Foreignpolicyequatorialguinea

S P E C I A L A D V E R T I S I N G S E C T I O N Equatorial Guinea

The rebirth of a nation

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EQUATORIAL GUINEA FP 1-16.qxd 28/10/10 19:16 Página 1

The Fortune Global Forum each year bringstogether the Fortune 500 CEOs,heads of stateand other dignitaries to discuss global eco-nomic dynamics.This year’s forum,held in CapeTown from June 26-28 and entitled ‘The NewGlobal Opportunity’,was also attended by Time100 members – the world’s most influentialpeople from diverse fields – as well as the Pres-ident of the Republic of Equatorial GuineaTeodoro Obiang Nguema Mbasogo.

Dedicated to exploring the extraordinarypromise of the developing world with a specialemphasis on Africa and its youthful and grow-ing population of 900 million consumers,the 2010forum did indeed witness some extraordinary,though unexpected, and far-reaching events.

Firstly, Sub-Saharan Africa was exposed. Par-ticipants, who were briefed on the opportuni-ties and growth in the 48 countries that makeup the region by the McKinsey Global Institute,

came away effective-ly shaking their headsin surprise, whileglobal market ana-lysts immediately fol-lowed up by urgingemerging marketinvestors to take anew look at the area.

Secondly,PresidentObiang addressedthe forum and an-nounced that Equa-torial Guinea waseffectively ‘turning thepage’.

In the speech that followed,the President out-lined five major steps that will be taken in orderto fuel the country’s ongoing development,andto launch it into a new era. Over the nextdecade, his government will: 1) Ensure Equato-rial Guinea’s membership in the Extractive Indus-tries Transparency Initiative; 2) Develop thesocial sectors; 3)Reform judicial institutions;4)Maintain close relations with international humanrights organizations;and 5) Work to ensure thecountry’s environmental preservation.

The President concluded by saying,“We havea long road ahead of us to achieve these goals.In many ways, we must radically change thecourse of our history and some of our cul-ture.We will not ask those global groups whohave criticized us to look the other way, butwe do ask for patience and support from theinternational community so that we can becomea full member of the world’s democracies.”

Equatorial Guinea S P E C I A L A D V E R T I S I N G S E C T I O N

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A new approach forsustainablegrowthTThhiiss ppaasstt ssuummmmeerr aasstthhee eeyyeess ooff tthhee wwoorrllddffoolllloowweedd tthheeuunnffoollddiinngg ddrraammaa ooffWWoorrlldd CCuupp ssoocccceerr iinnSSoouutthh AAffrriiccaa,, aannootthheerrlleesssseerr--kknnoowwnn eevveenntt,,bbuutt wwiitthh ffaarr mmoorreelloonngg--tteerrmm gglloobbaalliimmppaacctt,, wwaass ttaakkiinnggppllaaccee aatt tthhee ssaammeettiimmee jjuusstt ddoowwnn tthheerrooaadd..EEqquuaattoorriiaall GGuuiinneeaa’’ssPPrreessiiddeenntt OObbiiaannggaatttteennddeedd tthhee FFoorrttuunneeGGlloobbaall FFoorruumm ttoopprreesseenntt ttoo ootthheerraatttteennddeeeess tthhee nneewwaanndd iimmpprroovveedd ffaaccee ooffaa nnaattiioonn tthhaatt iissrreeaarriinngg ttoo ddeevveellooppuunnddeerr ssuussttaaiinnaabblleepprriinncciipplleess

THIS SUPPLEMENT TO FOREIGN POLICY WAS PRODUCED BY UNIVERSAL NEWS Suite 341, Chrysler Building, 132 East 43rd Street New York, NY 10017 Tel: (212) 497-5057 Fax: (212) 845-8305 universalnews@universal news-us.comwww.universalnews-us.com

EQUATORIAL GUINEA PROJECT:Andrea Soifer, Project DirectorJuan Carlos Jover, Editorial Director

IInnddeeppeennddeenncceeEquatorial Guinea gained inde-pendence in 1968 after 190years of Spanish rulePPeettrroolleeuumm IInndduussttrryyThe nation has experiencedrapid economic growth due tothe discovery of large offshore

oil reserves, and inthe last decade hasbecome sub-Saha-ran Africa’s third-largest oil exporterLLooccaattiioonnWestern Africa,bordering the Bight of Biafra,between Cameroon andGabon

AArreeaa17,430 sq miles -slightly smallerthan Maryland NNaattuurraallRReessoouurrcceessPetroleum, nat-

ural gas, timber, gold, baux-ite, diamonds, tantalum, clay,sand and gravel

AAtt aa ggllaannccee

UU..SS.. PPrreessiiddeennttBBaarraacckk OObbaammaa aannddFFiirrsstt LLaaddyy MMiicchheelllleeOObbaammaa mmeeeett wwiitthhEEqquuaattoogguuiinneeaannPPrreessiiddeenntt TTeeooddoorrooOObbiiaanngg aanndd FFiirrssttLLaaddyy CCoonnssttaanncciiaaMMaanngguuee ddee OObbiiaannggiinn NNeeww YYoorrkk iinn22001100


Equatorial GuineaS P E C I A L A D V E R T I S I N G S E C T I O N

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Nearly 95% of EG’s GDP isderived from its hydrocarbonindustry.As Minister of Mines,Industry & Energy, MarcelinoOwono Edu oversees the vastreserves that have transformedthe country into Sub-Saharan

Africa’s third largest producerof crude oil, currently pumpingmore than 400,000 bpd.

The country is looking to dou-ble output of natural gas in orderto serve gas-hungry Europe andbecome a greater source of

regional electricity supply.In col-laboration with Germany’s E.ONRuhrgas, Spain’s Union Fenosa,

and Portugal’s Galp Energia,state-owned Sonagas is in the processof drafting a sector master planthat should be completed by theend of this year.

Minister Owono creditsNorth American companies formuch of the success of the coun-try’s oil industry and says EG isseeking to ramp up activitythroughout the sector throughnew investment.

“We want to attract more FDIthroughout the sector’s entirevalue chain,” he says,adding thata new licensing round will openat the end of 2010.

The pillar of growth Hydrocarbons are leveragingthe country’s development

MMaarrcceelliinnoo OOwwoonnoo EEdduu,,MMiinniisstteerr ooff MMiinneess,, IInndduussttrryyaanndd EEnneerrggyy

A milestonefor thesubregion’shydrocarbonindustryCCrreeaatteedd iinn 22000011 ttoottaakkee oovveerr tthhee ddiirreeccttmmaannaaggeemmeenntt ooff tthheeccoouunnttrryy’’ss ppeettrroolleeuummaasssseettss,, ssttaattee ooiill ggiiaannttGGEEPPeettrrooll hhaass ssiinncceeggoonnee oonn ttoo eexxcceeeeddeexxppeeccttaattiioonnss,,bbeeccoommiinngg tthhee ffiirrssttCCeennttrraall AAffrriiccaannccoommppaannyy ttoo ooppeerraattee aabblloocckk ooff iittss oowwnn –– aannaacchhiieevveemmeenntt tthhaattGGEEPPeettrrooll’’ssmmaannaaggeemmeenntt ssaayyss iiss aammiilleessttoonnee ffoorr tthheessuubbrreeggiioonn’’sshhyyddrrooccaarrbboonn iinndduussttrryy

Becoming an oil and gas operator in Equato-rial Guinea is no small accomplishment. “Weare very proud of the fact that we are the firstnational petroleum company in Central Africato do so.We have long worked with interna-tional companies, and our meetings with themmotivated us to become an operator oursel-ves,” says GEPetrol general manager CándidoNsue Okomo.

In addition to being the technical operatorof Equatorial Guinea’s offshore Block P, GEPe-trol manages the state’s participation in E&P con-tracts, acts as an agent for the sale of thegovernment’s share of hydrocarbons and forlicensing open acreage within the country, andparticipates in commercial ventures with othernational and foreign companies both in Equa-torial Guinea and abroad.GEPetrol works clo-sely with the Ministry of Mines, Industry andEnergy, the overall regulatory and administra-tive body for the sector.

GEPetrol’s partnerships include GESeis,a jointventure with Terra Energy that undertakes seis-

mic work for operators in the country, andwhich is used by GEPetrol to survey unlicen-sed areas. GEPetrol is also an active investorand partner in Luba Freeport, which GEPetrolhopes to develop as a West African oil serviceshub. Indeed, Luba is already the preferred basefor most operators in the country, fast reali-zing GEPetrol’s vision of converting the free portinto the operational hub for general Gulf of Gui-nea activities.

In downstream operations,GEPetrol is a part-ner in the Equatorial Guinea LNG Company, inaddition to other ventures.The Equatorial Gui-nea LNG Company, a joint venture betweenMarathon Oil and the state company, operatesan LNG facility at Punta Europa on Bioko Island,which shipped its first product in May 2007. InMay of this year,GEPetrol announced plans fora new 20,000 barrel per day oil refinery at Mbi-ni on the Atlantic coast. It also unveiled plansto build a nationwide network of service sta-tions,construction on which is expected to getunder way before the end of the year.

GGEEPPeettrrooll hhaass uunnvveeiilleedd ppllaannss ttoo ccrreeaattee aa nneettwwoorrkk ooff sseerrvviiccee ssttaattiioonnss aaccrroossss tthhee ccoouunnttrryy


While Segesa has built up capac-ity, its distribution network re-quires a bit of fine-tuning. Powersupply is still at times unreliablein the country due to aging equip-ment,and blackouts are not un-heard of in the nation’s capital.

Consequently, and in line with the development goals ofthe Horizon 2020 national strat-egy,efforts are underway to mod-ernize the grid,and some of thegovernment’s largest infra-struc-ture investments to date havebeen destined to this end.

“We consider that electricalpower is a key element in thedevelopment process. Large-scale projects are now underwayon a national level in the coun-try’s electricity sector aimed pri-marily at ensuring that electricitycoverage is available throughoutthe entire country, and also atensuring that it is a quality and low-cost electricity supply,” commentsJuan Lupercio Nsibi Omogo,Sege-sa’s general manager.

These include,according to Mr.

Omogo,a project to expand pro-duction on Bioko from 30MWto 160MW and another projectfor the medium and low voltagepower grid modernization in thecity of Malabo,which is being car-ried out by a Chinese corpora-tion. Another project nowunderway is the construction ofthe Djibloho Hydroelectric Planton the continental region,expect-ed to be completed in 2011,which

will eventually generate 220 KWfor the mainland.

“We also have a project forthe transport of high and lowvoltage from the Wele River tothe city of Bata, where the lowand medium voltage networkwill also be replaced.We are alsocarrying out a project for theelectrification of all the provin-cial districts on the continentalregion,” concludes Mr.Omogo.


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SSeeggeessaa iiss wwoorrkkiinngg ttoo iimmpprroovvee ppoowweerr ssuuppppllyy

Segesa:clearingobstacles to Horizon2020WWiitthh aa mmoonnooppoollyy oonnEEqquuaattoorriiaall GGuuiinneeaa’’sseelleeccttrriicciittyy sseeccttoorr,,ssttaattee--rruunn uuttiilliittyyccoommppaannyy SSeeggeessaa hhaass aaggeenneerraattiinngg ccaappaacciittyytthhaatt iiss mmoorree tthhaannccaappaabbllee ooff mmeeeettiinnggddeemmaanndd bbootthh oonn tthheeccoonnttiinneenntt aanndd tthheeiissllaanndd ooff BBiiookkoo


1,500 projects in the country.Today,the infrastructure sectorboasts a greater foreign presencethan even the hydrocarbonindustry.

“The projects that we are cur-rently carrying out will contributeto the creation of jobs and pavethe way for the functioning ofmany other sectors that cannotbe exploited right now, such astourism, fisheries, or industry,”comments Minister of PublicWorks & Infrastructure Marceli-no Oyono Ntutumu.“Personal-ly, what motivates me is seeingthe results of our work.We workon average 15-18 hours a day andthe changes that can be seenthroughout the country give mea great sense of satisfaction.Theinfrastructure of ports and roadshelp and promote the exchangeof trade and knowledge through-out EG.It unites different villagesthat were cut off before.”

Minister of Planning, Eco-nomic Development & Invest-ment José Ela Oyana adds,“Theexploitation of our petroleumas it is now being done was achieved thanks to the effort ofPresident Obiang and his gov-ernment. Infrastructure was completely destroyed and in avery poor state of repair. Whenhe saw the potential that petro-leum had, he called the FirstNational Economic Conference,it was September of 1997.”

This was the conference thatset the framework for EG’s de-velopment,says Minister Oyana.One of the key strategies wasthe reconstruction of basic infra-structure.The Minister says thatthanks to the petroleum sectorand direct investment in nation-al infrastructure development,GDP has increased tenfold in thepast decade.


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Equatorial Guinea’s partner in road developmentWWiitthh aa llaarrggeellyy llooccaall wwoorrkkffoorrccee aanndd aa rreeppuuttaattiioonn ffoorrffiinniisshhiinngg oonn ttiimmee aanndd oonn bbuuddggeett,, SSooggeeaa SSaattoomm iissbbuuiillddiinngg EEGG’’ss vviittaall aarrtteerriieess

A branch of Vinci, the number oneconstruction company in the world,Sogea Satom has been present inAfrica for more than 70 years, and

in Equatorial Guinea for over 20.Sogea Satom GE,whose workforce comprises 90% Guineans,

is helping the government achieve its Horizon Plan 2020 goalsby concentrating on the company’s strong suit: road construc-tion.And it certainly takes an expert in roads to deal with thiscountry’s tricky topography and climate.Packed with mountainsand rivers, and with annual rainfall ranging between 76 and 430inches depending on the zone,Equatorial Guinea presents obsta-cles in developing road infrastructure rapidly and safely.

Sogea Satom began years ago building urban roads in Mongo-mo,Evinayong,Mbini,Cogo and Bata,and is now addressing mainroads–including a national road from Bata to Mongomo–to affordthe growing country with improved access and communication.

“Areas that were villages ten years ago are becoming townsnow, and in ten years from now, they will be cities.The wholecountry is a very big construction site, and infrastructure needsto be developed to set off the economy and allow trade and indus-try,” says Frank Casteleyn,managing director of Sogea Satom EG.

SSooggeeaa SSaattoomm bbuuiillddss mmaaiinn rrooaaddss tthhaatt sseerrvvee aass vviittaall aarrtteerriieess

EG’s oil revenues are literallypaving the country’s streets asPresident Obiang lays down thefoundations of his Horizon 2020,which aims to gain emergingcountry status by that year.

The country has investedheavily in roads, ports, airports,and housing projects over the lastfew years.As Minister of Mines,Industry & Energy MarcelinoOwono Edu said, “We have built this country from scratch,we did not inherit a thing.Thiswas a village without roads or

buildings or energy facilities orhospitals or electricity. Every-thing that has been built in thelast few years has been thanksto petroleum, and, of course,to the effort and work ofGuineans,led by our president.”

And efforts are ongoing. Ac-cording to the Ministry of Pub-lic Works and Infrastructure,which oversees all infrastructurerelated projects through its GEProjects initiative, there are cur-rently more than 200 compa-nies carrying out approximately

A country underconstructionEquatorial Guinea is beingdeveloped from the ground up

JJoosséé EEllaa OOyyaannaa,, MMiinniisstteerr ooffPPllaannnniinngg,, EEccoonnoommiiccDDeevveellooppmmeenntt && IInnvveessttmmeenntt

MMaarrcceelliinnoo OOyyoonnoo NNttuuttuummuu,,MMiinniisstteerr ooff PPuubblliicc WWoorrkkss &&IInnffrraassttrruuccttuurree



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Horizon Construction: a hive of activity MMaannyy llaannddmmaarrkk bbuuiillddiinnggss iinn EEGG hhaavvee HHoorriizzoonn’’ss ssiiggnnaattuurree oonn tthheemm

While the country has beenbusy laying roads and buildinghospitals, ports and airports,Horizon Construction has beenequally as active in carving outthe architectural face of the newEquatorial Guinea.

Horizon’s list of accomplish-ments to date include the ren-ovation of Bata’s monumentalclock tower, the Ministry ofCommunications in Bata, a 10-floor commercial tower in Mal-abo,the Public Treasury in Bata,the Tower Liberty (a landmarkstructure topped by a revolvingrestaurant), the Palaces of Jus-tice in both Bata and Malabo,andBata’s Grand Market shoppingcenter. Horizon’s upcoming projects will be equally asimpressive and include the newairport in Bata and the city’sconference center.

Headed by Marwan Jeha, thecompany’s general manager,Horizon has established itself asone of EG’s leading construc-tion companies over the pastdecade,also completing a num-ber of residential projects rang-ing from individual villas toapartment complexes in addi-tion to major hotel projects.

Mr.Jeha comments,“The real-ity is that Equatorial Guinea isa country under development.

They have put policies in placeto build the right infrastructureand to ensure that constructiongoes up.All these changes canbe seen when you pass by theroads. You can see that theview of Equatorial Guinea ischanging every day, and thisreflects the vision of the Pres-ident.He wants the country tobe completely transformed.When he sets a goal,he makessure that everyone reaches it

so I have no doubt that Hori-zon 2020 will be successful.”

For the time being, Horizonwill continue to undertake large-scale public projects in EG,saysMr. Jeha, while beginning to laythe foundations of its interna-tional expansion.Still,the com-pany’s future visions involvemore of an internal expansionin design rather than a geo-graphical move. Furthermore,Mr. Jeha does not foresee anyshortage of work in EG forsome time to come.

He says the company is head-ing toward the construction of‘intelligent buildings’,which willuse smart systems to controleverything from security toelectricity and water con-sumption. Horizon also wantsto use more solar panels in itsconstruction.

With over 30 years of experi-ence, beginning with the con-struction of Nigerian townshipsand district roads in 1977,Setraco is one of that country’slargest construction compa-nies,and has over the last threedecades made a significant con-tribution to Nigeria’s infra-structure development.

In 2003 Setraco EquatorialGuinea (Setraco EG) was estab-lished.In line with founder SaidKhalaf’s vision of participatingin the growth of developingcountries around the worldthrough the provision of inter-national standard services,including employing highly-trained personnel, and using

first-class materials and state-of-the-art technology, SetracoEG has since undertaken a num-ber of infrastructure projectsin Equatorial Guinea.

While the first few years inthe country represented a tri-al period for Setraco EG withrelatively small public contracts,according to general managerDanilo Borserini, over the lastfive years Setraco has gone onto complete increasingly larg-er projects, culminating in itscurrent renovation of an entireneighborhood of the capital,including the road works andsanitation systems.

“After a few tests, the gov-ernment has offered us a con-

HHoorriizzoonn’’ss TToowweerr LLiibbeerrttyy wwiillll bbee EEGG’’ss ttaalllleesstt bbuuiillddiinngg

Following national development,step by stepSSppeecciiaalliizzeedd iinn tthhee ccoonnssttrruuccttiioonn ooff rrooaaddss aanndd bbrriiddggeess,,SSeettrraaccoo hhaass bbeeeenn ppuuttttiinngg tthhiiss eexxppeerriieennccee ttoo ggoooodd uusseeiinn EEGG ssiinnccee 22000033


“Our job is not only based onthe construction or architectur-al aspects, the ones people cansee. Our job is to build and con-struct intelligent buildings,” saysYossef Ahmad, general managerof ABIC, the company behindMalabo’s new Hilton Hotel.

“These buildings have systemsinstalled that require very spe-cific skills and abilities to oper-ate them,systems that can only

be seen in hotels,governmentalbuildings, or hospitals.”

With the construction ofworld class venues such as thenew Hilton Malabo and a sec-ond Hilton hotel to be built inBata,ABIC hopes to boost EG’sbudding tourism sector,an indus-try targeted for exploitation byHorizon 2020,and which at themoment, mainly caters to busi-ness travel, according to Mr.


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IntelligentbuildingAAmmeerriiccaann BBuussiinneessssIInnvveessttmmeennttCCoonnssttrruuccttiioonn ((AABBIICC))iiss ccoonnttrriibbuuttiinngg ttoopprroommoottiinngg nnaattiioonnaall ttoouurriissmmtthhrroouugghh tthheeccoonnssttrruuccttiioonn ooffwwoorrlldd--ccllaassss hhootteellss

tract that has given us theopportunity to show what weare made of and how to estab-lish infrastructure according toEuropean standards,” says Mr.Borserini, referring to theParaiso neighborhood project.

“This is the first time a pro-ject of this type has been car-ried out by a single company.Normally one company wouldbe in charge of the street con-struction,another of sanitation,etc.This time, it is a completeinfrastructure contract.”

Setraco EG forms part of theSetraco International Holding,a group of over 20 companiesthat provide a range of con-struction and infrastructure spe-cialized services,such as bridgeand building construction,design, and a special projectsdivision.Therefore,Setraco EGhas access to specialized knowl-edge and can rely on its sistercompanies to help the compa-ny expand its project range.

“The Group is the brain-

child of Said Khalaf, whodreamt of helping Nigeria,andlater Equatorial Guinea,devel-op,” says Mr. Borserini.“He isa person who knows to per-fection what policies a com-pany that is set up in Africashould adopt. Consequently,we have formed a group ofcompanies that can provideall types of services through-out Africa.”

Mr. Borserini says the radi-cal transformation that EG isnow undergoing is remark-able.“It’s difficult to compareEquatorial Guinea with anyother country in Africa,” hesays. “I have roughly 30 yearsof experience traveling andworking across the globe,andI know accelerated develop-ment when I see it. If you lookat the last six years in Equa-torial Guinea,you can see thatthings have changed on a dai-ly basis, and that new con-structions are popping upnon-stop.”

Ahmad. He comments, “Thehotel will surely contribute topromote national tourism.Weare partners in the hotel and wehave done the construction,butthe hotel will be managed byHilton, having an internationaloperator such as Hilton pro-motes tourism in addition topromoting the hotel itself.”

Established in 2004, ABICboasts a number of activities in

EG in addition to construction,which include quarrying, realestate services,electro-mechan-ics, and landscaping. Upcom-ing projects in its constructiondivision include the new Ministryof Finance in Malabo.

Although its quarry is anequally important part ofABIC’s activities in EG, Mr.Ahmad has a great deal of con-fidence in the country’s attrac-tion as a tourist destination,and consequently, in furthertourism construction for ABIC.

He states, “The nature andsights that exist in the countryare incredible; there is greatpotential for tourism.The sectorhas not yet been developed,butHorizon 2020 promotes itsexpansion,among other sectors.People do not know a lot of thespots in this country because atthe moment, these places arenot ready to receive tourism.They don’t have the necessaryinfrastructure,but it is coming andrapidly.”

AABBIICC hhaass hheellppeedd bbrriinngg HHiillttoonn tthhee bbrraanndd ttoo EEGG



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Business travellers arriving in EG today will not be lackingfor luxury thanks to the Sofitel Malabo Presidential Palace.Opened in 2007, this 5-star hotel is a converted 18th cen-tury cloister, boasting 100 well-appointed rooms – includinga presidential suite and three luxury suites – a world-classrestaurant, two bars, an outdoor pool, a fitness center, and a300m2 conference room.

Located in downtown Malabo and overlooking the port, thishotel bearing the Sofitel seal of excellence, is a landmarkestablishment that falls right in line with the new image of thecountry: modern and luxurious. Guests can expect levels ofquality and comfort unavailable as of yet outside the hotel,and do not have to worry about the occasional power or watercut.“Sofitel Malabo is our new flagship hotel in the region thatwill work as a model for further expansion”, says Mr. Chau-vet, General Manager of Sofitel Malabo.

“EG is a small, safe and developing country with a gorgeouswildlife and tremendous potential for high class and MICEtourism.The government is building the country from scratchand envisions doing it in a record time; that is why it is veryimportant for Western coun-tries to see and support whatis taking place here.”

TThhee bbeeaauuttiiffuull SSppaanniisshh ccoolloonniiaall aarrcchhiitteeccttuurree ooff tthhee SSooffiitteell MMaallaabboo

Modern and luxurious: the mirror of the new EGTThhee SSooffiitteell MMaallaabboo PPrreessiiddeennttiiaall PPaallaaccee uupphhoollddss tthheeFFrreenncchh lluuxxuurryy cchhaaiinn’’ss ssttaannddaarrddss ooff qquuaalliittyy aanndd sseerrvviiccee

Minister of Information,Cultureand Tourism Jerónimo Osa OsaEcoro speaks about one of theworld’s least known destinations.

HHooww iiss tthhee ggoovveerrnnmmeenntt pprroo--mmoottiinngg ttoouurriissmm??

The country’s tourism sectoris still in an embryonic stage butwe are taking concrete steps tomake it a reality.

Tourist attractions in Equa-torial Guinea are numerous sowe are working on a projectwith the World Tourism Orga-nization to make an inventoryof our most attractive destina-tions.

We also want to offer differ-ent types of tourism from eliteor luxury to ecotourism.Thereare luxury hotels for those whochoose elite travel, but we alsowant to provide accommodationfor those who want to travelwith their backpacks.

Developing tourismAn undiscovered jewel in Africa is being unveiled

JJeerróónniimmoo OOssaa OOssaa EEccoorroo,,MMiinniisstteerr ooff IInnffoorrmmaattiioonn,,CCuullttuurree aanndd TToouurriissmm

AArree tthheerree ooppppoorrttuunniittiieess ffoorrpprriivvaattee sseeccttoorr iinnvvoollvveemmeenntt??

The private sector is funda-mental.Horizon 2020 envisionstourism as a source of eco-nomic growth.As this is a pri-

ority, the government is pro-moting activities that will fos-ter its development. It will notundertake development activi-ties per se, but rather facilitatethem through issuing visas andstreamlining bureaucratic pro-cedures. We have also ear-marked specific projects anddestinations, like the island ofCorisco,where the governmenthas committed to building anew airport to support tourismdevelopment.



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Morocco-based Somagec isworking to bridge its marineconstruction expertise withtourism development as itcontinues to unroll new mar-itime projects,such as the newdeepwater port in Malabo,where it is constructing a pro-tection dike, 1,200 meters ofpier with a roll-on,roll-off sta-tion,and an international con-tainer terminal.

At the same time the com-pany has also taken on projectssuch as the construction of athree-mile maritime boulevardin the same city destined tobecome one of the country’snew leisure attractions.

Outside of the capital,Somagec is working on an air-port and a new port projecton Annobon, which will pro-vide the infrastructure theisland needs to further devel-op its tourism and trade poten-tial.The project will add a newjetty and dike to the port, aswell as a regional trade termi-

nal,a roll-on,roll-off station,andfueling pier.

Meanwhile in the city ofKogo, Somagec is building anew port terminal, in additionto a new seaside boulevard.

Upcoming is a new port pro-ject on the island of Corisco,a destination targeted by thegovernment for future tourismdevelopment and whereSomagec is currently con-structing an airport and a hotel.

The company also has hotelsunder construction in Kogoand Media Luna (Bata), and

will begin another soon inAnnobon.

General manager JeanCharles Hayoz comments,“Wehave been here for five years,and in that time, we have suc-cessfully completed manylarge-scale projects. We feelthat the direction that the Pres-ident has taken with regards toinfrastructure is one of thebest that a new country likeEquatorial Guinea can take. Inthe last five years, the countryhas really undergone an infra-structure revolution.”

SSoommaaggeecc iiss bbuuiillddiinngg aa nneeww ppoorrtt aanndd bboouulleevvaarrdd iinn KKooggoo

‘In the lastfive years, the countryhas reallyundergone aninfrastructurerevolution’SSoommaaggeecc hhaass bbeeeenn qquuiicckkttoo rreeccooggnniizzee tthheeppoossssiibbiilliittiieess iinn EEqquuaattoorriiaallGGuuiinneeaa’’ss bbuuddddiinnggttoouurriissmm iinndduussttrryy



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Aiming to double the country’sport capacity through billion-dollar investments in its har-bors, the government hasmultiple port renovations nowunderway, not the least of whichis the $4.5 billion expansion ofPort of Malabo, aimed at creat-ing capacity for 1,200 ships ayear and 40,000 containers.

While the Port of Malabo isscheduled for full completion in2013 (80% of the work will becompleted by the beginning of2011),the Port of Bata,the coun-try’s main port for transporta-tion of agricultural and forestryproducts, is also undergoingextensive modernization,and athird port at Luba is position-

ing itself as the hub for the Gulfof Guinea hydrocarbon indus-try. A new port at Annobonwas completed this year.

“The ports throughout Equa-torial Guinea are a key pillar inthe development of the countryas they are the entryway,” saysgeneral manager of EquatorialGuinea’s Port Administration,Alberto Nguema Lima.“This istrue for all countries, but espe-cially for Equatorial Guinea as allinternational companies andinvestors must pass through theports as a first point of call.”

The ports have come a longway since colonial times,accord-ing to Mr. Nguema, when thePort of Malabo was used pri-

marily for the export of cocoa.Today, it is a bustling, moderncommercial and industrial portas is the Port of Bata, and theexpansion and renovation ofeach has resulted in significantinterest from the shipping world,according to Mr. Nguema, whosays the port administration hasreceived numerous calls fromshipping companies inquiringabout the ports’ new capacitiesand facilities.

“The government’s aim is to

create a port that can handlelarge tonnage ships and to lat-er redistribute the goods from these ships to different ports inneighboring countries,” explainsMr.Nguema. “We want to posi-tion ourselves as a transit port.This presents some challengesas there are other ports that arequite advanced and representstrong competition, but Equa-torial Guinea has two very bigadvantages – the depth of itswaters and its location.”

PPoorrttss aanndd hhaarrbboorrss hhaavvee rreecceeiivveedd ssiiggnniiffiiccaanntt iinnvveessttmmeennttss

Ports: multiple developmentsalong the coastIInn aaddddiittiioonn ttoo ttoouurriissmm,, ppoorrttss aanndd mmaarriittiimmeettrraannssppoorrttaattiioonn aarree ddeessttiinneedd ttoo ppllaayy aa llaarrggee rroollee iinnEEqquuaattoorriiaall GGuuiinneeaa’’ss eeccoonnoommiicc ffuuttuurree



11

In May 2008, the government of EG awarded Hits Africa a 20-year license as the country’ssecond operator, and in No-vember 2009, the company in-augurated the country’s firstconverged network, consistingof mobile, fixed, and data net-works. This was a historicmoment in EG’s telecoms sec-tor as it signified the end of themain operator’s monopoly andthe introduction of competitionfor the first time.

This competition has sinceseen Getesa, the country’s firstoperator,drop its prices at leastthree times and launch its firstmarketing campaign in 20 years,according to Secretary of Statefor ICT Carmelo Modú Ebuka,and has resulted in a new impe-tus in the sector to improve cov-erage, products, service, andconnectivity with the world.

Hits general manager, Hugh-es Bridault,says that although noteasy,his company’s entrance in-to the market was necessary toend the monopoly and bring ina second competitor.

“We boldly took up the chal-lenge, and that strength got usto where we are today, still farfrom reaching our competition,Getesa, but getting closer. Weare introducing services thatpeople have never seen before,GPRS is now a reality here, andwe are making great strides inour efforts to provide service inareas that have never hadtelecommunications coverage.”

Mr.Bridault adds that Hits alsooffers mobile phone Internetservice and that all of the com-pany’s services are competitive-ly priced. Indeed, he says thatHits prices are typically 15% to20% lower than those of thecompetition in the majority ofthe countries where the com-pany operates.

Looking forward, the generalmanager says his goal is to reach300,000 subscribers within thenext three years.“We want toreach an 80% penetration rate,”concludes Mr.Bridault.“Equato-rial Guinea is a small countryand it can be covered quickly ifyou know what you are doing.”

Minister of Transport, Techno-logy & IT Vicente Ehate Tomi says that although EG’s telecom-munications sector is still in itsbaby stages, large-scale projectshave been launched since theSecond National Economic Con-ference and they will soon seethe country’s first fiber optic sub-marine cable enter into opera-tion. Further initiatives areunderway such as the installa-tion of a national backbone cableand connection to the ACE net-work that connects South Africawith Europe.

“The evolution of the sectorhas been significant and very pos-itive,” adds Minister Ehate Tomi.“Just 15 years ago,the only com-munication device that existedwas the landline.Today we havea system that is in operationthanks to the help we receivedfrom China,which over the pastfew years has built trenches inthe cities for the necessary infra-structure.”

The Minister says that the cel-lular market has also thrived inthe past few years so that todaycommunication within the coun-try and with the exterior is eas-ily established. Mobile operatorHits entered the country afterthe 2008 telecommunicationslaw opened the door to newoperators,breaking the monop-oly of the country’s single oper-ator at the time,Getesa.

Secretary of State for ICT,Carmelo Modú Ebuka, adds,“We have witnessed tremen-dous change in the sector.We’ve had mobile telephonysince 1997. Since then, growthhas been spectacular, reflecting

the general changes through-out Africa and at a global level.In-deed,all of the developmentand investment that the oper-ators and the government havemade were fundamental; it isreally noticeable how the useof the mobile phone has becomean essential means of commu-nication for the population.”

Getesa general manager,Catherine Rumillat,says nation-wide coverage is on its way.Gete-sa invested more than 9 billionFCFA ($19.3 million) last year,she says, and the company hasmany projects in the pipeline tooffer new products and Internetservice throughout the country.

“In terms of telecommunica-tions infrastructure, many bigprojects are being launched,suchas the cable between Malaboand Bata and the new opticalfiber cable which will link Europewith South Africa (ACE),” sheadds.“Thanks to this cable,exist-ing telecommunication compa-nies and the ones that will comein the near future will be ableto offer services that currentlydo not exist because of lack ofcapacity.”

Hits brings innovation andcompetition to ICT sectorWWhheenn HHiittss aarrrriivveedd iinn EEqquuaattoorriiaall GGuuiinneeaa,, iitt hhiitt tthheeggrroouunndd rruunnnniinngg,, ssnnaattcchhiinngg uupp nneeww ccuussttoommeerrss wwiitthh iittssiinnnnoovvaattiivvee pprroodduuccttss aanndd ccoommppeettiittiivvee pprriicceess

ICT: challenges andinvestmentEquatorial Guinea’s ICT sector ispositively thriving

VViicceennttee EEhhaattee TToommii,, MMiinniisstteerr ooff TTrraannssppoorrtt,,TTeecchhnnoollooggyy && IITT



12

The country’s banking sector hasremained strong and well capi-talized throughout the globalfinancial crisis as a result of itssmall size and relatively scantinternational reach.The sector iscomprised of just four banks:BGFIBank GE, CCEI Bank GE,Société Générale de Banques GEand National Bank of Equatori-al Guinea (BANGE).Still,the sec-tor, which is overseen by theBank of Central African States,is large enough to sufficiently cov-er market needs and to finance

development, a priority for thesector, and for the government.

Minister of Economy, Tradeand Business Promotion PedroOndo Nguema says,“In recentyears,the institutions in the finan-cial system have made greatstrides in the area of infrastruc-ture, in opening new branches,launching communications net-works etc.,as well as in expand-ing the services they provide,such as transfers and ATM ser-vices.What is remaining for themto do is finance the economy.

Banking system backsrapid developmentNew infrastructure and productsaid economic diversification

BANGE opens up newopportunities for SMEsEEssttaabblliisshheedd iinn 22000077 wwiitthh aa ppaaiidd--uupp ccaappiittaall ooff €33 mmiilllliioonn,, BBAANNGGEE hhaass qquuiicckkllyy wwoorrkkeedd ttoo eessttaabblliisshhiittsseellff aass ‘‘TThhee BBaannkk ffoorr EEvveerryyoonnee’’

The National Bank of Equatori-al Guinea (BANGE) is not justthe only bank in the country withstate-owned participation (45%),but it is also the nation’s favoritewith more than 10% marketshare.The Commercial Bank ofthe Philippines is the govern-ment’s foreign partner in the ven-ture (with 30% participation),and private Equatoguinean inter-ests own the remaining 25% ofthe bank’s shares.

Equatorial Guineahas not had a nation-al bank since theCredit Bank closedits doors in 1985.BANGE was creat-ed to provide finan-cial support to bothpublic and privatecommercial and infra-structure projects,including those in thehydrocarbon indus-try.A second objec-tive behind the bank’sestablishment was toprovide support forthe country’s SMEs,amission that hasreceived new impetussince management ofthe bank wasassumed by a German group inthe summer of 2009.

“Since then we have devel-oped a special small and medi-um enterprises department.Weforesee that a specialized SMEdepartment in the bank is arequirement for the future,” com-ments BANGE’s general manag-er, Cornelis E.Verheezen. “Weare working jointly with theDeputy Minister of EconomicAffairs to support the govern-ment,which wants to make fundsavailable,some €11 million ($15.3million),to support SME activityin the country.We are making

money accessible to people whowould not normally be able toobtain a bank loan.”

In addition to its corporatebusiness, BANGE also offers arange of retail products for indi-viduals and has plans to extendits branch network throughoutthe country. Services currentlyinclude deposits,loans,telegraphtransfers,money orders, foreignexchange,ATM withdrawal and

safety deposit boxes.The bank isalso hoping to launch Master-Card,Visa, JCB, and AMEX cardsbefore the end of this year.

“We took over last year andat that time the bank was still inits infancy.We are now trying topush it to the next level,not onlyin terms of services to the pub-lic,but also in product innovation,”says Mr. Verheezen.“We recent-ly launched 20-year mortgages toallow more people to gain accessto decent housing which is – nextto the SME business and corpo-rate – another pillar on which wewant to build the bank’s future.”

BBAANNGGEE’’ss sseerrvviicceess aarree ffooccuusseedd oonnSSMMEEss,, ccoorrppoorraattiioonnss aanndd hhoommeebbuuyyeerrss



13

A subsidiary of Afriland FirstBank,a full service operating invarious sub-Saharan countries,CCEI Bank GE was establishedin Equatorial Guinea in 1994.With head offices in the nation’scapital,CCEI Bank GEalso offersbranches in Bata, Ebibeyin andMongomo.

CCEI Bank GE is currentlythe nation’s largest bank in termsof assets (NAV was valued atmore than $28 million in Aprilof 2007), and it provides ser-vices to the nation’s largest com-panies. Indeed, as one of thelongest-standing financial insti-tutions in Equatorial Guinea,CCEI Bank GE finances some70% of the nation’s economy.

In addition to offering the fullrange of traditional bankingproducts, CCEI Bank GE seesitself as partners with their

clients, not just as bankers, andconsequently places great val-ue on the quality of its con-sulting services, which provideclients with solid financial adviceand assistance.

These services are also appar-ently highly valued by the bank’scustomers – profits jumped by47% between 2007 and 2008,while deposits increased by76% for the same period.

CCEI Bank GE deputygeneral manager AlbertoDoria Lajay says,“The phi-losophy of our bank, andthe key to our success, hasbeen a strong belief in this coun-try, in contrast to many othercompanies.We established herebefore the full development ofthe hydrocarbon sector. Sinceit believed in the country, thebank began to invest and give

credit with the faith that one daythis country would be what itis today.”

Although it boasts a loyalclient base,CCEI Bank GE con-tinues to progress,adapting itsproductst o

new technolo-gies and seeking tooffer the best services in themarket.Mr. Lajay says the bankis working towards providinginternet banking as well as a

complete range of credit cards,but it will wait until all its cardsare internationally compatiblebefore launching these prod-ucts.The bank is also workingto expand its microcredit divi-sion and SME financing.

“Contrary to what is some-times believed,CCEI finances all

types of activities – large,medi-um and small.We give loans,technical assistance andadvice. Businessmen oftenknow how to grow theirbusiness and make money,but do not really under-

stand finance.When they pre-sent us with a project, we

guide them through the bestways of doing things. It’s goodfor the businessman and goodfor us as well because bad financ-ing would be a problem for bothparties,” says Mr. Lajay.

CCEI Bank GE finances nearly 70% of the national economy TThhee nnaattiioonn’’ss llaarrggeesstt bbaannkk iinn tteerrmmss ooff aasssseettss ooffffeerrss iinnvvaalluuaabbllee gguuiiddaannccee ffoorr bbuussiinneessss iinn EEGG



14

Health: a main pillarof Horizon 2020 For healthcare, the goals arequantity as well as quality

Located in the city of Bata,Clin-ica La Paz is one of the mostmodern hospitals in Western Afr-ica.Built in 2007 by Internation-al Medical Services GE in collabo-ration with the national govern-ment,the clinic boasts the latesttechnology and a highly qualifiedmedical staff.Consequently,it hassince gone on to quickly estab-lish itself as the region’s preferredmedical facility.

General manager Dr. AlonStamler comments,“La Paz was

an initiative of the governmentto develop the country’s health-care sector.The idea was to cre-ate a modern health clinic withthe same standards as there arein Europe,and to help provide asolution to the country’s health-care problems.Before,many peo-ple with serious health problemshave had to leave the country inorder to find and receive thehealthcare they needed. Today,they no longer need to do this.”

La Paz Medical CenterTThhee LLaa PPaazz MMeeddiiccaall CCeenntteerr rraannkkss aammoonngg tthhee mmoossttssoopphhiissttiiccaatteedd aanndd aaddvvaanncceedd hhoossppiittaallss iinn tthhee rreeggiioonn

Established as a priority in thenational development strategy,Horizon 2020, along with edu-cation,healthcare must increaseboth in availability and level ofservice, says the government, ifthe country is to reach emerg-ing status within a decade.

Consequently, investment inmedical infrastructure is beingmade throughout the country.Clinics,hospitals,pharmaceuticalfacilities,and training centers arenow under construction in var-ious regions in an effort to pro-

vide equal healthcare access inrural and urban areas alike.Withaid from the African Develop-ment Bank,the government hasconstructed 52 counter refer-ence centers (rural healthcareclinics) throughout the country,while each city has a district hos-pital in addition to the provin-cial and regional hospitals.

Moreover, EG now boastssome of the region’s mostadvanced clinics in privatehealthcare,such as Clinica La Pazin Bata. In addition,many of the

multinationals operating in thecountry have their own healthprograms as part of their CSRinitiatives, such as MarathonOil’s malaria control program,which has succeeded in reduc-ing the mortality rate from thisdisease by 64% in children underthe age of five and has achieveda 57% decline in the prevalenceof malaria infections in childrenbetween the ages of two andfive on Bioko Island.

“Our mission with regardsto the goals set out in Horizon2020 is to establish an equitablehealthcare service for all citizens,which means both better qual-ity and quantity. Healthcaremust be accessible to all,and inorder to bring this about, thegovernment has launched a number of programs for theconstruction of adequate infra-structure, to create adequatemedicinal supply and to pro-vide professional training,” com-ments Minister of Health andSocial Welfare Francisco Pas-cual Obama Asué.

Financing for these projectsis drawn from three differentbudgets,says Minister Asué:onefor infrastructure construction,another for expenses and mate-rials and a third called the SocialDevelopment Fund, whichfinances specific programs suchas those for the eradication ofmalaria,HIV and AIDS,and tuber-culosis, and first aid programs.

Improvements in the coun-

try’s basic transport infrastruc-ture are also helping to supporthealthcare initiatives, says theminister, who adds that thedecline in infant mortality in EGis in large part due to the factthat parents can actually physi-cally get to hospitals thanks tonew roadways that haveimproved access.

Still,much remains to be done.“The healthcare map has notyet covered the entire country,”the minister states,“but we arein the process of providing eachpopulation nucleus with its ownmedical clinic. We have com-pleted the construction of 52rural centers to date.”

Given its current focus onhealthcare, it was quite fittingthat EG hosted the WorldHealth Organization’s 60th ses-sion of the Regional Commit-tee for Africa this May.MinisterAsué,pointing out that his coun-try has been a WHO membersince 1980, says, “We cannotdevelop Equatorial Guinea’shealthcare system in isolation.We operate within the frame-work,and are obliged to followthe recommendations of theWorld Health Organization forAfrica with regards to the pro-vision of basic healthcare andhealthcare development. Wefeel that if healthcare is not wellestablished in our rural areasthen we cannot speak of thehealthcare for us encapsulatedin Horizon 2020.”M

INIS

TR

YO

F IN

FO

RM

ATIO

N

Average for EG Average for Africa

Births assisted by qualified health personnel 63% 46%

Prenatal care coverage 86% 73%Prevalence of HIV in adults over the age of 15 (2008) 3,343 per 100,000 4,735 per 100,000Antiretroviral treatment coverage for people with advanced HIV/AIDS 31% 30%% of children under 5 that received anti-malaria treatment for fever 49% 36%Access to sanitation services 51% 33%

Source: World Health Organization (WHO)

Health statistics for Equatorial Guinea in comparison to Africa



15

This past May,992 new teacherscelebrated their graduation froma two-year teacher training pro-gram in Bata.This was the firstgroup of professionals to comeout of the country’s Program forEducational Development ofEquatorial Guinea (PRODEGE)teacher diploma course.PRODEGE is a $50 million pub-

lic/private partnership led by U.S. oil company Hess and the government of EG, and imple-mented by the Academy for Educational Development.

In the four years since it wasestablished,PRODEGE has estab-lished 40 model schools and intro-duced accelerated course workin basic math, language, and sci-

ence.The schools use an activelearning technique that encour-ages students to build criticalthinking skills and learn cooper-atively. Beyond classrooms, thepartnership has also built latrinesand drilled water wells to ensurethat students have safe, potablewater and proper sanitation.

In addition to the teacher

training program, which wasestablished in 2008,PRODEGEhas also built two training labo-ratories in Bata and Malabo.To date, 75 PRODEGE nation-al staff have been trained in pro-ject management; 38 trainersare mentoring teachers;and 80inspectors have been trained inschool supervision.

Modernizing the nation’s primary education systemPPRROODDEEGGEE iiss ttrraannssffoorrmmiinngg ttrraaddiittiioonnaall ccllaassssrroooommss iinnttoo iinntteerraaccttiivvee lleeaarrnniinngg eennvviirroonnmmeennttss

WWhhaatt ssppeecciiffiicc iinniittiiaattiivveess aarreeiinn ppllaaccee ffoorr tthhee ddeevveelloopp--mmeenntt ooff tthhee eedduuccaattiioonn sseecc--ttoorr??

Education is the backbone ofdevelopment; it is a guaranteedinvestment in the future,ensur-ing a nation’s sustainable devel-opment.The greatest investmentstemming from the government’splans and projects is destinedfor the social sectors,and amongthese, the priority is education,followed by healthcare and therest of the social aspects.

EG’s education system hasrecently been reformed so as totransform it into the kind ofquality education system thatmeets the expectations of citi-zens. Our education system isdivided into three levels: earlychildhood and pre-school,basic,and secondary.

Basic,or primary,education isobligatory for all Equatoguineans,and there are ongoing reformsat this level.The first reforms havebeen successfully completed.

There is now a national curricu-lum for the level and all of the toolsand textbooks needed for thelevel have been provided.Reformsare ongoing in secondary edu-cation,where a professional train-ing option is being developed.Reforms are also being carried outat the university level,as the spe-cializations offered are adapted tothe real needs of the country.More faculties are being intro-duced as new needs arise.

CCaann yyoouu ccoommmmeenntt oonn tthhee22001122 AAffrriiccaann NNaattiioonnss CCuupp((AANNCC)),, wwhhiicchh yyoouurr ccoouunnttrryywwiillll hhoosstt??

These types of events tendto boost the status of the hostnation,depending on their sizeand the quality of their orga-nization. After the countrywas approved to hold theANC, the government beganto undertake preparations.This will not be the first timewe have organized the eventas we have already hosted thefemale championship,and theexperience we gained thenwill be useful now. We wantto prepare well so that ANC2012 is magnificently orga-nized, and it positions usstrongly as a host for inter-national events.

AA nneeww sscciieennttiiffiicc rreesseeaarrcchhcceenntteerr hhaass jjuusstt bbeeeenn aann--nnoouunncceedd ffoorr MMaallaabboo.. CCaannyyoouu ccoommmmeenntt oonn tthhee iimmppoorr--ttaannccee ooff sscciieennccee iinn tthhee ccoouunn--ttrryy’’ss ddeevveellooppmmeenntt??

Science is a course that manycountries must take.Awareness-raising campaigns must be orga-nized in order to promotescience and the importance ofscientists.Also, people must beaware that you can make a liv-ing as a scientist.

That said, giving science pri-ority is difficult even when edu-cation is a government focus.I do want to say that any sci-entist who would like to estab-lish himself here would bewarmly welcomed and haveaccess to all the necessary infra-structure.

Education takescenter stageHydrocarbon revenues arehelping build better schools

MIN

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INF

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FFiilliibbeerrttoo NNttuuttuummuu NNgguueemmaa,,MMiinniisstteerr ooff EEdduuccaattiioonn,, SScciieennccee&& SSppoorrttss

PPrriimmaarryy eedduuccaattiioonn iiss mmaannddaattoorryy ffoorr aallll EEqquuaattoogguuiinneeaannss



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