Equatorial Guinea vs. Gabon

Following, independence from France in 1960, El Hadj Omar BONGO Ondimba - one of the longest-ruling heads of state in the world - dominated the country's political scene for four decades (1967-2009). President BONGO introduced a nominal multiparty system and a new constitution in the early 1990s. However, allegations of electoral fraud during local elections in December 2002 and the presidential election in 2005 exposed the weaknesses of formal political structures in Gabon. Following President BONGO's death in 2009, a new election brought his son, Ali BONGO Ondimba, to power. Despite constrained political conditions, Gabon's small population, abundant natural resources, and considerable foreign support have helped make it one of the more stable African countries.

President Ali BONGO Ondimba's controversial August 2016 reelection sparked unprecedented opposition protests that resulted in the burning of the parliament building. The election was contested by the opposition after fraudulent results were flagged by international election observers. Gabon's Constitutional Court reviewed the election results but ruled in favor of President BONGO, upholding his win and extending his mandate to 2023.

violent windstorms; flash floods

volcanism: Santa Isabel (3,007 m), which last erupted in 1923, is the country's only historically active volcano; Santa Isabel, along with two dormant volcanoes, form Bioko Island in the Gulf of Guinea

Equatorial Guinea is one of the smallest and least populated countries in continental Africa and is the only independent African country where Spanish is an official language. Despite a boom in oil production in the 1990s, authoritarianism, corruption, and resource mismanagement have concentrated the benefits among a small elite. These practices have perpetuated income inequality and unbalanced development, such as low public spending on education and health care. Unemployment remains problematic because the oil-dominated economy employs a small labor force dependent on skilled foreign workers. The agricultural sector, Equatorial Guinea's main employer, continues to deteriorate because of a lack of investment and the migration of rural workers to urban areas. About three-quarters of the population lives below the poverty line.

Equatorial Guinea's large and growing youth population - about 60% are under the age of 25 - is particularly affected because job creation in the non-oil sectors is limited, and young people often do not have the skills needed in the labor market. Equatorial Guinean children frequently enter school late, have poor attendance, and have high dropout rates. Thousands of Equatorial Guineans fled across the border to Gabon in the 1970s to escape the dictatorship of MACIAS NGUEMA; smaller numbers have followed in the decades since. Continued inequitable economic growth and high youth unemployment increases the likelihood of ethnic and regional violence.

Gabon's oil revenues have given it one of the highest per capita income levels in Sub-Saharan Africa, but the wealth is not evenly distributed and poverty is widespread. Unemployment is especially prevalent among the large youth population; more than 60% of the population is under the age of 25. With a fertility rate still averaging more than 4 children per woman, the youth population will continue to grow and further strain the mismatch between Gabon's supply of jobs and the skills of its labor force.

Gabon has been a magnet to migrants from neighboring countries since the 1960s because of the discovery of oil, as well as the country's political stability and timber, mineral, and natural gas resources. Nonetheless, income inequality and high unemployment have created slums in Libreville full of migrant workers from Senegal, Nigeria, Cameroon, Benin, Togo, and elsewhere in West Africa. In 2011, Gabon declared an end to refugee status for 9,500 remaining Congolese nationals to whom it had granted asylum during the Republic of the Congo's civil war between 1997 and 2003. About 5,400 of these refugees received permits to reside in Gabon.

Exploitation of oil and gas deposits, beginning in the 1990s, has driven economic growth in Equatorial Guinea; a recent rebasing of GDP resulted in an upward revision of the size of the economy by approximately 30%. Forestry and farming are minor components of GDP. Although preindependence Equatorial Guinea counted on cocoa production for hard currency earnings, the neglect of the rural economy since independence has diminished the potential for agriculture-led growth. Subsistence farming is the dominant form of livelihood. Declining revenue from hydrocarbon production, high levels of infrastructure expenditures, lack of economic diversification, and corruption have pushed the economy into decline in recent years and limited improvements in the general population's living conditions. Equatorial Guinea's real GDP growth has been weak in recent years, averaging -0.5% per year from 2010 to 2014, because of a declining hydrocarbon sector. Inflation remained very low in 2016, down from an average of 4% in 2014.

As a middle income country, Equatorial Guinea is now ineligible for most low-income World Bank and the IMF funding. The government has been widely criticized for its lack of transparency and misuse of oil revenues and has attempted to address this issue by working toward compliance with the Extractive Industries Transparency Initiative. US foreign assistance to Equatorial Guinea is limited in part because of US restrictions pursuant to the Trafficking Victims Protection Act.

Equatorial Guinea hosted two economic diversification symposia in 2014 that focused on attracting investment in five sectors: agriculture and animal ranching, fishing, mining and petrochemicals, tourism, and financial services. Undeveloped mineral resources include gold, zinc, diamonds, columbite-tantalite, and other base metals. In 2017 Equatorial Guinea signed a preliminary agreement with Ghana to sell liquefied natural gas (LNG); as oil production wanes, the government believes LNG could provide a boost to revenues, but it will require large investments and long lead times to develop.

Gabon enjoys a per capita income four times that of most Sub-Saharan African nations, but because of high income inequality, a large proportion of the population remains poor. Gabon relied on timber and manganese exports until oil was discovered offshore in the early 1970s. From 2010 to 2016, oil accounted for approximately 80% of Gabon's exports, 45% of its GDP, and 60% of its state budget revenues.

Gabon faces fluctuating international prices for its oil, timber, and manganese exports. A rebound of oil prices from 2001 to 2013 helped growth, but declining production, as some fields passed their peak production, has hampered Gabon from fully realizing potential gains. GDP grew nearly 6% per year over the 2010-14 period, but slowed significantly from 2014 to just 1% in 2017 as oil prices declined. Low oil prices also weakened government revenue and negatively affected the trade and current account balances. In the wake of lower revenue, Gabon signed a 3-year agreement with the IMF in June 2017.

Despite an abundance of natural wealth, poor fiscal management and over-reliance on oil has stifled the economy. Power cuts and water shortages are frequent. Gabon is reliant on imports and the government heavily subsidizes commodities, including food, but will be hard pressed to tamp down public frustration with unemployment and corruption.

Equatorial Guinea's climate for operator competition boosted mobile subscribership; broadband services are limited and expensive; submarine cable supported broadband and reliability of infrastructure; government backbone network will connect administrative centers; regional roaming agreement in process (2021)

politically stable and oil laden, Gabon is one of wealthiest nations in Africa; liberalized and competitive market led development of mobile broadband, data service, and tests of 5G; fixed-line sector underdeveloped due to the lack of competition and high prices; South Korean investment in fiber segments as part of Central African backbone; sufficient international bandwidth through submarine cable systems; government committed to backbone infrastructure and e-health services; efforts towards new legal and regulatory improvements (2020)

in 2002, ICJ ruled on an equidistance settlement of Cameroon-Equatorial Guinea-Nigeria maritime boundary in the Gulf of Guinea, but a dispute between Equatorial Guinea and Cameroon over an island at the mouth of the Ntem River and imprecisely defined maritime coordinates in the ICJ decision delayed final delimitation; UN urged Equatorial Guinea and Gabon to resolve the sovereignty dispute over Gabon-occupied Mbane and lesser islands and to create a maritime boundary in the hydrocarbon-rich Corisco Bay

UN urges Equatorial Guinea and Gabon to resolve the sovereignty dispute over Gabon-occupied Mbane Island and lesser islands and to establish a maritime boundary in hydrocarbon-rich Corisco Bay

Tier 2 Watch List - Equatorial Guinea does not fully meet the minimum standards for the elimination of trafficking but is making significant efforts to do so; authorities investigated, and for the first time since 2010, initiated the prosecution of alleged human traffickers; the government partnered with an international organization to provide training for more than 700 officials and civil society actors; authorities developed and implemented formal screening procedures to identify victims within vulnerable populations, an effort that had stalled for five years; however, the government still has not convicted a trafficker or any complicit government employees under its 2004 anti-trafficking law; a lack of training among judicial officials has resulted in potential trafficking crimes being tried under related statutes; victim services remained inadequate; authorities did not report referring any trafficking victims to government housing that was supposed to serve as temporary shelter (2020)