A new report from the World Bank Group highlights the challenges Equatorial Guinea faces in translating its oil wealth into broader economic and social benefits. The Equatorial Guinea Poverty and Equity Assessment, released on November 24, 2025, is the first comprehensive study of its kind for the country.
Despite achieving upper-middle-income status and being among the richest economies in Sub-Saharan Africa due to oil revenues, nearly half of Equatorial Guinea's population lives below the national poverty line. The report warns that with declining oil revenues and limited alternative sources of growth, poverty rates could rise sharply unless significant reforms are implemented.
“Equatorial Guinea has a unique window to turn its natural wealth into human riches,” said Juan Diego Alonso, World Bank Group Resident Representative for Equatorial Guinea. “The choices made today will determine whether the country enters a cycle of declining opportunities or unlocks a more inclusive and resilient future.”
The assessment points to three main structural issues limiting income opportunities for poorer citizens: low investment in human capital, limited access to quality jobs, and weak resilience mechanisms. Public spending on health, education, and social protection is about 2% of GDP—restricting human capital development. Children born today are expected to achieve only half their productive potential under current conditions. Labor market data shows that fewer than one in five workers holds a formal job; job creation outside the oil sector remains insufficient for new entrants to the workforce. Additionally, gaps in social protection systems leave many households vulnerable to falling into poverty after economic shocks.
“Growth alone will not reverse poverty—equity-enhancing reforms around human capital, jobs, and resilience are essential,” said Daniel Valderrama, Poverty Economist for Equatorial Guinea. “The report shows that structural reforms that boost productivity and investment would only slow down the rise of poverty; to actually reverse the trend, these growth-enhancing reforms should be complemented with targeted support to households.”
To address these challenges, the report recommends a policy package focusing on three areas: increasing investment in early childhood nutrition, education, health services, and social assistance; fostering private-sector growth by improving business conditions and expanding access to finance; and strengthening household resilience through adaptive social protection programs and fiscal policies designed to shield vulnerable groups during downturns or climate-related shocks.
Ana María Oviedo, Lead Economist in the Poverty Division of Central and West Africa Region at the World Bank Group emphasized sequencing these measures: “job creation must come first, because the human capital the country is already producing is not being fully utilized, with the most educated workers facing the greatest difficulty finding employment.”
The report concludes that coordinated efforts prioritizing people’s needs while supporting entrepreneurship can help transform Equatorial Guinea’s natural resources into sustainable prosperity for all.