Research and consulting in Equatorial Guinea
Country overview:
IOA has conducted research and consulting efforts on Equatorial Guinea, examining the country’s economic, business, political, and social dynamics. Our analysts anticipate no easing of the Obiang regime’s grip on power or its control over the nation’s oil wealth. Under Teodoro Obiang Nguema Mbasogo, the country endures one of the worst human rights records globally, while its business environment remains among the least economically free in the world.
The economy’s heavy dependence on oil exports, primarily serving to benefit the Obiang family, could potentially be reversed under a new political framework. IOA economists highlight that traditional exports, such as cocoa and coffee, could regain their past economic significance with appropriate investment.
Key opportunities in Equatorial Guinea:
- Significant oil reserves have generated wealth for those aligned with the Obiang regime
- Cocoa and coffee, once leading export products, hold potential for revitalisation to help diversify the economy beyond oil
- The country’s equatorial location and Atlantic islands offer strong prospects for tourism development
Key concerns/risks in Equatorial Guinea:
- The Obiang dictatorship shows no signs of ending in the near future
- IOA analysts predict ongoing stagnation and corruption, with the potential for political violence
- Infrastructure beyond the oil sector, including energy and transportation, remains significantly underdeveloped
Tips on doing business in Equatorial Guinea:
Starting a business:
- The Limited Liability Company (LCC) is the preferred business structure for foreign investors, requiring 35% ownership share by local Equatoguinean citizens and 30% representation on the board by local directors
- Foreign nationals cannot directly own land but may lease it from the government
Doing business:
- Operating in Equatorial Guinea is widely regarded as challenging, with prevalent corruption, a judiciary lacking independence and impartiality, and slow, opaque bureaucratic processes
- Foreign companies have typically achieved the greatest success in local natural resource sectors, particularly in oil, gas, and mining projects
Culture and society:
- Equatorial Guinea functions largely as a police state, with frequent security checks. Foreigners should always carry their passports and residence permits
- Spanish is the dominant language for administration and business, while French and English are much less common
- Due to poor healthcare standards, foreigners are advised to have evacuation insurance for medical emergencies
A sample IOA research report on Equatorial Guinea: