Equatorial Guinea is a country with a total area of 28 051 km2,⁶ home to 1 714 671 inhabitants in 2023.⁷ The country is made up of a continental part, the Rio Muni, located between Cameroon, Gabon and the Gulf of Guinea; and an insular part, with its two islands located at both ends of Sao Tome (Annobon of 17 km2 and Bioko of 2 000 km2). The capital, Malabo, is located on the island of Bioko, while more than 75% of the population lives in the mainland of the country (Rio Muni).⁸ In 2023, the annual population growth rate was 2.3%,⁹ and the urbanisation rate was 2.9%.¹⁰ Equatorial Guinea is a highly urbanised country, with 74% of its population living in urban areas in 2023.¹¹

Equatorial Guinea is one of the few upper-middle-income countries in Africa.¹² In 2023, the Gross Domestic Product (GDP) per capita amounted to CFA4 311 842 (US$7 066), well above the Sub-Saharan average of CFA998 326 (US$1 636).¹³ Yet, more than 70% of the population lives below the national poverty line, and  more than 40% in extreme poverty.¹⁴ However, the lack of recent data on the poverty rate makes it difficult to reveal inequalities, which potentially persist within the country.

Equatorial Guinea’s economy, which is not very diversified despite the potential of the primary sector (agriculture, fisheries), is driven by hydrocarbon production, which in 2023 accounted for 42% of GDP, 95% of exports and 90% of the country’s total revenues.¹⁵ However, the macroeconomic and fiscal situation deteriorated; the country entered a phase of economic recession from 2015 to 2021, characterised by negative average GDP growth.¹⁶ This recession phase has continued into 2023, exports have fallen by 26.7% and GDP is expected to continue to decline by 5% in 2024.¹⁷ Measures have been taken to boost economic diversification and inclusive growth.¹⁸ In 2023, Equatorial Guinea’s nominal share of GDP in the CEMAC area was 11.9%.¹⁹

Equatorial Guinea is heavily dependent on imports for food consumption.²⁰ The high price of foodstuffs, which is thus sensitive to international fluctuations, affects the population. In 2024, the inflation rate is expected to reach 4.7%.²¹

In November 2022, PresidentTeodoro Obiang Nguema Mbasogo, in power since 1979, won the presidential election with a 94.9% majority, thus re-elected for a new six-year term.²² In the same year, municipal and legislative elections were held, although there was no strong opposition. The Democratic Party of  Equatorial Guinea (PDGE) won almost all seats in the Chamber of Deputies, Senate and municipal levels, giving President Obiang’s party absolute executive power. The opposition’s freedom of expression is regularly restricted. On 14 February 2023, the European Parliament adopted a resolution on respect for human rights in Equatorial Guinea, urging European Union (EU) member states to demand an end to all political persecution.²³

As of 31 December 2023, Equatorial Guinea’s banking system had five banks in operation24 and two licensed microfinance institutions.²⁵ Among these banks, two are mainly state-owned: the National Bank of Equatorial Guinea (BANGE Bank), and the CCEI Bank.²⁶ The Bank of Central African States (BEAC) of the Central African Economic and Monetary Community (CEMAC) regulates the interest rates of Equatorial Guinean banks and the Central African Banking Commission (COBAC) is responsible for verifying the registration of financial institutions’ operations within the established regulatory framework. However, due to the weaknesses of its human resources, the directives of this central bank are not always applied by the country’s banks.

As the banking market is highly concentrated and therefore less competitive, the banking sector is underdeveloped and the cost of financing is high.²⁷ In addition, the banking sector remains weakened due to the accumulation of bad loans, combined with payment arrears to economic actors.²⁸ The high rates of Non Performing Loans1(NPLs) can be mainly attributed to the undercapitalisation and low liquidity of some banks, as well as to the frequent delays in payments by the State to construction companies engaged in public works.²⁹

In 2023, Equatorial Guinea’s money supply increased by 19.3%.³⁰ During the same period, short-term loans were the largest for a total amount of CFA445 217 million (US$729 596 million), followed by medium-term loans peaking at CFA193 572 million (US$317 215 million) and long-term loans amounting to CFA24 873 million (US$40 760 million). However, in the 2022/23 period, the share of short-term loans fell by 36.4%, while medium- and long-term loans increased by 10.5% and 25.5% respectively.³¹

Credit is available, but at high interest rates, typically between 12% and 18% for mortgages and around 15% for personal loans. Bank mortgages are mostly offered through social housing programmes in which payments are made to the government through the commercial bank CCEI Bank. Mortgage maturities vary and can be longer than 20 years, and non-payment for six months results in foreclosure of the property. When it comes to business loans, high interest rates (typically around 20%) and the requirement for large collateral limit opportunities for entrepreneurs. The volume of financing available to small and medium-sized enterprises is low and microcredit is relatively scarce in the banking market.³² Limited access to credit and high interest rates make it difficult to obtain  financing for the purchase of a property.

The government also encourages portfolio investments, which consist of the acquisition of bonds or shares through the intermediary of the BANGE’s brokerage agency, Sociedad deValores. BANGE Sociedad deValores is listed on the sub-regional stock exchange, the Central African Stock Exchange (BVMAC).³³ The agency offers a financing alternative for real estate developers who can now issue securities on the stock market and acquire capital at a lower cost than on the banking market. For example, private sector agents in need of financing can access credit instruments such as loans and bank overdrafts after meeting certain stock market requirements. Considering the fact that the BVMAC sub-regional financial market has a low amount of securities in transactions, high collateral requirements, and a lack of information on the credit history of potential borrowers, the financial sector as a whole is shallow and opaque.

Plans are underway to develop national digital finance networks through the promotion of ATMs, credit cards and mobile money. Indeed, the amount of digital payments as well as investments in digital technology have been increasing since 2017. This increase can be explained by the fact that households are looking for low-cost, easy-to-use investment options and are increasingly relying on mobile payment solutions for their daily transactions. Small and medium-sized  enterprises (SMEs) and startups are also increasingly mobilising capital raising digitally. In addition, investors and traders see digital assets such as cryptocurrencies as new opportunities. These new financing methods could offer opportunities to real estate investors who wish to find alternatives to the traditional financial markets. However, companies in the sector suffered a reduction in the value of investments and a consequent job loss in 2022.³⁴

Despite the lack of precise data, it appears that the supply of housing is dominated by the informal sector. The majority of households build their homes themselves. These informal settlements are mainly built from natural materials, most often without support and without complying with building standards. In addition,  these informal constructions usually use the entire surface of the land on which they are built without leaving space for air circulation or water channeling.⁴² These informal constructions are therefore generally vulnerable to storms and torrential rains.⁴³

The state appears to be the main provider of affordable formal housing, with private formal builders few in number and offering housing at higher prices.⁴⁴ Despite these public investments, the resulting supply of housing does not always guarantee the quality of housing and its compliance with construction standards. Indeed, many buyers of housing have denounced the defective quality of social housing in the country.⁴⁵ For example, in 2023, the government took legal action against the company China Dalian after structural damage was detected in more than 6 000 social housing units built in Malabo and Bata, due to construction defects and poor quality of materials.⁴⁶

The real estate sector offers many opportunities, but it is necessary to master the regulations in force with regard to ownership, registrations and transactions since the government has laws in place in this area. Land registries are maintained by the Ministry of Lands and Housing which is responsible for the land registration management database and land record-keeping, which includes information such as plot number, location, and property details.

Land registries also include information about mortgages and liens on the property that play a role in the buyer’s ability to obtain financing for the property or transfer ownership of the property in the event of a sale. The fees associated with obtaining real estate records typically include registration fees, stamp duties, and search fees. Real estate agents’ commissions are between 5% and 10% of the total transaction price.⁴⁷ However, the real estate sector is a reflection of the economy as a whole, divided between a formal sector for a few high-income households and an informal sector for the majority of the low-income population, which is generally below the national poverty line.⁴⁸ In addition, the acquisition, profits, use and sale of land are difficult to achieve because existing regulations are not always enforced.

With regard to land management, electronic databases for monitoring congestion or recording maps with specifically defined plots are not up-to-date and are poorly stocked. When this information is available, only interested parties and intermediaries can view it, and not all properties are officially registered or even mapped. In addition, there is no independent agency to verify identity documents, which means that resolving disputes remains costly and inefficient.⁴⁹ A large  part of the transactions on land are thus carried out informally,⁵⁰ which can later lead to the demolition of the housing built there.⁵¹

The Government has put in place a legislative framework concerning the rights of landowners. Article 24 of Forest Law No. 1/1997 determines that the State delimits community forests and recognises a permanent right of use for rural
communities, while Article 6 of Basic Law No. 1/1995 of 17 January recognises customary law for land management.⁵² However, the state can seize land in the general interest of the country with little or no due process. The practice of collective community ownership of village land is customary but suffers from significant limitations. Customary land is neither alienable by commercial  exchange nor recognised and protected by modern law.⁵³ In addition, individuals who build on land in the domain of the state are evicted and the buildings destroyed.⁵⁴

In order to ensure the quality of new housing and avoid construction defects, the Government has established a list of material quality benchmarks that companies must meet if they want to build in the country, as well as a roadmap for service providers in the field. The Government has thus requested that construction companies update themselves with refresher courses and that they purchase conventional materials for the certification of construction qualities.⁵⁵However, the list of material quality references has not yet been published and the sanctions applied in the event of non-compliance have not yet been made explicit.⁵⁶

Foreign investors are subject to specific provisions related to land acquisition and must comply with local rules that vary by sector. Even though foreigners can invest in the real estate sector or buy property in the country, they must provide proof of residency to open a bank account.⁵⁷ The acquisition of land titles by foreign natural or legal persons requires a presidential authorisation, in accordance with Decree 140/2013. Finally, to support the growth of the real estate sector, the government is setting up streamlined administrative procedures and reducing red tape.⁵⁸

The real estate sector is an emerging market. Foreign investors have the opportunity to invest in real estate in Equatorial Guinea, provided they have the necessary permits and approvals from the government.⁵⁹ The latter promotes private investment in real estate through tax incentives, such as the ten years of tax exemption provided for foreign investors combined with the possibility of obtaining land ownership rights.⁶⁰ Also with the aim of encouraging private investment, the Government received, through the Minister of Planning and Economic Diversification, many investors represented by OtroTecnology Business (OTB) Equatorial Guinea, which stands out in housing construction projects.⁶¹

Investing in the real estate sector requires taking into account the quality of life of the inhabitants with more adequate housing, while respecting or favouring the investment axis drawn up by the Government according to the 2035 Agenda (real estate, energy, telecommunications, industry and the environment). With the resumption of economic growth, Equatorial Guinea will need considerable investment in real estate. Opportunities are being created in the construction of offices, shopping malls, headquarters of international and local companies, lowcost social and residential housing, as well as infrastructure (roads, hydroelectric dams and urbanisation).

The current bills as well as the various projects for the construction and rehabilitation of housing and infrastructure bear witness to new general dynamics of construction and improvement of the urban living environment.

The challenges related to improving the living environment and access to affordable, formal and decent housing are subjects on which the Government is working, in order to adapt its future policies. Equatorial Guinea is a country that seems rather dynamic in terms of adjustment, modification, experimentation, and always in an effort to resolve the problems that the country faces.

Data on the real estate sector or housing is difficult to find. The little data that does exist generally comes from household surveys. The Second National  Household Survey (ENHII) was launched in 2022 by the National Institute of Statistics of Equatorial Guinea (INEGE) to collect socioeconomic and  demographic data, the latter including questions on housing characteristics and ownership. However, the second ENHII is still not available.

Statistical capacity is still low, despite the technical assistance provided by the World Bank to the Public Investment Division of the Ministry of Economy, Planning and Public Investment for this purpose. Since 2019, the World Bank has been supporting INEGE in the collection of data on companies, public and private administrations and households. This data could improve and inform the  Government’s efforts to mobilise domestic resources in the social field, such as real estate, land and housing.

In addition, INEGE called on national statistical offices in African countries to share their experiences with regard to the inclusion of the costs of services provided by owner-occupied dwellings in the Consumer Price Index (CPI).⁶²

Ministry of Finance, Economy and Planning:
www.minhacienda-gob.com

Government of the Republic of Equatorial Guinea:
www.guineaecuatorialpress.com

National Institute of Statistics:
www.inege.gq

National Bank of Equatorial Guinea:
www.bannge.com

Asodegue:
http://www.asodeguesegundaetapa.org/page/3/?s

Makanisi:
https://www.makanisi.org/

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64. See footnote 2.