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publicationJune 25, 2024

Equatorial Guinea Digital Economy Country Diagnostic: Bridging the Gaps to Develop a Safe and Inclusive Digital Transformation

Equatorial Guinea Digital Economy Country Diagnostic

Publication Highlights

  • To overcome new challenges and reduce oil dependency, Equatorial Guinea aims to diversify its economy. Digital transformation could play a critical role to drive diversification, financial inclusion, poverty reduction, and job creation.
  • Equatorial Guinea’s Digital Economy Diagnostic provides a comprehensive assessment of its digital economy across the five foundational pillars of the Digital Economy for Africa (DE4A) initiative: digital infrastructure, digital public platforms, digital financial services, digital businesses, and digital skills.
  • The report outlines a series of specific, actionable, and prioritized recommendations for Equatorial Guinea to develop a vibrant, safe, and inclusive digital economy in the short, medium, and long term.

In the wake of new challenges and a prolonged oil-dependency, Equatorial Guinea’s government is aiming for economic diversification as a key course of action for growth and stability. Digital transformation could play a critical role to drive diversification, financial inclusion, poverty reduction, and job creation. In 2021, the National Development Plan 2035 introduced technology and innovation as a cross-cutting theme, putting the digital economy at the center of the diversification strategy. The government is also implementing the Digital Agenda for Equatorial Guinea (ADIGE), a strategic plan with four objectives: (i) universalization of access to telecommunications services; (ii) digitize administrative procedures; (iii) sup­porting and enhancing the ICT sector; and (iv) empower citizens to use digital tools.

As a result, the Digital Economy Country Diagnostic for Equatorial Guinea was developed by the World Bank and the Government of Equatorial Guinea to identify key challenges and opportunities facing Equatorial Guinea along the five foundations of the digital economy: digital infrastructure, digital public platforms, digital financial services, digital businesses, and digital skills. The report puts forward actionable recommendations categorized by priority level and sequencing.
 

Equatorial Guinea Digital Economy Country Diagnostic
A little girl in front of a computer - Credit: Boijonell Prod| Shutterstock

Key Findings

Under the Digital Infrastructure pillar, operators aiming to reduce telecom service tariffs mark positive strides towards ensuring that broadband becomes more affordable and accessible in the country. However, regulatory challenges and limited competition in the broadband sector, as well as cybersecurity weaknesses continue to be significant hurdles.

The launch of a digital civil registry pilot in 2018 sets an important milestone for Digital Public Platforms in in Equatorial Guinea. The country has also introduced laws and decrees to help digitize the public sector, yet efforts remain to strengthen its regulatory framework and implement digital identity.

Digital Financial Services (DFS) in Equatorial Guinea are in early stages, with limited bank offering DFS. The focus on financial stability has delayed digital transformation. The country still needs to establish a licensed e-money operator to provide mobile money services and connectivity issues also hinder DFS development. Financial inclusion could also be reinforced by the implementation of a national financial education strategy.

The digital business ecosystem is still emerging, with few domestic digital services and nascent group of incubators, accelerators, and civil associations. Barriers for digital entrepreneurs include limited internet access, challenging access to finance, a shortage of digital skills, and a weak regulatory framework. Initiatives like the Single Business Window aim to improve the business climate, but significant challenges remain.

Access to education in Equatorial Guinea has improved, but there are still limitations to produce a digitally skilled population at scale. Strengthening the digital skills framework requires specific ICT policies in education, better coordination, and improved infrastructure. Enhancing STEM education, teacher training, and including ICT in the curriculum are crucial. Higher education and TVET institutions also need to expand their capacity to address the digital skills mismatch and support economic diversification.

Digital Economy Country Diagnostic for Equatorial Guinea (in Spanish)

Recommendations

The highlighted quick-win recommendations from across the five digital economy pillars include:

  • Digital Infrastructure: Apply cost-oriented obligations in the international capacity and national network fiber wholesale markets, as well as conducting a cybersecurity maturity assessment.
  • Digital Public Platforms: Develop a national Strategy for digital public platforms and strengthen a whole-of-government approach.
  • Digital Financial Services: Assess the need to expand and strengthen agent networks to foster DFS adoption, especially in remote areas.
  • Digital Businesses: Articulate a roadmap to develop an inclusive digital entrepreneurship ecosystem, as well as promoting public-private dialogue.
  • Digital Skills: Develop a national education ICT policy and conduct a digital skills gaps assessment.

Moving forward, it will be crucial for the Government of Equatorial Guinea to implement comprehensive reforms across the five pillars and address key cross-cutting issues: enhancing data quality, coverage, and usage; improving institutional coordination and access to reliable electricity; reinforcing the legal and regulatory framework; and bridging both the island-continental digital divide and the gender gap.