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Equatorial Guinea June 2020
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Why invest in Equatorial Guinea
A closer look into
Equatorial Guinea
GITGE
Spotlight on
In their opinion
Gastronomy
2019
Year of Energy
Time to Talk
Ethnic identity
2020
Year of Investement
Wherever we go,
we innovate, create
and empower
Economy
Tourism & Travel
A closer look into Equatorial Guinea
A closer look into Equatorial Guinea
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Interviews
Economy
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AN ERA
OF MILESTONES
Infrastructure
A closer look into Equatorial Guinea
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In many ways, Equatorial Guinea is a unique outlier in sub-Saharan Africa. A former colony of Spain, this sparsely-populated country is the only sovereign African nation with Spanish as one of its main languages, alongside French and Portuguese.
It is composed of two parts: a mainland region bordered by Cameroon and Gabon, and an insular region comprising small offshore islands that include Bioko, home to the capital of Malabo, and Annobón, which lies south of the equator.
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.
Corisco
Bioko Norte
Bioko Sur
Litoral
Centro Sur
Kié-Ntem
Wele-Nzas
Annobón
Equatorial Guinea comprises two parts — the mainland region Rio Muni, whose largest city is Bata, and the insular region, consisting of the offshore islands of Bioko that is home to the capital of Malabo, as well as Annobón, Corisco, Elobey Chico and Elobey Grande.
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.
The island of Bioko was formerly named Fernando Pó, in honor of the Portuguese navigator credited as the first European explorer to have discovered the island.
From 1474 to 1778, the islands of Fernando Pó and Annobón were colonized by Portugal until they were ceded to Spain in the Treaty of El Pardo.
History & Geography
Corisco
Area: 15 km2
Population: 1.004
Corisco and the surroundings of the bay of Corisco have interest in recent years for their oil reserves. A consortium formed by the companies Elf Aquitaine and Petrogab began surveys in 1981.
To the south of the island of Corisco and the Elobey are three islets that are the subject of a dispute with Gabon (Mbañe, Cocoteros and Conga), of which the largest, Mbañe, has an area of 30 hectares (0.30 km²). The conflict over their possession remains unresolved, although recently in November 2016 both parties signed an agreement that the dispute will pass to the International Court of Justice in The Hague.
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At First Glance
6
Sources: Central Intelligence Agency (CIA) World Factbook, World Bank
Official country name
Head of state
Capital
Population
Area (km²)
Main Religions
Currency
Per capita GDP
GDP by sector
Industries
Main exports
Main imports
2015
30
32
34
36
2016
2017
US$35.62
US$32.57
US$31.52
2015
-10
-5
0
5
2016
2017
-9.1%
-8.6%
-3.2%
2015
30
35
40
45
2016
2017
US$44,600
US$39,700
US$37,400
GDP IN BILLIONS (purchasing power parity)
GDP IN BILLIONS (purchasing power parity)
GDP - REAL GROWTH RATE
GDP - REAL GROWTH RATE
GNI Per Capita
(ppp)
GNI Per Capita
(ppp)
The Horizon 2020 National Plan for Economic and Social Development is the strategic blueprint with the overarching goal of elevating the country to emerging economy status by 2020 by steering it from a predominantly hydrocarbon-based
Doing Business
economy to a more diversified one.
The national plan is divided into two phases, the...
“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.
Facts & Figures
At First Glance
7
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The exploitation of oil and gas deposits at the start of the 1990s, and the eventual discovery of large oil reserves in 1995 has largely driven Equatorial Guinea's economic growth, upsizing the country's economic by nearly 30%.
Abundant oil and gas resources
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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).
"Year of Energy" campaign
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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.
Massive investments in new wells
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The country's lower price environment owing to well-preserved, pre-existing infrastructures offers foreign investors lower risk, as compared to larger economies.
State-of-the-art infrastructure
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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.
African "mega gas hub" creation
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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.
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Oil & Gas
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Since discovering large offshore reserves in 1995, the small Central African nation began producing oil and gas, virtually transforming the energy landscape of the country and upsizing its economy by as much as 30%. Oil and gas production dominated the next deacade, leading to a susbtantial economic windfall that catapulted it to become the third largest oil exporter in sub-Saharan Africa. Equatorial Guinea's oil production rose from 17.000 barrels of oil per day (bopd) in 1996 to a historical record of 375.000 bopd in 2005. Whereas the country only had 2 major operating groups in 1997, by 2017, it had 9 operators and 6 producing blocs.
In an effort to diversify its economy after oil prices dropped, Equatorial Guinea stepped up its exploration and development of Liquid Natural Gas (LNG), with much potential in the horizon. The country counts 1.34 trillion cubic ft of gas, and currently, it has 1 of only 4 operating LNG export terminals in Sub-Sagaran Africa, and is poised to deploy Africa's second floating LNG to supply its neighbouring countries. Today, Equatorial Guinea exports 3.4 million metric tonnes per annum of liquified natural gas, and has an established methanol industry. It is also currently building a natural gas-based petrochemical industry and is already producing almost half of its electricity from gas-fired power plants.
Mining
Telecommunications
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Long before Spanish colonial rule, the peoples of Equatorial Guinea had already been engaged in gold and iron mining. Indeed, there is much potential in the Equatoguinean mining sector, as numerous studies and surveys throughout the years have shown the existence of gold, diamonds, bauxite, tin, tungsten and coltan deposits across the country. With the focus on oil exploration and development, the country's mining potential remained largely unexplored.
Yet the country's focus on diversifying the economy and attracting investors, as underpinned by the Horizon 2020 National Plan, has spurred the promotion and development of the latest mining industry. In the line with this, the Ministry of Mines
and Hydrocarbons over recent years has been carrying out geological studies, mapping and aeromagnecit studies of the continental zone, as well as over 2,000 drillings of wells for sampling.
Moreover the Ministry has screened bauxite, diamond and gold products in several places with the view to inviting invested companies to observe overall development and exploration. Such efforts are geared towards improving the business climate for mining companies and investors by elaborating simplified and comprehensive regulation for mining and mineral processing.
Equatorial Guinea has made significant progress over recent years in the area of telecommunications, first with the African Coast to Europe (ACE) submarine fiber optic cable installed in 2012, and the inauguration of the Ceiba-2 fiber optic in June 2018, delivering faster and more affordable internet across the entire country, linking the cities of Malabo and Bata, as well as Kribi in Cameroon.
The Ceiba-2 cable complements the nation's first fiber optic installation, Ceiba-1, between Malabo and Bata by providing edundancy when maintenance or repair issues arise. It also increases the overall capacity of the telecommunications system, allowing for faster and cheaper services.
The Telecommunications Infrastructure Manager of Equatorial Guinea (GITGE) has overseen these successful initiatives, as the appointment public body administered by the Ministry of Transport, Technology, Postal Service and Telecommunications. Created in 2011 GITGE manages Equatorial Guinea's fiber optic infrastructure and public sector telecommunications investments.
Why Invest in Equatorial Guinea
10
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Tourism
Trade & Commerce
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While "overtourism" has been a growing challenge for many popular tourism destinations around the world, Equatorial Guinea is afflicted with the opposite case - it is one of the few remaining countries on earth virtually untouched by mass tourism. This can very well be a boon for this small African nation, as it offers a rare attraction for pioneering travelers seeking pristine destinations outside the mass tourism trail. As part of the government's efforts to diversify the country's economy away from oil and boosts its still nascent tourism sector, visa restrictions have been relaxed, albeit slowly.
The most adventurous and persevering travelers will be richly rewarded by Equatorial Guinea's natural wonders and undiscovered allure of idyllic coastlines, clear aquamarine waters, virgin rainforests, and unique wildlife and sealife, bereft of clusters of backpackers and selfie-tacking tourists. Equatorial Guinea likewise forms part of the Congo River Basin, a protected area that is the second largest rainforest in the world.
Trade and commerce had seen notable growth since the country’s implementation of the Horizon 2020 National Plan to steer it to emerging economy status by 2020. The sector had increased six-fold in 2014 to comprise 19.7% of non- hydrocarbon activity.
A factor that had fostered the nation’s entrepreneurial culture was the creation of the Ventanilla Única Empresarial (“Single Business Window”) or VUE. This was established by the Ministry of Commerce and Promotion of Small and Medium Enterprises as a mechanism to fundamentally simplify the procedures for the formation, modification and registration of companies. The VUE also functions as a space to dispense advice and support for professionals, freelancers and entrepreneurs in terms of initiating or operating their businesses, through the provision of integrated services for business processing. The advice covers a wide scope of business matters in commercial aspects, economic forecasts, market forecasts, infrastructure, information and communication technologies, so fledgling business owners have access to all the necessary information to minimize the risks of their businesses.
Why Invest in Equatorial Guinea
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The Report: Fortifying Leadership in African Energy
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2019 year
of energy
"Equatorial Guinea is a small country with big ambitions.
With the Year of Energy, we want to make a big impact in bringing together global leaders in Malabo to promote cooperation and encourage new investments"
H.E. Gabriel Mbaga Obiang Lima,
Minister of Mines and Hydrocarbons
The Report: 2019 Year of Energy
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The Report: 2019 Year of Energy
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"Equatorial Guinea is on the cutting edge of gas monetization,
with a strong reputation for dependable production
and export of gas from our land-based LNG facility; and the continued development of world-class projects"
H.E. Gabriel Mbaga Obiang Lima,
Minister of Mines and Hydrocarbons
high level speakers addressing a wide range of technical issues. In keeping with its aim of further developing Africa as a key, strategic energy hub, Cape VII Congress & Exhibition saw the signing of a key backfill agreement and three licensing round presentations while also presenting a comprehensive framework for local content during the conference, with plans to create an official local content guide for APPO members.
2019 Gas Exporting Countries Forum (GECF)
Equatorial Guinea will also proudly host the 2019 meeting of the Gas Exporting Countries Forum (GECF) in the Sipopo International Conferences Hall, Malabo, on the 25th to 29th of November, featuring ministers and heads of state from all GECF member nations. The 5th Gas Summit will also feature oil company CEOs and more, and will include sessions and presentations from public and private sector gas sector leaders. The Gas Exporting Countries Forum (GECF) is an international governmental organization which provides the framework for the exchange of experiences and information as well as
strengthening the collaboration among Member Countries - the main gas producers of the world. This will be the first time that it is held in the African continent.
Organized every two years, the GECF Gas Summit brings together Heads of State and government officials of the members of the Gas Exporting Countries Forum, including Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Qatar, Russia, Trinidad and Tobago, the United Arab Emirates and Venezuela. The Summit provides these top-level officials an avenue to discuss trends in the gas market and potential policies for the energy sector and to collaborate.
The Report: 2019 Year of Energy
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“Hosting the GECF is a true honor, and I look forward to welcoming the Heads of State of the GECF and my fellow energy ministers to Equatorial Guinea for the fifth annual GECF Gas Summit,” said Minister Obiang Lima. “Equatorial Guinea is on the cutting edge of gas monetization, with a strong reputation for dependable production and export of gas from our land-based LNG facility; and the continued development of world-class projects, such as the Fortuna FLNG.”
A key item for discussion will be the role of natural gas in meeting the UN SDGs and the clean energy goals set by the Paris Agreement on Climate Change. On this front, a fundamental part of the 5th GECF Summit will be the 2nd International Gas Seminar focused on the theme of “Gas: Challenging the Status Quo, Creating a Sustainable Future.” This event will see dedicated sessions and presentations by public and private sector gas sector leaders from across the spectrum of natural gas operations, and from across the globe with the aim of promoting the future well-being of the industry for generations to come.
Towards a bright future: leveraging state-of-the art technology and strategic regional partnerships
Looking towards the future, Equatorial Guinea is extremely determined to be at the forefront of state-of-the-art technology in order to reinvigorate its energy sector and has a strong desire to become an example for oil, gas and petrochemical-producing countries around the world. In an interview as part of an “Africa Energy Series” documentary, Minister Obiang Lima outlines how Equatorial Guinea has been a pioneer in many facets of these energy sectors.
“Equatorial Guinea has been a pioneer in the construction of liquefied natural gas (LNG) plants. We were pioneers with our Fortuna project – the first floating deepwater FLNG (Floating LNG) vessel in sub-Saharan Africa.” New technology such as the availability of 3D seismic data has been a huge asset to the development of the oil and gas sector in Equatorial Guinea and the government is continuing to encourage innovative investors who can implement exciting new technology. It is with these goals in mind that technology in the oil and gas sectors will be a key point of discussions during the Year of the Energy.
Nevertheless, it has not been smooth sailing for Equatorial Guinea. In an interview with Africa Energy Series, President Teodoro Obiang highlights the fact that Equatorial Guinea “was once the poorest on the continent but today, thanks to the petroleum industry, we are among the wealthiest. We can be proud of the fact that we have achieved that.”
During the period of the oil price collapse in 2014, Equatorial Guinea suffered greatly,
its GDP was cut by 50% in the space of two years. However, prudent planning has allowed the central African nation to recuperate and President Obiang is optimistic about the future and Equatorial Guinea’s potential to grow even further in the areas of oil and gas: “We now have the knowledge to operate at a high level in the gas sector. We now have the financial resources, the human resources and the know-how to exploit our own gas reserves without needing to outsource this to other countries.”
President Obiang also highlights the willingness to help neighboring countries: “Nowadays, we can assist other countries. At the moment, we are working with South Sudan and Uganda to provide assistance at their request. I think a lot of African countries can benefit from our expertise, and we are able to help them.”
Through state-of-the-art technologies, strategic regional partnerships and firm government support in diversifying its energy resources, Equatorial Guinea is well- poised to fortify its position as an energy leader in Africa.
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WHY
EQUATORIAL
GUINEA?
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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.
GITGE:
an Era of Milestones
The Report: GITGE: An Era of Milestones
28
“CEIBA-2 brings a lot of positives to the country, in particular within the telecommunication sector, because thanks to CEIBA II we’ll be able to move past the services that we currently offer”
Mr. Oscar Ondo Ngomo,
GITGE Director
Equatorial Guinea is determined to break that trend, and is now on track to providing universal Internet access for its citizens.
“We are changing the very fabric of foundational opportunities for our people in everyday life,” said Ondo Ngomo. “Additionally, the lack of Internet capacity throughout
The Report: GITGE: An Era of Milestones
30
Find out what leaders have to say about
>Tap the cards!
Equatorial Guinea
H.E. Eucario Bakale Angüe
Former Minister of Transport, Technology, Postal Service and Telecommunications
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
H.E. Pastor Micha Ondó Bile
Minister of Commerce and Small and Medium Enterprises
The Ministry's objective now is to create SMEs that can make the diversification of the economy happen, because SMEs should become the motor of our economy. Before, it was very difficult to create a company because of bureaucracy. Today, the Single Window initiative facilitates the creation of companies in less than 2 days or in less than 24 hours.
H.E. Gabriel M. Obiang Lima
Minister of Mines and Hydrocarbons
Investors decide to come or continue investing because the business climate is welcoming. They come for the business climate in the oil sector because when you deal with people who understand the oil sector, how it works and the importance of investment, that enables companies to make the decision to invest.
Business Profile
Business Profile
Business Profile
IN THEIR OPINION • IN THEIR OPINION • IN THEIR OPINION • IN THEIR OPINION • IN THEIR OPINION • IN THEIR OPINION • IN THEIR OPINION • IN THEIR OPINION • IN THEIR OPINION • IN THEIR OPINION • IN THEIR OPINION • IN THEIR OPINION
In Their Opinion
32
Mr. Oscar Ondo Ngomo Nchama
Director, Equatorial Guinea Infrastructure
and Telecommunications Management (GITGE)
Telecommunication services are really where the market is right now for investors, because Equatorial Guinea already has the necessary cables that connect to the world.
Mariola Bindang Obiang
Director General of Holding Equatorial Guinea
To promote economic diversification, the private sector, whether national or foreign, would be involved through the creation of joint ventures.
Miguel Ekua Ondo
Minister of Energy
We are looking for private partners for the development of Equatorial Guinea.
IN THEIR OPINION • IN THEIR OPINION • IN THEIR OPINION • IN THEIR OPINION • IN THEIR OPINION • IN THEIR OPINION • IN THEIR OPINION • IN THEIR OPINION • IN THEIR OPINION • IN THEIR OPINION • IN THEIR OPINION • IN THEIR OPINION
Business Profile
Business Profile
Business Profile
In Their Opinion
33
President Teodoro Obiang has been the prime force in steering Equatorial Guinea’s emergence as a significant oil producer in the African region, ever since the momentous discovery of the Zafiro oil field in 1995. Under his reign, the country has seen remarkable economic expansion and infrastructure development, including the rise of the future new capital of Oyala/Djibloho, also called “The City of Peace”. President Obiang has been pivotal in strengthening intra-African integration as well as bilateral relations with nations across Europe, Asia and the Americas, furthering the political and economic advancement of Equatorial Guinea. He has propelled the country’s dynamic development of hospitals, international airports, ports, social housing and educational facilities as well as programmes supporting job creation among Equatoguinean youth. He served as the Chairperson of the African Union from January 2011 to 2012.
H.E. Teodoro Obiang Nguema
Mbasogo president of the
republic of equatorial guinea
Republic of Equatorial Guinea
Ministry of Mines and Hydrocarbons
Business Profile
H.E. Gabriel M. Obiang Lima
Minister of Mines and Hydrocarbons
Thanks in large part to oil and gas exports, investment has been made in infrastructure and government programs have been developed to improve key socio-economic sectors. What have been the critical decisions in ensuring sustainable growth?
We owe our success to the fact that, when we started in the oil sector, we first evaluated what our neighbours had done with oil. We visited Nigeria, Gabon, Cameroon and also put ourselves in the shoes of the workers from those countries. So we saw what had been done well and what had been done badly. When oil developments began, one of the main areas that our government invested in was infrastructure, because it is the foundation of any development. Equatorial Guinea is one of the countries that has invested the most per capita in infrastructure in the African continent. Investment in infrastructure has taken place in every corner of the country and this is what will make our recovery and growth much faster and more sustainable than any other country.
What competitive advantages does Equatorial Guinea have that can encourage major global companies in the hydrocarbon sector to stay in the country for the long-term?
Investors decide to come or continue investing because the business climate is welcoming, and that isn’t only about tax and bureaucracy. They come for the business climate in the oil sector because when you deal with people who understand the oil sector, how it works and the importance of investment, that enables companies to make the decision to invest. They know that in our country, we make agreements, and when we start something, we finish it.
What role do state-owned companies such as Gepetrol and Sonagas play?
These national companies have a very important role, which is to support the Ministry. They don’t have all the decision-making power in the sector, the Ministry does. Gepetrol and Sonagas must compete and be more like international companies
Bio
Interview
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Interview
Bio
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.
Bio
Interview
Time to Talk
35
Republic of Equatorial Guinea
Ministry of Transport, Technology, Postal Service and Telecommunications
Business Profile
H.E. Eucario Bakale Angüe
Former Minister of Transport, Technology, Postal Service and Telecommunications
The Horizon 2020 Plan of Equatorial Guinea was launched in 2007 to boost Equatorial Guinea’s socio-economic growth in two main phases, the first of which was the transformational phase to improve infrastructure, followed by a subsequent phase promoting economic diversification. At what stage of the Plan are you in now?
We have already concluded the first phase of the Plan, which was the construction of basic economic and social infrastructures. Everything you see right now did not exist barely 7 years ago, it was all forest. And that is why we talk about a transformation in Equatorial Guinea. So we consider the implementation of the first phase to have been successful, and it has to do with infrastructure, human resources and training, and improving the business climate.
What are the competitive advantages of the ports of Equatorial Guinea compared to the other ports in the region?
Location is the first one. I believe that we are lucky and we have
been blessed because we have access and be a gateway to almost all the countries in the sub region. Second is the quality of the port infrastructure that we have developed. Huge investments have been made — the port of Bata is an investment of almost 700 million euros, the port of Malabo is a similar size. When you compare the quality of the infrastructure to other ports in the sub region, I believe that ours is superior. Third is the fact that we have developed a national road network, which I believe is envied by others in the sub region, because products that are unloaded in our ports can have easy access to other countries via land transport. And fourth, which is a factor that perhaps we take for granted in Equatorial Guinea, is security. Equatorial Guinea is a very safe and stable country which guarantees that any... investment or any business initiative carried out here is of very little risk.
Could you tell us about the proposed new city of Djibloho that is being built?
Our idea is that a part or an area
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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.
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What have been the country’s key decisions and the milestones in ensuring sustainable growth?
Equatorial Guinea has been able to use the money from oil for the benefit of the country. The government said before that oil money would reach the most remote corners of the country, and that’s what’s happened. Annobón, for example, had neither a port nor an airport for centuries. Today you can get there by plane or by boat. There are now professional schools and institutes in Annobón. Corisco, which is a small island, now has an airport and a port.
What is your Ministry doing in terms of diversification?
We have understood that we need to work together with other sectors. We also clearly understand that economic diversification is our current challenge. Indeed, we are lucky that we already have the basis of infrastructure necessary to achieve our goal. The Ministry's objective now is to create SMEs that can make the diversification of the economy happen, because
SMEs should become the motor of our economy. So we’re starting with personnel training; we’re always doing seminars in which we identify pre-existing SMEs and examine how they could be improved so as to really help them operate well. To this end, we’re also looking at opening a dialogue with other institutions such as the African Development Bank, and the World Bank.
Could you tell us about the Single Business Window initiative of the Ministry?
Before, it was very difficult to create a company in Equatorial Guinea, because you had to go through a lot of bureaucracy. The single window initiative facilitates the creation of companies in less than two days or in less than 24 hours. Everything’s ready — the property, offices, personnel, everything is done. That's why I now believe that our goal of creating SMEs is going to be much more dynamic and effective than before.
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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.
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Republic of Equatorial Guinea
Ministry of Commerce and Small and Medium Enterprises
Business Profile
H.E. Pastor Micha Ondó Bile
Minister of Commerce and Small and Medium Enterprises
What have been the country’s key decisions and the milestones in ensuring sustainable growth?
Equatorial Guinea has been able to use the money from oil for the benefit of the country. The government said before that oil money would reach the most remote corners of the country, and that’s what’s happened. Annobón, for example, had neither a port nor an airport for centuries. Today you can get there by plane or by boat. There are now professional schools and institutes in Annobón. Corisco, which is a small island, now has an airport and a port.
What is your Ministry doing in terms of diversification?
We have understood that we need to work together with other sectors. We also clearly understand that economic diversification is our current challenge. Indeed, we are lucky that we already have the basis of infrastructure necessary to achieve our goal. The Ministry's objective now is to create SMEs that can make the diversification of the economy happen, because
SMEs should become the motor of our economy. So we’re starting with personnel training; we’re always doing seminars in which we identify pre-existing SMEs and examine how they could be improved so as to really help them operate well. To this end, we’re also looking at opening a dialogue with other institutions such as the African Development Bank, and the World Bank.
Could you tell us about the Single Business Window initiative of the Ministry?
Before, it was very difficult to create a company in Equatorial Guinea, because you had to go through a lot of bureaucracy. The single window initiative facilitates the creation of companies in less than two days or in less than 24 hours. Everything’s ready — the property, offices, personnel, everything is done. That's why I now believe that our goal of creating SMEs is going to be much more dynamic and effective than before.
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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.
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37
Business Profile
Mr. Juan Antonio Ndong Ondo
Director of Sonagas
Voices of Leaders: In the last forty years, Equatorial Guinea’s development has been fast tracked, thanks to the income from fossil fuels exports. Investment in infrastructures and construction has increased, plans and programs from the government have had a positive impact in key socioeconomic sectors such as education, health and telecoms. In your opinion, which have been the most relevant decisions that have made such development possible?
Juan Antonio Ndong Ondo: One of the most strategically relevant decisions was organizing the economic conferences that have taken place in our country, which took place when the country had already begun profiting from oil and gas production. That conference determined the guidelines currently being implemented and are shaping the country’s development.
Equatorial Guinea benefits from having some of the world’s largest operators in the hydrocarbons sector. What measures have been taken to strengthen relationships between national companies
such as SONAGAS and foreign operators?
In the first place, current regulations exist and they are being followed. This regulation is composed of different existing laws that protect investors. As proof of this, gas sector companies that have come and invested in our country have recovered their investment; they find themselves working in a professional environment without much strains. This harmony is possible thanks to the safe climate the government has provided, leaving investors to work in a well-regulated and comfortable atmosphere.
What are some of the competitive advantages of local companies such as SONAGAS?
We regard with great interest and enthusiasm the local employment opportunities being offered to participate in the industry. Be it from our own company, SONAGAS, or from the other companies in our consortium, we give great importance to our local personnel training. We understand that a technology transfer cannot
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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.
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What are the main services and facilities of GITGE that maintain a stable business environment, both in Equatorial Guinea and for companies that want to make the leap and invest in the region?
GITGE offers all of its telecommunications infrastructure to all its operators and clients that are in the market in an open and competitive way. These companies in turn can offer their services to private and public entities. It’s up to us to create an open platform where everyone can work under the same legal terms, and that is what we’re currently doing.
Could you tell us about the latest project, the Ceiba-2 submarine cable project?
Ceiba-2 brings a lot of positives to the country, in particular within the telecommunications sector, because we’ll be able to move past the services that we currently offer. It will also improve our regional connectivity with surrounding countries and will open up the markets of those surrounding countries.
What is your perspective on the plan of achieving 100% national coverage in the short term?
It is difficult to reach 100%, but I believe we’ll get to 90%. Currently, we have 2 international cables, the ACE cable and the Ceiba-2 cable, and a terrestrial network that has national scope. The difficulty is to be able to provide these services to the final client, because that’s really the responsibility of the operators; they’re the ones who work with final clients. Our responsibility is to provide infrastructure. Right now we have a project to get homes fiber-enabled. When we started the project, we predicted that by January next year, 46,000 social houses would have fiber optics capabilities. This will, as you can imagine, change a lot and we won’t be able to reach 100% as I said, but we’ll at least cover 90%. And we are also offering free Internet in all public centers, like cultural centers, universities, or libraries.
What do you consider to be the key investment opportunities and market niches in the
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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.
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38
Voices of Leaders: In the last forty years, Equatorial Guinea’s development has been fast tracked, thanks to the income from fossil fuels exports. Investment in infrastructures and construction has increased, plans and programs from the government have had a positive impact in key socioeconomic sectors such as education, health and telecoms. In your opinion, which have been the most relevant decisions that have made such development possible?
Juan Antonio Ndong Ondo: One of the most strategically relevant decisions was organizing the economic conferences that have taken place in our country, which took place when the country had already begun profiting from oil and gas production. That conference determined the guidelines currently being implemented and are shaping the country’s development.
Equatorial Guinea benefits from having some of the world’s largest operators in the hydrocarbons sector. What measures have been taken to strengthen relationships between national companies
such as SONAGAS and foreign operators?
In the first place, current regulations exist and they are being followed. This regulation is composed of different existing laws that protect investors. As proof of this, gas sector companies that have come and invested in our country have recovered their investment; they find themselves working in a professional environment without much strains. This harmony is possible thanks to the safe climate the government has provided, leaving investors to work in a well-regulated and comfortable atmosphere.
What are some of the competitive advantages of local companies such as SONAGAS?
We regard with great interest and enthusiasm the local employment opportunities being offered to participate in the industry. Be it from our own company, SONAGAS, or from the other companies in our consortium, we give great importance to our local personnel training. We understand that a technology transfer cannot
Bio
Interview
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Bio
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.
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Business Profile
Mr. Oscar Ondo Ngomo Nchama
Director of Equatorial Guinea Infrastructure and Telecommunications Management (GITGE)
What are the main services and facilities of GITGE that maintain a stable business environment, both in Equatorial Guinea and for companies that want to make the leap and invest in the region?
GITGE offers all of its telecommunications infrastructure to all its operators and clients that are in the market in an open and competitive way. These companies in turn can offer their services to private and public entities. It’s up to us to create an open platform where everyone can work under the same legal terms, and that is what we’re currently doing.
Could you tell us about the latest project, the Ceiba-2 submarine cable project?
Ceiba-2 brings a lot of positives to the country, in particular within the telecommunications sector, because we’ll be able to move past the services that we currently offer. It will also improve our regional connectivity with surrounding countries and will open up the markets of those surrounding countries.
What is your perspective on the plan of achieving 100% national coverage in the short term?
It is difficult to reach 100%, but I believe we’ll get to 90%. Currently, we have 2 international cables, the ACE cable and the Ceiba-2 cable, and a terrestrial network that has national scope. The difficulty is to be able to provide these services to the final client, because that’s really the responsibility of the operators; they’re the ones who work with final clients. Our responsibility is to provide infrastructure. Right now we have a project to get homes fiber-enabled. When we started the project, we predicted that by January next year, 46,000 social houses would have fiber optics capabilities. This will, as you can imagine, change a lot and we won’t be able to reach 100% as I said, but we’ll at least cover 90%. And we are also offering free Internet in all public centers, like cultural centers, universities, or libraries.
What do you consider to be the key investment opportunities and market niches in the
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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.
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39
Business Profile
Ms. Mariola Bindang Obiang
Director General of Holding Equatorial Guinea
Holding E.G. was created following a convention on economic diversification in Malabo in February 2014. Could you give us some insight on its founding?
Holding E.G. was formed as the government entity dedicated to 3 objectives: to promote economic diversification in sectors that the government considers priority sectors, such as agriculture, livestock, fisheries, general services and tourism; to take a management role in those other sectors where the state has invested in; and the management of co-investment funds. To promote economic diversification, the private sector, whether national or foreign, would be involved through the creation of joint ventures. Projects would need to uphold the importance of disseminating know-how and local training, so that in the future, if the partners are expatriated or decide to withdraw from industrial activity, the activity could still continue. These projects should also create a lot of employment for the national population.
Apart from legal security, what would be other benefits for foreign investors?
Any investor not only has access to a large local market but also the CEMAC community of about 50 million inhabitants. We are also within reach of Nigeria, another huge market which could be another export destination. Equatorial Guinea is located in a strategic area and already has transportation and excellent road infrastructure which would facilitate large-scale production and exportation by land to bordering countries. Also, if the production is carried out from the island, we have air transport, CEIBA-cargo, which could easily transport the production to any part that we want to export. The tax advantages in the country’s Investment Code provide for tax benefits for productive activities in rural areas. There are also deductions for everything spent on staff training, especially if it is an industrial activity. Another advantage I could mention is the stability of the currency — we use the CFA franc, which is a convertible
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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.
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40
Business Profile
Mr. Carlos Esono Miko Nsing
Director General of Equatorial Guinea Telecommunications, S.A. (GETESA)
What are the current initiatives of GETESA, as well as some of its key milestones since its founding?
If we go back to the beginning, Getesa’s story has been a progressive one. There was a time when, if you needed to make a telephone call to somebody in a small town or in the province, you had to make an appointment with the person at a specific time just to be able to communicate. The boom happened with the introduction of the mobile phone, 3G and ADSL services. With our current plan to modernize Getesa, we are planning to offer 4G services, mobile banking services. We are ensuring the company’s advancement and modernization through the implementation of a transformational plan to improve our telecommunications infrastructure, business development and human resources.
What are the principal services you currently offer, within the scope of the goals of achieving 100% national coverage?
With respect to guaranteed coverage, it’s dependent on the
frequency the company uses; the high frequency Getesa currently uses could be prejudicial for us, because frequency and wavelength are inversely proportional. With our modernization plan, we are applying technologies in order to have lower frequency to allow for better penetration. Additionally, we need to add to the number of towers at national level. Just imagine, Equatorial Guinea has an extension of 28,054 sq km, and Getesa has 152 towers. Dividing that gives us 0.007 towers for every square kilometer.That’s not sufficient to provide even basic coverage in the country.
For the modernization plan, we will work with other operators to share their sites because for a small country like ours, it is not worth filling our entire country with towers. The operators,
through the Ministry of Telecommunications, have implemented a sharing of towers. On the service level, we are currently offering ADSL for mobile, and as part of our modernization, we are working towards offering fixed Internet, 4G mobile services, and much better
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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.
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41
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Equatorial
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Equatorial Guinea offers an undiscovered allure of idyllic coastlines, clear aquamarine waters, virgin rainforests, unique wildlife and sealife, bereft of clusters of backpackers and selfie-taking tourists.
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.
A closer look into Equatorial Guinea: Tourism & Travel
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Desde 2016 Hotel Bamy funciona con el objetivo de ofrecer a todo tipo de huéspedes
un alojamiento confortable y un trato exclusivo.
Ubicado en la ciudad de Malabo a 5 minutos del aeropuerto y a 10 minutos
de los pricipales ministerios y empresas del país.
Entre nuestras instalaciones dispone de una amplia sala de reuniones, piscina, bar con terraza.
Espacios que ponemos a su disposición para celebrar cualquier evento privado o de negocios.
Carretera de Pota s/n, Malabo, Guinea Ecuatorial
Tel: +240 666-500-122
www.hotelbamymalabo.com
*Bar con terraza*
*Restaurante*
*Piscina*
Habitaciones
Todas nuestras estancias incluyen Wifi gratuita, espacio de trabajo, terraza, televisión, nevera y aire acondicionado
A closer look into Equatorial Guinea: Ethnic Identity
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A closer look into Equatorial Guinea: Ethnic Identity
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A closer look into Equatorial Guinea: Gastronomy
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A closer look into Equatorial Guinea: Infrastructure
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A closer look into Equatorial Guinea: Infrastructure
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