Equatorial Guinea

Investment & 
Operational
Climate

The investment climate in Equatorial Guinea reflects a lack of clear rules and regulations to establish and run a business, a lack of investment in critical infrastructure like power generation, and a lack of follow-through on high-level commitments to economic diversification or increased transparency. Additionally, ministers and ruling family members own important businesses and win many contracts. There have been instances in the past decades of government officials abusing their power or access to power to imprison or mistreat individuals with whom they have a business dispute. Though the government has communicated its intentions to foster private sector participation in its plan for economic diversification, no concrete steps were taken last year toward creating a sound enabling environment for foreign direct investment ("FDI"). While a requirement to partner with a local organization was removed five years ago, uncertainty still drives foreign investors to look for a local partner or guide to work through overwhelming bureaucracy in the public administration and unclear, informal requirements for registration and operation. Plans to establish an Investment Promotion Agency were not implemented during this period, even though it was listed as priority for the new Minister of Planning and Economic Diversification. In addition, major investments decisions are still being discussed at the presidential level with direct intervention from the vice president.