Equatorial Guinea to allocate US$1 bln to diversify into farming, petrochemicals, mining

04-Feb-14

Africa’s oil and gas producer Equatorial Guinea will allocate US$1 bln over three years to support foreign investment aimed at diversifying its energy-dependent economy into new areas, such as farming, petrochemicals and mining, as per Reuters.President Teodoro Obiang Nguema's government announced the co-investment fund of 500 billion CFA francs (US$1 bln). Announcing the investment fund, Finance Minister Marcelino Owono Edu said the fund would make investments with private partners in non-energy sectors where the government wanted to attract capital. These included agriculture and ranching, fisheries, petrochemicals and mining, tourism and financial services. A new state entity, to be called Holdings Equatorial Guinea 2020, would help to guide the state's diversification effort. Although Equatorial Guinea boasts Africa's highest gross domestic product per capita - even beating some southern European countries on that measure - international development organisations say more than half of its 735,000 population still live in poverty.