The Oil Boom in Equatorial Guinea

The Oil Boom in Equatorial Guinea

Jędrzej George Frynas January 1, 2004
Printer-friendly versionPrinter-friendly versionEmailEmail

This article outlines the rise of Equatorial Guinea as one of Africa’s leading oilproducing countries and investigates the political, economic and social effects of becoming a petro-state. The article is based on the author’s field research in Equatorial Guinea in the autumn of 2003 and interviews with senior oil company staff, government officials and staff of international organizations as well as secondary sources. This research demonstrates how reliance on oil and gas exports can lead to profound changes in a country’s political economy.

"A decade ago, Equatorial Guinea was considered an African backwater, with a stagnating economy and an unsavoury reputation for human rights abuses and the involvement of government officials in criminal activities. In less than a decade, it has transformed itself into one of the world’s fastest growing economies and a sought-after political partner in the Gulf of Guinea. Its gross domestic product (GDP) is said to have grown by a staggering average of 41.6 percent per year between 1997 and 2001, the highest in the world, and is forecast to rise by a respectable 23 percent in 2004.

The country has turned into one of the largest recipients of foreign direct investment in sub-Saharan Africa (about US$5 billion invested in 1998–2003). Up to 3,000 American expatriate workers live in Equatorial Guinea today and the United States re-opened its embassy in the capital Malabo in late 2003. The sole reason for this transformation has been the discovery of oil and gas. 

This article outlines the rise of Equatorial Guinea as one of Africa’s leading oil-producing countries and the effect of oil production on the country’s political economy. The article is based on the author’s field research in Equatorial Guinea in the autumn of 2003, interviews with senior oil company staff, government officials and staff of international organizations as well as secondary sources..."

Read More >> 

EG JUSTICE - is a 501(c)(3) organization.
P.O. Box 57297 Washington, DC 20037 1 (202) 643 4345 Copyright © 2010 EG Justice, all rights reserved.