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Country Profiles - Equatorial Guinea

Political, social and economic framework

EQUATORIAL GUINEA , the only Spanish-speaking country in the Congo Basin, consists of several small islands off the coast of Cameroon and a section of mainland between Gabon and Cameroon. In total, the country occupies 28,000 square kilometres: Rio Muni, the continental part accounts for most of this with 26,000 square kilometres, while Bioko, the largest island and location of the capital, Malabo, is 2,000 square kilometres in size. Some government ministries have recently moved to Bata, the major town on the mainland.

The Spanish colonial power made little attempt to provide for the development of the people, establishing an export-orientated plantation economy which continued after independence in 1968. Cocoa and coffee were the main export commodities until the mid-1980s, when timber gained in importance. Drilling for off-shore oil began in 1996 and large deposits were discovered in 1998. Oil has transformed the country’s economy. GNP per capita in 1997 was US$ 1,050.1 As with the other oil-producing countries in the region, however, the bulk of the population does not benefit but remains in poverty.2 The contracts for oil production agreed with the government in the early 1990s are highly favourable to the transnational corporations which operate in the sector and, as a result, government revenue has been limited.3 In addition, there are widespread concerns about corruption and the diversion of revenues by those in power.

Between 80% and 90% of the population of 0.4 million depend directly on forest resources,4 such as wood for fuel, medicines, food and building materials. 80% of the population live on the mainland of Rio Muni, including a sizeable minority of Bakola Pygmies in the north-west of the country.5 The bushmeat trade is an important source of revenue for the rural population, mainly on the island of Bioko where it has replaced revenues derived from cocoa.6 Agriculture is mainly based on shifting cultivation. Traditionally, the fallow periods varied from 8 to 15 years, but with increasing pressure, they are becoming shorter, decreasing the soil fertility.

From its independence from Spain in 1968 until the late 1970s, Equatorial Guinea was governed by the brutal dictatorship of Francisco Macias.7 In 1979, Macias’ nephew, Obiang Nguema, toppled his uncle, but political repression and human rights abuses continue as before. Up to one-third of the people live in exile.8 Because of international pressure, attempts have been made since 1991 to demonstrate changes towards democracy, but little has changed in practice. One-party rule officially ended in 1992 and elections were held in 1993, 1996 and 1999. The UN and the EU, however, refused to attend the electoral process because they assessed that the conditions for fair elections had not been met.9 Reports of human rights abuses abound.10 Opponents of the regime have been imprisoned for up to 28 years and, in early 1999, in anticipation of the elections, opposition party candidates were arrested.11 In January 1998, there were large-scale arrests of the Bubi ethnic minority following unrest on Bioko Island. The people were accused of belonging to an illegal movement for self-determination; at trials condemned by international observers, 15 people were sentenced to death and over 100 imprisoned. In 1998, Amnesty International reported that the government held dozens of tortured detainees incommunicado; many had been detained because they were Bubi. At least five died in prison.12 There are also unconfirmed reports of mass graves of Bubis.13

Forest policy and practice

Forests cover around 2.2 million hectares of Equatorial Guinea — most of the country. Of these, all the productive forests — approximately 1.5 million hectares — have been allocated as industrial logging concessions.14 Industrial timber production has rapidly increased since the mid-1990s.15 Forestry is now the second most important economic sector after oil.16

Logging operations are a cause of concern for several reasons. Firstly, a brutal dictatorship prevents sustainable development. It is difficult for logging companies to operate in the country without condoning the government to a greater or lesser extent. Secondly, the necessary mechanisms to ensure sustainable and socially equitable forestry are not in place. Thirdly, the rate at which the industrial production of timber is increasing means that logging is unsustainable. The forests of Bioko have already been seriously damaged17 and, according to the IMF, the forest resources of Equatorial Guinea could be severely depleted by the year 2012.18

Since January 1998, the government entity responsible for forestry matters is the Ministry of Forests and the Environment (Ministerio de Bosques y Medio Ambiente).19 The Minister of Forests is the son of the President, who is believed to be close to the largest logging company operating in the country, the Malaysian-owned Shimmer. Forest oversight is under the responsibility of the Forest Monitoring Body (Cuerpo de la Guarderia Forestal).20

The sector is ruled by the Law of the Forestry Sector of 18 July 1997. The forests of Equatorial Guinea are divided into two domains, productive forests (Dominio de Produccion Forestal) and conservation forests (Dominio de Conservación).21

Production forests are classified according to three different arrangements:

§ Forests plots are small areas of primary or secondary forest located within farms. A logging permit has to be obtained from the forest administration to exploit them.

§ Community forests are granted permanently to local communities because of their traditional rights.

§ National forests belong to the state. Private companies can exploit them only in partnership with the state which always remains the majority shareholder.22 In practice, most of the country’s forests are held under concessions for industrial timber production.

There are 80 logging concessions in the continental region of the country covering an area of approximately 1.5 million hectares.23 In theory, forest concessions cannot be larger than 50,000 hectares24 and each corporate body cannot have more than one concession.25 Concessions last between 5 and 15 years and are renewable,26 but companies cannot use the forests again commercially until after a 25-year rest period (art. 53 of the 1997 Forestry Sector Law).27 In practice, there is considerable flux in concession ownership and at least one company is believed to be operating a number of concessions.

By law (art. 35), concessions must process 60% of their production28 (a requirement of previous forestry codes as well), but in practice most timber from Equatorial Guinea is exported as logs. In 1994, only 4.8% of production was processed locally;29 in 1995, this figure rose to 15%, still considerably below the legal requirements.30 In 1996, the government ordained that companies which process less than 60% of their production must pay fines of up to 10% of the value of their production.31 Companies holding concessions of more than 10,000 hectares for more than 10 years are required to have a small wood-processing unit. There are, however, only four sawmills and three secondary processing units in the country, not all of which are in operation.32

Certain operating guidelines are stipulated by the forestry legislation, such as replanting; borders of rivers, streams, roads and hills of more than 45 degrees slope should not be logged (art. 54).33 Regarding social obligations, Article 35 of the 1997 Forestry Sector Law specifies that concessionaires are required to build a number of facilities for the local people, such as a health centre, a church, a house for the teacher and a school.34

In practice, enforcement of all the various legal requirements is virtually non-existent because the state does not have sufficient field staff and cannot therefore monitor logging activities adequately nor carry out inventories of forest resources. 35 Some producers, including foreign-owned ones, do not respect forestry and conservation codes, particularly by logging outside their concession boundaries.36

Conservation forests comprise four different types of protected areas: National Parks, Scientific Reserves, Endangered Animal Refuges and Wildlife Sanctuaries. There are nine protected areas, of which six lie in Rio Muni, two on the island of Bioko and one on the island of Annobon. In total, they cover an area of 326,000 hectares.37 In theory, these areas are managed according to the recommendations of the IUCN, as specified in article 14.38 In practice, they are not actively protected and some have been commercially exploited.39

Production and EU trade

Timber production has constantly increased since the early 1990s. In 1991, total production amounted to 169,579 cubic metres but by 1996 had gone up to 471,165 cubic metres, exceeding both the maximum estimated sustainable limit of 400,000 cubic metres per year40 and the legal limit of 450,000 cubic metres.41 In 1997, production nearly doubled, totalling 757,173 cubic metres.42

The main species targeted is Okoumé, which in 1996 represented 65% of total production.43 Other commercially important species are Ilomba (10%), Tali (2%), Azobe (2%), Fuma, Padouk, and Andouk, which is exploited mainly by a Malaysian-owned company, Shimmer International.44 Okoumé, Ilomba and Andouk represent 88% of total production.45

Until 1992, Europe was the destination for 85% of log production, with Spain receiving 43% of total log production. In the mid-1990s, however, after Asian companies entered the market, Asia became the main destination for Equatorial Guinea’s log exports.46,47 In 1994, 54% of timber exports went to Asian markets, especially Japan and, to a lesser degree, China. Europe remains the main destination for processed products — 99% of processed products are exported to Europe,48 and Spain alone imports 85% of Equatorial Guinea’s processed wood products.49 In spite of the regulations aimed at ensuring that wood is processed, logs represent 80% of total wood exports.50

International financial assistance

EU development assistance to Equatorial Guinea is currently suspended; its resumption is tied to improvements in human rights.51 ECOFAC, however, funds a project in the national park of Monte Alen, in the mountains of Niefang, which covers an area of 140,000 hectares.52 The EU has also provided funds to the Equatorial Guinea forestry sector to assist with the development of the 1997 forestry code.

Historically, the main countries providing funds to Equatorial Guinea have been France and Spain. During the dictatorship of Macias, France provided export credits for the construction of prestige buildings by what is now called the Société Française de Dragages et Travaux Publiques. In return for this aid, French interests were allegedly given concessions in Rio Muni.53 One of the French-connected companies obtaining concessions in the region was the Sociedad Forestal del Rio Muni — it was owned by a Frenchman who had no experience in forestry but connections in French financial circles. The company was granted a concession of 150,000 hectares for 10 years and permission to produce a total of 1.5 million tonnes of timber.54 Between 1995 and 1997, the French Development Agency (Agence Française du Dévéloppement, AFD) provided US$ 3.3 million in aid,55 but nothing at all in 1997. In the mid-1990s, Spain provided financial assistance to Equatorial Guinea’s military to reorganise itself into an army, navy and air force.56

Environmental impacts

The current law does not allow commercial logging on Bioko Island. Logging began there in the late 1980s, but donors and the international community exerted pressure for it to stop because of its destructive results. Most damage occurred along the roads. The forests of the coastal areas of Rio Muni are now undergoing their second or third cut and are degrading.57 The same will occur in the interior parts of the country, where logging is favoured by lower taxes.

Social impacts

The law states that forestry companies should build facilities for local people. Field work has not been undertaken, however, to ascertain the positive or negative impacts of forestry companies’ operations on rural populations. National NGO capacity is weak and democratic space within the general political situation is non-existent.

Companies logging the forests of Equatorial Guinea

Until the mid-1990s, most companies were owned by mainly Spanish capital. Since then, however, Asian companies have become dominant, and Shimmer, a subsidiary of the Malaysian-headquartered company Rimbunan Hijau, now carries out most of the logging in the country.58 Shimmer and the Minister for Forestry, the son of the country’s dictator, have a close working relationship. There have been unconfirmed reports that Shimmer is encroaching in Monte Alen, where ECOFAC has a sustainable development project. Table 5 presents concession data for 1997. Those companies showing zero production had been active previously. For example, Isoroy produced 26,168 cubic metres of timber in 1995 (see Sonae company profile, page 62).59