KEY RESULTS

• Institutionalizing trade capacity and coordination | The Enhanced Integrated Framework (EIF) supported the set-up of the National Implementation Unit (NIU), which is now integrated into the Government and provides trade-related technical assistance to public and private sector institutions. The support also strengthened coordination mechanisms around trade and private sector policies. 
• Trade mainstreaming based on analytics | Integration of trade into Equatorial Guinea’s National Strategy for Sustainable Development (National Development Plan, NDP Horizon 2025) was achieved with technical support from the NIU and through priorities identified by the Diagnostic Trade Integration Study (DTIS). 
• Supporting WTO accession process | The EIF has supported Equatorial Guinea's efforts towards WTO accession, including important steps such as the preparation of the Memorandum on the Foreign Trade Regime (MFTR). 
• Supporting private sector development | The EIF contributed to the survival and development of micro-, small- and medium-sized enterprises (MSMEs) exposed to the shocks of the COVID-19 pandemic.

Equatorial Guinea is a small but vibrant Central African nation in the Gulf of Guinea. It consists of the mainland, Rio Muni, and five volcanic islands: Bioko, Corisco, Grande Elobey, Elobey Chico, and Annobon. The capital, Malabo, is located on the largest island, Bioko. Home to 1.7 million people, it is one of the wealthiest countries in Africa.

The EIF began working in Equatorial Guinea in 2017, the same year the country graduated from LDC status. Following this graduation, the EIF further supported Equatorial Guinea for five years post-graduation, in line with its mandate for post-LDC graduation support.

Equatorial Guinea shares borders with Cameroon, Gabon and the Gulf of Guinea, and is endowed with large deposits of oil, gas and other minerals. The discovery of huge oil and gas deposits in 1990 heralded a period of immense economic growth. This resulted in improved infrastructure, reduced poverty and improved health and educational systems. 

Equatorial Guinea’s reliance on gas and oil makes it vulnerable to volatility in the global market for these commodities, which historically also has had major impacts on public investment and private sector activity in the country highlighting the need for a more diversified economy. 

Bolstering diversification efforts 

The Government of Equatorial Guinea partnered with the EIF to strengthen diversification efforts and implement targeted economic reforms to graduate from LDC status. In 2019, a DTIS, supported by the EIF, sought to better understand the country’s development challenges and identify areas of potential economic growth. The EIF also helped Equatorial Guinea achieve impact in several critical areas: institutional capacity-building; setting up and integrating an NIU into the government ministry; the formulation of key trade policies and strategies; the integration of trade into its NDP Horizon 2025; and supporting negotiations leading to the ratification of the African Continental Free Trade Area (AfCFTA). 

Expedito-Genaro Osâ Nsomboro Okomo, NIU Coordinator, believes the DTIS identified several economic challenges that needed to be addressed: 

The study noted that "Equatorial Guinea has the largest square area of sea territory of the whole Central African Economic and Monetary Community (CEMAC)”, yet its fisheries sector was underdeveloped. It stated that the sea territory, which was dominated by small-scale subsistence fishers, held immense potential. This could be harnessed sustainably and expanded through investment in improved infrastructure and better monitoring of efficiency. To this end, the DTIS recommended that there be space for the sector to expand as well as to develop the country's aquaculture potential.

Institutional capacity building to spur growth

Between 2018 and 2022, the EIF supported the country in establishing its NIU. Establishing a sustainable NIU in Equatorial Guinea was of paramount importance in the EIF’s support in the country, due to the short window of opportunity stemming from the country’s graduation. The NIU was successfully integrated into the Government and is hosted by the Ministry of Trade and Promotion of Small- and Medium-Sized Enterprises. 

The NIU has been critical in building the institutional capacity of government and trade-related institutions and is tasked with supporting various trade coordination mechanisms in the country. It also provides help in different trade areas, including supporting AfCFTA strategy implementation and the WTO accession process. The NIU plays a key role in coordinating and acting as a focal point for trade-related technical assistance related to WTO accession, the CEMAC, the Economic Community of Central African States, and UNCTAD trade-related technical assistance. It also coordinates various intersectoral working groups focused on trade.

Further support was provided to establish the National Committee for the Improvement of the Business Climate and Competitiveness. The committee has played a key role in streamlining the country’s trade legal and regulatory framework and fostering transparency in the business sector, thereby boosting business confidence and attracting investors. The Ministry of Trade and Promotion of Small- and Medium-Sized Enterprises actively participates in trade dialogue at the regional and international levels. These efforts are all helping to move Equatorial Guinea from the margins to the center of multilateral trade. 

The EIF also supported the training of 214 public officials (27.5% women) and 480 private sector actors (50.4% women) on different trade, investment and business management-related themes. Topics covered in the trainings included trade in services, WTO accession, trade facilitation, customs formalities and business management.

Aspirations for WTO accession

The benefits of WTO membership are apparent and include the predictability and transparency that the multilateral trading system offers, the reduction of trade barriers, as well as the opportunity to engage in ongoing trade negotiations within the WTO, to name a few. The 2019 DTIS had highlighted the need for Equatorial Guinea to become a member of the WTO. To advance this agenda, the EIF, through the NIU, supported Equatorial Guinea’s WTO accession process by working closely with policymakers and aligning relevant trade policies and strategies with international standards. 

The EIF's support for capacity-building of public officials significantly contributed to Equatorial Guinea’s successful ratification of the AfCFTA Agreement and the WTO accession discussions. The NIU played a key role in coordinating trade-related technical assistance for WTO accession, including assistance in the development of the MFTR.

Anchoring trade priorities into national development plans

A critical role the EIF has played in many LDCs is that of trade mainstreaming. This is also the case in Equatorial Guinea, where the EIF supported the country's process of mainstreaming trade into the country’s National Strategy for Sustainable Development (NDP Horizon 2025). The NDP considers the DTIS priorities, particularly those related to support of trade-related policy development. In this respect, the EIF contributed to drafting the General Trade Laws and the draft Trade Policy, and supported the reform programme to improve the regulatory framework on trade. This has also resulted in an increase in trade-related collaboration between ministries, a better understanding of the role of trade in the economy, and an increased budgetary contribution to trade-related areas.

Supporting MSMEs

The broad economic and trade integration processes taking place in Equatorial Guinea have demanded concerted support, investment and strengthening of the capacities of the private sector. To this end, with the support of the EIF, a total of 65 MSMEs – all women-led – were empowered with business management skills and knowledge necessary to access finance, prepare business plans, set up sound financial management systems and carry out marketing, among others. These critical skills form a basis for them to become effective private sector players, including ultimately accessing the AfCFTA market of 1.2 billion consumers. 

Since 2021, 35 MSMEs have also been successfully utilizing an accounts management tool created with EIF support, which has helped these enterprises establish more efficient ways of recording and reporting their company’s financial transactions, financial performance and cash flow. 

As the COVID-19 pandemic hit the world, the EIF also worked with the Government to support 155 MSMEs that were adversely affected by the pandemic. A follow-up study found that the support contributed greatly to the survival of the supported enterprises, compared to the many other non-beneficiary MSMEs that were forced to shut down their operations. This also enabled some beneficiaries to innovate and adapt their goods and services to new demands that emerged as a result of the pandemic.

Laying foundations for vibrant sustainable economic growth  

The EIF has been a key player in supporting Equatorial Guinea’s process towards economic diversification and helping the country move away from its dependence on oil and gas. The establishment of the NIU and its integration into the Ministry of Trade provides a great step towards creating a sustainable global public good for Aid for Trade. By working closely with the NIU and prioritizing the empowerment of government officials, the EIF has helped lay the foundation for better skilled staff with a strong coordination function. This is set to help Equatorial Guinea leverage broad-based support and resources for trade-related activities, including the ratification of AfCFTA and ongoing work towards WTO accession as a robust path to sustainable development.