An International Monetary Fund (IMF) mission led by Lisandro Ábrego,
IMF Mission Chief for Equatorial Guinea, visited Malabo on July 2–11 to
conduct discussions on the first review of Equatorial Guinea’s
Staff-Monitored Program (SMP), approved by Management in May 2018 (see
Press Release No. 18/218). At the end of the visit, Mr. Ábrego issued the following statement in Malabo:
“Despite substantial economic difficulties, the authorities have made
progress in implementing their reform program, and are contributing to the
regional adjustment strategy. They have met all but one (owing to technical
reasons) quantitative performance (PM) measures and indicative targets for
the first review under the SMP. Although the structural benchmark for
end-April on having a revised 2018 budget approved by Parliament was not
met, the authorities have operated within the parameters of the revised
budget. This improved framework has contributed to higher non-resource tax
revenues, and a lower non-resource primary deficit in the first four months
of 2018. Good progress is also being made on delivering on some of the
structural measures programed for end-July, including the ratification of
the UN Convention against Corruption in May, and better control and
tracking of public spending. Progress is also being made on improving
revenue administration and the environment for investment. The revised 2018
budget was approved by the Council of Ministers, and it is now scheduled to
be approved by Parliament later this month.
“Against this background, the mission reached a staff-level agreement for
the completion of the first review under the SMP. A report is expected to
be submitted for IMF’s Management consideration in early August 2018.
“Economic prospects in the near term, as in the rest of the CEMAC region,
are difficult. While the non-oil sector has started to show signs of
recovery, posting modest growth in 2017, overall economic growth remains in
negative territory, owing to declining hydrocarbon output. Inflation
remains low, reflecting economic slack and contained international food
prices. The external current account has improved, both because of fiscal
adjustment and higher oil prices, but Equatorial Guinea still needs to
rebuild its foreign assets and raise its contribution to BEAC’s
international reserves.
“The mission and the authorities agreed that continued strong
implementation of the government’s reform strategy is essential to keep
stabilizing the public finances, contain the growth of public debt and set
the basis for sustainable, inclusive growth within a more diversified
economy. In this context, it is important to shield the poor and vulnerable
from any adverse effects of economic adjustment and generally to strengthen
social protection.
“The mission supported the ongoing efforts to strengthen the public
financial-management framework to support fiscal discipline. It also
welcomed the authorities’ commitment to enhancing governance and
transparency in public administration and the hydrocarbon sector. In this
regard, it is important to complete the process to adhere to EITI, by
building on the work already done. Launching the process for the audit of
the state-owned hydrocarbon companies and government internal arrears is
also important. The mission also supports the publication of a broader set
of fiscal data through a new Ministry of Finance website ( www.minhacienda.gob.gq), and
suggests the authorities to turn this into a regular practice.
“The mission met with His Excellency, the Minister of Finance, Economy and
Planning, Mr. Lucas Abaga Nchama; His Excellency, the Minister of Mines and
Hydrocarbons, Mr. Gabriel Obiang Lima; other senior government officials;
members of the diplomatic community; and representatives of the private
sector and civil society.
“The team wishes to thank the Equatoguinean authorities and other
interlocutors that it held discussions with for their excellent
collaboration and warm hospitality.”
