Malabo — new report from the World Bank Group finds that Equatorial Guinea stands at a decisive moment. The Equatorial Guinea Poverty and Equity Assessment, the first of its kind, finds that, in spite of the oil wealth that transformed this country into an upper-middle-income economy and one of the richest economies in Sub-Saharan Africa, nearly half of the population still lives in poverty according to the national poverty line. As oil revenues decline and new sources of growth remain limited, the country risks a steep rise in poverty without critical reforms.
“Equatorial Guinea has a unique window to turn its natural wealth into human riches,” said Juan Diego Alonso, World Bank Group Resident Representative for Equatorial Guinea. “The choices made today will determine whether the country enters a cycle of declining opportunities or unlocks a more inclusive and resilient future.”
The document identifies three structural aspects that limit the income-generating capacity of the poor: human capital, access to good jobs, and resilience. The relatively low public spending on health, education, and social protection–around 2% of GDP–limits the accumulation of human capital in the country, leaving children born today expected to reach only half of their productive potential. Labor markets also hinder poverty reduction: fewer than one in five workers has a formal job, and job creation in non-oil sectors remains insufficient to employ those entering the labor market. An inadequate social protection system diminishes household resilience and increases the vulnerability of both poor and non-poor households to falling into poverty after experiencing shocks.
“Growth alone will not reverse poverty–equity-enhancing reforms around human capital, jobs, and resilience are essential,” said Daniel Valderrama, Poverty Economist for Equatorial Guinea. “The report shows that structural reforms that boost productivity and investment would only slow down the rise of poverty; to actually reverse the trend, these growth-enhancing reforms should be complemented with targeted support to households.”
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The report calls for a policy package centered on three areas. First, investing in human capital, especially in early childhood, through better nutrition, quality public education, affordable health services, and social assistance programs that break the cycle of poverty. Second, enabling private-sector growth by improving the business environment, expanding access to finance, and easing regulatory and tax burdens that constrain firms. Third, strengthening household resilience through adaptive social protection systems and fiscal policies that protect vulnerable households during economic downturns and climate shocks.
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Sequencing and complementarity are key. For Ana María Oviedo, Lead Economist in the Poverty Division of the Central and West Africa Region, “job creation must come first, because the human capital the country is already producing is not being fully utilized, with the most educated workers facing the greatest difficulty finding employment.”
The report underscores a clear message: with coordinated action that prioritizes people, supports entrepreneurship, and strengthens resilience, Equatorial Guinea can transform its natural wealth into lasting prosperity for all.
