The Economic Activity of Equatorial Guinea

The economic growth of Equatorial Guinea has been dramatic in recent years as a result of the discovery and exploitation of its large oil reserves in the Bioko Island, making the country as the third largest oil producer in the sub-Saharan Africa. The government also has on-going oil exploration and development projects for commercially viable oil and gas deposits in other offshore areas to increase its daily oil production of more than 500,000 barrels.

Being oil-based, the country’s economy depends on exports of petroleum, methanol and natural gas. Its natural gas exports combined with petroleum and methanol and other export commodities totaled more than $13 billion in 2008 against $3.14 billion cost of import of equipment needed for the local petroleum production.

Even with export gaining continuously rising as a result of a state-of-the-art liquefied natural gas (LNG) production and shipping facility, the government still encourages other economic sectors such as agriculture, tourism and fishing, to contribute to economic growth. Officials are also tapping expertise for the development of other natural resources including titanium, iron ore, manganese, uranium and alluvial gold.

In line with the development of other economic sectors, plans are also on the table to improve the infrastructure and increase the number of transport roads, and build a system of adequate road maintenance. The African Development Bank is currently helping improve paved roads from Malabo to Luba and Riaba; while China is undertaking a project linking Mongomo to Bata in the mainland. The European Union is financing an inter-state road network linking the country to Cameroon and Gabon. The government has also lifted restrictions on imports, non-tariff protection and many import licensing requirements for the purpose of promoting free enterprise, and further boosting economic growth.