Favorable conditions for U.S. investment
in a modern, diversifying economy.President Obiang seeks U.S. companies for
IT, telecoms, fisheries, agribusiness, mining, tourism.
The government of Equatorial
Guinea laid out the welcome mat in Houston Monday for U.S.
investments in information technology, telecommunications, fisheries, construction,
agriculture and agroindustry, mining and hydrocarbons.
Some 200 representatives of companies from the Houston area
and beyond gathered for a day-long forum on the diversification of Equatorial
Guinea’s economy sponsored by the Greater
Houston Partnership, an organization that promotes economic
prosperity in the 10-county Houston region. They were joined by U.S.
Representatives Al Green (D-TX) and Sheila Jackson-Lee (D-TX).
President
Obiang Nguema Mbasogo and several cabinet members presented
the government’s plans to diversify the country’s economy, which is currently
largely dependent on petroleum extraction. The officials also explained the
regulatory regime, infrastructure, economic environment, government assistance
and economic incentives foreign investors will find in Equatorial Guinea,
including a one-stop shop to assist businesses in getting established.
Positive U.S. Role in
Remarkable Development
President
Obiang praised the role U.S. investment has played in
the development of his country over the last 15 years. He
noted that American companies had invested in Equatorial Guinea when it was
considered high-risk and had been amply rewarded. He placed total U.S.
investment in the country at nearly $30 billion, mostly in the oil and gas
sector. Much of that investment has come from Houston.
“Nearly 20 years ago, I made my first visit to Houston. At
that time, Equatorial Guinea was the poorest country on the continent…. I came
here and met with American businessmen and I invited them to invest in the
petroleum sector, owing to my disappointment when Spanish and French companies
determined after ten years of exploration that Equatorial Guinea did not have
petroleum. And at that time, I lamented I didn’t think nature could be so
unfair, since to the north, we have Nigeria which is a petroleum producer, and
to the south we have Gabon, which also has petroleum. And Cameroon also is a
petroleum producer. But Equatorial Guinea, which is in the midst of those three
countries, supposedly had none.”
He recalled that it was an American, Joe Walter, “who decided
to invest in Equatorial Guinea. He named his company Walter International. It
was a small company. And after six
months, he discovered the first gas deposits in the very field where the others
had spent ten years.”
Today, Equatorial Guinea is the third-largest producer of
petroleum in sub-Saharan Africa, and it has used its income from petroleum to
launch an ambitious program to develop its infrastructure. Called Horizon 2020,
the program’s goal is to make Equatorial Guinea a self-sufficient, emerging
economy by the year 2020. The nation has invested heavily in power generation,
ports, roads, education and health in an effort to create a modern
infrastructure and build the capacity of the nation’s people.
Today, Equatorial
Guinea attracts foreign migrants seeking opportunities
in its growing economy and makes strong efforts to control illegal immigration
in order to preserve opportunities for its citizens. Ninety-six percent of the
population is below the age of 64, and 40% is younger than 15. The literacy
rate is 93%.
Obiang expressed confidence in the ability of American
companies to help diversify the economy in an environment that now has few
risks. Equatorial Guinea is “now considered a model country in African
development,” said President
Obiang, and other African countries frequently consult
with his government in formulating their own development policies.
The government officials at the forum revealed that
Equatorial Guinea offers numerous services and incentives to investors,
including significant reductions in taxes, fees and duties, a favorable
regulatory regime and a one-stop shop in government to assist investors in
getting established.
Telecommunications
Solve Challenges of Geography
Equatorial
Guinea is composed of territory on the African
continent and several islands. The capital, Malabo, is on the island of Bioko
while the nation’s business and financial center, Bata, is located on the
mainland. This geography has made telecommunications a high priority for the
government, which currently is upgrading its network and has three companies
providing telephone, wireless and Internet service. A fiber-optic network and
an undersea cable connecting Bioko and the mainland territory, Rio Muni, will
form the country’s telecommunications backbone.
The country is developing its petrochemical industry and is
building storage and port facilities for natural gas.
In agriculture, Equatorial
Guinea is a traditional exporter of high-quality cacao
and other tropical products, such as coconut and palm oil. President
Obiang and other officials hope to promote the
production of tropical fruits and plants, peanuts, corn and other agricultural
products, and further develop the nation’s livestock industry.
Equatorial
Guinea’s exclusive maritime economic zone is ten times
larger than its land mass, with vast potential for fisheries. Officials also pointed
out deposits of gold, diamonds, manganese and tantalum that offer potential for
mining investment.
Tourism is another area with potential for investment.
Officials pointed out the country’s unspoiled beaches and forests and the
presence of major companies such as Hilton and Accor operating modern hotels.
