Equatorial Guinea

 

Bureau of African Affairs                                                     
June 2007                                                                     
                                                                       
  Background Note: Equatorial Guinea                                          
                                          
  Children play a skipping game in                                            
  front of cathedral built during                                             
  colonial times in Malabo, Equatorial                                        
  Guinea, August 25, 2002. [© AP                                              
  Images]                                                                     
                                                                       
  Flag of Equatorial Guinea is three equal horizontal bands of green - top -  
  white, and red with a blue isosceles triangle based on the hoist side and the
  coat of arms centered in the white band.                                    
                                                                       
  PROFILE                                                                     
                                                                       
  OFFICIAL NAME:                                                              
  Republic of Equatorial Guinea                                               
                                                                       
  Geography                                                                   
  Location: Western Africa, bordering the Bay of Biafra. Bordering            
  nations--Cameroon, Gabon.                                                   
  Area: 28,050 sq. km; slightly smaller than Maryland.                        
  Cities: Capital--Malabo. Other cities--Bata (also capital of Littoral       
  province on the mainland).                                                  
  Terrain: Varies. Bioko Island is volcanic, with three major peaks of 9,876  
  feet, 7,416 feet and 6,885 feet. Behind the coastal plain, the mainland     
  provinces are hilly at a level of approximately 2,000 feet, with some       
  4,000-foot peaks. Annobon Island is volcanic.                               
  Climate: Tropical; always hot, humid. Bata on the mainland is somewhat drier
  and cooler.                                                                 
                                                                       
  People                                                                      
  Nationality: Noun--Equatorial Guinean(s), Equatoguinean(s)                  
  Adjective--Equatorial Guinean, Equatoguinean.                               
  Population (July 2007 est.): 551,201.                                       
  Annual growth rate (2007 est.): 2.015%; (1975-2002): 2.8%.                  
  Ethnic groups: The Fang ethnic group of the mainland constitutes the great  
  majority of the population and dominates political life and business. The   
  Bubi group comprises about 50,000 people living mainly in Bioko Island. The 
  Annobonese on the island of Annobon are estimated at about 3,000 in number. 
  The other three ethnic groups are found on the coast of Rio Muni and include
  the Ndowe and Kombe (about 3,000 each) and the Bujebas (about 2,000). The   
  pygmy populations have long been integrated into the dominant Bantu-speaking
  cultures. Europeans are less than 1,000, mostly Spanish.                    
  Languages: Official--Spanish, French; other--pidgin English, Fang, Bubi, Ibo.
  Religion: Nominally Christian and predominantly Roman Catholic; pagan       
  practices.                                                                  
  Education: Primary school compulsory for ages 6-14. Attendance (2002 est.)--
  85%. Adult literacy (2003 est.)--85.7%.                                     
  Health (2007 est.): Life expectancy--49.51 years. Infant mortality rate     
  --87.15/1,000.                                                              
                                                                       
  Government                                                                  
  Type: Nominally multi-party Republic with strong domination by the executive
  branch.                                                                     
  Independence: October 12, 1968 (from Spain).                                
  Constitution: Approved by national referendum November 17, 1991; amended    
  January 1995.                                                               
  Branches: Executive--President (Chief of State) and a Council of Ministers  
  appointed by the president. Legislative--100-member Chamber of People's     
  Representatives (members directly elected by universal suffrage to serve    
  five-year terms). Judicial--Supreme Tribunal.                               
  Administrative subdivisions: Seven provinces--Annobon, Bioko Norte, Bioko   
  Sur, Centro Sur, Kie-Ntem, Littoral, Wele-Nzas.                             
  Political parties: The ruling party is the Partido Democratico de Guinea    
  Ecuatorial (PDGE), formed July 30, 1987. Numerous other parties were allowed
  to form in the early 1990s.                                                 
  Suffrage: 18 years of age; universal adult.                                 
                                                                       
  Economy                                                                     
  GDP (2005 est.): $7.644 billion.                                            
  Real GDP growth rate (2005 est.) 18.6%.                                     
  Inflation rate (2006 est. average): 5.2%.                                   
  Unemployment rate: (1998 est.) 30%.                                         
  Natural resources: Petroleum, natural gas, timber, small, unexploited       
  deposits of gold, manganese, and uranium.                                   
  Agriculture (2006 est.): 2.8% of GDP. Products--coffee, cocoa, rice, yams,  
  cassava (tapioca), bananas, palm oil nuts, manioc, livestock, and timber.   
  Industry (2006 est.): 92.6% of GDP. Types--petroleum, fishing, saw milling, 
  natural gas.                                                                
  Services (2006): 4.5% of GDP.                                               
  Trade (2006 est.): Exports--$8.961 billion: hydrocarbons (97%), timber (2%),
  others (1%). Imports--$2.543 billion. Major trading partners--United States,
  Spain, China, Canada, France, Great Britain, Cameroon, and Norway.          
  Currency: Communaute Financiere Africaine (CFA) Franc.                      
                                                                       
  GEOGRAPHY                                                                   
  The Republic of Equatorial Guinea is located in west central Africa. Bioko  
  Island lies about 40 kilometers (25 mi.) from Cameroon. Annobon Island lies 
  about 595 kilometers (370 mi.) southwest of Bioko Island. The larger        
  continental region of Rio Muni lies between Cameroon and Gabon on the       
  mainland; it includes the islands of Corisco, Elobey Grande, Elobey Chico,  
  and adjacent islets.                                                        
                                                                       
  Bioko Island, called Fernando Po until the 1970s, is the largest island in  
  the Gulf of Guinea--2,017 square kilometers (780 sq. mi.). It is shaped like
  a boot, with two large volcanic formations separated by a valley that bisects
  the island at its narrowest point. The 195-kilometer (120-mi.) coastline is 
  steep and rugged in the south but lower and more accessible in the north,   
  with excellent harbors at Malabo and Luba, and several scenic beaches between
  those towns.                                                                
                                                                       
  On the continent, Rio Muni covers 26,003 square kilometers (10,040 sq. mi.).
  The coastal plain gives way to a succession of valleys separated by low hills
  and spurs of the Crystal Mountains. The Rio Benito (Mbini), which divides Rio
  Muni in half, is unnavigable except for a 20-kilometer stretch at its       
  estuary. Temperatures and humidity in Rio Muni are generally lower than on  
  Bioko Island.                                                               
                                                                       
  Annobon Island, named for its discovery on New Year's Day 1472, is a small  
  volcanic island covering 18 square kilometers (7 sq. mi.). The coastline is 
  abrupt except in the north; the principal volcanic cone contains a small    
  lake. Most of the estimated 1,900 inhabitants are fisherman specializing in 
  traditional, small-scale tuna fishing and whaling. The climate is           
  tropical--heavy rainfall, high humidity, and frequent seasonal changes with 
  violent windstorms.                                                         
                                                                       
  PEOPLE                                                                      
  The majority of the Equatoguinean people are of Bantu origin. The largest   
  tribe, the Fang, is indigenous to the mainland, but substantial migration to
  Bioko Island has resulted in Fang dominance over the earlier Bantu          
  inhabitants. The Fang constitute 80% of the population and are themselves   
  divided into 67 clans. Those in the northern part of Rio Muni speak         
  Fang-Ntumu, while those in the south speak Fang-Okah; the two dialects are  
  mutually unintelligible. The Bubi, who constitute 15% of the population, are
  indigenous to Bioko Island. In addition, there are coastal tribes, sometimes
  referred to as "Playeros," consisting of Ndowes, Bujebas, Balengues, and    
  Bengas on the mainland and small islands, and "Fernandinos," a Creole       
  community, on Bioko. Together, these groups comprise 5% of the population.  
  There are also foreigners from neighboring Cameroon, Nigeria, and Gabon.    
                                                                       
  Spanish and French are both official languages, though use of Spanish       
  predominates. The Roman Catholic Church has greatly influenced both religion
  and education.                                                              
                                                                       
  Equatoguineans tend to have both a Spanish first name and an African first  
  and last name. When written, the Spanish and African first names are followed
  by the father's first name (which becomes the principal surname) and the    
  mother's first name. Thus people may have up to four names, with a different
  surname for each generation.                                                
                                                                       
  HISTORY                                                                     
  The first inhabitants of the region that is now Equatorial Guinea are       
  believed to have been Pygmies, of whom only isolated pockets remain in      
  northern Rio Muni. Bantu migrations between the 17th and 19th centuries     
  brought the coastal tribes and later the Fang. Elements of the latter may   
  have generated the Bubi, who immigrated to Bioko from Cameroon and Rio Muni 
  in several waves and succeeded former Neolithic populations. The Annobon    
  population, native to Angola, was introduced by the Portuguese via Sao Tome.
                                                                       
  The Portuguese explorer, Fernando Po (Fernao do Poo), seeking a route to    
  India, is credited with having discovered the island of Bioko in 1471. He   
  called it Formosa ("pretty flower"), but it quickly took on the name of its 
  European discoverer. The Portuguese retained control until 1778, when the   
  island, adjacent islets, and commercial rights to the mainland between the  
  Niger and Ogoue Rivers were ceded to Spain in exchange for territory in South
  America (Treaty of Pardo). From 1827 to 1843, Britain established a base on 
  the island to combat the slave trade. The Treaty of Paris settled conflicting
  claims to the mainland in 1900, and periodically, the mainland territories  
  were united administratively under Spanish rule.                            
                                                                       
  Spain lacked the wealth and the interest to develop an extensive economic   
  infrastructure in what was commonly known as Spanish Guinea during the first
  half of this century. However, through a paternalistic system, particularly 
  on Bioko Island, Spain developed large cacao plantations for which thousands
  of Nigerian workers were imported as laborers. At independence in 1968,     
  largely as a result of this system, Equatorial Guinea had one of the highest
  per capita incomes in Africa. The Spanish also helped Equatorial Guinea     
  achieve one of the continent's highest literacy rates and developed a good  
  network of health care facilities.                                          
                                                                       
  In 1959, the Spanish territory of the Gulf of Guinea was established with   
  status similar to the provinces of metropolitan Spain. As the Spanish       
  Equatorial Region, a governor general ruled it exercising military and      
  civilian powers. The first local elections were held in 1959, and the first 
  Equatoguinean representatives were seated in the Spanish parliament. Under  
  the Basic Law of December 1963, limited autonomy was authorized under a joint
  legislative body for the territory's two provinces. The name of the country 
  was changed to Equatorial Guinea. Although Spain's commissioner general had 
  extensive powers, the Equatorial Guinean General Assembly had considerable  
  initiative in formulating laws and regulations.                             
                                                                       
  In March 1968, under pressure from Equatoguinean nationalists and the United
  Nations, Spain announced that it would grant independence to Equatorial     
  Guinea. A constitutional convention produced an electoral law and draft     
  constitution. In the presence of a UN observer team, a referendum was held on
  August 11, 1968, and 63% of the electorate voted in favor of the            
  constitution, which provided for a government with a General Assembly and a 
  Supreme Court with judges appointed by the president.                       
                                                                       
  In September 1968, Francisco Macias Nguema was elected first president of   
  Equatorial Guinea, and independence was granted in October. In July 1970,   
  Macias created a single-party state and by May 1971, key portions of the    
  constitution were abrogated. In 1972 Macias took complete control of the    
  government and assumed the title of President-for-Life. The Macias regime was
  characterized by abandonment of all government functions except internal    
  security, which was accomplished by terror; this led to the death or exile of
  up to one-third of the country's population. Due to pilferage, ignorance, and
  neglect, the country's infrastructure--electrical, water, road,             
  transportation, and health--fell into ruin. Religion was repressed, and     
  education ceased. The private and public sectors of the economy were        
  devastated. Nigerian contract laborers on Bioko, estimated to have been     
  60,000, left en masse in early 1976. The economy collapsed, and skilled     
  citizens and foreigners left.                                               
                                                                       
  In August 1979, Macias' nephew from Mongomo and former director of the      
  infamous Black Beach prison, Teodoro Obiang Nguema Mbasogo, led a successful
  coup d'etat; Macias was arrested, tried, and executed. Obiang assumed the   
  Presidency in October 1979. Obiang initially ruled Equatorial Guinea with the
  assistance of a Supreme Military Council. A new constitution, drafted in 1982
  with the help of the United Nations Commission on Human Rights, came into   
  effect after a popular vote on August 15, 1982; the Council was abolished,  
  and Obiang remained in the presidency for a 7-year term. He was reelected in
  1989. In February 1996, he again won reelection with 98% of the vote; several
  opponents withdrew from the race, however, and international observers      
  criticized the election. Subsequently, Obiang named a new cabinet, which    
  included some opposition figures in minor portfolios.                       
                                                                       
  Despite the formal ending of one-party rule in 1991, President Obiang and a 
  circle of advisors (drawn largely from his own family and ethnic group)     
  maintain real authority. The President names and dismisses cabinet members  
  and judges, ratifies treaties, leads the armed forces, and has considerable 
  authority in other areas. He appoints the governors of Equatorial Guinea's  
  seven provinces. The opposition had few electoral successes in the 1990s. By
  early 2000, President Obiang's PDGE party fully dominated government at all 
  levels. In December 2002, President Obiang won a new seven-year mandate with
  97% of the vote. Reportedly, 95% of eligible voters voted in this election, 
  although many observers noted numerous irregularities. The next presidential
  election is scheduled for 2009.                                             
                                                                       
  GOVERNMENT                                                                  
  The 1982 constitution gives the President extensive powers, including naming
  and dismissing members of the cabinet, making laws by decree, dissolving the
  Chamber of Representatives, negotiating and ratifying treaties and calling  
  legislative elections. The President retains his role as commander in chief 
  of the armed forces maintains close supervision of military activity. In June
  2004, the President reorganized the cabinet and created two new positions:  
  Minister of National Security and Director of National Forces. The Prime    
  Minister is appointed by the President and operates under powers designated 
  by the President. The Prime Minister coordinates government activities in   
  areas other than foreign affairs, national defense, and security.           
                                                                       
  The Chamber of Representatives is comprised of 100 members elected by direct
  suffrage for 5-year terms. In practice, the Chamber is not independent and  
  rarely acts without presidential approval or direction. A new National      
  Assembly was directly elected in April 2004. There are 100 members in this  
  body, of which 14 are from the loyal opposition and 2 from opposition parties
  (the CPDS: Convergencia Para la Democracia Social). The next legislative    
  election is scheduled for 2008.                                             
                                                                       
  The President appoints the governors of the seven provinces. Each province is
  divided administratively into districts and municipalities. The internal    
  administrative system falls under the Ministry of Territorial Administration;
  several other ministries are represented at the provincial and district     
  levels.                                                                     
                                                                       
  The judicial system follows similar administrative levels. At the top are the
  President and his judicial advisors (the Supreme Court). In descending rank 
  are the appeals courts, chief judges for the divisions, and local           
  magistrates. Tribal laws and customs are honored in the formal court system 
  when not in conflict with national law. The current court system, which often
  uses customary law, is a combination of traditional, civil, and military    
  justice, and it operates in an ad hoc manner for lack of established        
  procedures and experienced judicial personnel.                              
                                                                       
  The other official branch of the government is the State Council. The State 
  Council's main function is to serve as caretaker in case of death or physical
  incapacity of the President. It comprises the following ex officio members: 
  the President of the Republic, the Prime Minister, the Minister of Defense, 
  the President of the National Assembly and the Chairman of the Social and   
  Economic Council.                                                           
                                                                       
  Although the abuses and atrocities that characterized the Macias years have 
  been eliminated, effective rule of law does not exist and the government is 
  ultimately run by the Presidency. Religious freedom is tolerated.           
                                                                       
  Principal Government Officials                                              
  President--Teodoro Obiang Nguema Mbasogo, Brig. Gen. (ret.)                 
  Prime Minister--Ricardo Mangue                                              
  Minister of Foreign Affairs and International Cooperation--Pastor Micha Ondo
  Bile                                                                        
  Ambassador to the United States--Purification Angue Ondo                    
                                                                       
  Equatorial Guinea maintains an embassy at 2020 16th Street NW, Washington, DC
  20009 (Tel. (202) 518-5700, Fax. (202) 518-5252). Its mission to the United 
  Nations is at 801 Second Avenue, Suite 1403, New York, N.W. 10017 (Tel.     
  212-599-1523).                                                              
                                                                       
  POLITICAL CONDITIONS                                                        
  In the period following Spain's grant of local autonomy to Equatorial Guinea
  in 1963, there was a great deal of political party activity. Bubi and       
  Fernandino parties on the island preferred separation from Rio Muni or a    
  loose federation. Ethnically based parties in Rio Muni favored independence 
  for a united country comprising Bioko and Rio Muni, an approach that        
  ultimately won out. (The Movimiento para la Auto-determinacion de la Isla de
  Bioko (MAIB) which advocates independence for the island under Bubi control,
  is one of the offshoots of the era immediately preceding independence). After
  the accession of Macias to power, political activity largely ceased in      
  Equatorial Guinea. Opposition figures who lived among the exile communities 
  in Spain and elsewhere agitated for reforms; some of them had been employed 
  in the Macias and Obiang governments. After political activities in         
  Equatorial Guinea were legalized in the early 1990s, some opposition leaders
  returned, but repressive actions have continued sporadically.               
                                                                       
  The country's first freely contested municipal elections were held in       
  September 1995. Most observers agree that the elections themselves were     
  relatively free and transparent and that the opposition parties garnered    
  between two-thirds and three-quarters of the total vote. The government,    
  however, delayed announcement of the results and then claimed a highly      
  dubious 52% victory overall and the capture of 19 of 27 municipal councils. 
  In early January 1996 Obiang called for presidential elections. International
  observers agreed that the campaign was marred by fraud, and most of the     
  opposition candidates withdrew in the final week. Obiang claimed re-election
  with 98% of the vote. In an attempt to mollify his critics, Obiang gave minor
  portfolios in his cabinet to people identified as opposition figures. In the
  legislative election in March 1999, the party increased its majority in the 
  80-seat parliament from 68 to 75. The main opposition parties refused the   
  seats they had allegedly won. In May 2000, the ruling PDGE overwhelmed its  
  rivals in local elections. Opposition parties rejected the next election, the
  December 2002 Presidential election, as invalid. During this election,      
  President Obiang was re-elected with 97% of the vote. Following his         
  re-election Obiang formed a government based on national unity encompassing 
  all opposition parties, except for the CPDS, which declined to join after   
  Obiang refused to release one of their jailed leaders.                      
                                                                       
  In April 2004, parliamentary and municipal elections took place. President  
  Obiang's Democratic Party of Equatorial Guinea (PDGE) and allied parties won
  98 of 100 seats in parliament and all but seven of 244 municipal posts.     
  International observers criticized both the election and its results.       
                                                                       
  While President Obiang's rule, in which schools reopened, primary education 
  expanded, and public utilities and roads restored, compares favorably with  
  Macias' tyranny and terror, it has been criticized for not implementing     
  genuine democratic reforms. Corruption and a dysfunctional judicial system  
  disrupt the development of Equatorial Guinea's economy and society. In 2004,
  the President appointed a new Prime Minister, Miguel Abia Biteo, and replaced
  several ministers; however, the government budget still did not include all 
  revenues and expenditures. The United Nations Development Program proposed a
  broad governance reform program, but the Equatoguinean Government was not   
  moving rapidly to implement it. In August 2006 a new Prime Minister, Ricardo
  Mangue, was named.                                                          
                                                                       
  Equatorial Guinea suffered a severe human rights setback in May 2002 when a 
  special tribunal convicted 68 prisoners and their relatives and sentenced   
  them 6 to 20 years in prison for an alleged attempted coup d'etat. Among the
  prisoners were leaders of the three main opposition parties that had remained
  independent from President Obiang's ruling party. There were numerous       
  irregularities associated with the trial, including evidence of torture and a
  lack of substantive proof. In August 2003, 31 of these convicted prisoners  
  were granted a presidential amnesty.                                        
                                                                       
  In March 2004, Zimbabwean police in Harare impounded a plane from South     
  Africa with 64 alleged mercenaries on board. The group said they were       
  providing security for a mine in Democratic Republic of the Congo, but a    
  couple of days later an Equatorial Guinean minister said they had detained 15
  more men who he claimed were the advance party for the group captured in    
  Zimbabwe. Nick du Toit, the leader of the group of South Africans, Armenians
  and one German, in Equatorial Guinea, said at his trial in Equatorial Guinea
  that he was playing a limited role in a coup bid organized by Simon Mann, the
  alleged leader of the group held in Zimbabwe, to remove Obiang from power and
  install an exiled opposition politician, Severo Moto.                       
                                                                       
  In September 2004, Mann was sentenced to seven years in jail in Zimbabwe    
  after being convicted of illegally trying to buy weapons. Zimbabwe has since
  agreed to extradite Mann to Equatorial Guinea. Others arrested with him were
  acquitted of any links to a suspected coup attempt after magistrates said   
  prosecutors had failed to prove their case but were convicted on immigration
  charges to one year in jail. Both Mann's trial in Zimbabwe and the Equatorial
  Guinea trial began amid complaints of abuse and unfair treatment from       
  relatives of those being held. One suspect, a German, died in prison in     
  Equatorial Guinea of malaria (Amnesty International believed that he died as
  a result of the effects of torture, and called for an investigation). In    
  Equatorial Guinea in November 2004, a total of 22 people were convicted,    
  including nine tried in absentia. Three Equatoguineans and three South      
  Africans were acquitted. In June 2005, President Obiang decided to grant    
  amnesty to the six Armenian pilots.                                         
                                                                       
  Although Equatorial Guinea lacks a well-established democratic tradition    
  comparable to the developed democracies of the West, it should be noted that,
  out of the anarchic, chaotic, and repressive conditions of the Macias years 
  the country has made small, haphazard steps toward the development of       
  participatory political system.                                             
                                                                       
  ECONOMY                                                                     
  Oil and gas exports have increased substantially and will drive the economy 
  for years to come. Real GDP growth reached 18% in 2000, 66% in 2001, 20% in 
  2002, 10% in 2003 and 25.7% in 2004 (est.). Per capita income rose from about
  $590 in 1998 to $2,000 in 2000 and $5,300 in 2004. The energy export sector 
  is responsible for this rapid growth. Oil production increased from 81,000  
  barrels per day (bbl/d) in 1998 to more than 300,000 bbl/d by 2004. In 2005 
  production was estimated to be 420,000 bbl/d. Exploration efforts continue in
  search of further potential offshore concessions.                           
                                                                       
  Equatorial Guinea has other unexploited human and natural resources,        
  including a tropical climate, fertile soils, rich expanses of water,        
  deepwater ports, and an untapped, if unskilled, source of labor. Following  
  independence in 1968, the country suffered under a repressive dictatorship  
  for 11 years, which devastated the economy. The agricultural sector,        
  historically known for cocoa of the highest quality, never fully recovered. 
  In 1969, Equatorial Guinea produced 36,161 tons of highly bid cocoa, but    
  production dropped to 4,800 tons in 2000 and 3,430 tons in 2002. It increased
  slightly from 2003 levels to 2,906 tons by 2004. Coffee production was      
  126,000 metric tons in 2002, up from 67000 tons 5 years earlier. Timber is  
  the main source of foreign exchange after oil, though it now only accounts  
  for 2% of total export earnings. Timber production increased steadily during
  the 1990s; wood exports reached a record 789,000 cubic meters in 1999 as    
  demand in Asia (mainly China) gathered pace after the 1998 economic crisis. 
  Since 1998, production of timber has fallen closer to a sustainable level.  
  530,500 cubic meters were sold in 2002. Most of the production (mainly      
  Okoume) goes to exports, and only 3% is processed locally. Bioko Island has 
  already suffered permanent damage due to earlier exploitation. Consumer price
  inflation has declined from the 38.8% experienced in 1994 following the CFA 
  franc devaluation, to 7.8% in 1998, and 4.0% in 2000, according to BEAC data.
  Consumer prices inflation has remained steady at around 6% since 2002.      
                                                                       
  Equatorial Guinea's economic policies, as defined by law, comprise an open  
  investment regime. Qualitative restrictions on imports, non-tariff          
  protection, and many import licensing requirements were lifted in 1992 when 
  the government adopted a public investment program endorsed by the World    
  Bank. The Government of Equatorial Guinea has sold some state enterprises. It
  is attempting to create a more favorable investment climate, and its        
  investment code contains numerous incentives for job creation, training,    
  promotion of nontraditional exports, support of development projects and    
  indigenous capital participation, freedom for repatriation of profits,      
  exemption from certain taxes and capital, and other benefits. Trade         
  regulations have been further liberalized since Central African Economic and
  Monetary Union (CEMAC) reform codes in 1994. This included elimination of   
  quota restrictions and reductions in the range and amounts of tariffs. The  
  CEMAC countries agreed to the introduction of a value added tax (VAT) in    
  1999.                                                                       
                                                                       
  While business laws promote a liberalized economy, the business climate     
  remains difficult. Application of the laws remains selective. Corruption    
  among officials is widespread, and many business deals are concluded under  
  nontransparent circumstances. A wage law now regulates separate wage levels 
  for the petroleum, private, and government sector.                          
                                                                       
  There is little industry in the country, and the local market for industrial
  products is small. The government seeks to expand the role of free enterprise
  and to promote foreign investment but has had little success in creating an 
  atmosphere conducive to investor interest.                                  
                                                                       
  The Equatoguinean budget has grown enormously in the past 5 years as        
  royalties and taxes on foreign company oil and gas production have provided 
  new resources to a once poor government. The 2005 government revenue was    
  about $1.97 billion. Oil revenues account for more than 81% of government   
  revenue. Value Added Tax and trade taxes are other large revenue sources for
  the government.                                                             
                                                                       
  The Equatoguinean Government has undertaken a number of reforms since 1991 to
  reduce its predominant role in the economy and promote private sector       
  development. Its role is a diminishing one, although many government        
  interactions with the private sector are at times capricious. The government
  is anxious for greater U.S. investment. Beginning in early 1997, the        
  government initiated efforts to attract significant private sector          
  involvement through cooperative efforts with the Corporate Council on Africa
  visit and numerous ministerial efforts. In 1998, the government privatized  
  distribution of petroleum products. There are now Total and Mobil stations in
  the country. The maritime border with Nigeria was settled in 2000, allowing 
  Equatorial Guinea to continue exploitation of its oil fields. In October    
  2002, the government launched a national oil company, GEPetrol, under the   
  Ministry of Mines and Hydrocarbons.                                         
                                                                       
  The government has expressed interest in privatizing the outmoded electricity
  utility. Several ports and a new terminal were built to accommodate the needs
  of the oil industry. A French company operates cellular telephone service in
  cooperation with a state enterprise. Most of the new infrastructure has not 
  reached the average Equatoguinean living on the mainland. Agriculture,      
  fishing, livestock, and tourism are among sectors the government would like 
  targeted.                                                                   
                                                                       
  Equatorial Guinea's balance-of-payments situation has improved substantially
  since the mid-1990s because of new oil and gas production and favorable world
  energy prices. Exports totaled $6.72 billion in 2005. Crude oil exports now 
  annually accounts for more than 97% of export earnings. Timber exports, by  
  contrast, now represent only about 2% of export revenues. Imports into      
  Equatorial Guinea also are growing very quickly. Imports totaled $1.86      
  billion in 2005.                                                            
                                                                       
  Equatorial Guinea in the 1980s and 1990s received foreign assistance from   
  numerous bilateral and multilateral donors, including European countries, the
  United States, and the World Bank. Many of these aid programs have ceased   
  altogether or have diminished. Spain, France, and the European Union continue
  to provide some project assistance, as do China and Cuba. The government also
  has discussed working with World Bank assistance to develop government      
  administrative capacity.                                                    
                                                                       
  Equatorial Guinea operated under an International Monetary Fund-negotiated  
  Enhanced Structural Adjustment Facility (ESAF) until 1996. Since then, there
  have been no formal agreements or arrangements. However, since 1996, the IMF
  has held regular held Article IV consultations (periodic country            
  evaluations). After the 2003 consultations, IMF directors stressed the need 
  for further improvements in governance and transparency, the attainment of a
  sustainable fiscal position, the implementation of structural reforms to    
  bolster the non-oil sector, the development of a transparent framework for  
  saving and managing part of the country's oil wealth and a comprehensive    
  effort to reduce poverty.                                                   
                                                                       
  Trade and Investment                                                        
  With investments estimated at $11 billion, the United States is the largest 
  cumulative bilateral foreign investor in Equatorial Guinea. In 2003, 74% of 
  U.S. exports to Equatorial Guinea consisted of energy sector-related        
  transportation and machinery equipment. The United States' main import from 
  Equatorial Guinea is petroleum (99% of imports in 2003). In 1999, the       
  European Union (EU) imported $281.7 million in goods from Equatorial Guinea,
  89% of which was petroleum and 7% timber. The European Union exported $104  
  million to Equatorial Guinea. Approximately 20% of these exports were oil and
  gas-related, and the remaining 80% ranged from agricultural products to     
  clothing to used cars.                                                      
                                                                       
  Infrastructure                                                              
  Infrastructure is generally old and in poor condition. Surface transport    
  options are increasing as the government has invested heavily in road       
  pavement projects. In 2002, the African Development Bank and the European   
  Union co-financed two projects to improve the paved roads from Malabo to Luba
  and Riaba; and to build an interstate road network to link Equatorial Guinea
  to Cameroon and Gabon. The Chinese are undertaking a project to link Mongomo
  to Bata, both cities on the mainland. In November 2003, the government      
  announced an ambitious ten-project program to upgrade the country's road    
  network and improve the airport facilities at Bata, the country's second city
  (on the mainland). A new road links Malabo with the airport and there have  
  been improvements in the city. The program is estimated to cost hundreds of 
  millions of dollars, but there are doubts over the capacity of the government
  to manage such a huge scheme.                                               
                                                                       
  Estimates of Equatorial Guinea's electricity generating capacity vary, with 
  15.4 megawatts (MW) of certain installed capacity, and 5-30 MW of estimated 
  additional capacity. About 5.0 MW are located on the mainland, including 4 MW
  of oil-fired thermal capacity and 1 MW of hydroelectric capacity. Bioko     
  Island receives electricity from two thermal plants and one hydroelectric   
  plant. The expansion of natural gas production at the Alba field in recent  
  years has provided a convenient fuel source for new power generation in the 
  country. The 10.4-MW, natural gas-fired Punta Europa plant began operation in
  1999, supplying gas-fired electricity to Bioko Island. Another 4-6 MW of    
  generation capacity is currently under construction at the AMPCO complex on 
  the island. Equatorial Guinea is estimated to have 2,600 MW of hydropower   
  potential.                                                                  
                                                                       
  Equatorial Guinea's electricity sector is owned and operated by the state-run
  monopoly, SEGESA. The power supply is unreliable, due to aging equipment and
  poor management, as demonstrated by regular blackouts in Malabo. As a result,
  small diesel generators are widely used as a back-up source of power supply.
  In Malabo, the American company, Marathon Oil, built a 30 mega-watt electric
  power plant financed by the government, which came on line in mid-2000.     
                                                                       
  Potable water is available in the major towns but is not always reliable    
  because of poor maintenance and mismanagement; consequently, supply         
  interruptions are often frequent and prolonged in some neighborhoods. Some  
  villages and rural areas are equipped with generators and water pumps,      
  usually owned by private individuals.                                       
                                                                       
  Telecommunications have improved dramatically in recent years. Parastatal   
  Getesa, a joint venture with a 40% ownership stake held by France Telecom,  
  provides telephone service in the major cities through an efficient, digital
  fixed network and good mobile coverage. Getesa's fixed-line service has 9,000
  subscribers and the mobile service has 28,000. Internet access is limited and
  has yet to make an impact on the dissemination of information.              
                                                                       
  Equatorial Guinea has two of the deepest Atlantic seaports of the region,   
  including the main business and commercial port city of Bata. The ports of  
  both Malabo and Bata are severely overextended and require extensive        
  rehabilitation and reconditioning. In partnership with a U.S. petroleum     
  company, Amerada Hess, a British company, Incat, has made significant       
  progress in a project to renovate and expand Luba, the country's            
  third-largest port, located on Bioko Island. The government hopes Luba will 
  become a major transportation hub for offshore oil and gas companies        
  operating in the Gulf of Guinea. Luba is located some 50 kilometers from    
  Malabo and was previously virtually inactive except for minor fishing       
  activities and occasional use to ease congestion in Malabo. Riaba, the only 
  other port of any scale on Bioko, is less active. The continental ports of  
  Mbini and Cogo have deteriorated as well and are now used primarily for     
  timber.                                                                     
                                                                       
  Five small airlines now offer regular daily services between the two cities 
  of Malabo and Bata and nearby neighboring countries. A few aging Soviet-built
  aircraft operated by several small carriers (one state-owned, the others    
  private,) constitute this national aircraft fleet. In March of 2006 the     
  European Union fully banned most airlines based in Equatorial Guinea from   
  flying into the EU. The influx of oil workers has increased international air
  activity. Major international carriers now connect Malabo to the European   
  cities of Amsterdam, Paris, Madrid, and Zurich. A weekly business-class     
  charter flight was providing service to Houston, Texas. The runway at       
  Malabo's international airport (3,200 meters) is equipped with lights and can
  service equipment similar to DC-10s and C130s. The runway at Bata (2,400    
  meters) does not operate at night but can accommodate aircraft as large as  
  B737s. Two minor airstrips (800 meters) are located at Mongomo and on the   
  island of Annobon.                                                          
                                                                       
  Energy Developments                                                         
  Oil is Equatorial Guinea's most valuable asset. Since the discovery of the  
  Zafiro field in 1995, production has increased more than tenfold, and oil has
  quickly become the country's most important export commodity, accounting for
  nearly 90% of the value of total exports in 2003. Equatorial Guinea is now  
  the third largest producer of crude oil in sub-Saharan Africa, after Nigeria
  and Angola. Equatorial Guinea's oil reserves are located mainly in the      
  hydrocarbon-rich Gulf of Guinea, containing estimated probable reserves as  
  high as 10% of the world total. As a result, large amounts of foreign       
  investment primarily by U.S. companies have poured into the country's oil   
  sector in recent years. Equatorial Guinea's total proven oil reserves are   
  estimated at 1.1 billion barrels.                                           
                                                                       
  Oil production from Equatorial Guinea is expanding rapidly, averaging 237,500
  bbl/d in 2003, of which 206,000 was crude. This represents a tremendous     
  increase from the 1996 oil output of 17,000 bbl/d. Production improvements  
  and expansion projects undertaken in 2003 pushed petroleum output even      
  higher, resulting in average production of 350,000 bbl/d for the first half 
  of 2004. In October 2004, the government capped production levels at 350,000
  bbl/d to extend the life of the country's petroleum reserves. Three         
  fields--Zafiro, Ceiba, and Alba--currently account for the majority of the  
  country's oil output.                                                       
                                                                       
  Equatorial Guinea's oil profits have expanded since 1998, when the country  
  introduced more liberal regulatory and profit sharing arrangements for      
  hydrocarbon exploration and production activities, including revised and    
  updated Production Sharing Contracts (PSCs). As a result, government oil    
  revenues increased from 13% to 20% of total oil export earnings. Although   
  significant, the government's share is still relatively small by            
  international standards.                                                    
                                                                       
  In 2001, GEPetrol became Equatorial Guinea's national oil company. It was   
  established as the primary state-run institution responsible for the        
  country's downstream oil sector activities. However, since 2001 its primary 
  focus has become managing the government's interest stakes in various PSCs  
  with foreign oil companies. GEPetrol also partners with foreign firms to    
  undertake exploration projects and has a say in the country's environmental 
  policy implementation. Plans to increase the government's stake in new and  
  existing PSCs have been discussed, but not formally pursued.                
                                                                       
  The majority of the reserves are found in the Zafiro field, located northwest
  of Bioko Island and south of Nigeria's offshore oil fields. In recent years,
  Exxon Mobil has focused on increasing production from Zafiro, expanding     
  drilling capacity to accommodate this plan. Zafiro is Equatorial Guinea's   
  largest oil producer, with output rising from an initial level of 7,000 bbl/d
  in August 1996 to approximately 280,000 bbl/d by 2004. Ceiba, Equatorial    
  Guinea's second major producing oil field, is located just offshore of Rio  
  Muni and is estimated to contain 300 million barrels of oil. Production at  
  Ceiba has risen dramatically during the past 2-3 years, following           
  improvements and upgrades to the facility. Alba, Equatorial Guinea's third  
  significant field was discovered in 1991. Original estimates of reserves at 
  Alba were around 68 million barrels of oil equivalent (BOE), but recent     
  exploration has increased new estimates significantly, to almost 1 billion  
  BOE. Unlike the Zafiro or Ceiba fields, exploration and production at Alba  
  has focused on natural gas, including condensates.                          
                                                                       
  Ceiba's discovery has significantly increased interest in petroleum         
  exploration of surrounding areas, with many new companies acquiring licenses
  in exploration blocks further offshore in the Rio Muni basin. International 
  companies with interests in one or more exploration blocks include Chevron  
  (U.S.), Vanco Energy (U.S.), Atlas Petroleum International (US), Devon Energy
  (US), Roc Oil (Australia), Petronas (Malaysia), Sasol Petroleum (South      
  Africa), and Glencore (Switzerland). In October 2004, Noble Energy Equatorial
  Guinea, an Equatoguinean subsidiary of American Noble Energy, Inc. signed a 
  contract to exploit a new oil field off the island of Bioko. Recently,      
  Equatorial Guineau gave the Chinese National Offshore Oil Company (CNOOC) the
  rights to its newest oil field. While China's capacity for deep-water       
  drilling remains thus far unproven, CNOOC expects to complete two new oil   
  rigs by 2009.                                                               
                                                                       
  Equatorial Guinea's natural gas reserves are located offshore Bioko Island, 
  primarily in the Alba and Zafiro oil and gas fields. Natural gas and        
  condensate production in Equatorial Guinea has expanded rapidly in the last 
  five years in response to new investments by major stakeholders in the Alba 
  natural gas field. Alba, the country's largest natural gas field, contains  
  1.3 trillion cubic feet (Tcf) of proven reserves, with probable reserves    
  estimated at 4.4 Tcf or more.                                               
                                                                       
  Marathon Oil and GE Petrol have joined together in a $1.4 billion deal to   
  construct a liquefied natural gas (LNG) facility on Bioko Island. In May    
  2003, the government gave final approval for the plan to construct an LNG   
  plant, once Marathon and GE Petrol had secured a 17-year purchase agreement 
  with British Gas (BG) of the United Kingdom. Under the contract, the LNG    
  facility will supply 3.4 million tons of LNG to BG, beginning in 2007. In   
  June 2005, Marathon and GE Petrol restructured the deal to include two      
  Japanese companies, Mitsui and Marubeni, as minority shareholders. Natural  
  gas consumption in Equatorial Guinea has increased in recent years, along   
  with higher production. Natural gas consumption jumped to 45 Bcf in 2002,   
  from approximately 1 Bcf during each of the four previous years.            
                                                                       
  DEFENSE                                                                     
  The Equatoguinean military consists of approximately 2,500 service members. 
  The largest contingent is the Army with 1,400 soldiers; the police have 400 
  para-military policemen, the Navy has 200 members and the Air Force has     
  approximately 120. There is a Gendarmerie but the exact number of members is
  unknown. All are very poorly trained, but the government is steadily        
  purchasing new equipment from Ukraine and China among others. In 2003, the  
  government spent $75 million on military expenditures, about 9% of the 2002 
  budget. Neither the Navy nor the Air Force has trained crews to operate or  
  maintain their equipment. Family and ethnic ties to the president determine 
  promotions and influence within the military. Military decision-making is   
  completely centralized with the President also serving as the Minister of   
  Defense.                                                                    
                                                                       
  Between 1984 and 1992, service members went regularly to the United States on
  the International Military Education Training program, after which funding  
  for this program for Equatorial Guinea ceased. U.S. military-to-military    
  engagement has been dormant since 1997 (the year of the last Joint Combined 
  Exchange Training Exercise), although their representatives did attend a    
  recent military hosted conference on Gulf of Guinea Security Cooperation.   
                                                                       
  FOREIGN RELATIONS                                                           
  A transitional agreement, signed in October 1968, implemented a Spanish     
  pre-independence decision to assist Equatorial Guinea and provided for the  
  temporary maintenance of Spanish forces there. A dispute with President     
  Macias in 1969 led to a request that all Spanish troops immediately depart, 
  and a large number of civilians left at the same time. Diplomatic relations 
  between the two countries were never broken but were suspended by Spain in  
  March 1977 in the wake of renewed disputes. After Macias' fall in 1979,     
  President Obiang asked for Spanish assistance, and since then, Spain has    
  regained its place of influence in Equatorial Guinea. The two countries     
  signed permanent agreements for economic and technical cooperation, private 
  concessions, and trade relations. Spain maintained a bilateral assistance   
  program in Equatorial Guinea. Most Equatoguinean opposition elements        
  (including a purported government-in-exile) are based in Spain to the       
  annoyance of the Equatoguinean Government. Relations between the two        
  countries grew difficult after the March 2004 coup attempt due to their     
  hosting opposition figure Severo Moto and their belief that Spain had       
  foreknowledge of the coup. However, the Spanish Foreign Minister, Miguel    
  Angel Moratinos, visited Equatorial Guinea in March 2005.                   
                                                                       
  Equatorial Guinea has had generally cordial relations with its neighbors. It
  is a member of the Central African Economic and Monetary Union (CEMAC), which
  includes Cameroon, Central African Republic, Chad, Congo/Brazzaville, and   
  Gabon. Equatorial Guinea is also part of the central Africa CFA franc zone, 
  and the Cameroon-based Bank of Central African States coordinates monetary  
  policy. The Bank of France guarantees the CFA franc, and French technical   
  advisers work in the finance and planning ministries. France, Spain, Cuba,  
  and China have participated in infrastructure and technical development     
  projects.                                                                   
                                                                       
  Equatorial Guinea had a minor border dispute with Cameroon that was resolved
  by the International Court of Justice in 2002. The Corisco border dispute   
  with Gabon was solved by an agreement signed with the help of UN mediation in
  January 2004, but the small island of Mbane and potentially oil-rich waters 
  surrounding it remain contested. The majority Fang ethnic group of mainland 
  Equatorial Guinea extends both north and south into the forests of Cameroon 
  and Gabon. Cameroon exports some food products to Equatorial Guinea and     
  imports oil from Equatorial Guinea for its refinery at nearby Limbe. The    
  development of the oil industry by U.S.-based companies and the lack of a   
  well-trained work force have provided motivation for an influx of           
  English-speaking workers (legal and illegal) from Cameroon, Nigeria, and    
  Ghana. (However, relations with the Nigerian Government have lately been    
  cordial as the two countries delineated their offshore borders to facilitate
  development of nearby gas fields.) Roundups and expulsion of foreigners     
  following the March 2004 coup attempt revived tensions between these        
  neighbors.                                                                  
                                                                       
  The government's official policy is one of nonalignment and it has been     
  reluctant to fully integrate itself into CEMAC. In its search for assistance
  to meet the goal of national reconstruction, the Government of Equatorial   
  Guinea has established diplomatic relations with numerous European and third
  world countries.                                                            
                                                                       
  U.S.-EQUATORIAL GUINEA RELATIONS                                            
  The Equatoguinean Government favorably views the U.S. Government and American
  companies. The United States is the largest single foreign investor in      
  Equatorial Guinea. U.S. companies have the largest and most visible foreign 
  presence in the country. In an effort to attract increased U.S. investment, 
  American passport-holders are entitled to visa-free entry for short visits. 
  The United States is the only country with this privilege. With the increased
  U.S. investment presence, relations between the U.S. and the Government of  
  Equatorial Guinea have been characterized by a positive, constructive       
  relationship.                                                               
                                                                       
  Equatorial Guinea maintains an embassy in Washington, DC, and has received  
  approval for a consulate in Houston, Texas. President Obiang has worked to  
  cultivate the Equatorial Guinea-U.S. relationship with regular visits to the
  U.S. for meetings with senior government and business leaders.              
                                                                       
  The 2005 U.S. State Department Human Rights report on Equatorial Guinea cited
  shortcomings in basic human rights, political freedom, and labor rights.    
  Equatorial Guinea attributes deficiencies to excessive zeal on the part of  
  local authorities and promises better control and sensitization. U.S.       
  Government policy involves constructive engagement with Equatorial Guinea to
  encourage an improvement in the human rights situation and positive use of  
  petroleum funds directed toward the development of a working civil society. 
  Equatoguineans visit the U.S. under programs sponsored by the U.S.          
  Government, American oil companies, and educational institutions. The       
  Ambassador's Self-Help Fund annually finances a number of small grassroots  
  projects.                                                                   
                                                                       
  In view of growing ties between U.S. companies and Equatorial Guinea, the   
  U.S. Government's overseas investment promotion agency, the Overseas Private
  Investment Corporation (OPIC), has concluded the largest agreement in       
  Sub-Saharan Africa for a major U.S. project in Equatorial Guinea. The U.S.  
  Agency for International Development has no Equatorial Guinea-related       
  programs or initiatives nor is the Peace Corps present. American-based      
  non-governmental organizations and other donor groups have very little      
  involvement in the country.                                                 
                                                                       
  Principal U.S. Embassy Officials                                            
  Ambassador--Donald C. Johnson                                               
  Deputy Chief of Mission--Sarah Morrison                                     
  Management/Consular Officer--Maureen McGovern                               
  USAID Contractor-Social Needs--William Gelman                               
                                                                       
  The United States has reopened its full-time Embassy in Malabo (limited     
  function), with the first resident Ambassador in 12 years. Inquiries should 
  be directed to: Tel: (240) 09.88.95; Fax: (240) 09.88.94. The street/mailing
  address is: Carretera de Aeropuerto KM-3 (El Paraiso), Apt. 95, Malabo,     
  Equatorial Guinea. The U.S. mailing address is American Embassy-Malabo,     
  Department of State, Washington, DC 20521-2320. Business hours are Monday to
  Thursday: 07:30 to 17:00; Friday: 07:30 to 12:30.                           
                                                                       
  TRAVEL AND BUSINESS INFORMATION                                             
  The U.S. Department of State's Consular Information Program advises Americans
  traveling and residing abroad through Consular Information Sheets, Public   
  Announcements, and Travel Warnings. Consular Information Sheets exist for all
  countries and include information on entry and exit requirements, currency  
  regulations, health conditions, safety and security, crime, political       
  disturbances, and the addresses of the U.S. embassies and consulates abroad.
  Public Announcements are issued to disseminate information quickly about    
  terrorist threats and other relatively short-term conditions overseas that  
  pose significant risks to the security of American travelers. Travel Warnings
  are issued when the State Department recommends that Americans avoid travel 
  to a certain country because the situation is dangerous or unstable.        
                                                                       
  For the latest security information, Americans living and traveling abroad  
  should regularly monitor the Department's Bureau of Consular Affairs Internet
  web site at http://www.travel.state.gov, where the current Worldwide Caution,
  Public Announcements, and Travel Warnings can be found. Consular Affairs    
  Publications, which contain information on obtaining passports and planning a
  safe trip abroad, are also available at http://www.travel.state.gov. For    
  additional information on international travel, see http://www.usa.gov/     
  Citizen/Topics/Travel/International.shtml.                                  
                                                                       
  The Department of State encourages all U.S citizens who traveling or residing
  abroad to register via the State Department's travel registration website or
  at the nearest U.S. embassy or consulate abroad. Registration will make your
  presence and whereabouts known in case it is necessary to contact you in an 
  emergency and will enable you to receive up-to-date information on security 
  conditions.                                                                 
                                                                       
  Emergency information concerning Americans traveling abroad may be obtained 
  by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular   
  toll line 1-202-501-4444 for callers outside the U.S. and Canada.           
                                                                       
  The National Passport Information Center (NPIC) is the U.S. Department of   
  State's single, centralized public contact center for U.S. passport         
  information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service   
  representatives and operators for TDD/TTY are available Monday-Friday, 7:00 
  a.m. to 12:00 midnight, Eastern Time, excluding federal holidays.           
                                                                       
  Travelers can check the latest health information with the U.S. Centers for 
  Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP
  (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the
  most recent health advisories, immunization recommendations or requirements,
  and advice on food and drinking water safety for regions and countries. A   
  booklet entitled "Health Information for International Travel" (HHS         
  publication number CDC-95-8280) is available from the U.S. Government       
  Printing Office, Washington, DC 20402, tel. (202) 512-1800.                 
                                                                       
  Further Electronic Information                                              
  Department of State Web Site. Available on the Internet at http://          
  www.state.gov, the Department of State web site provides timely, global     
  access to official U.S. foreign policy information, including Background    
  Notes and daily press briefings along with the directory of key officers of 
  Foreign Service posts and more. The Overseas Security Advisory Council (OSAC)
  provides security information and regional news that impact U.S. companies  
  working abroad through its website http://www.osac.gov                      
                                                                       
  Export.gov provides a portal to all export-related assistance and market    
  information offered by the federal government and provides trade leads, free
  export counseling, help with the export process, and more.                  
  STAT-USA/Internet, a service of the U.S. Department of Commerce, provides   
  authoritative economic, business, and international trade information from  
  the Federal government. The site includes current and historical            
  trade-related releases, international market research, trade opportunities, 
  and country analysis and provides access to the National Trade Data Bank.   

 

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