Reasons to Invest: India and Equatorial Guinea
As the only nation among the BRICS whose economic expansion has not faltered, India has won the confidence of African leaders. With longstanding cultural ties to African nations, it is now committed to boosting trade with the continent from its current level of $70 billion annually. As a major oil importer, it has enjoyed a fiscal fillip from low prices while increasing imports of African oil to a five-year high of around one fifth of its total oil imports in 2015.
An area with particular potential for growth in trade relations is Central Africa, which has so far had few trade links with India outside of hydrocarbons exports. Equatorial Guinea provides a gateway to the region and a host of competitive incentives to invest in key national projects. We take a look at the largest initiatives and projects of interest to Indian investors.
PEGI is a main component of the Equatoguinean Government’s Horizon 2020 development program. This industrial master plan has four pillars: agriculture, fisheries, tourism and finance, and energy. For Indian companies with expertise in these areas, Equatorial Guinea has set up a welcoming environment for investment.
Industrial City of Mbini
Equatorial Guinea is setting up an independent economic zone in the mainland region of Rio Muni geared for international firms. Mbini offers a streamlined application process through a single agency, a secure investment and legal framework, basic infrastructure and proximity to the region’s biggest markets.
Luba Petroleum City
A new petroleum industry base on Bioko Island will provide a range of services to regional oil and gas operators. Luba will develop tertiary and logistics activities for the oil and gas sector throughout the Gulf of Guinea, provide downstream activities and create potential for small and medium-sized enterprises.
The Government’s Petrochemicals Revolution, known as REPEGE, aims to make Equatorial Guinea globally competitive in petrochemicals and helps the country to increase the value it gains from oil and gas production. Indian investors are invited to participate in the growth of this key industrial sector, with gas agreements already in place and a location established.