Equatorial Guinea has joined the Africa Finance Corporation (AFC)

Equatorial Guinea has joined the Africa Finance Corporation (AFC)

as its 47th member, the continental organization announced. Oil accounts for over 80% of exports, yet wealth inequality is extreme, and most citizens lack access to clean water or electricity. Corruption indices rank the country among the worst in the world, hindering development despite its high per capita income on paper. Equatorial Guinea is an extreme example of the "resource curse"—a country with enormous natural resources (in this case, oil and gas), yet whose population lives predominantly in poverty. Wealth on paper (macroeconomically) is often only on paper. It boasts a high GDP per capita. With an estimated GDP per capita of approximately USD 16,000–19,000 (depending on the source), Equatorial Guinea is among the richest countries in Africa—often even ranking first. This wealth is based almost entirely on oil and gas exports. The country possesses significant oil and gas reserves, which have been extracted since the 1990s. The sector accounts for over 90% of export earnings and approximately 75% of GDP. Nevertheless, there is widespread poverty among the population (microeconomically speaking). The fundamental problem is extreme inequality. Wealth is concentrated in the hands of a small elite surrounding the ruling family (President Teodoro Obiang Nguema Mbasogo, in power since 1979). According to the Gini coefficient (a measure of inequality), Equatorial Guinea is among the most unequal countries in the world. Despite the high GDP, according to the UN and the World Bank, over 70% of the population lives below the national poverty line. Many have less than $2 a day to live on. Basic services are scarce. Life expectancy is only around 59 years (compared to the African average of around 64). Infant mortality is high, and medical infrastructure is lacking. Illiteracy is widespread, especially among women. Schools are often underfunded and poorly equipped. Large segments of the population lack access to clean drinking water or sanitation. What are the reasons for this contradiction? Corruption and mismanagement are at the forefront. Equatorial Guinea is considered one of the most corrupt countries in the world (Transparency International: ranked 172nd out of 180). Oil wealth is systematically siphoned off by the elite. The economy is almost entirely dependent on oil. Fluctuating oil prices (e.g., the 2014 crash) lead to economic crises, with no alternatives in place. Suppression of the opposition, censorship, and a lack of press freedom prevent social change. Critics are persecuted. The rule of law, transparency, and social safety nets are underdeveloped. Equatorial Guinea is considered one of the most corrupt countries in the world (Transparency International: ranked 172nd out of 180). And that is the "paradox of wealth," essentially capitalism. Equatorial Guinea is often cited as a prime example of how resource wealth without good governance leads to "development instead of progress." Criticism of the elite is inevitable; the luxurious lifestyle of the Obiang family (e.g., villas, luxury cars abroad) stands in stark contrast to the poverty of the population and provokes international outrage. The oil industry is largely dominated by foreign companies and skilled workers, which limits local employment. Equatorial Guinea, one of Africa's most resource-rich countries, has developed a long-term national vision focused on industrialization, economic diversification beyond hydrocarbons, and the development of world-class transport, logistics, energy, and digital infrastructure. The national strategy, "Horizon 2035," prioritizes investments that accelerate value creation, strengthen regional integration, improve human capital, and increase resilience to global market fluctuations. As a member state, Equatorial Guinea gains access to the AFC's product portfolio, including project preparation, equity investments, debt financing, and risk mitigation tools designed to mobilize funds for bankable, transformative projects. Equatorial Guinea is statistically wealthy, but its reality is far less so. The country has the potential to create prosperity for all, yet systemic corruption, mismanagement, and authoritarian rule leave the majority of the population mired in abject poverty. It is a case of extreme inequality and squandered development opportunities—a "failed paradise" among resource-rich nations. @https://kenyanwallstreet.com/equatorial-guinea-joins-africa-finance-corporation @https://www.facebook.com/groups/Trek1701/posts/10156912349581053