Pre-independence Equatorial Guinea counted on cocoa production for hard currency earnings. On 1 January 1985, the country became the first non-Francophone African member of the franc zone, adopting the CFA as its currency. The national currency, the ekwele, was previously linked to the Spanish peseta.
The discovery of large oil reserves in 1996 and its subsequent exploitation have contributed to a dramatic increase in government revenue. As of 2004, Equatorial Guinea is the third-largest oil producer in Sub-Saharan Africa. Its oil production has risen to 360,000 barrels per day (57,000 m3/d), up from 220,000 only two years earlier.
Forestry, farming, and fishing are also major components of GDP. Subsistence farming predominates. The deterioration of the rural economy under successive brutal regimes has diminished any potential for agriculture-led growth.
In July 2004, the United States Senate published an investigation into Riggs Bank, a Washington-based bank into which most of Equatorial Guinea's oil revenues were paid until recently, and which also banked for Chile's Augusto Pinochet. The Senate report, as to Equatorial Guinea, showed that at least $35 million were siphoned off by Obiang, his family and senior officials of his regime. The president has denied any wrongdoing. While Riggs Bank in February 2005 paid $9 million as restitution for its banking for Chile's Augusto Pinochet, no restitution was made with regard to Equatorial Guinea, as reported in detail in an Anti-Money Laundering Report from Inner City Press.
Equatorial Guinea is a member of the Organization for the Harmonization of Business Law in Africa (OHADA).
Equatorial Guinea tried to become validated as an Extractive Industries Transparency Initiative (EITI)–compliant country, working toward transparency in reporting of oil revenues and the prudent use of natural resource wealth. The country was one of 30 candidate countries and obtained candidate status 22 February 2008. It was then required to meet a number of obligations to do so, including committing to working with civil society and companies on EITI implementation, appointing a senior individual to lead on EITI implementation, and publishing a fully costed Work Plan with measurable targets, a timetable for implementation and an assessment of capacity constraints. However, when Equatorial Guinea applied to extend the deadline for completing EITI validation, the EITI Board did not agree to grant Equatorial Guinea an extension.
According to the World Bank, Equatorial Guinea has the highest GNI (Gross National Income) per capita of any other Sub-Saharan country. It is 83 times larger than the GNI per capita of Burundi which is the poorest country.
Read more about this topic: Equatorial Guinea
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