Inevitably, fluctuations in oil prices have been reflected in a decrease in financing of new construction projects.

Pablo BEKA ESONO Country Representative SOMAGEC GE

Price impact in Equatorial Guinea

September 7, 2018

Pablo Beka Esono, country representative at Somagec GE, talks to TOGY about how the company was able to weather the economic downturn through diversification, Equatorial Guinea’s logistics infrastructure and how that can help boost the domestic economy. Somagec is a civil engineering firm concentrating on maritime projects such as port infrastructure.

• On price impacts: “Inevitably, fluctuations in oil prices have been reflected in a decrease in financing of new construction projects. However, the parties in this sector – both companies and the government – have found ways to finish these various ongoing projects and finance priority projects.”

• On key infrastructure: “The investments of recent years have been concentrated on providing domestic infrastructure that will connect all corners of the country, and thus, facilitate the development of other economic activities. It should be noted that this strategy has also allowed the connection of the country with neighbouring countries by land, sea and air, following the construction of highways that connect us with ports and airports in Cameroon and Gabon.”

Most TOGY interviews are published exclusively on our business intelligence platform, TOGYiN, but you can find the full interview with Pablo Beka Esono below.

Click here to read more

What have been Somagec’s recent objectives?
As a national company, one of Somagec GE’s main objectives since 2014 has been our own survival. We believe we are achieving that, despite the delicate economic climate in which the sector and the global economy currently find themselves. In line with this, we have implemented various internal cuts, but have always guaranteed the quality of our work, which has always characterised our company.

 

To what extent does the fluctuation of oil and gas prices affect the domestic construction sector?
Oil is the main financial resource in Equatorial Guinea. The country’s economy moves at its own pace. Inevitably, fluctuations in oil prices have been reflected in a decrease in financing of new construction projects. However, the parties in this sector – both companies and the government – have found ways to finish these various ongoing projects and finance priority projects.

Is Equatorial Guinea’s existing logistics infrastructure adequate?
The investments of recent years have been concentrated on providing domestic infrastructure that will connect all corners of the country, and thus, facilitate the development of other economic activities. It should be noted that this strategy has also allowed the connection of the country with neighbouring countries by land, sea and air, following the construction of highways that connect us with ports and airports in Cameroon and Gabon.
Equatorial Guinea is ready to move into a new phase of industrialisation because it already has channels to import or export any material or product. Somagec GE is proud to have participated, and to continue to participate, in the creation of this logistics structure.
An example of the value of this infrastructure is the connection of the various islands of the national territory with the mainland. As a partner in development, Somagec GE has opened some shipping lines to Corisco and Annobón.

In light of oil price fluctuations, what are Somagec’s main growth areas?
Given that oil prices are beyond our control, over time, we have been investing in other sectors to maintain our position as one of the main partners in the development of Equatorial Guinea. In this sense, we have invested in the exploitation and enhancement of our subsoil with the establishment of a marble factory that can export Oyala’s gray granite or Engong-Evinayong’s black granite, and we have explored our whole territory to be able to offer a wider range of products of international interest.
At the same time, we have become a partner of the government for the development of tourism in Equatorial Guinea, with the creation of Somagec-Tourism for hotel management in exotic parts of the country, allowing for the recovery of areas such as Corisco, Cogo and Annobón.

For more information on Equatorial Guinea’s oil and gas industry, see our business intelligence platform, TOGYiN.
TOGYiN features profiles on companies and institutions active in Equatorial Guinea’s oil and gas industry, and provides access to all our coverage and content, including our interviews with key players and industry leaders.
TOGY’s teams enjoy unparalleled boardroom access in 35 markets worldwide. TOGYiN members benefit from full access to that network, where they can directly connect with thousands of their peers.

Business intelligence and networking for executives: TOGYiN

Stay Informed