According to cheeroutdoor, Equatorial Guinea is a small, oil-rich country located in Central Africa. It has a population of about 1.3 million people and a GDP of approximately $13 billion, making it one of the wealthiest countries in Africa. The economy is heavily reliant on the petroleum sector, which accounts for over 80% of government revenues and 90% of export earnings. Oil and gas production have been the main drivers of economic growth since the country gained independence from Spain in 1968.
The government has implemented various policies to diversify its economy away from its dependence on oil and gas production. This includes investing in agriculture, fishing, and tourism as well as encouraging foreign direct investment (FDI). Agriculture is an important sector for Equatorial Guinea, with most households relying on subsistence farming for their livelihoods. The fishing industry also provides employment opportunities, while tourism is beginning to take off thanks to the country’s abundant natural beauty and wildlife attractions.
Despite these efforts to diversify its economy, Equatorial Guinea remains heavily dependent on oil and gas production for economic growth. This reliance has made the country vulnerable to fluctuations in global demand for petroleum products due to volatile oil prices. As a result, Equatorial Guinea’s economy can suffer significantly when global oil prices drop or when production is disrupted due to political instability or other factors beyond its control.
The government has also struggled to combat high levels of corruption which has hindered economic development by creating an environment that is hostile towards investment and entrepreneurship. This problem has been compounded by inadequate infrastructure which makes it difficult for businesses to operate efficiently within Equatorial Guinea’s borders due to poor roads, unreliable electricity supply, limited access to clean water and sanitation systems as well as limited access to healthcare services among other issues.
Despite these challenges, Equatorial Guinea still offers potential investors attractive investment opportunities such as low corporate tax rates (5%), competitive labor costs (the lowest salaries among African countries) along with generous incentives for foreign investors such as repatriation of profits without any restrictions or taxes imposed by the government. However given its heavy reliance on oil exports it would be wise for any investor considering entering this market to study the current macroeconomic situation closely before committing any funds into this market given how volatile global commodity prices can be at times.
Around the 13th century struck the people catch and ndowe settled in the area now known as Rio Muni. They displaced the pygmy population (bayele), of which there are today only small groups. The Fang and Ndowe people also spread to the islands, which in the 15th century were referred to as “densely populated”.
After dividing Africa into colonies, Río Muni along with the islands came to be called Equatorial Guinea. The Portuguese, the Dutch and the English made ndowe the people their allies and middlemen in the slave trade, while the capt people who did not know slaves retreated to the jungle, convinced that the Europeans were human eaters.
According to COUNTRYAAH, the kings of Portugal perceived themselves as lords over Equatorial Guinea and conferred with the San Ildefonso and Pardo Treaties in 1777 and 78 the district of Biafra, to gain the right to the Spanish territories of southern Brazil. Yet they fought for the islands, which were initially occupied by French and British until Britain took full control and founded the first cities. They made freed slaves their agents and thus helped to create a leading class that continues to exist today.
In 1843-58, Spain militarily recaptured the area and its “rights” were recognized. Cocoa, coffee and timber became the country’s economic focal point, but it was controlled far away and not very efficiently. During the Spanish Civil War in 1936-39, the colonists supported General Franco, who subsequently gave them almost total power over the country. Admiral Carrero Blanco – Prime Minister of Franco – owned Equatorial Guinea’s largest cocoa plantation.
From 1963, the colony gained a form of internal autonomy that allowed the existence of 3 legal political organizations: MONALLY (Movimiento Nacional de Liberación de Guinea Ecuatorial, Equatorial Guinea National Liberation Movement), MUNGE, (Movimiento de Unión Nacional de Guinea Ecuatorial, Equatorial Guinea) and IPGE (Idea Popular de Guinea Ecuatorial, Equatorial Guinea People’s Idea). Meanwhile, international pressure on Spain increased, recognizing Equatorial Guinea’s independence, proclaimed on October 12, 1968.
After independence, IPGE leader Francisco Macías Nguema took over the presidential post in a coalition between IPGE and two important shelled groups of MUNGE and MONALIGE that emerged during the struggle for independence.
Note: the capital city of Equatorial Guinea, abbreviated as GNQ by abbreviationfinder.org, is Malabo with a population of 297,000 (UN estimate 2018). Other major cities include Recovery with a population of 455,000 (UN estimate 2020).
Almost one year after the takeover of power, Macías launched a violent suppression of the opposition, on the pretext of a supposed coup d’état. Thousands were sent to prison, murdered or disappeared and 160,000 sent into exile. While Amnesty International condemned the disappearance of two-thirds of the members of the National Assembly, Macías Nguema escalated the repression: all political parties were dissolved and replaced by the Partido Unico Tradicional de los Trabajadores (Workers Traditional Unity Party, POINT). He declared himself president of a lifetime and a top teacher in folk education, science and culture. The organization “Youth in March with Macías” was responsible for the spread of terror, and it extended to Catholic clergy and Protestant missionaries.