Housing Finance in Equatorial Guinea
Overview
This profile is also available in French here.
To download a pdf version of the full 2023 Equatorial Guinea country profile, click here.
Due to EQG’s growing economy, population, urbanization, and industrialization, the housing sector has been active in the last 20 years. In 2022, EQG’s African and Atlantic populations totaled 1.7 million. Urbanization is expected to reach 3.62 percent by 2025. In this region, only Bata and Malabo have over 30,000 people.
EQG’s economy grew quickly after oil was discovered in the 1990s. Natural gas reserves were recently discovered. IMF: Hydrocarbons make up 97% of exports (crude oil, 69%), 80% of government revenues, and 43% of GDP. GDP growth rebounded to 1.4% after a 4.9% contraction in 2020, helped by oil and non-oil sector growth. Private education (4.1%), health (3.4%), business (2.3%), and restaurants and hotels (1.7%) all grew. Horison 2020’s second phase focuses on developing new industries to reduce oil dependence. Slow economic diversification remains important for the country’s growth and stability. 2017 was EQG’s first year as an OPEC member. GEPetrol and Sonagas, EQG’s SOEs, dominate the economy with few spillovers. COVID-19 exposed administrative failures and the country’s crisis management incompetence.
Climate change threatens EQG’s natural resources and location. Rising sea levels, higher temperatures, less rain, and extreme weather affect key sectors. April-May and October-December are rainy seasons on the mainland, and July-January on the islands. Plan, design, and build for urban flooding.
EQG has built 8,611 social homes since 2010. The informal economy and self-construction dominate the housing sector. Poor families who can’t afford even informal external labour use family or neighbors. Oil company employees and high-income families have private homes in Malabo.
Bad loans, gloom, and payment arrears have weakened banking. Banking liberalisation hasn’t reduced financing costs due to a lack of competition. Government debt has increased interest rates and reduced private sector credit. Personal loan rates are 15% to 20%, and mortgage rates are 12% to 18%. Business loans with 20% or higher interest rates limit entrepreneurs’ opportunities. Foreigners’ credit eligibility is unknown.
Infrastructure, energy, housing, water, and sanitation have been modernised since the oil boom. The EQG’s fisheries area is 314,000 km2 and includes bays, rivers, and mangroves. 350 metric tonnes of industrial fishing catch 5,000 metric tonnes of fish and 600 metric tonnes of crustaceans annually.
Find out more information on the housing finance sector in Equatorial Guinea, including key stakeholders, important policies, and housing affordability:
- Overview
- Access to Finance
- Affordability
- Housing Supply
- Property Markets
- Policy and Legislation
- Opportunities
- Green Applications for Affordable Housing
- Availability of Data on Housing Finance
- Websites
Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2023 edition, which has up-to-date profiles for 55 African countries.
Download yearbookEquatorial Guinea
Overview
The housing sector of Equatorial Guinea (EQG) has experienced much activity over the last twenty years, particularly because of the growing economy and increase in population, urbanisation and industrialisation in key sectors and the desire of the population to improve their living conditions. The population in EQG was estimated at approximately 1.7 million in 2022 distributed across the two regions of the country, one within the continent of Africa and the other being made up of numerous islands in the Atlantic ocean.[1] Approximately 74% of the population is urban and the urbanisation rate in the country is estimated at 3.62% between 2020 and 2025.[2] Only two large cities have more than 30,000 inhabitants (Bata and Malabo).[3] Historically, the country is the only former Spanish colony in sub-Saharan Africa (SSA). The country is experiencing ongoing violent border clashes with Cameroon. A cross-border pact was signed with Cameroon in 2020 to help resolve the issue, but the border can still close without notice. [4] Housing investment in this part of the country is therefore not advised.
EQG has had one of the fastest growing economies in Africa after the discovery of large oil reserves in the 1990s. More recently large natural gas reserves have also been discovered.[5] The International Monetary Fund (IMF) programme estimates that hydrocarbons account for 97% of total exports (crude oil accounting for about 69%), 80% of government revenues, and 43% of GDP.[6] In terms of economic performance, gross domestic product (GDP) growth rebounded to 1.4% after a contraction of 4.9% in 2020, helped on the supply side by growth of 3.3% in the oil sector and 1.3% in the non-oil sector. There have also been positive developments in the tertiary sector, where private education (4.1%), private health (3.4%), business (2.3%) and restaurants and hotels (1.7%) all grew.[7] The second phase of the National Development Plan: Horison 2020 moves away from infrastructure development and is aimed at developing new economic sectors to address the over dependency on oil.[8] Thus, economic diversification, which is slow to materialize, remains an important objective for the country’s growth and economic stability in the medium and long term. EQG became a member of the Organisation of Petroleum Exporting Countries (OPEC) in 2017 to increase foreign investment and technology transfers to the country.[9] EQG has a few state-owned enterprises (SOEs), GEPetrol and Sonagas, which currently dominate the economy with extremely limited spillovers to sectors other than hydrocarbons. However, the COVID-19 pandemic has exacerbated administrative failures and exposed the country’s insufficient capacity to manage the crises.[10]
Geographically, the country is bordered to the north by Cameroon, to the east and south by Gabon, and to the west by the Gulf of Guinea. The climate of the mainland region and islands is typically equatorial, with high temperatures, heavy rainfall and heavy cloud cover most of the year. The country is endowed with arable land and mineral resources ranging from gold, oil, uranium, diamonds colombo-tantalite and gas. EQG is therefore vulnerable to climate change because of its dependence on natural resources and because of its location. Rising sea levels, increased temperatures, less rainfall and extreme weather all impact on its key sectors.[11]
On the mainland, there are two rainy seasons: (from April to May and from October to December) while on the islands, the rainy season extends from July to January. Seasonal flooding affects overland travel and the provision of essential services, when roads become impassable and bridges damaged. With the focus on infrastructure development as the first phase of the National Development Plan, roads are generally in good condition across the country. However, increased urban flooding is likely to cause damage and threaten lives. In addition, decisions on project planning, design and building construction techniques must all consider the risk of urban flooding.
[1] Work Bank (2021). Country Summary. Climate change knowledge portal. https://climateknowledgeportal.worldbank.org/country/equatorial-guinea (Accessed on 14 October 2022).
[2]DonneesMondiales.com (2022). Croissance de la population en Guinée équatoriale. https://www.donneesmondiales.com/afrique/guinee-equatoriale/croissance-population.php (consulté le 08 Septembre 2022)
[3] The World Factbook. (2022, 11 August). Equatorial Guinea. In The World Factbook. Central Intelligence Agency. Retrieved August 21, 2022 from https://www.cia.gov/the-world-factbook/countries/equatorial-guinea/
[4] Government of Canada (2022). Travel advice for Equatorial Guinea. https://voyage.gc.ca/destinations/guinee-equatoriale Retrieved 09. September 2022)
[5] World Bank (2022). Country overview. https://www.worldbank.org/en/country/equatorialguinea/overview (Accessed on 14 October 2022).
[6] BTI 2022 Equatorial Guinea Country Report. https://bti-project.org/en/reports/country-report/GNQ Retrieved 19 August 2022.
[7] AfDB. Equatorial Guinea profile https://www.afdb.org/en/countries/central-africa/equatorial-guinea (consulted 20 August 2022)
[8] World Bank (2022). Country overview. https://www.worldbank.org/en/country/equatorialguinea/overview (Accessed on 14 October 2022).
[9] World Bank (2022). Country overview. https://www.worldbank.org/en/country/equatorialguinea/overview (Accessed on 14 October 2022).
[10] BTI 2022 Equatorial Guinea Country Report. https://bti-project.org/en/reports/country-report/GNQ Retrieved 19 August 2022.
[11] Work Bank (2021). Country Summary. Climate change knowledge portal. https://climateknowledgeportal.worldbank.org/country/equatorial-guinea (Accessed on 14 October 2022).
Access to Finance
Obtaining a mortgage loan is possible for households and businesses in EQG although as far as households are concerned, employees remain the most privileged because of the repayment guarantee offered by their salary. When an employee obtains a mortgage loan in EQG, the payment is automatically deducted from their monthly salary. To take out a mortgage in EQG, you must meet certain conditions. If you are a business owner, it is possible to apply for a quick money loan, depending on your eligibility. Some requirements, such as providing an explanation of why you want to apply for a mortgage are required by some entities but not by others.[1]
At the financial level in general, the banking sector is weakened due to the accumulation of bad loans in a context of gloom and arrears of payments. Despite the liberalisation of the banking sector, the cost of financing remains high, reflecting the low degree of competition in the sector.[2]
In relation to the government, the latter claims two microfinance institutions operating in the country, with a government-backed microcredit program for small and medium-sized enterprises (SMEs). The country does not have its own stock exchange and according to investors, capital markets are non-existent.[3] Credit is available but interest rates are high, ranging from 12% to 18% for mortgages and about 15% for personal loans.[4] Business loans typically require significant collateral, limiting opportunities for entrepreneurs, and can have rates of 20% or more. [5] It is not clear whether foreigners could obtain credit in the local market. The one-stop shop assumes that investors have already secured all the financing.[6]
EQG is a member of the Central African Economic and Monetary Community (CEMAC), which has a stock market common to all member states. The Central African Banking Commission (COBAC) regulates the region’s banking system. The Bank of Central African States (BEAC) and COBAC regulate transfer limits.[7] To attract investment and promote economic diversification, the Government offers loan facilities, including through the National Institute for Promotion and Development (INPYDE), which has an investment fund for entrepreneurs. EQG’s National Bank (BANGE), in which the government holds a 51% stake, plans to launch the country’s first brokerage activity to facilitate foreign investment, negotiate equity and even debt for large companies operating in EQG. In addition, BANGE inaugurated the BANGE Business School in 2020 to train students to work in the banking sector and facilitate underwriting, syndication and financing. In November 2020, BANGE announced its first capital increase through a first public allocation directly through its offices. In April 2021, the institution announced the second capital increase of CFA50.5 billion (US$75 million), which was open to individual investors (nationals and foreigners). [8]
The government’s failure to repay loans has raised interest rates and reduced access to credit for the private sector, especially households. EQG banks have the lowest loan-to-savings ratio in the sub-region. During the economic expansion (2009-2014), the government developed a line of credit with CCEI Bank to finance infrastructure development projects with construction companies. Defaults increased rapidly as the government failed to meet its legal obligations to CCEI Bank, prompting the government to nationalise the bank in January 2021 by acquiring the shares of Afriland First Group.[9]
In recent years, the banking sector has been affected by relatively lengthy bureaucratic procedures and a lack of computerised record keeping. Clients have reported that currency is not always available on request, and delays in transferring or exchanging local currency into foreign currencies have increased since the BEAC instituted new banking and exchange regulations in 2019. The National Economic and Financial Committee publishes a half-yearly report on the development of banks in the country. CEMAC establishes requirements for any bank wishing to operate in a member country, which COBAC may grant. COBAC also publishes information on the banking system of each member country. There are no restrictions, but there are requirements that applicants must meet to open an account, whether they are residents or not. The country is currently starting to use mobile banking; financial services are mainly limited to banking and microfinance.
Finally, the country’s economy is almost entirely based on cash, with credit cards available but little used by the general population, reserved for foreigners or wealthy citizens using international hotels, international airlines and large supermarkets. In April 2020, in part in response to social distancing measures from the COVID-19 pandemic, the government encouraged banks to multiply electronic payment mechanisms. The Ministry of Finance, Economy and Planning has also continued to develop electronic payments for state employees. The development of digital payments is likely to encourage remittances which in turn could have a substantial impact on the housing sector by increasing household budgets.[10]
[1] bankingnear (2022). Hipoteca in Guinea Ecuatorial. https://esp.bankingnear.com/hipoteca-guinea-ecuatorial Retrieved 09 September 2022.
[2] loansworldguide.com (2022). Prestamos hipotecarios en otras ciudades guinea ecuatorial Guinea ecuatorial. https://esp.loansworldguide.com/prestamos-hipotecarios-en-guinea-ecuatorial/s-prestamos-en-otras-ciudades-guinea-ecuatorial/ Retrieved 09 September 2022.
[3] loansworldguide.com (2022). Prestamos hipotecarios en otras ciudades guinea ecuatorial Guinea ecuatorial. https://esp.loansworldguide.com/prestamos-hipotecarios-en-guinea-ecuatorial/s-prestamos-en-otras-ciudades-guinea-ecuatorial/ Retrieved 09 September 2022.
[4] African economic outlook. 2017. Guinee Guinea. https://www.oecd-ilibrary.org/docserver/aeo-2017-29-fr.pdf?expires=1661113466&id=id&accname=guest&checksum=F764DC0EE7BC171FB90A20B0E4699E39 .page 4
[5] African economic outlook. 2017. Equatorial Guinea. https://www.oecd-ilibrary.org/docserver/aeo-2017-29-fr.pdf?expires=1661113466&id=id&accname=guest&checksum=F764DC0EE7BC171FB90A20B0E4699E39 .page 4
[6] Hutchins, T. (n.d.). Equatorial Guinea. United States Department of State. https://www.state.gov/reports/2021-investment-climate-statements/equatorial-guinea/ Retrieved 31 July 2022.
[7] Hutchins, T. (n.d.). Equatorial Guinea. United States Department of State. https://www.state.gov/reports/2021-investment-climate-statements/equatorial-guinea/ Retrieved 31 July 2022.
[8] Hutchins, T. (n.d.). Equatorial Guinea. United States Department of State. https://www.state.gov/reports/2021-investment-climate-statements/equatorial-guinea/ Retrieved 31 July.t 2022)
[9] Hutchins, T. (n.d.). Equatorial Guinea. United States Department of State. https://www.state.gov/reports/2021-investment-climate-statements/equatorial-guinea/ Retrieved 31 July 2022.
[10] Hutchins, T. (n.d.). Equatorial Guinea. United States Department of State. https://www.state.gov/reports/2021-investment-climate-statements/equatorial-guinea/ Retrieved 31. July 2022)
Affordability
Since 2010, 8,611 social housing units have emerged from the ground in EQG according to government figures.[1] Even though several thousand people have benefited from a homeownership program subsidized by the authorities, the conditions of resources required exclude the poorest because a person with an income of less than CFA 300,000 (US$476.19) cannot afford one of these homes.[2] The construction of social housing has been suspended, which has increased the imbalance between housing supply and demand. In this context, only rich people buy these homes to rent them out at sometimes very high prices. With the crisis, many beneficiaries have also found themselves unable to honour their monthly payments. Thus, the government has reviewed the conditions of access to these social housing by extending the duration of credits to reduce the amount of monthly payments by about 33%.[3] However, social housing seems to be only within the reach of the middle and upper classes. Poor households turn to the informal and, for the poorest, to self-construction of their homes usually based on wood, earth and bamboo. Indeed, demand for formal housing is tempered by low and erratic household incomes when we know that the mortgage sector is underdeveloped and concentrated in a small segment of the market for high-income households.
[1] BFM. In Equatorial Guinea, social housing is inaccessible to the poorest. https://www.bfmtv.com/immobilier/international-etranger/en-guinee-equatoriale-les-logements-sociaux-inaccessibles-aux-plus-pauvres_AN-201905200362.html Retrieved 22 August 2022.
[2] BFM. In Equatorial Guinea, social housing is inaccessible to the poorest. https://www.bfmtv.com/immobilier/international-etranger/en-guinee-equatoriale-les-logements-sociaux-inaccessibles-aux-plus-pauvres_AN-201905200362.html Retrieved 22 August 2022.
[3] BFM. In Equatorial Guinea, social housing is inaccessible to the poorest. https://www.bfmtv.com/immobilier/international-etranger/en-guinee-equatoriale-les-logements-sociaux-inaccessibles-aux-plus-pauvres_AN-201905200362.html Retrieved 22 August 2022.
Housing Supply
According to the World Bank in 2015, there is no official estimate of the housing deficit or the demand for EQG and the findings of the 2015 population and housing census on housing are not yet available. However, many sources report that housing conditions are very precarious in Equatorial Guinea, especially in urban centres. In both rural and urban areas, informal housing predominates and houses are built from local natural materials such as mud bricks and wood. These informally built dwellings are most often devoid of water and electricity. 75% of the population has access to sanitation, which is very high by regional standards and less than half of the population has access to fresh water. [1] Outside the main population centers of Malabo and Bata, people remain poor and do not have access to the most basic public services, such as water and reliable electricity generally and due to corruption, incompetence, inefficiency and lack of political will, few services work when there is no incentive, such as the preparations for the Africa Cup of Nations, the Summits in Malabo or prestigious projects, such as plans for a new continental capital in Djibloho.[2]
According to the demographic and national health survey conducted in 2011, only 54% of homes in Equatorial Guinea had cement floors, 26% had earthen floors and 14% ceramic tiles.[3] In addition, in September 2019, the Agence France Presse (AFP) reported that the city of Bata had remained without running water for three weeks, while the British analysis company Cable claimed that the country had the slowest internet in the world.[4]
However, there are a few privately built residential buildings in Malabo. However, this stock of good quality apartments is intended for employees of various oil companies and some high-income households, for very high rents, ranging from CFA1,260,000 to CFA3,780,000 (US$2,000 to US$6,000). In addition, there are very few private developers in EQG and, apart from the public housing programme, the housing sector is still largely dominated by the informal economy and self-construction. Indeed, many poor households that do not have the means to pay for even informal external labor, often resort to the labor force of household or neighborhood members to build their house provided that some members say they have sufficient knowledge of masonry. As in the majority of developing countries, this case is frequently observed in rural areas as well as in urban areas.[5]
In addition, the majority of professional real estate developers present in EQG are foreign developers (Chinese, Egyptian, Maghreb and Lebanese) and they focus on commercial real estate development and construction work since there is no public body for the construction of social housing in the country. [6] Indeed, the public body called Ente Público de Gestión Inmobiliaria de Guinea Ecuatorial (ENPIGE) is not in charge of allocating land to builders or seeking financing or developing projects; but only performs the administrative management functions of the state housing program. Some Spanish groups have also invested in the country, such as the Spanish company, Safadi Group Promotora, which has built several commercial properties in the country. Most of these companies (Arab Constructors, China Dalian, CEMEC, ABBA, etc.) are still present in EQG but their projects, especially state-sponsored public housing projects, are paralyzed pending funding from the state. In addition, with the aim of increasing the production of affordable housing, ABAYAK proposed in 2021 to build an integrated cement complex comprising the construction and operation of a clinker production plant and a cement plant with a total capacity of 1 060 000 tons per year expandable.[7] This project is part of the country’s high-impact economic programs, the implementation of which aims to achieve the ambition of the highest authorities to diversify the economic fabric and responds to the constant concern of the Equatoguinean authorities, companies and households to have cement in sufficient quantity and at a lower cost. This project should therefore stimulate[8] local consumption and the country’s activities.
[1] World Bank. (2020). Housing finance in Equatorial Guinea. Towards affordable housing for all. World Bank. https://documents1.worldbank.org/curated/en/506951590985328011/pdf/Housing-Finance-in-Equatorial-Guinea-Towards-Affordable-Housing-for-All.pdf page 12
[2] BTI 2022 Equatorial Guinea Country Report. https://bti-project.org/en/reports/country-report/GNQ Retrieved 19 August 2022.
[3] World Bank. (2020). Housing finance in Equatorial Guinea. Towards affordable housing for all. World Bank. https://documents1.worldbank.org/curated/en/506951590985328011/pdf/Housing-Finance-in-Equatorial-Guinea-Towards-Affordable-Housing-for-All.pdf page 12
[4] BTI 2022 Equatorial Guinea Country Report. https://bti-project.org/en/reports/country-report/GNQ Retrieved 19 August 2022.
[5] World Bank. (2020). Housing finance in Equatorial Guinea. Towards affordable housing for all. World Bank. https://documents1.worldbank.org/curated/en/506951590985328011/pdf/Housing-Finance-in-Equatorial-Guinea-Towards-Affordable-Housing-for-All.pdf page 12
[6] World Bank. (2020). Housing finance in Equatorial Guinea. Towards affordable housing for all. World Bank. https://documents1.worldbank.org/curated/en/506951590985328011/pdf/Housing-Finance-in-Equatorial-Guinea-Towards-Affordable-Housing-for-All.pdf page 21
[7] World Bank. (2020). Housing finance in Equatorial Guinea. Towards affordable housing for all. World Bank. https://documents1.worldbank.org/curated/en/506951590985328011/pdf/Housing-Finance-in-Equatorial-Guinea-Towards-Affordable-Housing-for-All.pdf page 14
[8] BDEAC (2021). Integrated cement complex construction of Akoga in Equatorial Guinea. https://www.bdeac.org/jcms/pre_28628/fr/cimenterie Retrieved 08 September 2022.
Property Markets
The acquisition, profits, use and sale of land are difficult to achieve and poorly regulated. According to the World Bank’s Doing Business 2020, six procedures were required to register private property in Malabo in 2019 (the regional average).[1] This procedure took about 23 days and the country was ranked 164th out of 190. In addition, the registration fee for a property amounts to 12.5% of the value of the property.[2] Compared to other Central African countries, land management poses few problems in EQG.[3] But it should be remembered that the status and mode of management of land assets is inappropriate, especially with regard to women since they are often sidelined by customary law that coexists with civil law.[4]
In addition, the slowness of the administration and the country’s predatory bureaucracy means that 4% to 5% of the fees are for registration alone, while 3% of the value of the property is charged for simple notarial services.[5] According to the Doing Business Land Administration Quality Index, the EQG scored four out of 30, well below the regional average (nine out of 30).[6]No electronic database is maintained to track congestion or record maps with specifically defined plots. Where this information is available, only interested parties and intermediaries can consult it, and they are likely to find that not all properties are officially registered or even mapped. In addition, there is no independent agency to verify identity documents, which means that litigation remains very costly and inefficient. In addition, no dispute settlement mechanism exists for those who engage in land deals in good faith on the basis of erroneous information (which is highly likely). Foreign investors are not allowed to own land in the country, only to lease it to the government. Another problem in EQG directly concerns married women since they generally face significant obstacles in the exercise of the right to land ownership.[7]
[1] World Bank. (2020). GNQ doing business. https://www.doingbusiness.org/content/dam/doingBusiness/country/e/equatorial-guinea/GNQ.pdf Pg. 4.
[2] World Bank. (2020). GNQ doing business. https://www.doingbusiness.org/content/dam/doingBusiness/country/e/equatorial-guinea/GNQ.pdf Pg. 4.
[3] World Bank. (2020). Housing finance in Equatorial Guinea. Towards affordable housing for all. World Bank. https://documents1.worldbank.org/curated/en/506951590985328011/pdf/Housing-Finance-in-Equatorial-Guinea-Towards-Affordable-Housing-for-All.pdf page 10
[4] BTI 2022 Equatorial Guinea Country Report. https://bti-project.org/en/reports/country-report/GNQ Retrieved 19 August 2022.
[5] World Bank. (2020). GNQ doing business. https://www.doingbusiness.org/content/dam/doingBusiness/country/e/equatorial-guinea/GNQ.pdf Pg. 4.
[6] World Bank. (2020). GNQ doing business. https://www.doingbusiness.org/content/dam/doingBusiness/country/e/equatorial-guinea/GNQ.pdf Pg. 4.
[7] BTI 2022 Equatorial Guinea Country Report. https://bti-project.org/en/reports/country-report/GNQ Retrieved 19 August 2022.
Policy and Legislation
In EQG, the government has laws regarding the rights of landowners, the government can seize land in the interest of the country with very little or no due process through the judicial system. In 2019, the United Nations Human Rights Committee (CCPR) found that certain provisions of customary law prevailed over domestic law while remaining incompatible. [1] Regardless, the country’s business climate still faces strong headwinds such as corruption (the country is ranked 172 out of 180 in Transparency International’s 2021 Corruption Perception Index[2]), administrative burden, high compliance costs, slow licensing, weak court system. [3] Moreover, although legal provisions were in place to protect all persons in Equatorial Guinea, structural discrimination was common in the country, particularly the unequal rights of women to land ownership.[4]
According to the Doing Business report (2020), in 2019, a total of 16 procedures were still required to register a company, among the highest number in the world. [5] In addition, minority investors are not well protected and owners are not obliged to disclose their purchases to shareholders; this discourages private investment and capital formation. In 2019, the government announced a new seven-day administrative process to start a business. Nevertheless, the country only improved to 178th place in the business creation sub-index[6]. On the social front, the country’s social protection system is ineffective. [7] Housing insurance is almost absent in favour of old-age and disability insurance, insurance against accidents at work, sick and maternity leave, and even family allowances, which are provided through a system of distribution and mechanisms of taxation and redistribution of the State.[8]
[1] World Bank. (2020). GNQ doing business. https://www.doingbusiness.org/content/dam/doingBusiness/country/e/equatorial-guinea/GNQ.pdf Pg. 4.
[2] DIDR – OFPRA. (2020, November 12). Equatorial Guinea: forced marriages. DIDR – OFPRA. https://www.ofpra.gouv.fr/sites/default/files/atoms/files/2011_gnq_mariages_forces_web_0.pdf Page 6.
[3] BNP Pribs. Equatorial Guinea: Investments. https://www.tradesolutions.bnpparibas.com/fr/implanter/guinee-equatoriale/investissements Retrieved 22 August 2022.
[4] BTI 2022 Equatorial Guinea Country Report. https://bti-project.org/en/reports/country-report/GNQ Retrieved 19 August 2022.
[5] BTI 2022 Equatorial Guinea Country Report. https://bti-project.org/en/reports/country-report/GNQ Retrieved 19 August 2022.
[6] BTI 2022 Equatorial Guinea Country Report. https://bti-project.org/en/reports/country-report/GNQ Retrieved 19 August 2022.
[7] World Bank Group. (2019, 24 October). Economy Profile of Equatorial Guinea [Doing Business 2020]. World Bank. https://doi.org/10.1596/32984 .page 4
[8] BTI 2020. Equatorial Guinea Country Report. https://web.archive.org/web/20210127025640/ https://www.btiproject.org/en/reports/country-report-GNQ-2020.html (Consulted 26 August 2021).
Opportunities
The important work undertaken since the oil boom has contributed to the major modernization of the country in the areas of infrastructure, energy, housing and water and sanitation. This modernization generally consisted of the construction of social housing whose marketing is managed by ENPIGE, the construction of power plants and the development of roads throughout the country although concentrated in urban areas. Although limited, these efforts on the part of the government have increased accessibility to many lands and villages that can be exploited in real estate projects by both households and businesses as we know that the problem of access to unexploited land is widespread in SSA countries. [1] Port infrastructure developments are also an important opportunity for real estate projects such as the construction of shops, rental housing for arriving staff, hotels and hostels for the less fortunate.[2] However, a large part of the population lives from fishing and livestock activities. Indeed, the EQG’s fisheries area includes 314,000 km² of exclusive economic zone (EEZ), 644 km of coastline and numerous bays, rivers and mangroves.[3] The exploitable fishery resources are estimated at about 74,000 tons of fish and 600 tons of crustaceans, on which about 5,000 are caught annually, including 350 tons for industrial fishing. Similarly, the EQG has only 750,000 hectares of land intended mainly for food crops, but with a very low rate of occupation of agricultural land. [4] Thus, real estate developers would benefit from taking more and more into account the height component of buildings, making it possible to reduce the speed of occupation of agricultural land of fishing waters. Finally, the possibilities of regional integration constitute an important opportunity since in October 2017, the CEMAC member states finally lifted the visa requirement for CEMAC citizens for movement in this region, which includes Chad, the Central African Republic, Cameroon, the EQG, Gabon and the Republic of Congo. The hospitality opportunities to be gained from this process of opening borders are immense in this part of the world, which remains one of the least integrated. [5]
[1] BTI 2022 Equatorial Guinea Country Report. https://bti-project.org/en/reports/country-report/GNQ Retrieved 19 August 2022.
[2] AfDB. (2018). Republic of Equatorial Guinea. Country Strategy Paper 2018-2022. https://www.afdb.org/fileadmin/uploads/afdb/Documents/Boards-Documents/GUINEE_EQUATORIALE_-_DSP_2018-2022.pdf .page 11
[3] AfDB. (2018). Republic of Equatorial Guinea. Country Strategy Paper 2018-2022. https://www.afdb.org/fileadmin/uploads/afdb/Documents/Boards-Documents/GUINEE_EQUATORIALE_-_DSP_2018-2022.pdf .page 11
[4] AfDB. (2018). Republic of Equatorial Guinea. Country Strategy Paper 2018-2022. https://www.afdb.org/fileadmin/uploads/afdb/Documents/Boards-Documents/GUINEE_EQUATORIALE_-_DSP_2018-2022.pdf .page 11
[5] AfDB. (2018). Republic of Guinea equatorial. Country Strategy Paper 2018-2022. https://www.afdb.org/fileadmin/uploads/afdb/Documents/Boards-Documents/GUINEE_EQUATORIALE_-_DSP_2018-2022.pdf .page 12
Green Applications for Affordable Housing
The construction techniques used in EQG are not sustainable and consume a lot of energy. The simulation tools show that investments of around CFA 882,000 (US$1,400 $US) per apartment could improve the entire construction and could also meet the objectives and criteria set to obtain the Excellence Design For Greater Efficiencies (EDGE) certification for sustainable and efficient constructions. These investments include, for example: the installation of solar panels and sanitary appliances that conserve water and would save households about CFA15,200 (US$24.13) per month on their water and electricity consumption costs. In addition, the lack of data on the housing sector, in particular on the characteristics (soil, water, energy, sanitation, etc.) does not facilitate the estimation of the number of sustainable housing. In addition, more than 81% of the urban population compared to only 32% in rural areas have access to an improved source of drinking water and outside the main population centers of Malabo and Bata, people remain poor and do not have access to even the most
basic public services, such as water and reliable electricity.
Availability of Data on Housing Finance
The statistical capacity of the EQG is extremely low. Equatorial Guinea’s statistical capacity index score was 36.7 in 2019, well below the average of upper-middle-income countries (70.6) and the average of low-income countries (56.7), placing the country 9th in the world among the last. Macroeconomic data are very outdated or not reported by the government, as well as socio-economic indicators.[1] Similarly, access to housing finance data in EQG is a challenge and little information is publicly available. In addition, the country also lacks multilateral actors and donors, whose activities are often accompanied by data collection and analysis. The few indicators currently published in a national database are not [2]provided. In addition, the real estate and land sectors are among the areas for which technical assistance for classification is required even if the number of uses of earth observation data is less than 20%.[3] Nevertheless, the government’s openness to information has improved, with the adoption in 2019 of the IMF’s Enhanced General Data Dissemination System, which publishes key macroeconomic data.[4]
[1] FAO (2020). 2018/19 Assessment of Statistical Capacity for SDG Indicators relevant to FAO. https://www.fao.org/3/ca6252fr/CA6252FR.pdf page 3
[2] United Nations (2021). Monitoring of Countries Graduate ed from the Least Developed Country Category: Equatorial Guinea. https://www.un.org/development/desa/dpad/wp-content/uploads/sites/45/CDP-PL-2021-PL-5A.1.pdf page 7
[3] FAO (2020). 2018/19 Assessment of Statistical Capacity for SDG Indicators relevant to FAO. https://www.fao.org/3/ca6252fr/CA6252FR.pdf page 1
[4] United Nations (2021). Monitoring of Countries Graduate ed from the Least Developed Country Category: Equatorial Guinea. https://www.un.org/development/desa/dpad/wp-content/uploads/sites/45/CDP-PL-2021-PL-5A.1.pdf page 7
Websites
National Bank of Equatorial Guinea /www.bannge.com/en/
BEAC www.beac.int/
Central African Economic and Monetary Community (CEMAC). www.cemac.int
The Central African Banking Commission (COBAC). www.sgcobac.org
Numbeo www.numbeo.com/
World Bank www.worldbank.org
Statista www.statista.com/statistics/1068861/outstanding-mortgagesafrica-by-country/
IMF – EQG www.imf.org/en/Countries/GNQ
Equatorial Guinea Data Portal www.eguinea.opendataforafrica.org/
INEGE www.inege.gq
Countrymeters www.countrymeters.info/fr/Equatorial_Guinea
Datosmacro.com www.datosmacro.expansion.com/paises/guinea-ecuatorial
Financial Afrik www.financialafrik.com/
