page_title: Equatorial Guinea
section_title: Economy
hierarchical_section_title: Equatorial Guinea / Economy
caption_attribution_description: English: Export Trading Treemap. From MIT/Harvard Atlas of Economic Complexity
context_page_description: Equatorial Guinea, officially the Republic of Equatorial Guinea, is a country located on the west coast of Central Africa, with an area of 28,000 square kilometres. Formerly the colony of Spanish Guinea, its post-independence name evokes its location near both the Equator and the Gulf of Guinea. Equatorial Guinea is the only sovereign African state in which Spanish is an official language. As of 2015, the country had a population of 1,225,367.
  Equatorial Guinea consists of two parts, an insular and a mainland region. The insular region consists of the islands of Bioko in the Gulf of Guinea and Annobón, a small volcanic island which is the only part of the country south of the equator. Bioko Island is the northernmost part of Equatorial Guinea and is the site of the country's capital, Malabo. The Portuguese-speaking island nation of São Tomé and Príncipe is located between Bioko and Annobón. The mainland region, Río Muni, is bordered by Cameroon on the north and Gabon on the south and east. It is the location of Bata, Equatorial Guinea's largest city, and Ciudad de la Paz, the country's planned future capital.
context_section_description: Before independence Equatorial Guinea exported cocoa, coffee and timber, mostly to its colonial ruler, Spain, but also to Germany and the UK. On 1 January 1985, the country became the first non-Francophone African member of the franc zone, adopting the CFA franc as its currency. The national currency, the ekwele, had previously been linked to the Spanish peseta.
  The discovery of large oil reserves in 1996 and its subsequent exploitation contributed to a dramatic increase in government revenue. As of 2004, Equatorial Guinea is the third-largest oil producer in Sub-Saharan Africa. Its oil production has risen to 360,000 barrels per day (57,000 m³/d), up from 220,000 only two years earlier.
  Forestry, farming, and fishing are also major components of GDP. Subsistence farming predominates. The deterioration of the rural economy under successive brutal regimes has diminished any potential for agriculture-led growth.
  In July 2004, the United States Senate published an investigation into Riggs Bank, a Washington-based bank into which most of Equatorial Guinea's oil revenues were paid until recently, and which also banked for Chile's Augusto Pinochet. The Senate report showed at least $35 million siphoned off by Obiang, his family and regime senior officials. The president has denied any wrongdoing. Riggs Bank in February 2005 paid $9 million in restitution for Pinochet's banking, no restitution was made with regard to Equatorial Guinea.
  From 2000 to 2010, Equatorial Guinea had the highest average annual increase in GDP (Gross Domestic Product), 17%.
  Equatorial Guinea is a member of the Organization for the Harmonization of Business Law in Africa (OHADA). Equatorial Guinea tried to be validated as an Extractive Industries Transparency Initiative (EITI)–compliant country, working toward transparency in reporting of oil revenues and prudent use of natural resource wealth. The country obtained candidate status on 22 February 2008. It was then required to meet a number of obligations to do so, including committing to working with civil society and companies on EITI implementation, appointing a senior individual to lead on EITI implementation, and publishing a fully costed Work Plan with measurable targets, a timetable for implementation and an assessment of capacity constraints. However, when Equatorial Guinea applied to extend the deadline for completing EITI validation, the EITI Board did not agree to the extension.
  According to the World Bank, Equatorial Guinea has the highest GNI (Gross National Income) per capita of any African country, 83 times larger than the GNI per capita of Burundi, the poorest country.
  Yet despite its impressive GNI figure, Equatorial Guinea is plagued by extreme poverty because its Gini coefficient of 65.0 is the highest in the entire world.
caption: A proportional representation of Equatorial Guinea's exports.
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