Equatorial Guinea: the government resigns in the face of "possible insolvency" of the country

Text by: RFI Follow

3 min

The government of Equatorial Guinea handed in its resignation to President Teodoro Obiang Nguema on Friday, in a context of economic crisis accentuated by the health crisis. The Head of State even mentions in this context a possible insolvency of the country.

Publicity

The government of Equatorial Guinea handed in its resignation to President Teodoro Obiang Nguema on Friday, August 14, during an extraordinary cabinet meeting, the government said in a statement.

The president deplored "  that the outgoing government has not fulfilled its functions or achieved the programmed objectives  ", according to this press release. "  The government is obliged to take strict measures to compensate for a possible insolvency,  " said the president. The Prime Minister of the resigning government, Pascual Obama Asué, for his part affirmed that "  the confidence of the Head of State deserves sacrifices  ".

In February 2018, the president dissolved the government before reappointing the Prime Minister and the three Deputy Prime Ministers. Pascal Obama Asué has been Prime Minister since June 2016. The new government should be announced in the coming days by President Obiang Nguema.

Dependence on petroleum

This resignation comes in a context of economic crisis accentuated by the health crisis. The Covid-19 pandemic has only worsened the economic situation in Equatorial Guinea, which had already been in recession for several years. The pandemic caused the collapse of the price of black gold which strongly affects the finances of this small country of Central Africa very dependent on oil manna. Oil and gas represent more than 90% of export earnings.

Despite a subsoil very rich in hydrocarbons, the majority of the Guinean population remains poor. Guinea has not diversified its economy in recent years when crude prices were higher, making it vulnerable to crises.

To help it recover its economy, the IMF granted the country a loan of 283 million dollars last December. Aid criticized by international NGOs like Oxfam and Amnesty International. They believe that this loan from the financial institution must be conditioned on concrete results of the Guinean authorities in the fight against corruption and poverty.

Newsletter Receive all international news directly in your mailbox

Follow all the international news by downloading the RFI application

• Equatorial Guinea
• Coronavirus

On the same subject

Equatorial Guinea suspends construction of border wall with Cameroon

"Ill-gotten gains": the diplomatic function of 42 avenue Foch in question