Constraints faced by MSMEs hindering economic growth in Equatorial Guinea

Guest blog written by Cesar A. Mba Abogo

I signed up for the Implementing Public Policy (IPP) course after having completed Leading Economic Growth (LEG), where my understanding of the economic growth challenges facing my country, Equatorial Guinea, had been literally reset. Attending LEG was a bit of cathartic therapy for me, as I had been Minister of Finance, Economy and Planning in a particularly exceptional period. From April 2019 to October 2020, Equatorial Guinea had closed a bailout programme with the IMF and launched a wide-ranging catalogue of macro-fiscal stabilisation and governance improvement measures. In the midst of these far-reaching reforms, COVID19 had emerged as an existential challenge for which humanity was ill-prepared. LEG helped me to sharpen my understanding of economic complexity, to re-examine my tenure as head of my country’s Ministry of Finance, and to understand a notion that now seems like a no-brainer: the change space, this chessboard where reformers struggle between what is feasible in the local ecosystem versus the legitimacy required by external demands.

Throughout LEG, the growth challenge I focused on was the low productivity of the non-oil sector as an obstacle to inclusive growth. The narrative and available data led me to the thesis that this low productivity was an unintended consequence of Equatorial Guinea’s over dependence on the oil sector for more than two decades. I came to a somewhat stark but hopeful conclusion: Equatorial Guinea was crossing a bridge under turbulent waters on a journey into the unknown that required an adaptive strategy that generates knowledge and facilitates evidence-based, sequential and iterative decision-making.

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