Equatorial Guinea
Equatorial Guinea expects economic growth of 70%

afrol News, 18 November - Oil is the answer to the question on why the national economy of Equatorial Guinea is expected to grow by an incredible 70 percent in 2001 - and a low population of 450,000. But what is it like in the world's fastest growing economy?

One might expect construction sites everywhere, loads of nouveaux riches in a flamboyant nightlife, immense development projects and lack of skilled labour. Equatorial Guinea is different. The boom is noted by the lucky few holding power and of course multinational companies.

Some construction and infrastructure investments have however been done since the first, modest offshore oil and gas revenues came in 1991. Equatoguinean President Teodoro Obiang Nguema on 5 November for example inaugurated the upgraded Bata international airport after eight years of constructions. 

Equatoguinean Transport Minister Marcelino Oyono Ntutumu told the press in Bata that the airport in the country's second town "has ultra modern equipment, making it operative as an international airport." The town of less than 100,000 inhabitants might now "receive large aircrafts" from all over the world. 

Minister Ntutumu somehow underlined the recent analysis by BBC journalist Joan Tull, that the Equatoguinean authorities "perhaps see their overriding aim as to have what other countries have, to be seen as a 'serious' nation." 

Mr. Tull had interviewed Information, Tourism and Culture Minister Lucas Esono about what to do with the new oil revenues. Asked why one had invested million dollars building an international conference centre, an annoyed Esono answered, "Look, some countries have five conference centres and you would deny us the only one we have." 

All reports from Equatorial Guinea agree that the incredible revenue increases over the last five years have not reached the average Equatoguinean. Although GDP per capita has risen from an estimated US$ 450 in 1996 to an estimated US$ 2,200 in ten years (2001), Equatoguineans would have some trouble understanding the literate meaning of "per capita". 

With an oil production of 200,000 barrels a day, the country reaches one tenth of the Nigerian production (2,132,000 b/d according to the last OPEC quota). However, it has only 0.4% of Nigeria's population (450,000 as to Nigeria's 120 million). 

According to IMF sources, Equatoguinean real GDP started booming in 1995. The all-time-high so far has been a GDP growth of 71.2 percent in 1997, which might very well be repeated in 2001. Although the timber and agricultural sectors also have been increasing over the last years, most of the growth is attributed to the oil sector, which has doubled its production every second year since 1997. 

An IMF report released in October emphasised on the inadequacies of the Equatoguinean government's management of the increased revenues. The report "underscored the need to ... promote diversification, create an environment conducive to private sector activity, and establish the foundations for broad-based growth and poverty reduction."

The IMF directors especially emphasised "the importance of civil service reform and privatisation." Avoiding the term "corruption", the report stated that, "The management of oil contracts lacks transparency, and there is no fiscal control over the payments due from, and paid by the oil companies. Government oil revenue is paid into treasury accounts held abroad." 

President Obiang himself has addressed the corruption problem, repeatedly pledging not to repeat the mistakes of neighbours, like Nigeria and Gabon, "that have squandered huge amounts of export earnings." By the Equatoguinean opposition, however, Obiang is described as the central player of a web of corruption, spun by the small elite in power, mostly his own family and clan members. Gross human rights violations accompany his autocratic rule, admitting total personal control of the country's natural resources.

The oppositional UDI earlier stated its concern to afrol News that Equatoguinean oil revenues had enhanced the oppression and softened Western critics of human rights abuses. The exiled party was alienated by the fact that Western countries "exclusively obey economic interests and give into this regime, marginalizing our people together with the Equatorial Guinean opposition."

Despite having the second high GDP per capita in the region (after Gabon), the living standard of the majority of Equatoguineans remains the poorest in the zone. No positive trends in this respect have been noted since the oil boom started in 1997, according to independent reports. 

An angry local journalist told the BBC's Joan Tull in Malabo, "Our per capita GDP is now US$ 2,220. But look around you, walk through our streets, where is it?" That seems to be the most widely asked question among Equatoguineans nowadays. 

Sources: IMF, BBC and afrol archives 

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