Malabo, 8 December 2025 – PRESS AFRICA – In 2025, Equatorial Guinea faces a persistent challenge: the fight against tax evasion, a phenomenon deeply rooted in an economic system dependent on hydrocarbons and marked by still-opaque financial governance. As the country seeks to diversify its economy and improve budget transparency, tax evasion appears to be one of the main obstacles to mobilising the domestic resources essential for development.

Considerable lost revenue for the state

Equatorial Guinea, rich in oil and gas, has long enjoyed high revenues from the extractive sector. However, fluctuations in international prices and the gradual decline in production highlight more than ever the need to strengthen tax collection. In 2025, several regional economic reports point out that the country loses a significant share of its potential revenue every year, notably through the under-reporting of commercial activity, the illicit transfer of profits and evasion practices linked to companies operating in the energy sector.

Emerging sectors, such as telecommunications, import-export, construction and maritime services, are also affected by informal tax practices, encouraged by a still-weak digital system and a tax administration facing a capacity shortfall.

Reforms announced, but…

Faced with these challenges, the Equatorial Guinean authorities have announced several measures aimed at modernising the tax system: the gradual digitalisation of procedures, tighter customs controls, and a review of certain tax breaks deemed too lenient. In 2025, the government says it wants to further align its standards with those of CEMAC, which is working to reduce illicit financial flows in the region.

However, the implementation of these reforms still runs up against structural limits: a lack of technical resources, administrative opacity, a proliferation of exemptions, obstacles to access to information and the absence of independent external oversight. The lack of transparency in the management of state-owned enterprises is also a major brake.

The central role of governance and transparency

For several African economic analysts, the fight against tax evasion in Equatorial Guinea necessarily requires stronger governance. The absence of regular publication of public accounts, the country's weak participation in international transparency mechanisms and the marginalisation of civil society limit the room for progress.

The country's suspension from certain international transparency initiatives in the extractive industries has also fuelled criticism over a lack of political will to establish more open management of public finances.

A major issue for development

Tax evasion is today one of the most strategic challenges for Equatorial Guinea. At a time when oil resources are running out of steam and social needs (youth employment, infrastructure, health, education) are growing, the state's ability to mobilise domestic revenue is becoming a crucial pillar for financing sustainable development.

If the reforms launched in 2025 take hold and political will strengthens, Equatorial Guinea could gradually curb tax evasion and build a more transparent economic framework, better suited to its future transformation.

Writer: BAWA ALLAH Khadidjatou A.