Introduction:
Equatorial Guinea gained independence in 1968 after 190 years of Spanish rule.
This tiny country, composed of a mainland portion plus five inhabited islands,
is one of the smallest on the African continent. President Teodoro OBIANG NGUEMA
MBASOGO has ruled the country since 1979 when he seized power in a coup.
Although nominally a constitutional democracy since 1991, the 1996 and 2002
presidential elections - as well as the 1999 and 2004 legislative elections -
were widely seen as flawed. The president exerts almost total control over the
political system and has discouraged political opposition. Equatorial Guinea has
experienced rapid economic growth due to the discovery of large offshore oil
reserves, and in the last decade has become Sub-Saharan Africa's third largest
oil exporter. Despite the country's economic windfall from oil production
resulting in a massive increase in government revenue in recent years, there
have been few improvements in the population's living standards.
|
Geography
|
Climate:
MALABO 3 75 N, 8 76 E, 183 feet (56 meters) above sea
level.
|
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.
On August 3, 1979 the 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 AND POLITICAL
CONDITIONS
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
|
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.
|
Military
|
| Navigate through the articles | |
Egypt
|
Eritrea
|
