IMF Executive Board Approves US$67.38 Million in Emergency Support to Equatorial Guinea to Address the COVID-19 Pandemic and Accidental Explosions
IMF News, September 15, 2021
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- Published: September 15, 2021
Executive Board decision and financing
- The Executive Board approved emergency assistance equivalent to about US$67.38 million under the Rapid Financing Instrument (RFI).
- Disbursement amount in SDRs: SDR 47.25 million (about US$67.38 million, 30 percent of quota).
- Purpose: to meet urgent fiscal and balance of payments needs stemming from the COVID-19 pandemic and March Bata explosions, to catalyze additional external resources, and to bolster regional reserves of the Economic and Monetary Community of Central Africa (CEMAC).
Economic damage and financing needs
- The pandemic and the Bata explosions have inflicted heavy damage on Equatorial Guinea’s economy, substantially weakened its near-term economic outlook, increased economic and financial stress, and severely affected livelihoods.
- Additional projected external financing needs: US$625 million (5 percent of GDP) in 2021-22 (relative to the EFF-supported program).
- Authorities’ responses already undertaken:
- Boosted frontline healthcare spending, including purchase of a large batch of vaccines.
- Rolled out social assistance to households severely affected by the pandemic and the Bata explosions.
- Provided limited and temporary tax relief to the private sector.
Governance, anti-corruption, and transparency measures (prior actions)
- Authorities adopted an anti-corruption law, in line with international good practices and obligations under the United Nations Convention Against Corruption.
- Established two escrow accounts at the Bank of Central African States (BEAC) for pandemic and Bata emergency-related spending.
- Commissioned audits for pandemic and Bata emergency-related spending.
- Committed to adhering to good public procurement practices.
- These four prior actions were met as part of the request for emergency assistance.
IMF stance and recommended reforms (statement by Mr. Bo Li, Deputy Managing Director and Acting Chair)
- The IMF stands ready to provide policy advice and further support, including as part of ongoing cooperation under the EFF-supported program.
- Key recommendations and priorities:
- Accelerate reforms under the EFF-supported program to safeguard macroeconomic stability, promote inclusive growth, and fight corruption.
- Honor commitment to prepare and publish a list of meaningful public assets for privatization.
- Approve regulations in line with the anti-corruption law for an asset declarations regime for public officials and the governance of the anti-corruption commission as soon as possible.
- Implement measures to strengthen banking sector stability, including settlement of domestic arrears and recapitalization of the largest bank, without further delay.
- Safeguard social spending and enhance social protection.
- Continue reforms on revenue administration and strengthen the public financial management framework.
- Continue implementation of audits and escrow-account arrangements to ensure effective spending on pandemic- and reconstruction-related needs.
Selected economic and financial indicators (highlights from Table 1: 2018–26)
- Real GDP (annual percent change):
- 2018: -6.2
- 2019: -6.0
- 2020: -4.9
- 2021 (Est./Proj): 4.1
- 2022: -5.6
- 2023: -1.5
- 2024: -1.0
- 2025: -2.8
- 2026: -2.1
- Hydrocarbon sectors (annual percent change):
- 2018: -12.4
- 2019: -9.3
- 2020: 5.9
- 2021: -12.5
- 2022: -5.2
- 2023: -5.5
- 2024: -9.6
- 2025: -9.0
- Non-hydrocarbon sectors (annual percent change):
- 2018: 2.6
- 2019: -1.9
- 2020: -3.4
- 2021: 2.2
- 2022: 2.1
- 2023: 3.0
- 2024: 2.8
- 2025: 2.9
- GDP deflator (annual percent change):
- 2018: 9.5
- 2019: -2.2
- 2020: 12.3
- 2021: 0.8
- 2022: 3.4
- 2023: 4.2
- 2024: 4.7
- Consumer prices (annual average):
- 2018: 1.3
- 2019: 1.2
- 2020: 4.8
- 2021: 0.5
- 2022: 3.1
- Broad money (annual percent change):
- 2018: -2.5
- 2019: -6.3
- 2020: -7.0
- 2021: 10.0
- 2022: 5.7
- 2023: 5.6
- 2024: 6.5
- 2025: 6.3
- Exports, f.o.b. (annual percent change):
- 2018: 11.9
- 2019: -18.7
- 2020: -35.2
- 2021: 44.9
- 2022: -18.8
- 2023: -7.5
- 2024: -5.4
- 2025: -6.8
- Hydrocarbon exports (annual percent change):
- 2018: 12.7
- 2019: -18.4
- 2020: -35.4
- 2021: 43.6
- 2022: -20.1
- 2023: -11.3
- 2024: -9.2
- Non-hydrocarbon exports (annual percent change):
- 2018: -27.9
- 2019: -29.2
- 2020: 84.4
- 2021: 12.2
- 2022: 12.5
- 2023: 14.4
- 2024: 14.5
- 2025: 15.3
- Imports, f.o.b. (annual percent change):
- 2018: 7.3
- 2019: -15.6
- 2020: -24.3
- 2021: 24.3
- 2022: -18.1
- 2023: -15.1
- 2024: 97.2
- 2025: 6.4
- Terms of trade (annual percent change):
- 2018: 14.2
- 2019: -4.3
- 2020: -7.9
- 2021: -4.1
- 2022: -1.3
- 2023: -22.8
- 2024: 13.8
- Government finance (annual percent change, selected):
- Revenue: 16.8 (2018); -14.3 (2019); -33.9 (2020); 35.2 (2021); -9.9 (2022); 1.5 (2023); -0.7 (2024)
- Expenditure: -20.6 (2018); -17.7 (2019); 26.3 (2020); 1.0 (2021); 0.3 (2022); 1.8 (2023)
- Investment and savings (percent of GDP):
- Gross investment: 7.7 (2018); 5.3 (2019); 11.1 (2020); 12.0 (2021); 11.4 (2022); 11.8 (2023); 25.6 (2024); 27.0 (2025)
- Gross national savings: 7.2 (2018); 1.7 (2019); 6.9 (2020); 6.8 (2021); 7.8 (2022); 9.6 (2023); 19.9 (2024); 18.5 (2025)
- Of which: hydrocarbon revenue (percent of GDP):
- 2018: 16.2
- 2019: 14.7
- 2020: 10.6
- 2021: 10.5
- 2022: 9.3
- 2023: 8.5
- 2024: 7.6
- 2025: 6.7
- Non-hydrocarbon revenue (percent of GDP):
- 2018: 3.7
- 2019: 3.8
- 2020: 3.6
- 2021: 5.0
- 2022: 6.0
- 2023: 8.2
- 2024: 19.4
- 2025: 16.7
- Overall fiscal balance (Commitment basis, percent of GDP):
- 2018: -1.7
- 2019: -0.8
- 2020: -0.2
- 2021: 0.0
- Overall fiscal balance (Cash basis):
- 2018: -3.2
- 2019: -11.5
- Non-hydrocarbon primary balance (percent of GDP):
- 2018: -12.1
- 2019: -11.1
- 2020: -7.1
- 2021: -6.4
- Outstanding public debt (percent of GDP):
- 2018: 41.2
- 2019: 43.0
- 2020: 48.9
- 2021: 42.7
- 2022: 45.4
- 2023: 44.4
- 2024: 43.5
- 2025: 42.8
- 2026: 41.4
- Change in domestic arrears (percent of GDP):
- 2018: -10.6
- Current account balance (including official transfers; - = deficit, percent of GDP):
- 2018: -5.3
- 2019: -6.1
- 2020: -4.2
- 2021: -3.8
- 2022: -4.0
- 2023: -16.0
- 2024: -17.4
- Total external public debt (percent of GDP):
- 2018: 12.6
- 2019: 13.9
- 2020: 16.1
- 2021: 20.6
- 2022: 22.0
- 2023: 23.7
- 2024: 25.7
- 2025: 27.1
- External debt service-to-exports ratio (percent):
- 2018: 7.4
- 2019: 5.2
- 2020: 8.6
- 2021: 9.4
- External debt service/government revenue (percent):
- 2018: 11.0
- 2019: 17.0
Memorandum items (selected)
- CEMAC Foreign Reserves (US$ billions, end-of-period):
- 2018: 6.6
- 2019: 8.9
- 2020: 10.3
- 2021: 11.5
- 2022: n.a
- 2023: n.a.
- In months of extrazone imports (2018): 4.4
- Oil price (U.S. dollars a barrel):
- 2018: 67.2
- 2019: 60.5
- 2020: 38.8
- 2021: 56.2
- 2022: 52.7
- 2023: 50.6
- 2024: 49.5
- Nominal GDP (billions of CFA francs):
- 2018: 7,275
- 2019: 6,690
- 2020: 5,768
- 2021: 6,744
- 2022: 6,415
- 2023: 6,456
- 2024: 6,606
- 2025: 6,691
- 2026: 6,854
- Nominal GDP (millions of US dollars):
- 2018: 13,097
- 2019: 11,417
- 2020: 10,036
- Non-hydrocarbon GDP (billions of CFA francs):
- 2018: 3,855
- 2019: 3,875
- 2020: 3,849
- 2021: 3,964
- 2022: 4,191
- 2023: 4,426
- 2024: 4,714
- 2025: 5,012
- 2026: 5,328
- Oil volume (crude + condensado, millions of barrels):
- 2018: 57
- 2019: 53
- 2020: 52
- 2021: 48
- 2022: 41
- 2023: 38
- 2024: 35
- 2025: 31
- 2026: 28
- Exchange rate (average; CFA francs/U.S. dollar):
- 2018: 555.4
- 2019: 585.9
- 2020: 574.8
Sources: Data provided by the Equatoguinean authorities; and staff estimates and projections.
