were made to boost the country’s infrastructure, and the “Emergence Phase” focused on economic diversification, employment generation and inclusive growth. The country is currently in the second phase of implementation, which amplifies support for strategic new sectors, including mining, fisheries, tourism, agriculture and finance.The Equatoguinean government is planning to redirect public investment from infrastructure towards the development of these new economic sectors.

2019 is anticipated to be a particularly auspicious year for Equatorial Guinea, thanks to its "Year of Energy" campaign promoting intra-African cooperation. As part of this initiative, Equatorial Guinea, will host several events championing its oil and gas projects, including flagships events for the African Petroleum Producers' Organization (APPO) and the Gas Exporting Countries Forum (GECF).

A total of 11 new oil and gas wells are to be drilled in 2019 with US$2.4 billion investment, leading to an improved economic outlook after a year of sector recovery.

The country's lower price environment owing to well-preserved, pre-existing infrastructures offers foreign investors lower risk, as compared to larger economies.

Plans are currently underway to explore and develop Liquified Natural Gas (LNG). Equatorial Guinea has 1 of only 4 operating LNG export terminals in Sub-Saharan Africa, and will soon have the continent's second floating LNG.

To create a favourable investment climate, the government has taken initiatives supporting the promotion of
non-traditional exports, including repatriation of profits
and various tax incentives.

Deal Driven

Whether it’s attracting new entrants to offshore exploration licences or committing capital to major industrial projects. Equatorial Guinea is dedicated to working with foreign investors and doing deals.

Resource Rich

Equatorial Guinea’s offshore drilling success is nearly double the international rate. When companies explore in Equatorial Guinea they find oil and gas more commonly than anywhere else. The country holds a huge wealth in mineral sources that are on showcase in 2020.

Diverse Projects

The ministry of mines and hydrocarbons has lined up several projects across the supply chain that are investment ready and are open for tender or direct negotiation - from modular refineries to an ammonia plant to a gold smelter and more opportunities spanning the value chain.

Partnership-Minded

With the cooperation of the African Energy Chamber and the involvement of major financial institutions such as the African Development Bank and the International Monetary Fund, the Government of Equatorial Guinea is focused on results in 2020.

in that they have to look for new... business opportunities and activities as well as ways to expand outside the country.

What’s the current state of negotiations regarding LNG exports to countries in the region and to the rest of the world?

We’ve been exporting LNG for the past 6 years and we’ve done very well. We’ve built our LNG plant and have found a market niche, and we’ve been able to recover our investment in record time, which has been of great benefit for the state. We considered trying to send our neighbouring countries LNG but the problem was that no African country had the necessary infrastructure to receive these shipments of LNG since they lack large regasification plants, essentially ports that allow you to receive and store gas. The solution was small-scale exports of LNG with smaller ships that can go from ship to ship directly, and to the port, and finally to the companies receiving it.

Both the island of Bioko and the continental region are in a privileged geographic position that can make them a logistics hub between America, Europe and Africa. What is being done to leverage this? Is it possible to become a supply hub for ships that will have to operate with LNG?

We already have the necessary infrastructure to do it. We have the most expensive tanks in the LNG sector that maintain the liquid at the specific temperature. We’ll continue to produce and accumulate LNG in our tanks. We’ve announced the signing of an agreement that will bring in additional gas from other blocs. This is the beginning of what we call the “Gas Mega Hub”, which essentially is gas accumulation in the Gulf

of Guinea. After this, it will be possible to bring in gas from Cameroon, Nigeria and from the region to make Punta Europa the key point for the processing of all types of gas.

Equatorial Guinea has excellent international presence, with agreements and bilateral relations with nations from all regions, and membership with OPEC, CPLP, the Central African Economic Committee and CEMAC. What have been the key factors in fostering such relationships and what advantages does Equatorial Guinea offer in the face of foreign investment?

I usually say it’s because we’re very intelligent. Because we’re small, we’ve realized that it’s important to have relationships with everyone. We’ve also learned a lot from other African countries when it comes to negotiating over our key resources. We also have linguistic advantages ​​since we can communicate with the French, Spanish, English, even the Chinese and Russians. Another key aspect has been perseverance and, in spite of receiving a lot of blows, we’ve learned from crises and were attentive to opportunities. All disappointments can be a blessing in disguise and the fall in the price of oil has opened our eyes to the fact that we must have sustainable production and economic diversification.

in Djibloho, will become a technology city. We have started with the installation of a school, the National Institute of Telecommunications, which is already operating. We are planning to expand it, to make it into more than a school, and expand the area into a technology park, where leading tech companies could come together.

Where do you see your market niches?

We identified four pillars when designing the Horizon 2020 national economic development plan. The first was energy. Equatorial Guinea continues to have enormous energy resources, not only in hydrocarbons but also in other sources of energy. The second pillar was agriculture, you only have to see how green the country is to know that the potential is enormous. The third pillar is fishing, or the blue economy. 90% of our territory is sea – there’s huge potential for tuna production and other seafood products. The fourth pillar that was identified is services. Financial services and tourism are still untapped.

What would you like to say to potential investors?

There is huge potential. Equatorial Guinea is open to work with investors. As far as the investor is concerned, the potential is enormous in our sectors and we are willing to work with and review regulations to make it more attractive.

What advantages for investment does Equatorial Guinea have among other countries in the region?

We believe that Equatorial Guinea is much more attractive than other places because we offer a pleasant social climate for companies. With regards to manpower, Guineans are people who like to work without causing issues. When American companies arrived, they thought that they had to bring labour from Singapore, Indonesia or the Philippines. But today, 90% of the workers are Guinean, because Guineans have the ability and talent to work with any established company and create fewer problems for the employer compared to workers of other countries. Equatorial Guinea is a free market country, we do not distinguish here between foreigners and Guineans. What we would like is for foreign companies to partner with Guinean companies who have a firm grasp of the country and can help companies who come here so that the risks are minimized.

What are the opportunities that stem from your advantageous geographical position in the continent?

It offers huge opportunity. What Equatorial Guinea does not have in terms of land, we have at sea; we have 28,057 square kilometers of land, while we have more than 320,000 square kilometers of sea. We must, and also can be the gateway of investment from Latin America to Africa. Being the only Spanish-speaking country in Africa, we have many of our brothers on the other side of the Atlantic, and so we believe that we must be the entrance point for Latin American investment in the region.

What advantages for investment does Equatorial Guinea have among other countries in the region?

We believe that Equatorial Guinea is much more attractive than other places because we offer a pleasant social climate for companies. With regards to manpower, Guineans are people who like to work without causing issues. When American companies arrived, they thought that they had to bring labour from Singapore, Indonesia or the Philippines. But today, 90% of the workers are Guinean, because Guineans have the ability and talent to work with any established company and create fewer problems for the employer compared to workers of other countries. Equatorial Guinea is a free market country, we do not distinguish here between foreigners and Guineans. What we would like is for foreign companies to partner with Guinean companies who have a firm grasp of the country and can help companies who come here so that the risks are minimized.

What are the opportunities that stem from your advantageous geographical position in the continent?

It offers huge opportunity. What Equatorial Guinea does not have in terms of land, we have at sea; we have 28,057 square kilometers of land, while we have more than 320,000 square kilometers of sea. We must, and also can be the gateway of investment from Latin America to Africa. Being the only Spanish-speaking country in Africa, we have many of our brothers on the other side of the Atlantic, and so we believe that we must be the entrance point for Latin American investment in the region.

happen without appropriate capacity building, so SONAGAS constantly sends employees to trainings. We are obtaining positive results; we are proud to say that many companies in our country have over 90% of local employees, generating further profit for Equatorial Guinea.

Understandably, this knowledge transfer then not only impacts the local industry but also spurs growth in other countries in the region.

Equatorial Guinea is a country with a relatively low population (between 1 and 1.2 million inhabitants), so you have to consider that we are relatively new to this industry; not many people have the required experience. But when an important project happens in Equatorial Guinea, neighbouring countries automatically benefit from it. Whenever we get into a construction phase, such as the LNG or methanol production plants, there has always been a great workforce flowing from neighbouring countries.

Equatorial Guinea has a notable international presence owing to agreements and bilateral relations with nations around the world, including major economies such as the U.S., China, and Russia. Additionally, it is a member of OPEC, CPLP, Central Africa Economic Committee, and CEMAC. What have been the key factors to achieve this and what are the country’s advantages for foreign investors compared to other countries in the region?

It is very important to be in different business structures if we are developing a business, and we have succeeded at it. This comes, mostly, from the government’s opening policies which are the reason why we are in different organisations such as OPEC, which we recently became a part of. We are part of the bloc of

gas exporting countries, the GECF, and we understand that being part of it is attractive to potential investors. These all lead to upcoming policies that enable us to adapt the techniques and strategies of other member countries as well as offer our own experience and expertise to those who may require it.

What is the current state on LPG, LNG and methanol exports to countries in the region? What are your goals in relation to worldwide exportation?

Exportation is going well; companies are actively exporting LNG, LPG and methanol. The greater part of these exports is actually leaving Africa, but we have been actively pursuing ways of supplying our neighbouring countries with either LNG or with LPG. We are currently in a negotiation phase and have begun supplying some shippings, but not in a consistent manner yet. We have excellent contacts with Ghana, Cote D’Ivore, and Congo and we’re analysing Benin as a possibility. We’re also talking with Nigeria, which has great potential, to see the possibilities of producing even more gas and supplying it to our neighbouring countries. It is part of the LNG to Africa initiative. Currently Africa is the continent with the least use of LNG. America attempts to use LNG in as many countries as possible, just like Asia and Europe too. Our role is to make our LNG reach more African countries and with this, empower and improve the quality of life of the African population.

What are the current most important needs in the issue of infrastructure?

We are pondering the possibility of building more LNG trains. Also, “floating” is an alternative, but should it be impossible due to unpredictable

causes, we will continue to explore options, like the possibility of bringing LNG to the mainland and sending it to processing plants.

In terms of leadership, what advice would you give to the next generation who will be the future leaders of the country?

First, I would recommend the youth to truly understand the future of their nation. Understanding is the first step to responsibility, and it is in that road that the reins of command will transfer eventually from the elders to the youth. As for companies, I would like to say that Equatorial Guinea is a country with great development potential. The petrochemicals industry is large in this country and yet still virgin in many ways. It is just one of the sectors starting to boom, much like tourism, agriculture, finance, and services. But the most important thing is that in Equatorial Guinea there is a fresh breeze of peace and security for investors. An investor can generate ROI from his investment and be assured of working in a safe environment.

telecommunication sector?

Telecommunication services are really where the market is right now for investors. Because Equatorial Guinea has the necessary cables that connect to the world - we already have terrestrial fibre optics - what we want now is to provide the good service that would do justice to our connectivity. I believe that Equatorial Guinea is yet to get to grips with technology, even though we are advancing very quickly, but there is an open door for investors now.

What is your vision on the possibility of Equatorial Guinea’s strategic positioning as a technological hub in the region?

I believe that Equatorial Guinea should take advantage of its geographical position in the world to do so, normally small countries adapt very well to and promote the digital world — Singapore is an example. We believe that there is a very big opportunity to become a hub, if not internationally, at least at the regional level, which we need to take advantage of. We believe that here in Guinea we have the necessary infrastructure to host big companies like Google or Twitter.

Your vision that you have regarding the country, with respect to your sector in particular for the next 5 years, will be crucial in fulfilling the Horizon 2020 plan.

Our vision at GITGE is to position Equatorial Guinea as a point of reference from which operators can offer their services to all their users and clients. What I have said about making Guinea a hub comes down to the same thing. The vision we hope for, is that we can create another Silicon Valley here. We are already creating an incubator so that young people

can come and develop their ideas. In sum, our main objective is to position Equatorial Guinea in the market as a point of reference for service operators and also for potential investors.

happen without appropriate capacity building, so SONAGAS constantly sends employees to trainings. We are obtaining positive results; we are proud to say that many companies in our country have over 90% of local employees, generating further profit for Equatorial Guinea.

Understandably, this knowledge transfer then not only impacts the local industry but also spurs growth in other countries in the region.

Equatorial Guinea is a country with a relatively low population (between 1 and 1.2 million inhabitants), so you have to consider that we are relatively new to this industry; not many people have the required experience. But when an important project happens in Equatorial Guinea, neighbouring countries automatically benefit from it. Whenever we get into a construction phase, such as the LNG or methanol production plants, there has always been a great workforce flowing from neighbouring countries.

Equatorial Guinea has a notable international presence owing to agreements and bilateral relations with nations around the world, including major economies such as the U.S., China, and Russia. Additionally, it is a member of OPEC, CPLP, Central Africa Economic Committee, and CEMAC. What have been the key factors to achieve this and what are the country’s advantages for foreign investors compared to other countries in the region?

It is very important to be in different business structures if we are developing a business, and we have succeeded at it. This comes, mostly, from the government’s opening policies which are the reason why we are in different organisations such as OPEC, which we recently became a part of. We are part of the bloc of

gas exporting countries, the GECF, and we understand that being part of it is attractive to potential investors. These all lead to upcoming policies that enable us to adapt the techniques and strategies of other member countries as well as offer our own experience and expertise to those who may require it.

What is the current state on LPG, LNG and methanol exports to countries in the region? What are your goals in relation to worldwide exportation?

Exportation is going well; companies are actively exporting LNG, LPG and methanol. The greater part of these exports is actually leaving Africa, but we have been actively pursuing ways of supplying our neighbouring countries with either LNG or with LPG. We are currently in a negotiation phase and have begun supplying some shippings, but not in a consistent manner yet. We have excellent contacts with Ghana, Cote D’Ivore, and Congo and we’re analysing Benin as a possibility. We’re also talking with Nigeria, which has great potential, to see the possibilities of producing even more gas and supplying it to our neighbouring countries. It is part of the LNG to Africa initiative. Currently Africa is the continent with the least use of LNG. America attempts to use LNG in as many countries as possible, just like Asia and Europe too. Our role is to make our LNG reach more African countries and with this, empower and improve the quality of life of the African population.

What are the current most important needs in the issue of infrastructure?

We are pondering the possibility of building more LNG trains. Also, “floating” is an alternative, but should it be impossible due to unpredictable

causes, we will continue to explore options, like the possibility of bringing LNG to the mainland and sending it to processing plants.

In terms of leadership, what advice would you give to the next generation who will be the future leaders of the country?

First, I would recommend the youth to truly understand the future of their nation. Understanding is the first step to responsibility, and it is in that road that the reins of command will transfer eventually from the elders to the youth. As for companies, I would like to say that Equatorial Guinea is a country with great development potential. The petrochemicals industry is large in this country and yet still virgin in many ways. It is just one of the sectors starting to boom, much like tourism, agriculture, finance, and services. But the most important thing is that in Equatorial Guinea there is a fresh breeze of peace and security for investors. An investor can generate ROI from his investment and be assured of working in a safe environment.

telecommunication sector?

Telecommunication services are really where the market is right now for investors. Because Equatorial Guinea has the necessary cables that connect to the world - we already have terrestrial fibre optics - what we want now is to provide the good service that would do justice to our connectivity. I believe that Equatorial Guinea is yet to get to grips with technology, even though we are advancing very quickly, but there is an open door for investors now.

What is your vision on the possibility of Equatorial Guinea’s strategic positioning as a technological hub in the region?

I believe that Equatorial Guinea should take advantage of its geographical position in the world to do so, normally small countries adapt very well to and promote the digital world — Singapore is an example. We believe that there is a very big opportunity to become a hub, if not internationally, at least at the regional level, which we need to take advantage of. We believe that here in Guinea we have the necessary infrastructure to host big companies like Google or Twitter.

Your vision that you have regarding the country, with respect to your sector in particular for the next 5 years, will be crucial in fulfilling the Horizon 2020 plan.

Our vision at GITGE is to position Equatorial Guinea as a point of reference from which operators can offer their services to all their users and clients. What I have said about making Guinea a hub comes down to the same thing. The vision we hope for, is that we can create another Silicon Valley here. We are already creating an incubator so that young people

can come and develop their ideas. In sum, our main objective is to position Equatorial Guinea in the market as a point of reference for service operators and also for potential investors.

currency with a fixed parity, it does not fluctuate.

With the second phase of the Horizon 2020 Economic and Social Development National Plan underway, what would be the needs of industrial development and what opportunities would there be for investors to be part of that?

Apart from the oil sector, we do not have industries in the rest of the economy with as much activity. For example, vegetables have many limitations; the production is dependent on the seasons and the farmers’ productivity. There are no big buyers who can supply the market throughout the year. However, if the holding company started an industrial tomato processing activity, not only would the tomatoes produced by us would be used, but also the ones of the other small producers that supply the tomato processing factory. In other words, in a general way, Equatorial Guinea’s economy still offers many possibilities to create industrial activities in different sectors.

Looking at the country’s tourism, what sectors do you think have much potential?

At the tourism level, our geographical position is an advantage, because we see that when it’s cold, Europeans prefer to holiday in tropical countries. In response, the government has already built many hotels across the country, road networks, and transport. There are still however some challenges that need to be worked on, because they don’t allow us to take full advantage of the hotels that are already built.

On the country’s human capital, what are competitive advantages of its local workforce, apart from being multilingual?

There is a lot of manpower but they still need training. That's why the vocational training school

was created, because the government saw the need for youth training for certain professions, so that companies can recruit them thereafter.

Finally, is there some kind of minimum investment to work with Holding E.G.?

There is no minimum investment. There simply needs to be a well-conceived project, even if it is a small product, which we will then analyze. As long as it is a profitable activity, something that creates local employment, or provides training for locals, Holding E.G. will look into its implementation.

coverage to be able to contribute to sustainable development.

Now that the country is amidst the second phase of the Horizon 2020 Plan, what does Getesa need to do to achieve its objectives in industrial development?

We are currently on track in executing the Plan — the government has issued some directives to achieve its objectives. We are hoping that by 2020, our modernization plan will have already been in place, and we will be able to offer 4G services as well as fixed mobile services. Of course, this cannot happen without a structural plan for human resources.

How do you regard Equatorial Guinea’s potential to become a technological hub in the region?

I completely agree that it has vast potential to become an African hub. First, the country is fortunate to be in a very good geographical position, second, we speak Spanish, and third, in Africa, you could count with a few fingers those with an existing database. I think that for the future, we could take advantage and be more innovative to make Equatorial Guinea an African hub. We have invested in major submarine cables, Ceiba-1 and Ceiba-2, and with that we can already work with a good business strategy.

What niches in key sectors do you think provide much opportunity for foreign investors?

Telecommunications services. The installation of submarine cables ACE, Ceiba-1 and Ceiba-2 are critical to guaranteeing the integration and faster speed of services. All these present a great opportunity for foreign investors looking into investing in Equatorial Guinea.

Equatorial Guinea has 13 protected natural areas, including national parks and nature reserves such as Los Altos de Nsork, Monte Temelón or
Río Campo among others.