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COUNTRY FOCUS The US and China are major investors PULL QUOTES: [There is tension between conservative and progressive factions] investors, who discussed ways to put [It is the only Spanish-speaking country in Africa] the country back on the agenda for [] global investment after decades of less [] business-friendly policies. “Equatorial Guinea is today a fertile PIC SUGGESTIONS: ground for private investment,” President I think the pic choice will depend very much on what’s available from the image Obiang Nguema Mbasogo told the libraries – there is probably very little out there about Equatorial Guinea. We are conference. He has ruled the country looking for pics of the capital, pics of business situations, oil and gas drilling etc. Not since 1979 when he took power from his abject poverty or conflict. uncle in a bloody coup d’etat – making him the longest-serving president in Africa. o e re ident iang guema a ogo and i ife on tancia pictured • The nation, which was granted in at a reception in e or it re identia coup e arac and ic e e ama eodor n t e e de t on of uatoria uinea pre ident • independence from Spain in 1968 and a indicted in rance on mone aundering c arge ear ier t i ear • now has the distinction of being the only • Spanish-speaking country in Africa, has just one opposition member of parliament. Aiming for diversity though the government is serious about Most of the country is an island, while One of the stated aims of the recent uplifting the country.” the rest is made up of a small wedge of investor conference was to find ways But he found the capital, Malabo, land bordered by Cameroon, Gabon and to diversify the economy away from “pretty run down” with fading colonial the Atlantic Ocean. Yet, remarkably, it hydrocarbons. As a result, the government façades from Spanish colonial rule. appears to boast the highest level of per agreed to launch a US$1-billion co- “There are signs of renovation and capita income in sub-Saharan Africa, at investment fund to help balance the gentrification but it is still a long way US$22 300 a year per capita income (on a economy. It is encouraging investment from being considered clean and purchasing power parity basis), according in sectors such as tourism, mining, functional,” Harland observes. to the World Bank. This, in theory, puts agriculture, financial services and fisheries, Amirehsani says that a few blocks it ahead of Africa’s largest economies: observes Nicholas Harland, Editor of South away from the “swanky thoroughfares” Nigeria at US$1 555 and South Africa at African-based Business Brief magazine, of Malabo, the majority of the population US$7 352 (2012 figures). who attended the conference. can be found “in mildew-prone, But this statistic is not quite as it “There was a lot of chatter about how corrugated iron-roofed tenements, seems. Equatorial Guinea’s wealth comes Equatorial Guinea could be the Dubai of often with no water or electricity”. He from its huge oil and gas reserves, which West Africa, which I do not doubt … but adds that the country is investing in are among the five largest in Africa, there’s a long, long way to go, considering “grandiose” infrastructure projects, according to US-based international trade that there are no buildings higher than 10 including massive sports facilities and the policy researcher, Kevin Amirehsani. storeys,” he says. Nevertheless, Harland creation of a potential new capital, Oyala. However, the wealth has not trickled did see signs of rapid development. He down to the majority of the population, stayed in Sipopo, a newly-established Investor beware with around three-quarters estimated to area with a five-star hotel, golf course, Although the International Monetary live in poverty. beach resort and conference centre. Fund has ranked Equatorial Guinea as the “Vast oil revenues fund lavish lifestyles “This area, I believe, is used to country receiving the most investment for the small elite surrounding the show off to foreigners arriving how in the world in proportion to its GDP, it president, while most of the population much progress they’re making. It is like has its investment hurdles. Chief among lives in poverty [with] their basic a tourism marketing zone,” he notes. them is endemic corruption. economic and social rights unmet,” says Alongside the first-class road between As Blas wrote in the Financial Times, PHOTOS: AFEX GLOBAL, ISTOCKPHOTO, SUPPLIED Human Rights Watch. Sipopo and the airport, Harland saw the Obiang family “controls all the levers The US is one of the largest investors many brand new offices of insurance of political power and business”. The in the country, with gas companies companies, banks, investments houses president’s eldest son, Teodoro Nguema ExxonMobil, Hess, Marathon and Noble and engineering firms, noting that: Obiang, is vice president in charge of among the big operators. China is also a “There does seem to be a lot of security, while another son runs the significant investor. construction on the go, so it appears as oil ministry. 46 strategicmarketingafrica Third quarter 2014 45-47 Country Focus v2.indd 32 2014/06/26 3:46 PM