Equatorial Guinea: Investing

FDI in Figures

Due to the rise in international oil prices, the FDI inflow into Equatorial Guinea has been increasing. The share of FDI stock as a percentage of GDP increased between 2000 and 2008. The inflows of FDI began to decline in 2009 due to the deterioration of the economic situation of the main investing countries, but recovered in 2009-2010 and should remain on a high level in the year 2011.

In an attempt to create a favorable investment climate, the government is supporting the promotion of non-traditional exports, allowing repatriation of profits and offering various tax incentives. However, the high level of corruption, poor condition of infrastructures, insufficient supply of water and electricity, and the lack of skilled manpower are all factors that reduce the potential attractiveness of the country.

The majority of FDI is attracted by the oil sector, followed by the forestry and fishing sectors. The USA is the largest investor followed by Italy and France.

	Equatorial Guinea	Sub-Saharan Africa	الولايات المتحدة	Germany
Index of Investor Protection	3.7	4.4	8.3	5.0

Source: Doing Business

Note: The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment	2008	2009	2010
FDI Inward Flow (million USD)	-794	1,636	695
FDI Stock (million USD)	5,042.3	6,678.6	7,373.6
Number of Greenfield Investments***	1.0	2.0	-
FDI Inwards (in % of GFCF****)	-19.8	40.3	-
FDI Stock (in % of GDP)	28.2	56.3	-

Source: UNCTAD - Last Available Data

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

Tax Rates

VAT: 15%
Company Tax: 35%
Withholding Taxes: Dividends: 25%, Interests: 10%, Royalties: 10%.
Bilateral Agreement: Ecuatorial Guinea and Egypt are not bound by a Double Taxation Agreement.
Social Security Contributions Paid By Employers: 22%

Investment Opportunities

Tenders, Projects and Public Procurement: Tradeinvest Africa, Tenders in Africa
African Tenders
DgMarket, Tenders Worldwide
Setting Up a Company: Consult Doing Business Website, to know about procedures to start a Business in Equatorial Guinea.
Useful Resources: The website of the national office for the promotion of investment
Economic Developments and Prospects in Equatorial Guinea - African Economic Outlook

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