Our World See This Report at Worldfolio.Co.Uk Wednesday August 6, 2014 EQUATORIAL GUINEA Africa’S Small Giant U.S.-Africa Leaders Summit 2014 Washington, DC

#AfricaSummit #EquatorialGuinea Our World See this report at worldfolio.co.uk Wednesday August 6, 2014 EQUATORIAL GUINEA Africa’s small giant U.S.-Africa Leaders Summit 2014 Washington, DC

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t one time per- in its diplomatic and economic haps Africa’s The citizens of the continent’s wealthiest country per capita are now seeing strategy to help develop Africa. least-known na- the benefits of oil revenues, thanks to the government’s heavy investments Successive U.S. adminis- tion, the Repub- trations have worked with lic of Equatorial in public works and social infrastructure President Obiang to further Guinea is beginning to make improve the country’s political Anews as the world learns of its freedoms, human rights per- extensive petroleum reserves formance, financial transpar- and the government’s ambi- ency and the standard of living tious efforts to spend that lar- of the average citizen, as well as gesse on improving the lives of the proper use of the country’s the country’s almost 1.3 million petroleum riches. citizens. In commercial activities, Foreign investors have most of Equatorial Guinea’s poured into the country lo- exported oil goes to the U.S. cated in the heart of the west American companies in the central African region on the oil, construction and security Atlantic Ocean, lured by one sectors have one of the largest of the world’s fastest growing foreign presences in Equatorial economies which is fueled by Guinea and relations are so close proved petroleum reserves of that the African nation allows more than 1 billion barrels of American passport holders crude and 1.3 trillion cubic feet visa-free entrance, with the U.S. of natural gas. is only one of three countries to Indeed, following a short dip enjoy that privilege. in growth five years ago as the Certainly, the U.S. role in turbulence of the global eco- developing Equatorial Guinea nomic crisis briefly buffeted can only grow as relations be- Equatorial Guinea, the coun- come even closer and more U.S. try’s economy has returned to multinationals, both large and annual growth of around 7%. small, invest in one of Africa’s The World Bank lists the 23rd African Union Summit in Equatorial Guinea most vibrant economies. country as the wealthiest coun- Along with the oil and gas try per capita in Africa thanks The government of President down to the people, creat- dependence from Spain in Following Macias’ ouster sectors, investment opportuni- almost entirely to its energy ex- Teodoro Obiang is pouring ing employment and a newly 1968 when the former colony and the installation of Obi- ties exist in other sectors such as ports, which account for more billions of dollars into public emerging middle class with its was largely broke, with few ang as president, the country hard woods, agriculture, tour- than 90% of gross domestic projects to create and upgrade rising demand for improved educated professionals and struggled as many other Afri- ism and consumer products as product. everything from highways, living standards and consumer suffering under widespread can nations have with a mori- the country’s economy expands And with world oil prices airports and ports to housing, goods. repression and cruelty by bund economy, nascent steps even further and Equatoguin- expected to rise at least over health facilities and safe drink- Equatorial Guinea has the then-president, Francisco towards democracy and cor- eans prosper. the short term, the future of the ing water systems. come a long way since its in- Macias. ruption. Equatorial Guinea is evolving nation seems assured as a great At the same time, just as in Over the past several de- as one of the African continent’s place to do business for intelli- other countries wrenched out A UNITED WORLD SUPPLEMENT PRODUCED BY: cades, the situation has im- true success stories and the Unit- gent investors. of poverty by sudden riches Eva Malika de la Torre, Gonzalo Llaryora, proved and the United States ed States is the government’s pre- But it is not only oil and gas derived from natural resources, Karla Arteaga and Fátima Ruíz Moreno has begun to see Equatorial ferred partner to ensure that role which are driving investment. wealth is beginning to trickle Guinea as an important partner and the country’s future.

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content 2 Wednesday, August 6, 2014 Distributed by USA TODAY EQUATORIAL GUINEA

CHAMBER OF COMMERCE Community of Central Af- rica) since 1983, an organization put in place to help establish a Central African market. Maintaining the continent’s highest income Business evolves per capita, and with its various development projects underway, Equatorial Guin- ea is poised to lead and ready to compete. But how does it fare in far beyond oil competition with its Afri- can counterparts? It is “the Thanks to its varying development programs and its future-focused strategies and quality of our infrastructure” vision, the country is in a good position to become an economic powerhouse on the which is our advantage, Mr. African continent Boho asserts; the country is also working on upgrading “This is the best time” for ing beyond oil and towards try. The Chamber of Com- existing infrastructure using Equatorial Guinea, says Gre- investment in other sectors merce plays a major role in technological innovation in gorio Boho, Chairman of the with a view to a diverse and this – its primary role in the order to facilitate advance- Chamber of Commerce. sustainable economy. country’s development, Mr. ments in development. The Horizon 2020 Plan, One way they are doing Boho states, is in assisting It is important, says Mr. which was set into motion this is focusing more on ag- to create a solid foundation Boho, that the nation focus by the government in 2007, riculture and fishing - ag- between companies and/or on agriculture, fishing and has been helping to trans- ricultural development is investors and the ministries opening pathways for busi- form the country’s infra- very major tenet of the Plan, of government. nesses and investments, structure and economy. The says Mr. Boho, an agrono- The Chamber eases the which is what will ultimately plan, which also features mist with many years in process by expediting and fa- make Equatorial Guinea a strengthening social policy public service. According cilitating the settlement pro- leader in Africa. Another ad- and the reduction of poverty, to Mr. Boho, the country is cedures for business, helping vantage? The security which places considerable focus on “working to create the best to foster relationships in all is found in Equatorial Guinea, sustainable development. possible conditions for agri- levels of business including Mr. Boho says, is not found Diversification is a top culture, encouraging people the country’s institutions in many African countries. It priority in the nation’s eco- to return to the field and and local entrepreneurs. also helps that business rela- nomic plans along with in- implement agriculture and They are the point of contact tions with the U.S. are excel- creasing its competitiveness. practices that can sustain the for interested businesses and lent. The U.S. “has been the For most of this millennium, country beyond oil.” are also responsible for pro- engine of Guinean develop- the country has experienced The country is also work- moting the country to pro- ment in the last several years,” a boom thanks to a growing ing to attract more foreign spective investors. Mr. Boho says; thanks to that energy sector, due in large investment by being more In addition, human re- relationship, “we have experi- part to the American oil customized in terms of treat- sources is a high priority on enced growth” and receive a industry and the continu- ment and streamlining the the Chamber’s agenda: “we those [foreign] companies benefit,” Mr. Boho states. lot of support. It is a relation- ing excellent relations be- process, making it easier and seek the continuous train- and at the same time acquire The country has been a ship that “is strengthening tween the two nations. Now, faster for businesses to in- ing of our human capital, so the know-how so that it can member of CEMAC (the day by day, and we are com- Equatorial Guinea is look- stall themselves in the coun- that [workers] can be part of be shared for the country’s Economic and Monetary mitted to that.”

EQUATORIAL GUINEA OF THE 21ST CENTURY

DEVELOPMENT AND PROGRESS INFRASTRUCTURE

“Africa has taken control of its own resources, “ ings have changed considerably – the way people think and even the way which is helping our countries to move forward. We they move around. Logistics are greatly helping the economy develop. A trip that continue to work toward institutional reforms and used to take a day can now take a few hours, thanks to the new roads.” – Francisca democracy to reach the goals of the Horizon 2020 Obiang, Managing Director of GE Proyectos development plan and move closer to a developed economy.” – President Teodoro Obiang Between 2013 and 2020, the national government plans to carry out more than 1,500 infrastructure projects e IIAG’s Roads Indicator shows E.G. is one of In 2011, President Obiang inaugurated a new $130m seaport the most improved countries since 2000 and a new airport on the long-neglected island of Annobón ough it ranks 42nd in IIAG’s Sustainable About 80% of the national roads are now asphalted Economic Opportunity index, E.G. has improved by 10.8 points since 2000 e Port of Malabo is being renovated by Somagec GE at a cost of $500m to make it one of Central Africa’s largest and EG has two Sovereign Wealth Funds: de Stabi- most modern deepwater ports lisation des Recettes Budgétaires and Major international carriers now connect Malabo directly to Fonds de Réserves pour Générations Futures Madrid, Frankfurt, Casablanca and Paris and Ceiba is planning Average GDP growth 2004-2012 was 10.6%. It a Malabo-Houston ﬂight has the highest GDP per capita in continental Africa Plan Horizonte 2020 aims to diversify the economy away from oil and transform the nation into an emerging economy

NATURAL RESOURCES U.S. RELATIONS

“We are working with ministries to facilitate the arrival of investors and preparing “Our relationship with the U.S. is optimal. We’ve worked side by side in many the framework to make it viable for them to come and settle here.” – Gregorio Boho, projects and the relations between our two governments is very good.” - Manuel Chairman of the Chamber of Commerce Ntutumu, Former General Manager of SEGESA

E.G. ranks 4th in terms of total renewable water resource per capita e U.S. is Guinea’s fourth largest export market, after Japan, France and China It has proved oil and gas reserves of 1.1 billion barrels and 1.3 trillion cubic feet, respectively. E.G. receives most of its imports from Spain, followed by China and the U.S. It was Mobil who first produced oil in E.G. back in 1991 at the Alba offshore field In 2013, U.S. exports to E.G. totalled $755.9m, while imports reached $898m In 1995, the prolific Zafiro field became the first deepwater field to be brought on-stream in West Africa e largest investors in E.G. are American oil companies, namely ExxonMobil, Hess, Marathon and In 2010, the value of its oil exports ranked 11th globally Noble Energy Hydrocarbons bring in 80% of government revenue, 90% of GDP Around 17% of U.S. natural gas is supplied by E.G. and 94% of all export earnings anks to a unique agreement, U.S. passport hold- e Ministry of Mines is promoting the country’s mining potential, ers can visit E.G. without a visa after preliminary studies show the presence of diamonds, gold, iron ore, bauxite and coltan, among others

INTERESTING TIDBITS “If someone really wants to do business, they must come here. Decisions can be made based on various analyses, but E.G. is just slightly smaller than Maryland in size one must come visit ﬁrst of all.” – Gabriel Obiang, Minister of Mines, Industry and Energy Nearly 41% of the population is under the age of 14 ere are three oﬃcial languages: Spanish, French and Portuguese. A number of other tribal languages and dialects are also commonly spoken Before the boom from oil and gas, E.G.’s economy was mostly reliant on timber and cocoa Bioko, formerly called Fernando Po, became one of the continent’s most productive agricultural areas after WWII

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content Distributed by USA TODAY Wednesday, August 6, 2014 3 EQUATORIAL GUINEA Horizonte 2020: the government’s roadmap to sustainability Seven years ago, Equatorial Guinea’s government drafted a comprehensive plan to ensure the country’s wealth was distributed to the populace man’s office, a national coun- through public works and social programs, and to set the bases for economic diversification cil for economic and social development and a court of ransforming a auditors. nation from one In their bid to boost the which has been economy of Equatorial a byword for un- Guinea and diversify it away derdevelopment, from the heavy reliance on poverty, corruption and a petroleum revenue, Horizon Thost of other ills into an en- 2020 officials are also target- viable, forward-looking and ing the finance, agriculture, prosperous country will not fishing, fish farming and be an easy task, but Equatorial tourism sectors. Guinean President Teodoro Obiang firmly believes the Equatorial country’s development plan, guinea’s Horizonte 2020 (Horizon government 2020), will do exactly that. In describing why this also aims to ambitious scheme will be increase the so vital for his country, the role of women President said that Equato- in the country’s rial Guinea needed a vision development. for the future, a roadmap Indeed, the to ensure its prosperity and horizon 2020 the well-being of its citi- national agency zens as the country’s cash- is headed and producing petroleum re- staffed mainly serves would not last forever. by women “The vision of sustainable development by 2020 adopt- ed by the Republic of Equato- rial Guinea means achieving The world is taking notice the United Nations Millen- of these changes with for- nium Development Goals eign leaders gathering regu- through the multiplication larly in Equatorial Guinea for of our efforts, expanding the summit meetings, regional sources of production and conferences and other such training human resources to events. This year alone Equa- achieve appropriate levels torial Guinea has hosted the of growth for a competitive 25th Session of the Executive economy capable of eradi- Council of the African Union cating poverty and hunger,” and the Africa, Caribbean according to a government riod alone, a new city council Ms. Eyang lists the main ultimate aims of Horizon ago when voters approved and Pacific Group. statement. building, a soccer stadium, a objectives of the plan as “em- 2020, defining and setting a referendum on constitu- But as Horizon 2020 pro- Inspired by other African, public marketplace, a bridge, ployment for all, food for all, out new directions for eco- tional reforms, which creates ceeds it will be the Equatogu- Asian and Latin American a highway, a hospital and a education for all, a house nomic and social policies to the post of vice president and ineans who will reap the countries’ long-term devel- police station were opened. for all, drinking water for all move the country towards restricts the mandate of the real benefits of the scheme opment plans, Horizon 2020 Across the country, bull- and electricity for all”, with an emergent and sustainable head of state. that will provide them, their aims to wrench Equatorial dozers are carving out roads, the emphasis on a modern economy by the target date In addition, the governance children and generations Guinea from its former status cranes dot the skylines of the administration serving the now just six years away. overhaul improved transpar- to come with the economic as a West African backwater main cities, tracts of afford- people. Democratization is anoth- ency and accountability by advantages, knowledge and into a country recognized, able and comfortable homes In the field of health care er key element in the plan and setting up new oversight or- tools to take their rightful and more importantly, re- are opening and foreign alone, the country is now the country took a giant step gans such as a senate, council place in our rapidly evolving spected among the world companies from around the making great strides under towards this goal three years of the republic, an ombuds- global community. community of nations. world are flocking in to join the slogan “Health For All” the gargantuan effort to bring and taking pride of place are The mission the 21st century to Equatorial two of Africa’s finest hospi- According to Horizon 2020 Guinea. tals, the La Paz Medical Cen- officials, the plan has four But Horizon 2020 is not ters in Malabo and in Bata, general aims: to build infra- just about building. In this both recommended by the structure to international day and age of the impor- U.S. government for its citi- standards so as to improve tance of state-of-the-art zens traveling in Equatorial productivity and trigger communications Equatorial Guinea. growth; strengthen human Guinea’s government is keen Designed, built and staffed capital and improve the qual- to see that the country is fully to international standards, ity of life of every citizen; connected to the outside the hospitals feature around build a diversified economy world and the plan has con- 130 beds, emergency rooms, based on private enterprise; tributed to that goal. intensive care units, operat- and provide a government of And to that end, the na- ing rooms and staff that can quality to serve the people. tion is a founding member handle anything from malar- International partners in- of the Africa Coast to Europe ia and measles to trauma and volved with the plan include (ACE) underwater fiber optic major surgery. the World Bank, the United telecommunications cable Another impressive ad- Nations Development Pro- vance in health care funded gram, The U.N. Food and Ag- by the plan is the fight against ricultural Organization, the Highways, malaria which is endemic in World Health Organization, airports, this part of Africa and which the African Development seaports, roads, has killed thousands of peo- Bank Group and others. social housing ple each year. Even with the assistance of and energy The showcase of this effort this impressive roster of part- systems are has been the public-private ners, it will certainly be a long just a handful Malaria Control Project on road and there will be bumps of the new the island of Bioko which is along the way, but with the infrastructure supported financially by the billions of dollars of Equa- projects planned central government and a pri- torial Guinea’s oil and gas vate consortium headed by the revenue backing the array of Marathon Oil Corporation. projects, President Obiang’s It has been so successful government is fully confident Horizon 2020’s that it reduced by a third in- of eventual success. four-thronged fant mortality from the mos- quito-borne disease among And what impressive proj- plan targets ects they are: Highways, the island’s population, airports, seaports, bridges, infrastructure, achieving the United Na- roads and government facili- human capital, tions’ Millennium Develop- ties are just some of the new economic ment Goal for the reduction or upgraded civil engineering diversification, of child mortality well ahead infrastructure planned, while and government of the 2015 U.N. deadline. social housing, healthcare, ed- openness Indeed, many of the pro- ucation, safe drinking water, grams under Horizon 2020 sewage and energy systems and the Social Development will bring Horizon 2020’s ef- running along the continent’s Fund have demonstrated the fects directly to the people. west coast from France to government’s commitment When President Obiang South Africa. Once complet- to meeting and surpassing first announced the plan in ed, it will eventually connect the U.N. development bench- 2007, he outlined five major 23 countries. marks. goals: to invest in strength- Along with and compli- ening economic growth; menting Horizon 2020 is the The politics strengthen the development government’s Social Devel- In his address to the 65th an- of structured investments; opment Fund of $1 billion nual U.N. General Assembly, promote and strengthen the that is specifically aimed at then-Foreign Minister Pastor development of social policy meeting the health and edu- Micha Ondo Bile declared: actions; ensure a transparent cation needs of the country’s “To mitigate the effects of social climate, and lastly, de- growing population with the poverty and meet the Mil- velop the prospects for better added task of working to en- lennium Declaration, the monitoring; and evaluation of sure gender equality. government of Equatorial poverty and living conditions Indeed, the Horizon 2020 Guinea has embarked on a for the Equatorial Guinean National Agency is headed strategic planning process people. by a woman, Francisca Eyang for long-term development and the top leadership is al- which has led to the holding The progress most all female, proving that of two national economic Seven years later, the plan is the government is serious in conferences.” well advanced and is already its efforts to increase the role These gatherings, and oth- evident in many areas. In of women in the country’s er government-sponsored one recent three-month pe- development. conferences, furthered the

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content 4 Wednesday, August 6, 2014 Distributed by USA TODAY EQUATORIAL GUINEA “The oil and gas industry is experiencing some of its best times” Gabriel Obiang, Minister of Energy, Mines and Industry, underscores how his coun- Gabriel Obiang, vestors. “We have worked on try’s booming petroleum industry is further accented by a solid legal framework that Minister of Energy our tax policy, streamlining inspires confidence among investors regulations and incentivizing foreign companies who wish ack in the early wealth of mineral resources. important purchasers of oil to find domestic partners. 1990s, when “The oil and gas indus- from Equatorial Guinea, im- But the most important thing Equatorial Guin- try is experiencing some of porting over 40,000 bpd in is generating new capital. We ea had stagnant its best times,” says Gabriel recent years. Likewise, U.S. have tested ourselves against economic growth Obiang, Minister of Energy, companies make up some of international best practices and one of the poorest popu- Mines and Industry. “This is the largest foreign investors in creating new capital and Blations in the world, it opened so because there is a prec- in Equatorial Guinea, and we want to replicate these its doors to U.S. oil compa- edent created by how the play a major role in the devel- models.” nies including ExxonMobil, government functions, how opment of its hydrocarbon Like many countries in Af- Marathon Oil Corp. and the ministries function, and resources. rica, Equatorial Guinea has its Noble Energy who plied its this has allowed investors to Equatorial Guinea has share of challenges, including territorial waters in search of work with confidence and welcomed the capital and poor governance indicators, potential resources. Equato- stability.” expertise of American firms, inequality, as well as high rates rial Guinea’s startling trans- Though it occupies one of and has made plain its inten- of poverty and underdevelop- formation into one of Africa’s the smallest territories in all tion to continue these proj- ment. The government has leading energy exporters be- of Africa, and possesses one ects in the future. “We have responded to these issues with gan in earnest just a few years of its smallest populations at a very big relationship, based a steadfast commitment to later, in 1995, when Exxon- just over 700,000 inhabitants, on business cooperation and public safety and a globally in- Mobil first started pumping Equatorial Guinea is cur- economic interests,” Minister tegrated economy, which has crude at the massive Zafiro rently Africa’s fourth-largest Obiang explains. “We will been seen as a positive sign offshore field, located in the oil exporter, sending a steady continue working with small for potential investors. Steps Gulf of Guinea. output of more than 300,000 and medium-sized Ameri- toward adhering to globally The subsequent boom barrels per day (bpd) to can businesses in drilling and backed good governance mea- brought double-digit growth markets in North America, hydrocarbon projects.” sures like the Extractive Indus- for the next decade, rapidly Europe and Asia. It ranks in Recent discoveries of large tries Transparency Initiative expanding the country’s per- the top 10 among African na- natural gas resources and the have also been welcomed. capita GDP, once among tions in terms of total proved development of downstream “I’d like to single out the se- the lowest in the world, reserves of both oil, at 1.1 activities like refining have curity that exists in the coun- to the largest on the con- billion barrels, and natural begun to bring much-needed try, which is the result of continent, roughly four times gas, with 1.3 trillion cubic diversity to the country’s pe- Equatorial in 2000, natural scientious work, after having larger than South Africa’s. feet. The United States has troleum sector. The growth guinea exports in gas export analyzed and learned from the Since those early days, U.S. long been one of the most in natural gas alone has made excess of 300,000 receipts totalled negative experiences of many companies have a huge dif- barrels of oil $190 million. neighboring countries,” Minis- been investing ference, with per day to North Today, they have ter Obiang explains. “Equato- and working exports val- america, Europe nearly topped the rial Guinea is a unique coun- alongside Equa- ued at nearly and asia $17 billion mark try and probably one of the torial Guinea’s $17 billion, wealthiest in Africa, in terms government and up from just of the richness of its culture local popula- $190 mil- and the depth of its people.” tion, helping to lion back in 2000. explains. “After this comes job Ever confident about his harness its vast Because the oil and gas in- creation. Given this responsi- country’s attractiveness and dustry plays such a crucial bility, we must generate hu- its wealth of opportunities, role in Equatorial Guinea – it man capital through training Minister Obiang invites inter- makes up 95% of the coun- and education, and create the national investors and multi- try’s economic output and conditions so that we have national businesses to come 99% of its export revenues projects with a need for hu- and see for themselves what – the Ministry of Energy, man resources.” Equatorial Guinea has to of- Mines and Industry is at the Minister Obiang credits fer. “If someone really wants to forefront of its economy and his country’s rapid develop- do business, they must come labor market. “The primary ment to its openness vis-à- here,” he goes on. “Decisions mission is to exploit petro- vis the world economy, and can be made based on various leum resources in the most efits dedication to facilitating analyses, but one must come ficient way,” Minister Obiang partnerships with private in- visit first of all.”

augurated just five years later, EG LNG in 2007, the EG LNG plant was one of the world’s fastest- Exceptional performance continues built LNG projects. “The plant was built very quickly after the plans were outstanding developed, not only due to a good execution plan, but also lends Marathon Oil the performance because the government was The company produces involved as a partner and they some 3.7 million metric helped facilitate the project,” gross tons of liquefied says EG LNG Managing Di- energy to do more natural gas a year rector, William Wheeler. The growing success Marathon Oil has enjoyed since it established operations in Equatorial Guinea in 2002 has “We are now utilizing gas not only allowed the company to expand its business activities, but also to expand its community investment efforts From the Alba field, approxi- from Alba field and turning through its CSR programs, particularly in the fight against malaria. mately 650 million cubic feet it into LNG, which allows a day (gross) of the dry gas re- the gas to be monetized and maining after the exported, virtu- condensate and ally eliminating the liquefied petro- flaring of gas.” leum gas (LPG) In 2013, EG are removed is LNG continued supplied to the EG to demonstrate LNG facility on operational excel- Bioko Island, where lence, with world- it is used to manu- class operational, facture 3.7 million reliability, safety metric gross tons WILLIAM WHEELER, and environmen- of liquefied natural Managing Director of tal performance. gas (LNG) per year. EG LNG Highlights for In 2002, the op- the year included erators of the Alba achieving op- gas field in the Gulf of Guinea erational availability of 97%, (Marathon Oil and GEPet- exceeding the company’s an- rol) decided to establish the nual delivery program target EG LNG Train 1 facility as a and shipping eight extra LNG means to further monetize gas cargoes with zero lost time or production from the field. In- recordable injuries.

Harnessing local talent Marathon Oil, EG LNG and AMPCO strive to develop a national workforce and increase local content

One of the key initiatives for LNG has held 18 courses in governments of oil-rich West computer skills, finance and African states is promoting accounting, marketing and local content. Marathon Oil, customer service, and human EG LNG and AMPCO have resources. Together with the been at the forefront of local Ministry of Economy, in 2012 content development in the EG LNG created a Business Thanks to investments from the private and public sectors totaling some $50 million, malaria transmission is down by well over 50% in children between two and 14 years old oil and gas industry in Equa- Doctor’s Office on Bioko torial Guinea by investing Island where local entrepre- in programs that neurs can seek ast year was a ploration wells are drilled. that infected their red blood and treatment have become equip Equatoguin- advice on busi- very successful “Once the results of these cells. The most vulnerable the benchmark in global eans with the skills ness-related mat- year for Marathon wells are analyzed, a deci- people have the highest risk malaria elimination efforts. to work in the en- ters. Due to the Oil in Equato- sion will be made on further of succumbing to malaria: The project’s successes and ergy industry and popularity of this rial Guinea. The exploration, which could in- children under five years of challenges have been widely by contracting the service, the minis- Houston-based firm holds clude drilling appraisal wells shared through scientific services of local try plans to extend a 63% working interest in on any discoveries as well as publications and the press. companies when- the program to L IN THE LAST the offshore Alba gas field, further potential exploration In 2013, the BIMCP cel- ever possible. mainland Equato- a 52% equity interest in the wells. The company is keen DECADE, THE ebrated its 10th anniversary. Marathon Oil rial Guinea. Alba liquefied petroleum to integrate learning from BIOKO ISLAND As a result of government is committed to Marathon Oil gas plant, a 45% equity in- the currently planned explo- MALARIA CONTROL and partner investments continued na- has also worked terest in Atlantic Methanol ration wells into the analysis PROJECT (BIMCP) totaling approximately $50 tionalization of its with the National Production Company LLC of the area as a whole as part HAS DRAMATICALLY million, malaria transmis- workforce, and at CATHERINE KRAJICEK, University of (AMPCO), and a 60% equity of the exploration process.” REDUCED THE sion is down by well over year-end 2013 na- Resident Manager of Equatorial Guinea interest in a liquefied natural Beyond its substantial NUMBER OF 50% in children two to 14 tional employees Marathon Oil and the Office of gas production facility on business operations in Equa- MALARIA CASES years old, and deaths among comprised 71% of Local Content Bioko Island. Gas sales were torial Guinea, Marathon ON BIOKO ISLAND children under age five have its workforce in to develop an up in 2013 compared to the Oil has invested millions declined by 65%. Improved Equatorial Guinea. intensive ESL (English as a AND IMPROVED prior year, allied with world- back into the local commu- health and wellbeing is help- Aggressive recruitment, second language) program class operational availability nity. The year 2013 was not PUBLIC HEALTH AND ing to reduce the economic training and development that enables recent university of 99% and operational and only a successful year for WELLBEING FOR burden of malaria on Bioko programs allow national em- graduates to obtain the lan- safety excellence. the business, but also for its ISLAND RESIDENTS Island. ployees to develop the skills guage skills required to work Marathon Oil Regional corporate social responsibil- Today, the business part- needed to succeed in posi- in the petroleum sector, as Vice President Cathy Kraji- ity (CSR) programs. “Mara- ners include Marathon Oil, tions traditionally held by well as numerous commu- cek attributed the company’s thon Oil is committed to age, pregnant women and Noble Energy, AMPCO, expatriates. nity development projects to “exceptional performance” improving medical facilities people with HIV/AIDs. GEPetrol and SONAGAS. In “We have progressively in- renovate schools and clinics in the country last year to and schools in Equatorial Historically, one of the 2013, they agreed along with creased the number of train- throughout the island. In ad- “efficient management of Guinea, and 2013 was equal- areas that has been most the government of Equato- ing and development courses dition, for 10 years Marathon operations and maintenance ly successful with respect significantly affected by rial Guinea to extend the and added advanced-level Oil employees around the activities and a testament to to progression of our com- malaria is Bioko Island, lo- project through 2018, with training, internships, profes- world have supported the the high performing team munity support projects,” cated 20 miles off the coast the focus on the continued sional development oppor- Books for Bioko program we have assembled in Equa- explains the Regional Vice of Equatorial Guinea. Ten use of standard anti-malaria tunities, such as international that provides much-needed torial Guinea.” President. years ago, the island of more control measures. Addition- assignments, and leadership school supplies in the Ma- Driven by the success it International energy than 250,000 residents had ally, the business partners development programs,” says labo area of Bioko Island. The has enjoyed in the West Af- companies have been in- one of the highest rates of and EG LNG are participat- Cathy Krajicek, Marathon company’s employees cre- rican nation in recent years, strumental in supporting ef- malaria transmission in the ing in trials of a promising Oil Regional Vice President. ated this program and have Marathon Oil decided to forts to eradicate malaria in world, and the infectious vaccine designed to block To build local capacity, donated more than $685,000 undertake two exciting sub-Saharan Africa; and one disease accounted for more the transmission of malaria. EG LNG helps local suppli- to sustain it. Books for Bioko new projects that will fur- of the most important CSR than one-third of all deaths Developed by Maryland- ers develop business skills also supports the Awarding ther strengthen its position initiatives that Marathon Oil on Bioko Island. based Sanaria Inc., the PfSPZ and health/environment/ Excellence program that re- in the region. The first is a is involved in is the Bioko Is- Additionally, children and Vaccine product has recently safety awareness to improve wards students for academic compression platform which land Malaria Control Project adults who survived a bout been shown to confer 100% operations. Since 2008, EG achievements. was sanctioned in December (BIMCP). of malaria frequently suf- protection against malaria 2012 to extend the life of the fered relapses of malarial fe- in a small number of vol- Alba field. ver, anemia and other symp- unteers. This breakthrough “The scope of the project toms. result is the foundation for is set to grow to 137 MMT in “MARATHON OIL is to install a new offshore a clinical development plan 2022, up from 61 MMT in 2012, IS COMMITTED High- platform that will hold two Saving lives that will be implemented in according to a 2013 report by new compression trains and TO IMPROVING on Bioko Island conjunction with an inter- quality, safe, analytics firm IHS. tie into the existing Alba MEDICAL FACILITIES Over the past 10 years, the national consortium of in- This is good news for AMP- field infrastructure. The ex- AND SCHOOLS BIMCP has dramatically stitutions and organizations reliable CO, the Equatorial Guinea- ecution phase of the proj- IN EQUATORIAL reduced the number of ma- that will jointly contribute based company that operates ect commenced in January GUINEA, AND laria cases on Bioko Island to the effort to license the one of the largest and lowest- and improved public health PfSPZ Vaccine. The Equato- methanol 2013, with offshore installa- 2013 WAS EQUALLY AMPCO operates a plant cost methanol plants in the tion planned for late 2015 or SUCCESSFUL and wellbeing for island rial Guinea Malaria Vaccine world, currently producing early 2016. It is expected to residents. Established in Initiative will run four tri- that produces some 1 what represents approximately WITH RESPECT TO million metric tons yearly be operational in mid-2016,” PROGRESSION OF 2003, the project is a unique als between 2014 and 2017, 2% of the global market. says Ms. Krajicek. public-private partnership with the hope of obtaining “The future of methanol as OUR COMMUNITY The second project sees of oil and gas companies led product licensure by the U.S. From the Alba field, approxi- a product is very bright. In- Marathon Oil expand its up- SUPPORT PROJECTS” by the Marathon Oil Cor- Food and Drug Administra- mately 130 million cubic feet expensive and abundant gas stream activities beyond the CATHERINE KRAJICEK, poration, the private non- tion thereafter, and running a day (gross) of the dry gas re- supplies in North America Alba field, with the signing Resident Manager of governmental organization an elimination campaign in maining after the condensate have spawned a number of of a production sharing con- Marathon Oil Medical Care Development Equatorial Guinea with the and liquefied pe- new or restarted tract for the exploration of International (MCDI), and licensed PfSPZ Vaccine. troleum gas (LPG) methanol produc- Block A12. Lying adjacent to the government of Equa- As one of the longest sus- are removed is sup- tion facilities, but Alba, Marathon Oil holds an BIMCP: extending a torial Guinea. Together, tained malaria control pro- plied to the Atlan- I expect AMPCO 80% stake in Block A12, with decade of life-saving the partners committed to grams in recent history, the tic Methanol Pro- to continue to be Equatorial Guinea’s national results working toward reducing ill- BIMCP project has had production Company a safe, reliable and oil company GEPetrol hold- Although the U.S. was de- nesses and death caused by found positive impacts and (AMPCO) plant on reputable metha- ing the remaining 20%. clared free of malaria in malaria by limiting and ul- continues to significantly Bioko Island, where nol supplier and “Block A12 represents an 1949, the disease still afflicts timately eliminating malaria contribute to the worldwide it is used to manu- one of the world’s exciting exploration oppor- millions of people world- transmission. fight against malaria. The facture 1 million lowest cost sourc- tunity for Marathon Oil to wide. The United States From 2003-2013, the part- partners are proud of the life- metric tons (MMT) JIM O’CASEK, es. Besides the tra- add to its portfolio in Equa- Centers for Disease Control ners pioneered an integrated saving results of the BIMCP of methanol (gross) Vice President of AMPCO ditional derivative torial Guinea,” says Ms. Kra- and Prevention estimates intervention program that and the possibility that the per year. areas, methanol is jicek. “We are excited by the that 627,000 people – main- has transformed malaria continuation of the BIMCP Jim O’ Casek, Vice President increasingly being consumed overall prospects of Block ly children in sub-Saharan control efforts around the and the vaccine trials begin- of AMPCO, says the methanol to produce olefins, gasoline A12, and further decisions Africa – died in 2012 after world. Project data col- ning in 2014 will someday sector is likely to experience un- blending products, DME, on exploration will be taken being bitten by mosquitoes lected and analyzed on all eliminate malaria from the precedented growth during the and directly as a fuel,” says the after [the first] planned ex- carrying malaria parasites facets of malaria control island once and for all. next decade, as global demand AMPCO Vice President.

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content 6 Wednesday, August 6, 2014 Distributed by USA TODAY EQUATORIAL GUINEA Responsible and sustainable development with Noble Energy The Houston-based oil company has been operating in Equatorial Guinea since the beginning of the oil boom

able development of energy a basin with no existing infra- duction from this field reached delivered positive results. A of experience, competency resources here.” structure, so we rose to the oc- 28,000 barrels of oil per day successful flow test confirmed and accomplishments,” says Noble Energy’s operations casion and installed Aseng – a (bpd), and output is expected reservoir continuity and qual- Mr. Kornegay. “We’ve dem- in the West African oil-rich floating production, storage to grow to between 30,000 and ity. We plan to sanction Diega onstrated an ability to com- country are all offshore and and offloading unit (FPSO) 35,000 bpd this year.” in 2014, with first oil produc- mercialize new basins. We include the Alba, Aseng and near Bioko Island,” explains Now the company is look- tion expected in 2017. And built an infrastructure base in Alen fields. In 2013 the com- Noble Energy’s Vice President. ing to develop another field, we continue to evaluate other Equatorial Guinea that facili- pany produced 80,000 barrels “Our major project develop- Diega. “The availability of resources and opportunities in tates future bolt-on projects. of oil equivalent per day. Pro- ment success continued with Aseng for storage and offload- the area for tie in.” And we developed expertise duction activities began with Alen, a condensate gas-cycling ing Alen condensate delivered Building on its longstand- that, when combined with Noble’s 34% working interest project (formerly known as significant cost savings, which ing and successful presence in strong partner-government in the Alba field. In addition to Belinda) sanctioned in 2010, may be repeated as we develop Equatorial Guinea, Noble En- relationships, gives us a com- “We have achieved natural gas and crude oil pro- which commenced produc- other projects in the area such ergy is determined to grow its petitive advantage in this re- tremendous duction, related operations tion late in the second quarter as Diega,” says Mr. Kornegay. operations there. “In West Af- gion that we consider to be exploration success include an LPG processing of 2013,” he adds. Last year, pro- “Diega appraisal work in 2013 rica, we have a unique blend underexplored.” in the region” plant where liquids are recov- ered, and a methanol plant. Gene Kornegay, Vice President and “We are actively engaged in Country Manager for Noble Energy additional development programs offshore Equatorial A decisive Guinea, with operated work- The Houston-based, inde- ing interests of 45% in Block pendent American oil and O and 40% in Block I,” says contribution to gas company Noble Energy Mr. Kornegay. “Over the last has been active in Equatorial few years, we have achieved Guinea since the beginning tremendous exploration suc- local communities of the 1990s “oil-rush”, which cess in the region, discover- The company contributes to a number of projects in edu- transformed this small West ing multiple oil and gas-con- cation and health, in particular in the fight against malaria African nation into what some densate reservoirs, and major now call “the Kuwait of Africa”. project developments.” Does oil benefit the people Country Manager at Noble ing conducted for a vaccine. depended on their children Indeed, it was one of the first to The first hydrocarbon pro- in countries where interna- Energy, adding that the com- “It is a joint effort of Sanaria traveling for miles to get operate there, and West Africa duction in Equatorial Guinea tional oil companies oper- pany spent half a million – a company established to drinking water. now represents one of its five was achieved by stripping con- ate? Oil companies respond dollars on training for the develop the vaccine –, the In the area of education, core areas of operation and de- densate from the Alba field, a to this fundamental question Equatoguinean staff last year. World Health Organisation the company was a founding velopment, along with the DJ discovery that the company through their corporate and Furthermore, Noble En- and other institutions as well partner of Equatorial Guin- Basin (onshore United States), qualifies as “world class”. Af- social responsibility poli- ergy actively participates in as the government of Tanza- ea’s Geoscience Education the Marcellus Shale (onshore terwards, Noble Energy and cies. For Noble Energy, these tackling the country’s most nia. If successful, this vaccine program. The collaborative United States), the deepwa- its partners further monetized are not just words coined by pressing health challenges, will eliminate malaria as a project between the Univer- ter Gulf of Mexico (offshore Alba natural gas by success- some astute public relations namely malaria and HIV. disease.” sity of South Carolina (USC) United States), and offshore fully implementing liquefied consultant but a reality. In Indeed, one of the most im- Noble Energy also contrib- and the National University Eastern Mediterranean. petroleum gas (LPG), lique- Equatorial Guinea, the Texan portant projects in which it uted more than $750,000 to of Equatorial Guinea provid- “Equatorial Guinea is the fied natural gas (LNG) and oil company has undoubt- is involved is an anti-malaria 13 social projects on Bioko ed training and scholarships company’s longest-running a methanol recovery plant. edly made a mark. program, to which it has con- Island and the mainland. for the completion of bach- international business,” says Today, Alba is the sole source Noble Energy can pride it- tributed over $13 million. These projects focused on elor’s degrees in Geology and Gene Kornegay, Vice Presi- for natural gas supply to power self on having a stellar safety “This program has helped education, water supply, Engineering at USC. dent and Country Manager generation facilities that pro- record. Also, it gives jobs reduce the malaria parasite nurse professionalization “Through our sponsorship at Noble Energy. “We are the vide all public electricity on the to local people. “We have by 70% in children under training, and the develop- program, we worked with only oil and natural gas com- island of Malabo. around 240 Equatoguinean 15 since 2004, and contrib- ment of a children’s park in small civil society organiza- pany that has maintained a In 2009, the Aseng oil proj- employees and contractors uted to a decrease in mortal- Malabo. tions to support HIV/AIDS continuous presence in the ect (formerly Benita) in Block out of a total workforce of ity rates in children under 5 Noble Energy completed education initiatives, wom- country for more than 20 I was sanctioned and brought approximately 360. The per- years old from 152 to 55 per several community water- en’s empowerment, sports- years, making significant in- to production in November centage of local employees in 1,000 in 2012,” says Gene Ko- well projects to provide clean manship, local music, food vestments over this period. 2011, seven months ahead of the workforce grew by 8% in rnegay. water to local communities. distribution and library sup- We are proud of our history schedule. “The challenge was 2013 alone,” says Gene Ko- A very exciting develop- Prior to the installation of port,” concludes the Noble of responsible and sustain- to develop this oil discovery in rnegay, Vice President and ment is that tests are now be- these wells, many families Energy Vice President.

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content Distributed by USA TODAY Wednesday, August 6, 2014 7 EQUATORIAL GUINEA Goal in sight: 561MW by 2017 The goal for the national and the remainder in the power producer and sup- hands of a consortium of plier, SEGESA, is to ensure Madrid-based investors. Mr. more than adequate levels Ntutumu was asked if there of supply for consumers were plans afoot or possibil- so as to eventually be ities opening up suggesting able to export electricity that this situation might in to neighboring countries. some way change. The country is also in the He answered very de- process of retiring 90% of cidedly that “privatization its dated oil-fired plants by is simply not on the table, the year 2020 at least not at the present time”, but was quick to add that “we plan to seek agree- hen dis- ments with other players in cussing the sector and look for po- the ways tential new markets that we that Af- hope will lead to joint ven- rica’s tures or other types of col- vast natural resources have laborative effort.” Wbeen mishandled or under- As an indicator of the utilized, the electrical power government’s receptiveness essential for the continent’s to the idea of foreign devel- economic development is opment partners, he points not always taken sufficiently out that several U.S. firms into account. But it is pre- and interests have taken ad- cisely for that reason that in vantage of recent regulatory Equatorial Guinea, an ad- relaxations by the Malabo equate and reliable power authorities aimed at stream- supply, along with the abil- lining the administrative ity to deliver it to where it is procedures that accompany needed, has risen to the top foreign investment. tier on the list of the gov- “We have been working ernment’s strategic priori- adequate supply of electric- The electrification there is sufficient a high-powered future de- shoulder to shoulder with ties. This, in turn, has led to ity,” says Mr. Ntutumu. “Not of Equatorial declivity in pends on another natural the Americans on a number some changes in institution- long ago, we were still hav- Guinea moved the Wele’s 210- resource. An ample major- of our more recent projects ing some issues, but broadly ity of power plants that have al structure and mindset at into high gear mile path to the and relations couldn’t be SEGESA, the country’s elec- speaking, the nation’s electri- come on line since 2003 rely better,” says Mr. Ntutumu. trical power monopoly. cal utility has made good on in 2007, when Atlantic to justify wholly or in part on hydro- “It helps that their govern- “Our ultimate goal is to its pledge that citizens should the country’s 1.3 construction of electric power, with major ment and ours seem to be ensure that all our people be able to receive the quality trillion cubic feet eight more highly input from the Djibloho getting along.” receive all the electricity of service they demand.” of natural gas efficient gravity dam on the Wele River. Zig- Administrative bottle- they need, whenever they Mr. Ntutumu points out reserves began to dams – with the zagging across the main- necks still exist, however. need it and to produce a that to carry out its mission, be systematically one at Sendje land regions of Equatorial Getting plugged into the surplus for export pur- SEGESA has been split into exploited for already nearing Guinea, there is sufficient grid requires endless inspec- poses,” explains Manuel three units that remain un- export purposes completion declivity in the Wele’s 210- tions, authorizations and Ntutumu, former General der the general supervision mile path to the Atlantic certifications by technical Manager of SEGESA. “We and coordination of a central to justify construction of experts at different stages of are working closely with the authority. eight more highly efficient the installation process. The Ministry of Mines, Energy “It’s quite the usual thing is confident that once the cable between Malabo and gravity dams – with the one non-residential consumer and Industry to ensure that nowadays to take a corpo- turbines at the Sendje dam Bata. at Sendje already nearing must obtain – and pay for our sector complies with all ration’s principal functions are turning, total output will The electrification of completion. Suddenly, pros- – transformers and other the statutory requisites as – in this instance, generat- shoot up to 561 MW by the Equatorial Guinea moved pects for becoming a net en- external gear, and the whole it goes about fulfilling our ing power, transmitting it end of 2017. into high gear in 2007, ergy exporter to neighbors procedure can take months. duty to the people.” and marketing it – and make Distribution is via two when the country’s 1.3 tril- such as Gabon, Nigeria and Still, it is hard to imagine Generating and transmit- them operationally indepen- independent grids. One lion cubic feet of natural Cameroon are looking very that a country where only a ting this new electrical sup- dent of one another. This is covers the island of Bioko, gas reserves began to be interesting. few short years ago, power ply required over a decade of just what we did in 2013 and serving the capital and systematically exploited for The government has also supply was at best unre- intensive infrastructure work so far it is working out very Luba, the country’s oil ex- export purposes. A fraction ordered viability studies fo- liable and at worst non- and investment of nearly $2 well,” he says. port terminal. A separate of what had once been an cusing on wind and solar existent has now become billion, but Mr. Ntutumu is Only a few years ago, the network connects popu- unwanted by-product of pe- power installations on the one where, earlier this year, proud to have finally caught entire country depended on lation centers located on troleum extraction was ear- offshore islands of Annobon the Minister of Mines had up with the surge in demand a single turbo-gas installa- the continental mainland, marked for gas-fired plants – which has a population to order a crackdown on that has been growing by an tion near Malabo that sput- which is where the gener- designed to replace those of 21,000 – and Corisco, customers who are slow annual 3.6% since 2001, the tered out 15 MW of energy. ating stations on the Wele relying on less efficient pe- where no significant hydro in paying their utility bills. year of SEGESA’s incorpo- Now, following extensive River at Djibloho (120 troleum derivatives. As a resources are available. “Whoever disagrees, they ration as a strategic govern- upgrades, the output is up MW), and Sendje (expect- result, the government is on Ever since its designation should disconnect their air ment monopoly. significantly, but exact figures ed to come online shortly) track to meeting its goal of as a government monopoly, conditioners; but from now “I would not hesitate to for energy production tend to can be found. retiring 90% of its ageing, SEGESA has retained its on, everyone should pay for state that at the present be wildly contradictory, rang- Plans have also been spare parts-hungry oil-fired mixed capital structure, what they consume,” or- time, every single citizen of ing anywhere from 15MW to drawn up to connect the plants by the year 2020. with the government cur- dered the Minister, Gabriel this country can access an 130 MW. The government two grids by underwater But the country’s path to rently holding a 68% stake, Mbega Obiang Lima. A local legal partner for industry Centurion’s team of U.S.-trained lawyers has negotiated more oil and gas contracts than any other legal firm in Africa, and provides advisory services in everything from government procurement and contracts to construction law, and corporate and commercial law, among others. Managing Partner NJ Ayuk speaks about Centurion’s role in Equatorial Guinea

he largest law Equatorial Guinea? That was a great effort by this is a different country is put right up. You don’t see Centurion is a law firm that firm in Central Infrastructure is the key. government. Equatorial than 20 years ago. Our de- human rights abuses, you advises the private and pub- Africa with af- You can really come in and Guinea understands that is mocracy is stable. We have don’t see street harassment lic sector in the oil and gas filiated offices do business. Infrastructural has to create a legal frame- many lawyers trained by by policemen, and that is industry, infrastructure sec- in Washington work for investors to feel safe partnerships with American tor, and also the banking D.C., Toronto, London, Ac- to invest their money. More- law firms. There was a com- sector. One of our key objec- craT and Douala, Centurion “I see a lot of over, a lot of new reforms are plete reform in law, to en- “Centurion has tives is to encourage growth specializes in the provision structural on their way in. Investment courage peace, stability, and the largest oil in Equatorial Guinea and of outsourced general coun- change to ensure laws and tax laws are going growth. Equatorial Guinea and gas practice Africa. sel representation to the re- a safe business to change. The will of the seats the largest law firm in in Africa, and Centurion has the larg- gion’s energy industry and environment. This people and the president is Central and West Africa. is one of the est oil and gas practice in has been awarded Law Firm is historic” to ensure investment. Equatorial Guinea com- largest law firms Africa, and is one of the of the Year for the last two Tax law changes are going plies with international largest law firms in Africa. in Africa” years. to provide more benefits for transparency laws. Even We started with two law- Managing Partner NJ investors. New constitution- though you don’t see this yers, and now we are 35. Ayuk is a U.S.-educated al changes give more guar- news in the media, they are We continue growing. We lawyer who has witnessed development has created antees to our citizenry as important. The government very important. encourage Equatoguinean the impressive changes that jobs and business opportu- well. I see a lot of structural has to continue communi- The government has cre- lawyers from the Diaspora have taken place over the nities. Also, you can repatri- change to ensure a safe busi- cating. ated a safe and enabling en- to return. We need stellar past two decades in Equa- ate all your profits. You have ness environment. This is The president has been vironment. It has created law firms in Africa to make torial Guinea and is keen to stability. Safety exists here. historic. You see a lot of legal the driving force behind our incentives for business, and it easier for businesses encourage partnerships with There is a big market. Lots and regulation changes that becoming a world-class na- made it flexible. It is now from the U.S. to come here. foreign firms who can help of big companies are doing inspire more confidence. tion. He is promoting educa- easier for small companies Already we have many the country continue along business here, even U.S. con- What is the country do- tion, and training teachers to come here and set up, and American clients. They its path of development tractors and law firms based ing to change its image in a partnership with John that alone promotes devel- could hire any American through technology and here. That is a testament of abroad? Hopkins University, for ex- opment and improve the law firm, but they choose know-how transfer. reform change. We have to continue im- ample. lives of people. us. We work with them in What are the advantag- It is easier than ever for proving what we built. Our As a lawyer, we have seen Please tell us a little about financing, and also get gov- es of doing business in businesses to come here. image is only half true; but great change. The rule of law Centurion. ernment permits.

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content 8 Wednesday, August 6, 2014 Distributed by USA TODAY EQUATORIAL GUINEA Progress Banking sector demands entrepreneurial small yet diversity Successful economic diversification will be strong and achieved through discipline, transparency, equity, citizenship and planning

Steadfast persistence and well capitalized an unwavering belief in the training of the nation’s human capital, along with promoting domestic private enterprise and facilitating foreign investment, are vital for the balanced, progressive and sustainable socioeconomic development of Equatorial Guinea, affirms the head of one of the nation’s leading private sector groups. Melchor Esono Edjo is President of Although small, comprised of just a handful of major institutions, this banking sector effort to expand banking ser- the Board of GVI Holding, a “There is a real has helped Equatorial Guinea achieve impressive progress, providing critical financial vices to meet the country’s multifaceted Equatoguinean need to transfer services and credit to support the country’s development goals growing demands. enterprise that has expanded knowledge and Beginning business in beyond energy and construc- technology As with any country under- non-performing loan rate of Banques GE and the National Equatorial Guinea in 1994, tion to identify opportunities to the local going a significant economic about 6%. With this combi- Bank of Equatorial Guinea CCEI Bank now stands as in agriculture, maritime and workforce” transformation, Equatorial nation of prudent policy and (BANGE) have traditionally the country’s largest bank, port services, hospitality and Guinea relies on its bank- corporate governance, Equa- been the major players in the accounting for about 70% of tourism. Melchor Esono Edjo, ing sector to grow and adapt torial Guinea’s financial sector sector, with a relative new- overall credits and nearly half “Diversification is the key President of the Board to the changing needs of its serves as a pillar of stability comer, Togo-based Ecobank of total bank assets. to success,” says Mr. Esono of GVI Holding population. for its economy and is primed Transnational, being awarded Meanwhile, BANGE – a Edjo. “Equatorial Guinea At the beginning of the de- to lead the next phase of the a banking license to enter the venture founded in 2007, 45% needs to work hand in cade, while many countries country’s development. Equatoguinean market in 2013. owned by the Equatoguinean hand with foreign compa- panies “economic projec- remained mired in the after- At the core of this system is Growing in size and capac- government and part-owned nies from all sectors, who tions should be consistent effects of the financial crisis, an exchange-rate regime that ity along with the rest of the by the Commercial Bank of by operating here have a with the requirements of Equatorial Guinea’s banking is geared toward global mar- economy, the banking sector the Philippines – already of- responsibility that goes fur- cultural evolution, and not sector maintained strong kets. Equatorial Guinea uses is large enough to sufficiently fers a wide range of retail fi- ther than only developing by comparative speculation”, balance sheets and healthy the CFA franc as its currency, cover market needs and to nancial products and servic- the sector in which they and that enhanced land and amounts of capital. Dur- which has been pegged to finance development, which es, and has recently launched are involved: there is a real sea transportation will best ing this period, the country the euro at the rate of CFAF remains a top priority for the mortgage lending services need to transfer knowledge leverage the country’s po- achieved double-digit growth 655.957 per euro since the government. However, the and also plans to launch a and technology to the local tential regionally and across rates and experienced a boom euro’s introduction in 1999. high costs of finance and lim- range of credit cards. workforce.” He advises com- the continent. in infrastructure-related con- This means that investors ited access to credit instru- In recent years, BGFIBank struction, which continues and foreign businesses work- ments remain a hindrance to has become a financial leader to account for the majority ing in the country can count private sector entrepreneur- in the Central African Eco- of borrowing. Today, banks on a strong, stable and easily ial activities. Developments nomic and Monetary Com- one part of a wide network success to the development in Equatorial Guinea remain convertible currency, in addi- in recent years offer hope of munity zone, with a balance of retail banking that spans of successful partnerships, sound, according to Interna- tion to the freedom to repa- continued progress toward sheet surpassing $3 billion. nine African countries. BG- by providing a broad range of tional Monetary Fund (IMF) triate their profits. increased financial inclusion, Wholly owned by BGFI- FIGroup places a strong em- financial services to support figures, with an average capi- BGFIBank GE, CCEI Bank with the opening of branches Group, BFGIBank in Equa- phasis on its clients’ needs, each customer’s personal and tal ratio of about 18% and a GE, Société Générale de and ATMs as part of a wider torial Guinea comprises attributing its continuing professional goals.

BGFI BANK E.G. Innovative bank branches out Even though largely fueled ern and diversified African banking sector, it is one of the countries in Africa (Gabon, lion CFA francs originally to by the oil sector, the sus- power. most attractive sectors for Benin, Cameroon, Congo, 10 billion in 2010 and 20 bil- tained growth of Equatorial A leading African fi- investors, and indeed large Côte d’Ivoire, Democratic lion in 2013.” Guinea’s economy, which has nancial services group groups are looking into it,” Republic of the Congo, BGFIBank E.G. focuses increased 40-fold since the based in neighbouring Ga- says Julie Oye, General Di- Equatorial Guinea, Mada- on three lines of business: fi- beginning of the 90s, has bon, BGFIBank Equato- rector of BGFIBank in Equa- gascar, Sao Tome and Prin- nancing and investment for opened new markets for the rial Guinea was one of the torial Guinea. cipe), as well as in France. large enterprises and public banking sector. Like other first to set foot in Equatorial The Equatoguinean There are now five banks institutions, private bank- non-oil sectors of the econ- Guinea, in 2001. It contrib- branch of BGFIBank E.G. operating in Equatorial Guin- ing for high-net individuals, omy, it is still fledgling and uted to creating the sector, (which stands for Banque ea, including BGFIBank E.G. and retail banking for indi- represents only around 1% which was practically non- gabonaise et française inter- The first to open, in 1994, viduals, entrepreneurs and of GDP. But this also means existent until the mid-90s. national) was the third in- was the Caisse commune high potential SMEs. Even it has a lot of potential as the “The financial system is still ternational subsidiary cre- d’épargne et d’investissement though a small minority of once impoverished country young and underdeveloped. ated by the financial group, en Guinée Equatoriale (CCEI- Equatoguineans have a bank transforms itself into a mod- Largely dominated by the which now operates in nine Bank GE), a subsidiary of the account, the dynamism of Cameroonian group Afriland the economy means there First Bank. Four years later, is a lot of potential in retail. “Our financial it was joined by the Société This is why BGFIBank E.G. performance is générale de banques en Gui- was the first to introduce growing; we are née équatoriale (SGBGE), ATMs and is busy expand- improving our a subsidiary of the French ing its network of branches. market share and Société générale. BGFIBank Currently, BGFIBank E.G are now number E.G. entered the market in has branches in Malabo, two in terms of 2001, followed in 2006 by the Bata and Añisok, but it will Banco Nacional de Guinea soon be present in all the credits” Ecuatorial (Bange), the only country’s main towns. state-owned establishment “We are also constantly JULIE OYE, General Director of BGFI Bank E.G. (which also has capital from innovating in order to im- the Philippines). The most prove and diversify our of- recent operator, authorized fer,” says Ms. Oye. “Our cli- Another key priority of BG- in 2010, is a joint venture be- ents can bank online and we FIBank E.G. is transparency tween Morocco’s Attijariwafa have introduced the Salary and social responsibility. In- Bank and the African group Card for employees of client deed, it was among the first fi- Ecobank. companies who do not have nancial groups to adhere to the “Our financial perfor- a bank account. We also of- United Nations Global Com- mance is growing; we are fer Western Union money pact initiative, which gathers improving our market share transfer services since 2010.” businesses that are committed and are now number two in Furthermore, BGFIBank E.G. to aligning their operations and terms of credits,” says Ms. is engaged in the quality cer- strategies with 10 universally Oye. “This performance al- tification of its international accepted principles in the areas lowed us to increase twice subsidiaries, including Equa- of human rights, labor, environ- the share capital from 5 bil- torial Guinea. ment and anti-corruption.

The BBS BGFIBank business school Foundation A socially responsible group, BGFIBank E.G. supports popu- In order to train future African manag- lations in all ers and to build the skills of its staff, the countries BGFIBank E.G. set up a business school where it operates through its BGFIBank several years ago. Based in Gabon, BBS Foundation. Its main areas of work are offers cutting-edge facilities and employs education, scientific research, environ- highly skilled teachers, the majority of ment and sustainable development, and whom have a PHD or a doctorate. culture.

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content Distributed by USA TODAY Wednesday, August 6, 2014 9 EQUATORIAL GUINEA BANGE: The National Bank of Equatorial Guinea web: www.bannge.com email: [email protected] international banking safety investments made by Ameri- A bank for national tests, besides having other in- can companies to explore development and progress dependently-assessed quality and bring into production the accreditations. country’s oil and gas poten- any com- The tremendous potential tial and through the building menta- for BANGE in this second of LPG facilities, adding that tors have phase of “Horizon 2020” is some 25% of oil exports are to spoken of underlined by the President’s the U.S. However, the part- Equatori- encouragement of its devel- nership does not end there al Guinea’s extraordinary opment, as well as by the role and Mr. Ebe underlines his Mgrowth over the last 20 years, of Mr. Ebe, himself formerly country’s massive investment GDP growth now at 5.7%, the country’s Minister of Fi- in sending students to Ameri- budget and trade surpluses nance, as the bank’s present can universities to bring back and the highest per capita Chairman. The bank readily to Equatorial Guinea the income in Africa, as an “eco- accepts its mission of being skills and training needed to nomic miracle”. However, this one of the essential engines adequately develop its rich record of development and of national growth and a fa- potential. progress results instead from cilitator of economic and BANGE is determined to a determined pursuit of sen- social development in every fulfill its key role in Equa- sible and realistic objectives region of the country, a role torial Guinea reaching its under President Teodoro even more important now “Horizon 2020”. For BANGE, Obiang Nguema Mbasogo with policies aimed at fos- tering the development of trade and industry and the achievement of social progress within a framework of economic stability. Blessed with abundant natural resources but which had remained barely exploited until two decades ago, Equato- rial Guinea set out at that time a clear National Development Plan, its “Horizon 2020”, the first phase of which aimed to provide the then underdeveloped country with the basic infrastructure necessary for sustained future growth. This phase covered such areas as roads, communications, urban development, health and education, with the objective Excelentísimo Martin Crisanto Ebe Mba., Chairman of BANGE of setting both the country and its people on a path of structure of doing business targeted for development of economic transformation with the widening of oppor- however, this is a means to sustained and equitable na- in Equatorial Guinea, includ- include agriculture, fisheries to spread the benefits of rapid tunities in new and different an end; the bank is more tional progress. ing a new law on overseas and eco-tourism. future business and social de- sectors of the national econ- than this, it is the bank of the The second phase, starting investment, the encourage- It is within this climate of velopment to all regions of the omy and as small and medi- people with a firm determi- this year, will focus on broad- ment of a greater role for the boundless business opportuni- country and to all its people. um-sized private companies nation to succeed in its widening the industrial base, so private sector and for SMEs ties that Martin-Crisanto Ebe Set up only in 2006, the bank grow and prosper. er social role and in its mis- as to develop the country’s and the radical overhaul of Mba, its Chairman, visualizes is now present throughout the Mr. Ebe acknowledges that sion of bringing the benefits resources beyond the hy- red tape through a new one- the mission of BANGE, Banco country and possesses a strong “the U.S. has been the key of economic growth to every drocarbons sector, besides stop investment procedure. Nacional de Guinea Ecuato- capital structure compliant partner in the development of region and to all the people the transformation of the Particular economic sectors rial, and its key role as an agent with all the “Basel agreement” Equatorial Guinea” through of Equatorial Guinea.

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content 10 Wednesday, August 6, 2014 Distributed by USA TODAY EQUATORIAL GUINEA Success and dynamism from a bank unlike all others

CCEI Bank GE provides purpose of its success in the an example of African countries and the communi- business otherness, leading ties in which it operates. The as both a pioneer and role bank achieves this dual-pur- model for banks in the pose mission through iden- entire West Africa region tifying and targeting social areas where its contributions CEI Bank GE can make a meaningful and was set up in lasting change, for example 1994 as a subsid- in caring for people affected iary of the Cam- by tuberculosis, in combat- eroon banking ing AIDS, in treating illnesses group now known as Af- in children, and in building rilandC First Bank. Equatorial schools, besides supporting Guinea had not at that time cultural and sporting activi- yet discovered its vast oil ties that simply make people’s and gas resources and thus lives more enjoyable. the bank came, virtually as a Of course, the bank can pioneer, into a very poor and only succeed in its dual mis- under-developed country. sion if its management runs The philosophy of its group, its business efficiently and then as now, is that meaning- profitably – and this it does. ful economic progress can So much so that when its come to Africa through Af- holding company, the Af- ricans working together and riland First Bank, decided to finding solutions mirroring set up a subsidiary operation the African socio-cultural in the neighboring country experience and through sup- of Benin, it chose to do so porting and developing proj- through CCEI Bank GE. So ects with both an economic CCEI Bank GE is now itself a and a social focus, so as to en- fledgling international bank, sure that the African people taking one step further the benefit from the continent’s Joseph Celestin Tindjou, Director General of CCEI Bank GE original vision of its own resources. founders with this expan- The bank has carried achievement for a bank based than 50 correspondent banks inclusion through facilitat- sion being, as Director Gen- through this philosophy into almost entirely in a country over five continents. The ing the access by ordinary eral Joseph Celestin Tindjou every aspect of its operations, international with far less than 1% of the bank’s financial soundness, citizens to financial services, comments, “an example of while investing continu- oil and gas region’s population. intimate knowledge of all as- while it also very pro-active South-South cooperation... ously so as to be able to of- groups such as International oil and gas pects of local business and in endeavoring to foster the and a springboard for us to fer to all customers – from Marathon Oil groups such as Marathon Oil multilingual staff ease the growth of local businesses expand even further into the international oil giants to and Chevron and Chevron from the U.S. way for international groups and the development of lo- whole of the Central Africa local farmers and shopkeep- from the U.S. and Total from France as well investing in the region. cal entrepreneurs, many of region”. ers – the very best in service as the oilfield services giant The bank has invested whom are building sound So this is CCEI Bank GE: a and facilities. It is now the and Total from Schlumberger are among the continuously in expanding sub-contracting activities bank that believed in Equa- leading bank in Equatorial France as well bank’s clients, as are GE Petrol its scope and capability, both serving the multinationals torial Guinea before anyone Guinea, holding 49% of bank as the oilfield and Equatorial Guinea LNG. physically and technological- operating in the oil and gas else, a bank that invested deposits in the country and services giant In fact, CCEI Bank GE is rec- ly. It now has branches in the sector. and continues to invest and 69% of the lending portfolio. Schlumberger ognized as the bank favored country’s four major cities, CCEI Bank GE thus sees is now reaping the rewards, Just like Equatorial Guinea are among the by oil companies operating in with new offices having been its business mission in a very a bank that devotes those itself, CCEI Bank GE is now bank’s clients the country. So as to be able built in 2012 in Bata on the holistic way, aiming to make rewards to fulfilling a social a regional giant, the fifth-big- to provide international-class African mainland and in the its own contribution to build- mission with roots deep in gest bank in Central Africa, service to major international national capital of Malabo. A ing economic growth and the socio-cultural context of according to the publica- companies, the bank has now major objective of the bank economic strength but while Africa, a bank that counts tion Jeune Afrique, quite an developed a network of more is to promote wider financial not overlooking the social among its customers some

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content Distributed by USA TODAY Wednesday, August 6, 2014 11 EQUATORIAL GUINEA of the greatest of the world’s Director General of the bank and co-operatively with en- to one of the key objectives multinationals in the tough- since its inception, sums trepreneurs, mirroring in of the country’s vision for est of all businesses yet cher- up the bank’s successful ap- many ways the African com- economic and social devel- ishes its other vocation of proach, “with a belief that munity socio-cultural model, opment, Horizon 2020: the helping the small guy to build ‘good business is good for working together to achieve promotion of financial inclu- his own business dream, a all’, in addition to providing outcomes beneficial to all. sion. bank that invests in helping credit and loans, our bank Mr. Tindjou states that he Horizon 2020, as well as people overcome illness and also prides itself on the prac- expects his bank to continue the UN Development Pro- disease. This is a bank un- tical support it has to offer to play a major role in foster- gram’s Country Plan 2013- like others, a bank perhaps of entrepreneurs of all sizes to ing the growth of SMEs, add- 2017, identify one of the paradoxes or a bank perhaps expand their businesses and ing that “for us, the develop- country’s key goals as being to emulate? make their money work ef- ment of Equatorial Guinea, to strengthen the capital fectively”. in particular, and of Africa in worth of its individuals and Empowering CCEI Bank GE thus seeks general depends upon pro- to empower entrepreneurs entrepreneurs to educate this new genera- moting and supporting local with the tools necessary to The vision for CCEI Bank GE tion of entrepreneurs. As Mr. private initiatives...and, in develop their financial ca- sprang directly from African Tindjou remarks, “the biggest any case, everything that is pabilities. CCEI Bank GE Access to banking is on the rise in Equatorial Guinea socio-cultural traditions, to- obstacle to local companies good for Africa, everything has taken up this challenge, gether with the ambition to accessing credit is not being that is good to develop our working with employers to be part of the new wave of able to structure a financial SMEs, every project that will set up loan plans for their Africans taking in their own proposal, so we are trying generate income and cre- staff and developing educa- hands their own future and to empower entrepreneurs ate jobs, will have the active tion programs for entrepre- determined to build a more to develop their long-term support and involvement of neurs and financing packages prosperous continent for fu- business plans.” The bank CCEI Bank GE.” in such areas as agriculture, ture generations. This vision therefore works with local besides investing in technol- is one from which the bank accounting firms to teach People at the heart ogy such as ATMs. has never wavered, accept- financial management and of the bank Mr. Tindjou includes as ing and pursuing consistently business planning to entre- The corporate credo of CCEI further objectives the devel- an underlying responsibility preneurs. Bank GE and that of the Af- opment of online banking, in its operations to build for However, its role in ac- riland First Bank, to which it promoting the wider ac- the future, to actively em- tively seeking solutions to belongs, is to change the real- ceptance of the use of credit power its customers to create smooth the path to growing ity of the African continent cards, and the possibility of successful businesses. This new businesses goes far be- through a focus on economic making loans available for vision, very different from yond that. An example is the development but also and home purchases by individu- CCEI Bank GE seeks to educate a new generation of entrepreneurs what can be seen in much of bank’s leadership in imple- equally on the wider social als. He adds that, “there is still the world as the usual role of menting the national Partial benefit the bank can bring to work to be done in develop- banks and bankers, is con- Credit Guarantee Fund, set the community it serves. The ing the public’s interaction tributing to generating the up to enable local companies bank’s vision and its mission with financial institutions continent’s next wave of en- to break out of the under- are to generate and facilitate and to complete the coun- trepreneurs. capitalization trap in which improvements in both the try’s transition from a cash Many of the first local many have fallen. As Mr. economic wellbeing of the economy.” small- and medium-sized Tindjou explains, “many lo- countries in which it oper- CCEI Bank GE sees its so- businesses helped by CCEI cal sub-contractors find ates and in the lives, life en- cial responsibilities as being Bank GE were set up as themselves in a vicious cycle vironments and futures of its true to its roots in the Afri- sub-contractors to the large of being unable to obtain customers. As Joseph Celes- can socio-cultural context, international groups who credit without a confirmed tin Tindjou, the bank’s Direc- as a way of giving back to the started to arrive in Equato- contract and unable to win a tor General, puts it, “since communities in which it op- rial Guinea in the 1990’s to contract without developing its creation, customers and erates in ways that are mean- develop the country’s newly- their operations, for which community have been the fo- ingful and that contribute to discovered hydrocarbon re- credit is required.” cus of this organization and the betterment of people’s The bank is an increasingly integral part of people’s lives serves. Then, as the revenues The initiative, funded by its concerns.” lives and to the alleviation of from oil and gas sales were the government, provides a Since establishing itself in social problems. Examples tional tennis team and of the cause they are the ones who used to develop the nation’s guarantee on a percentage Equatorial Guinea well be- of the bank’s involvement Akonangui soccer team, be- truly believe in GE”, “they infrastructure and the coun- of the amounts needed to fore the oil boom started, the just in the area of healthcare sides funding musical events listen to the client all the try started to build a wider get qualifying and selected bank has now set up branch- alone include the funding of and women’s day celebrations time and they try hard to sat- economic base, CCEI Bank small and medium-sized en- es in all the major towns of the construction and equip- in the communities it serves. isfy the client’s interests”, and GE helped entrepreneurs in terprises into business. CCEI the country and is the big- ping of a tuberculosis wing This pioneer bank, the “they help the community, the construction and services Bank GE sees the fund as one gest bank by far in terms of at the Malabo Hospital, work bank that believed and in- like building schools, helping industries to establish their of the most effective tools to deposits and lending. Quite in fighting the prevalence of vested in Equatorial Guinea with hospitals, fighting AIDS, businesses, thus contributing expand the country’s SMEs. simply, CCEI Bank GE is now HIV infection and the pro- long before the country’s oil they gave CAF50m to the na- tremendously to the success As Mr. Tindjou adds, “we do “the” bank for most of the vision of medicine for sick riches were discovered, is tional soccer team” demon- of Equatorial Guinea’s own not need 100% guarantees in country’s citizens. By contin- children. determined to continue serv- strate that the people, too, long-term national vision, all cases, the most important uously extending its network The bank has invested in a ing the communities it has appreciate the bank’s empha- “Horizonte 2020”, to create thing being to have a starting and the range of its services, ferry to connect Bata, on the helped to build and develop. sis on community and social a diversified, industrialized point to begin working from.” the bank is increasingly an mainland, to Malabo and also Comments from its custom- involvement. The customers and sustainable economy. The bank’s approach is one integral part of people’s lives, supports sporting activities, ers and the public such as, know and the customer is al- Joseph Celestin Tindjou, of working constructively contributing immeasurably being the patron of the na- “CCEI Bank is the biggest be- ways right.

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content 12 Wednesday, August 6, 2014 Distributed by USA TODAY EQUATORIAL GUINEA

Equatorial Guinea’s terrain and weather make paved roads a necessity. To date, some 80% of national roads have been paved

Photo courtesy of Sogea Satom

and install the production platform at this field, complete with living quarters. Tremendous potential growth and investment also The path to development awaits with the upgrading of Equatorial Guinea’s transportation network. Extending the country’s network of paved roads, which can better with- begins with infrastructure stand the challenges posed by the country’s muddy rainy Equatorial Guineans can attest to the buzz of activity projects deemed critical to new infrastructure plans on industry as well, so that it season, is one of the most sig- taking place across their country. Cities and towns have national development. The the long-neglected island continues to provide the fuel nificant improvements to the come to resemble bustling construction sites, with the end new construction comes in of Annobón have been put to power economic growth. transportation network in the results popping up in many forms, from gleaming tow- many areas: transport, oil into motion, including a new The government has not country’s history. ers in the capital, Malabo, to new roads cutting through and gas infrastructure, infor- $130 million seaport as well only increased spending ex- Approximately 80% of na- dense jungle in the countryside, providing vital transporta- mation and telecommunica- as a new airport. These new ponentially over the past five tional roads have now been tion links to rural communities tions, as well as expanding facilities will provide room years, but has also opened paved. The improved roads, the country’s electricity grid for the overall growth of the country to investment in turn, facilitate government and improving facilities such the national economy in the deals and partnerships with planning and access to build ince the 1990s, oil government’s plan to com- as schools, hospitals, public coming years, while a further foreign companies, an area up its network of schools and and gas has domi- plete 10,000 new residences housing and water supply $260 million investment in where American companies hospitals, as well as its electri- nated Equatorial around the country over the systems. The Horizon 2020 social projects on the island, have been particularly active. cal and telecommunications Guinea’s economic next few years. plan, as it is known, aims to including new sanitation Last year, to take just one lines. Crisscrossing Equato- landscape, but a To put the scale of this establish Equatorial Guinea works and a new school, have example, U.S.-owned Noble rial Guinea’s deep forests and change has begun, as the gov- transformation in perspec- as an emerging economy in given the local population Energy began production at mountainous terrain, these ernmentS embarks on a stra- tive, investment in Equato- just a few short years, while some immediate benefits. the offshore Alen gasfield, roads, though difficult to put tegic plan to diversify eco- rial Guinea regularly tops boosting the economy and The government’s Hori- which will eventually produce into place, create an essential nomic development while 50% of the country’s total providing much-needed jobs zon 2020 plan focuses on 40 million barrels per day of mechanism for socioeco- providing much-needed annual economic output, ac- and services for its citizens. balanced development and natural gas condensate, while nomic development, putting quality of life improvements cording to the International Public health features at sustainable growth. This another U.S.-based company, the country on the path to to the country’s population, Monetary Fund, compared the top of this ambitious means substantial expen- McDermott International, achieve its paramount Hori- through the creation of vital to less than 20% in the United agenda. The country has ditures in the oil and gas obtained the contract to build zon 2020 goals. infrastructure. States and European Union. worked toward increasing ac- The new approach is start- For businesses and work- cess to medical care, and now ing to pay off, with the coun- ers in Equatorial Guinea, counts one hospital for every try’s economic growth now this means a steady stream 50 square miles of territory, PAC INTERNATIONAL being attributed to “public of new opportunities. From in addition to a new univer- investment aimed at devel- 2013-2020, the government sity where Equatorial Guinea’s oping and improving basic has committed a significant first domestically instructed infrastructure such as roads, portion of its oil wealth to doctors have been trained. Attention to detail leads to ports and airports,” according over 1,500 infrastructure Currently, major towns to the 2014 African Econom- have access to potable water, ic Outlook, which also noted but poor maintenance and an superior end results for PAC that, “Public capital expendi- aging delivery system make The frenzy of With its Horizon 2020 plan already in full swing, the government of Equatorial ture has grown constantly in building that access unreliable. Addressing recent years, and this trend this issue, the government Guinea has found a trusted partner in PAC International, an established construc- should continue into 2014 preceded the created a major initiative to tion company that has extensive experience in the international market and 2015.” African Cup of provide safe, clean drinking The frenzy of building that Nations soccer water for the entire country, Headquartered in Cyprus, preceded the African Cup tournament, including new canals and with more than two decades of Nations soccer tourna- which took place pipelines in Malabo and Bata, of history working in the ment, which took place in in 2012 in host while villages and rural areas Middle East and Africa, PAC 2012 in host cities Malabo cities Malabo and have been equipped with International has already con- and Bata, typifies the ongo- Bata, typifies the generators and water pumps. tributed several important ing energy with which Equa- ongoing energy The government has also projects to Equatorial Guin- torial Guinea is remaking with which launched several large-scale ea’s development, including itself. The housing sector, in Equatorial Guinea regional projects as part of the construction of offices, particular, has picked up sig- its long-term growth strat- hospitals and government is remaking itself nificant momentum, with the egy. In just the past few years, buildings, as well as a cable- stayed bridge and a cultural center in Malabo and a modern public library in Bata. “This country is progress- ing very well,” says PAC Inter- national’s Managing Director, Roger Pereira, an entrepre- PAC International is the name behind the Malabo VIP airport terminal building neur from the Republic of the Congo who works side-by- nized, you can grow. You have ment team ensures that all side with the president of to know how to invest for the materials are purchased from Equatorial Guinea. “You must long term. The first few years the best international suppli- win the confidence of the gov- won’t generate large returns. ers and that freight is managed ernment. When you do that, They only serve to build your efficiently, delivering quality you have excellent potential. workforce.” while meeting tight budgets The buildings here are going The company’s philoso- and aggressive timescales. up very fast, so much so that phy can be boiled down to PAC International prides there are times when we run a few core values. PAC In- itself on its superior end- out of cement in the country ternational dedicates itself results, determined by the or there isn’t enough local to taking a holistic approach attention to detail that goes manpower.” toward design. That’s why its into every step of design and Companies like PAC Inter- experienced architects, de- construction. Always using national have helped Equato- signers and project managers experienced craftsmen, they rial Guinea remake itself with immerse themselves in each ensure that important be- modern buildings and infra- client’s operational and com- spoke elements are finished to structure that meet world- mercial requirements, achiev- the highest standards, creat- class standards of quality and ing the final effect of function- ing exceptional structures that sophistication. The govern- al practicality enhanced with contribute to healthy living ment always requires a thor- aesthetic rigor. With an acute and working conditions. “This ough study of any proposed awareness of modern con- society has opened itself up work, Mr. Pereira concedes, struction technologies and to working and to transform- but he says that this process is methods, PAC International ing the life of the country, not critical to sustaining the coun- leans on its experienced tech- just for making money,” Mr. try’s accelerated pace of de- nical partners who are com- Pereira concludes. “There are velopment, not just today but mitted to maintaining quality a lot of opportunities, not only for years to come. “If you do control at every stage of each for businesses but for people good work and are well orga- project. Its in-house procure- as well.”

ith over spelled out in the Horizon 1,500 dif- 2020 plan, GE Proyectos looks ferent at the big picture, taking into plans be- account the local, national ing car- GE Proyectos takes and regional impact of each ried out across the country, project under consideration. allW related to different parts Therefore, they play a crucial of critical infrastructure, GE role not only in identifying Proyectos, (Equatorial Guinea what needs to be done, from Projects in English), provides a look at the big picture a macro perspective, but in a range of services and tech- seeing each job through to nical advice to make sure that Now more than ever, Equatorial Guinea has come alive with a multitude of projects aimed at the better- completion. The goal is to the public works get done on ment of the country’s future; so many, in fact, that the government created an additional agency dedi- take the success that the coun- time, and with the best pos- cated specifically to overseeing them: GE Proyectos try has achieved in the hydro- sible results. carbons sector, and apply that GE Proyectos was origi- income and capacity toward nally formed in 2007, to keep creating latest-generation up with the rapid pace of the infrastructure and technol- country’s infrastructure de- ogy in sectors throughout the velopment. An autonomous economy. At the center of this entity, it supervises all infra- transformation, GE Proyec- structure projects funded by tos’ headquarters are located the Equatoguinean govern- in a brand-new real-estate de- ment, from the planning and velopment outside the capital development stages right called Malabo II. Meant to be through to completion. It pro- an example of the progress the vides crucial know-how and government hopes to achieve, services to ensure that world- Malabo II boasts skyscrapers, class building standards are an elegantly-planned network being met. This includes the of roads and highways, in ad- preparation of model con- dition to contemporary hous- tracts for project specifica- ing and an abundance of styl- tions, the structuring of development tenders and the running of cost-analyses, in “In order to attract addition to research and proj- investors, you ect evaluation, quality control must show that and supervision, legal support your country meets and the handling of statis- their requirements, tics and publications. As one and I think that of its primary functions, GE we are doing this Proyectos trains Equatoguin- perfectly” eans for construction work, to help ensure that the local population sees its share of benefits from the government- Francisca Obiang, Managing Director funded construction boom. of GE Proyectos GE Proyectos also serves as a liaison between various government entities and private ish office buildings, like the sector businesses wishing to one that houses GE Proyectos. participate in the country’s “We are preparing very development. thoroughly, specifically for “GE Proyectos came into the second step,” Ms. Obiang being as part of the Techni- continues. “Most importantly cal Office of the president,” concerning industrialization, explains Francisca Obiang, the foundation for industri- Managing Director of GE alization. In order to attract Proyectos. “In this role, we investors, you must show that create infrastructure, su- your country meets their re- pervise and oversee public quirements, and I think that works. The responsibility for we are doing this perfectly.” oversight almost always falls The end goal is to bring to us.” Working from within world-class standards to the Ministry of Infrastructure, Equatorial Guinea, for the Ms. Obiang leads an inter- benefit of the entire country. disciplinary team of profes- “EG Proyectos and the In- sionals, bringing together ar- frastructure Ministry should chitects, specialist engineers, show the world that the qual- attorneys, environmentalists ity of construction has been and urban planners, as well improved. This is the most as economists and builders to important thing. You will help carry out a strategic vi- come back in two years and sion for the country. Experts say ‘wow!’ not only because from GE Proyectos’ five dif- you see a new road here or a ferent departments partner supermarket there, but you with the government to ex- GE Proyectos five different departments partner with the government to look at the building and say, amine architectural, mechan- examine architectural, mechanical, electrical and structural plans, perform ‘this is really well done.’ You ical, electrical and structural on-site analyses, and are in charge of the final oucome of each project see the quality of the work. plans, perform on-site inspec- That’s my idea,” Ms. Obiang tions and analyses, and are in concludes. charge of the final outcome of “We work with the Infra- each project. structure Ministry and with “Each one of us brings the president’s office to create knowledge,” Ms. Obiang con- standards, so that when you tinues. “You have the techni- want to build, you build with cal side under control because these standards. You have to you have architects, engi- go to City Hall. You have to neers, all your personnel, but consult the Infrastructure you need to know how to lead Ministry. We must see infra- these people.” structure not only in terms In order to meet the coun- of quantity but in terms of try’s development goals, quality.”

Health services, education and power for better lives Putting the country’s Akelayong in the Rio Muni newfound wealth to region. good use, GE Proyectos Another, more compre- is addressing key aspects hensive, example of the of Equatoguineans’ kind of development that everyday life GE Proyectos has brought to the countryside can be found in the town of Mi- One critical aspect of GE comeseng, near the border Proyectos’ mission is raising with Cameroon. There, the the population’s living stan- organization oversaw the dard through the building construction of a drinking of new infrastructure. This water treatment plant, con- includes an array of different vention center, community initiatives aimed at achieving park, district hospital, mu- the maximum benefit in the nicipal market and other quality of life and productiv- civil infrastructure. ity of all Equatoguineans. In the mainland city of “Over the next five years, GE Proyectos plays an instrumental role in bringing water and electricity to the people of Equatorial Guinea Mbini, meanwhile, the gov- we still have so many things ernment has invested close to improve,” Francisca Obi- also pushing very hard over 2020 plan. power lines, municipal fa- to $1 billion on a host of ang, the Managing Director the next five years. As the “The next steps for the cilities and housing to help projects aimed at improving of GE Proyectos, says. “Even saying goes, you never finish country must come in the millions of Equatoguineans living standards and creating though we have completed straightening up your house. GE Proyectos form of education,” Ms. Obi- experience the kind of ame- development through tour- highways linking each prov- You have to constantly work will have a ang declares. “We are invest- nities now taken for granted ism. There, EG Proyectos is ince, we still have to address at it. These are the priorities: ing a lot in education. For any in the industrialized world. overseeing the construction the cities. We must also education, health, electricity.” hand in the country in the world to get The development of a reli- of a hydroelectric power complete our water projects. As is the case in much of modernization ahead, no matter how, it must able transportation network, plant on the Sendje river that Many places have potable wa- the developing world, bring- of roads, power have education. There are from two-lane roads linking will provide a backbone of ter, but we have to make this a ing these vital services to all lines, municipal many places within villages rural villages with urban cen- critical services, securing a reality for the entire country. of the country means reach- facilities and that – although people think ters to highways connecting reliable source of power for Also, in public health, we are ing the rural population. housing that we have forgotten them major cities, will go a long the city’s inhabitants, help- pushing very hard to create This priority has been given – we’re renovating them and way toward achieving this ing to generate business and clinics and health centers. a prime place in the coun- even building anew.” goal. GE Proyectos has al- commerce and paving the We have to put them in every try’s Horizon 2020 plan, and Guiding this strategy, GE ready overseen the building way for a more prosperous location, every district, every particularly in the Equato- Proyectos will have a hand in of a 40-mile-long highway future for Equatorial Guinea province. For schools, we are rial Guinea Industrialization the modernization of roads, linking the cities of Cogo and as a whole.

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content 14 Wednesday, August 6, 2014 Distributed by USA TODAY EQUATORIAL GUINEA A committed Expertise in building partner roads and bridges Equatorial Guinea may be small compared to its neighbors, but it has seen some As a construction big changes over the last decade and continues to be in the midst of an incredible company specializing transformation, according to Frank Casteleyn, CEO of Sogea Satom, one of the in development and country’s leading building partners infrastructure projects, Setraco EG has deep not certain of the security roots in Africa in the medium term. Here we don’t see the conflicts Originally formed by Leba- and political problems that nese and Nigerian partners you find in a lot of other Af- in 1977, Setraco Group, Se- rican countries.” traco EG’s parent company, Mr. Casteleyn suggests has been a vital partner in that the reality is contrary to the development of crucial Equatorial Guinea’s image, projects in the Middle East which has been touted as and Africa for more than being among the most cor- three decades. rupt nations in the world by Starting off with just a International Human Rights few employees and little organizations. more than $100,000 in “Every country has its capital, Setraco Group has detractors,” adds the CEO, grown in size and sophis- who hopes greater transpar- tication along with the ency and openness will bring region that it has helped NICOLAS KFOURY, Managing Director of Setraco EG about change. to shape. Today, Setraco Sogea Satom is investing Group comprises more in the country in more ways than 30 companies, gener- las Kfoury, Managing Direc- workforce, the backbone of than one. It is one of the ating more than $1 billion tor of Setraco EG. “You can which are Equatorial Guin- country’s largest employ- per year in revenues. see commitment and you eans who gets continuous ers and boasts an employee Setraco first began work- can sense it when you see all training in order to reach work force that is 90% na- ing in Equatorial Guinea in these projects going on.” the levels of quality the par- tive Guinean. 2003, and has helped move The vision of Setraco ent company is known for. “The people who work forward major real-estate, Group’s founder, Said Setraco EG’s leadership with us have learned to industrial and transporta- Khalaf, has been crucial the believes that its competitive work in an organized inter- tion projects since then. company’s role in Equato- advantage lies in the expe- national structure,” says the True to the legacy of its rial Guinea. Mr. Khalaf rience of its workers, and CEO, which means training parent company, Setraco foresaw the need in devel- they achieve this through Photo courtesy of Sogea Satom employees to meet dead- EG began with just about oping countries in Africa the transfer of knowledge lines, comply with safety, 30 employees and a small for the provision of inter- and technology. As such, training and environmental project. Today, the company national standard services, all employees are commit- eferring to the Sogea Satom standards. It’s been a shared boasts nearly 800 employees including highly trained ted to quality, and they are country’s new is one of the learning experience for the and has become one of the and experienced personnel, in charge of implementing network of country’s company, which has become largest and most reliable state-of-the-art construc- and delivering the indus- roads and high- largest employers firmly entrenched in Guin- construction firms operat- tion materials and cutting- try-leading standards that ways that is near and boasts an ean culture and its social ing in Equatorial Guinea, edge technology. Under Setraco has built its reputa- fabric by approaching one with the necessary resourc- this leadership, Setraco EG tion on. completion and promises employee work to help move the country village at a time. es to execute projects of positioned itself to play a As Equatorial Guinea R force that is 90% into the modern era, Sogea “Sogea is different from large scale. major role in the remark- moves forward with the Satom CEO Frank Casteleyn native Guinean other corporations because Setraco EG recently be- able progress of Equato- historic goals outlined in its says: “It was an enormously most have established them- came one of the first com- rial Guinea, in line with the Horizon 2020 plan, com- ambitious project, finally selves by way of Malabo the panies to be contracted to government’s ambitious panies like Setraco EG will we’ve seen some significant credits with projects in 20 capital,” says Mr. Casteleyn. provide the entire infra- commitment to creating be fundamental to turning achievements particularly African countries. “We started in Mongomo, structure of a neighborhood 21st-century infrastructure these goals into reality. “We in the infrastructure, for us Equatorial Guinea stands clear across the country, in the capital, Malabo. through world-class build- are partners in progress with it’s been the most visible out among the builder’s with small projects. We “If you come here, you see ing standards. the communities in which accomplishment because accomplishments, for its didn’t start in the big cities.” nice roads. You can see new In order to achieve this, we operate,” Mr. Kfoury we’ve taken part in its con- unique landscapes and From Mongomo, the construction work in prog- the company places a pre- concludes. “This is part of struction. A dozen years ago building challenges. The builder continued its trek ress everywhere,” says Nico- mium on the strength of its our success.” the country had one paved country’s capital Malabo, inland, Añisoc to Akonibe, highway serving Bata-Mon- sits on the northernmost is- Ebebiyín to Niefang, Evinay- gomo that was in very bad land of Bioko, about 25 miles ong to Mikomeseng, break- shape, and very dangerous from the mainland. It’s to- ing new ground in virtually to boot. Now forest track pography characterized by every village and town in the has been replaced by a net- lush pristine forests and sur- interior mainland. work of roads 80% paved and rounded by territorial water “The villages may ap- capable of handling large ca- presents great potential for pear archaic to a European, pacity transportation.” maritime and tourism op- they’re actually structured The experience has been portunities. In addition to its to reflect the activities and exhilarating, adds Mr. Caste- natural beauty another draw relationships between the leyn whose company has is the peace the small nation different clans. The villages been working with the Af- offers. are not designed for cars and rican nation’s government “I spent more than 20 high traffic volume, so we to help grow its economy years in Africa and it is here have to design them to ac- beyond oil production by that I found the most sta- commodate modern conve- improving its infrastructure. bility and peace, social and niences but continue to pre- Sogea Satom, part of the political, and that’s very serve some of its traditional French-based VINCI Con- important,” says Mr. Caste- identity,” says Mr. Casteleyn. struction giant, has deep leyn. “It makes investing “There’s a lot of work to be roots in Africa and over the safe. There are lots of coun- done. There’s a real adven- last 80 years has put together tries where investment is ture taking place here. You a formidable list of building not secure because we’re have to see it, live it.”

nance up to C-checks. ments are being negotiated The fleet will be modern- with European operators ized by adding two A319 or to further expand the route A320 and three Embraer network. West Africa’s pushy ERJ135 aircraft with routes Equatorial Guinea is also planned north to Dakar via investing in new terminals Niamey and south and other infrastructure to Johannesburg, and sees development of each three selective tourism and eco- new kid on the block times weekly, tourism as a key element in Emphasis on safety and standards the key differentiator thus con- its national plan Horizonte necting the 2020. Cronos Airlines is young and vocation to offer first-class from one 19-seater aircraft airline to two Cronos will certainly play ambitious. Founded only in safety, service and standards and 10,000 passengers in of Africa’s its part in fulfilling this na- 2007, new kid on the block as it builds up its network its first year of operations major hubs. tional objective with the Cronos is leading the way within Africa. to 200,000 passengers now, Code-share connection to Johannesburg in bringing to West African Equatorial Guinea is seven years later, and a tar- arrange- seen as a key link in bringing regional air travel a fresh and radically transforming its get of 450,000 passengers tourists to this new and un- refreshing philosophy, one regulatory structure for air per annum by 2016. explored tourist destination. that prizes safety and punc- transport, setting up an in- The ambitions of Cronos Cronos is an airline with tuality and that insists on dependent aviation author- for 2014 include obtaining clearly-defined ambitions, attaining and maintaining ity as a national regulator IOSA certification and im- putting a premium on safety, international standards in with highly-qualified staff plementing enhanced IOSA service and standards, intel- every respect. from overseas and local na- procedures, while its sister ligently building a network Being based in Equatorial tionals trained in France to company, Cronos Airlines linking growth hot-spots in Guinea, a small country with world-class capability. International, based at the Africa. The new kid in town, only 1.5 million people, its This ambition and de- international airport in Jo- already so fast out of the home market is limited but termination at the national hannesburg, is already South starting blocks, now has its its ambitions are not and it is level is matched by the track African-AOC certified and ANDREAS KAIAFAS, CEO of Cronos Airlines eyes fixed firmly on the fin- fast growing into its natural record of Cronos in growing offers scheduled mainte- ish line.

nies. Now they are looking towards partnerships with larger entities for joint projects with a view of expand- Don Luis moves the nation ing Don Luis in the face of Don Luis provides top- mid-90s, the logistics sec- competition. According to flight logistics solutions in tor has experienced a major Mr. Ondo, it is a good time a country where moving boom. Don Luis has become to invest in the country – cargo, especially oil, one of the country’s most efits economy and political is primordial for the ficient logistics companies. situation are stable and se- economy’s day-to-day After having worked at a sim- cure. He notes that the stel- activities ilar company in Spain, Luis lar relationship the country Ondo, Don Luis’ CEO, trans- maintains with the U.S. – in ferred his vision to Equato- particular in the oil sector With its rapidly improving rial Guinea. Despite early – means reliable and stable infrastructure and the rise challenges, such as the lack of business. Its people are also of investments in multiple infrastructure at the time, the worth investment; Mr. Ondo market sectors, Equatorial company grew and thrived. cites the many employees Guinea is poised to become Now, Don Luis is known for who, with hard work and a leader of development and transparency, reliability, effi- training, have moved up economic capital of the Afri- ciency, and client service. the corporate ladder, some can continent. Its per capita Indeed, client services are even acquiring executive income is already five times completely customized, ac- positions abroad – a record higher than other African cording to Mr. Ondo. “Every that, as Mr. Ondo maintains, countries and it has seen time we take on a large proj- is an “honor” for the com- great success in its petro- ect…we train employees to pany. As for Don Luis, the leum industry, thanks to a work alongside our clients so CEO is convinced it will play strong partnership with the that together we can make ad- a role in the shaping of the United States. the Horizon 2020 plan, the tiatives in policy-making for The plan’s major aim is to justments to expertise,” he says. country’s future: “I see Don The nation is now fo- long-term development plan an emergent and sustainable diversify the nation’s econ- The company’s reputation Luis as a useful tool for the cused on harnessing its initiated by the government economy, while also looking omy. Since the discovery of has resulted in major part- advancement of Guinean so- other resources, guided by in 2007, put in place for ini- to reduce poverty. oilfields in the region in the nerships with large compa- ciety.”

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content