The third largest oil producer in sub-Saharan Africa.
The economy of Equatorial Guinea is dominated by the hydrocarbons sector, which accounts for roughly 75% of GDP with the extraction of crude oil, natural gas, and condensate.
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Why Equatorial Guinea?
The oil and gas industry has transformed the economy of Equatorial Guinea, a small Central African country with a population of less than 1m people. Oil was discovered in the mid-nineties, and since then Equatorial Guinea has transformed itself from a mainly agricultural economy into sub-Saharan Africa’s third largest crude oil producer, behind Nigeria and Angola.
The construction sector, dominated by Chinese companies, is also seeing significant activity. One of the biggest misconceptions about Equatorial Guinea is that the country has no infrastructure. First time visitors will be surprised when they see the many paved roads and construction projects going on.
Oyala will be the new capital city and it is one of Equatorial Guinea’s most high-profile infrastructure projects, it is being built. Like Brazil’s capital Brasília or Nigeria’s seat of government Abuja, Oyala is a planned city being built entirely from scratch. Oyala will replace the current capital of Malabo, which is situated on the island of Bioko off the coast from the mainland.
This project is creating significant opportunities for construction companies and building material suppliers.
Oyala will feature government administration buildings, a university, a five-star hotel and a conference centre. New highways have already been built in the city that is expected to eventually house 200,000 people.
Setting up a business
The process of creating a company in Equatorial Guinea is similar as in other European Countries, the most common types of business entity is a limited liability company known as a SARL (Sociétè à Responsabilité Limitée), at least 1 director and 1 shareholder are needed to create a SARL, of any nationality. The minimum paid-up share capital required is EUR 2.000. but you can also opt to set-up a public limited company or a branch office.
Another type of business entity is a public limited company (Société anonyme – SA), EUR 20.000 are required as the minimum paid-up share capital and at least 1 shareholder and 3 directors of any nationality.
Corporate tax in Equatorial Guinea is high 35% on all corporate profits.
Every industry has its own challenges and opportunities and it takes expert market knowledge to pinpoint the right entry points for your venture. If you want to set-up a business, buy a company, buy a property or invest in Equatorial Guinea. Please, contact us.