Infrastructure, political stability, financial controls and non-discriminatory treatment of investors are the advantages for investment in Equatorial Guinea, according to experts
At the Emerging Equatorial Guinea conference, Lucas Abaga Nchama, president of Central Bank of Central Africa, called Equatorial Guinea ‘a bridge to a market of 43mn consumers’ in the Economic and Monetary Community of Central African States.
“Equatorial Guinea has a strong currency that has only been devalued once. Its strong regulatory regime governing finance, banking and investments create a ‘low risk’ environment for investors, in part because it has no debt,” he added.
Nchama said that he believed that the country’s investment in physical and social infrastructure, particularly over the last five years, is well above the average in Africa.
“Equatorial Guinea now needs to create companies and encourage entrepreneurship, particularly among young people. The state has been busy developing infrastructure that has driven the economy but young people must understand that the state can't do everything. Now the people must do it,” he said.
According to Nchama, the perception of Equatorial Guinea outside the country is largely erroneous and outdated, but that the country’s dynamism is clear to anyone who visits. “Equatorial Guinea is really the place where investors will find no risk,” he noted.
The Central African country’s robust ecomonic condition also drew praise from Rodrigo de Rato, former MD of the International Monetary Fund (IMF). De Rato singled out some of the institutions the government has created to control finances, such as the Court of Accounts, as helping to create a more transparent environment.
The ex-IMF MD also encouraged the country to follow up on its desire to join the Extractive Industries Transparency Initiative and to continue to shift more of its investment from physical infrastructure to social infrastructure such as education and public health.
