- The government of South Africa has signed a trade and investment promotion accord with the small central African dictatorship of Equatorial Guinea, currently going through an oil boom. South Africa hopes to play a greater role in the increased oil production and economic boom in central Africa.
The accord was signed during the Pretoria visit of Equatoguinean Minister of Foreign Affairs, Pastor Micha Ondo Bile. He met with South African Minister of Foreign Affairs, Nkosazana Dlamini Zuma, "for bilateral political and economic discussions," according to the South African Ministry.
Ministers Dlamini Zuma and Ondo Bile concluded the bilateral meeting with the signing of the Reciprocal Promotion and Protection of Investments Agreement aimed at increasing trade and investment between South Africa and Equatorial Guinea.
For South Africa's industry, enhanced economic ties with Equatorial Guinea are of great interest due to the ongoing economic boom in the small central African country. Equatorial Guinea is turning into one of Africa's major oil producers and revenues from the sector have led to increased spending in other sectors, especially in luxury products by the country's elite.
But also the Equatoguinean oil sector in itself is interesting for the South African industry and South African oil companies have participated in the offshore oil exploration and production in Equatorial Guinea. Further, Cape Town is currently trying to promote itself as the regional hub for the oil sector of central Africa - including Equatorial Guinea, Gabon, São Tomé, the Congos and Angola - in competition with Nigeria.
According to South African diplomatic sources, the bilateral meeting in Pretoria had given concrete South Africa is now to send "a multi-disciplinary team of senior officials to Equatorial Guinea to elaborate on areas of cooperation," the Ministry said. This will be followed by the convening of a Joint Bilateral Commission "whose dates will be finalised through diplomatic channels."
The Equatoguinean Foreign Minister was also accompanied by his colleagues, the Minister of Finance, Marcelino Owondo Edu and the Deputy Minister of Mines and Hydro-carbons, Gabriel Nguema Lima, who met their South African counterparts. The two Ministers held discussions "to explore areas of co-operation in minerals and energy sector" and regarding "technical co-operation in financial matters with particular emphasis on tax collection and revenue services."
According to the South African Ministry of Foreign Affairs, the two countries also agreed to enhance their military cooperation. The "security and defence spheres" had been central at the Pretoria discussions. The unpopular Equatoguinean regime lives in constant fear of a possible military coup.
Until a few years ago, Equatorial Guinea found it very difficult to attract foreign investments, mainly due to the very repressive regime of President Teodoro Obiang Nguema. Also South Africa has traditionally held a low profile in its contacts with Equatorial Guinea.
US and French investments in the booming oil sector without any human rights improvements in the country however broke the ice and this year, even ex-colonial power Spain totally normalised its relation with the Obiang regime.
The South African Ministry of Foreign Affairs did not comment on whether human rights issues had been discussed in Pretoria. Minister Dlamini Zuma however had raised the issue of the New Partnership for Africa's Development (NEPAD), which obliges the Equatoguinean regime to improver governance and enhance democracy.
The Malabo regime is reputed for its systematic violations of human rights, including routine use of torture to suppress the opposition and the press, arbitrary detentions, censorship and non-existing labour rights. All powers are in the hand of President Obiang and his extended family and fair elections have not occurred since 1968.
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