EQUATORIAL GUINEA · ECONOMY
Key Facts
- —The country Equatorial Guinea is a small oil-producing nation on Africa’s Atlantic coast, ruled since 1979 by President Teodoro Obiang Nguema Mbasogo. Its capital, Malabo, is on the island of Bioko.
- —What happened The Chamber of Deputies, the lower house of parliament, approved the 2027 state budget bill on Monday 19 October, unanimously across its two parliamentary groups, according to the Guineapress agency.
- —The numbers The draft sets income and spending at 1,119.7 billion FCFA (about US$1.91 billion), down from 1,294.2 billion FCFA (about US$2.21 billion) in the 2026 budget, EcoMatin reported.
- —Oil dependence Oil is expected to supply 813.2 billion FCFA (about US$1.39 billion), roughly 73% of revenue, against 929.5 billion FCFA (about US$1.59 billion) collected in 2025.
- —What it means for you US energy, oil-service and contracting firms in Equatorial Guinea face a government that plans to spend less because its oil income is shrinking.
- —Still open The Senate must still give the bill a second reading, and no date for that vote or for the final law has been announced.
The Equatorial Guinea budget for 2027 cleared its first parliamentary hurdle on Monday 19 October, when the Chamber of Deputies approved it unanimously. The government plans to raise and spend about US$1.9 billion next year, well below this year’s level, as income from oil keeps falling.
For US readers, the vote matters because the country lives off oil, and a smaller budget can mean less money for contractors. The bill now goes to the Senate for a second reading.
What the Chamber of Deputies Approved
The Chamber of Deputies approved three texts: the bill closing the 2025 accounts, a report on early 2026 spending, and the 2027 budget bill. Both parliamentary groups voted in favour, the Guineapress agency reported.
Vice Minister of Finance José Domingo Ndong Bakale Ayetebe led the government delegation, while Chamber president Salomón Nguema Owono chaired the session. The bills now pass to the Senate, the upper house, for a second reading.
A Smaller Budget Than This Year
The Equatorial Guinea budget balances at 1,119.7 billion FCFA (about US$1.91 billion), EcoMatin reported. Prime Minister Manuel Osa Nsue Nsua presented it on Thursday 24 September, about 175 billion FCFA (about US$298 million) below the 2026 budget.
The FCFA is the Central African CFA franc, a currency shared by six countries and pegged to the euro. Dollar values in this article use 584.8 FCFA to the US dollar, the market rate on 20 October 2026.
Oil Still Pays Most of the Bills
The Equatorial Guinea budget counts on 813.2 billion FCFA (about US$1.39 billion) from oil, roughly 73% of expected revenue, according to EcoMatin. In 2025 the state collected 929.5 billion FCFA (about US$1.59 billion) from oil, so the expected fall is about 12.5%.
EcoMatin linked the lower oil income to ageing fields and the temporary shutdown of some operations. It put total public revenue in 2027 at 7.7% below the 2025 level.
Where the Money Is Planned to Go
About 78% of spending covers running costs, and 244 billion FCFA (about US$417 million) is set aside for investment, EcoMatin reported. Social policies take 21.5% of spending, or 240.6 billion FCFA (about US$411 million).
Education is set to receive 126.7 billion FCFA (about US$217 million) and health 85.0 billion FCFA (about US$145 million). The ruling party’s spokesperson, Federico Abaga Ondo, said welfare programmes stay a priority despite the recession.
An Economy Already Shrinking
The national statistics institute, INEGE, reported that the economy shrank 1.9% in the second quarter of 2026 from a year earlier. The first quarter had fallen 4.1%, and in the second quarter oil output dropped 5.5% while non-oil activity grew 1.1%, AhoraEG reported.
Salvador Nguema Mangue raised concern about serious management failings in some public companies and asked their restructuring commission to report. A spokesperson for the Democratic Coalition group asked that diversification away from oil produce concrete, measurable projects.
What It Means for US Readers
US energy, oil-service and contracting firms in the country now deal with a government that expects to earn and spend less. The Equatorial Guinea budget could mean slower payments, fewer public works and tighter tenders.
The Rio Times has also covered US deportees held in Equatorial Guinea and the independence anniversary speech by President Obiang. On 16 October it reported on the power ministry’s one-week deadline over electricity supply.
What Is Not Known
The date of the Senate’s second reading and of the final law has not been announced. The oil price and production assumptions behind the Equatorial Guinea budget have not been reported.
No deficit or debt figure was given in the reports on the vote. It is also open whether the Senate will change any numbers before the budget takes effect.
More: Africa news in English, every day from The Rio Times.
Frequently Asked Questions
What is the Equatorial Guinea budget for 2027?
The draft balances income and spending at 1,119.7 billion FCFA (about US$1.91 billion), according to EcoMatin. That is below the 1,294.2 billion FCFA (about US$2.21 billion) voted for 2026.
Has the budget become law?
Not yet. The Chamber of Deputies approved the Equatorial Guinea budget on Monday 19 October, and the Senate must still give it a second reading.
Why is the budget smaller?
Oil income is expected to fall, and oil supplies about 73% of revenue. EcoMatin linked the decline to ageing fields and temporary shutdowns of some operations.
What is the FCFA?
The FCFA is the Central African CFA franc, used by six countries in the region and pegged to the euro. This article converts it at 584.8 FCFA to the US dollar.
Who voted for the Equatorial Guinea budget?
Both parliamentary groups in the Chamber of Deputies voted in favour, according to Guineapress. The ruling party’s group praised the government’s economic management, while the Democratic Coalition asked for concrete diversification projects.
Sources: AhoraEG (from Guineapress), 19 October 2026; EcoMatin, 25 September 2026; AhoraEG (INEGE national accounts), 30 September 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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