EQUATORIAL GUINEA. CHALLENGES OF OIL-DRIVEN ECONOMY

10.31857/S032150750009549-5

Vladilen I. GUSAROV
Dr.Sc. (Geography), PhD (Economics), Leading Research Fellow, Institute for African Studies, Russian Academy of Sciences ( This email address is being protected from spambots. You need JavaScript enabled to view it. )

Liudmila N. KALINICHENKO
Senior Research Fellow, Institute for African Studies, Russian Academy of Sciences ( This email address is being protected from spambots. You need JavaScript enabled to view it. )

   The article considers the achievements and challenges of Equatorial Guinea’s economic development, which became in the middle of 2000s one of Africa’s fastest-growing economies and third- largest oil producer and exporter in Sub-Saharan Africa.

   The country started to implement the National economic development plan Horizon 2020 aimed mainly at infrastructure creation and social problems solving. There were some positive results such as the construction of several motorways, runways, reconstruction of ports in Malabo, Luba and Bata, creation of telecommunication system, building of some hospitals, schools and international conference centre.

   Despite of one of the highest indicators of income per capita among African countries at that period, most part of population was still living in poverty. Besides, according to Transparency International organization’s estimate corruption was one of the greatest problems for the country.  Unfortunately, macroeconomic and fiscal situation deteriorated due to the energy market crisis breaking out in 2008 and 2014, which was accompanied by depletion of oil reserves and low level of other sectors development.

   As economic recession has already continued for 6 years, the government has developed interim strategy for the period 2020–2022 which envisages on the one hand economic diversification and on the other, attraction of international investment for researching new hydrocarbon resources. Attention is also paid to the natural gas processing and export.

   Equatorial Guinea is interested in cooperation with Russian companies in energy sphere, which was discussed at the highest level at the Russia – Africa summit in October 2019. As a result, such corporations as Lukoil and Rosgeologiya have concluded contracts for hydrocarbon research.