Doing Business 2018 Equatorial Guinea
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Doing Business 2018 Equatorial Guinea
Page 1
Doing Business 2018 Equatorial Guinea
Economy Profile of Equatorial Guinea
Doing Business 2018 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-
filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2018 Equatorial Guinea
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present
the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance
observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is
reflected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business
ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to
two decimals.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2018 Equatorial Guinea
Ease of Doing Business in DB 2018 Rank
Region Sub-Saharan Africa
190 1
Equatorial Guinea
Income Category Upper middle income 173
DB 2018 Distance to Frontier (DTF)
Population 1,221,490
0 100
City Covered Malabo 41.66
DB 2018 Distance to Frontier (DTF)
0 100
50.43: Regional Average (Sub-Saharan Africa)
47.23: Cameroon (Rank: 163)
41.66: Equatorial Guinea (Rank: 173)
39.57: Congo, Rep. (Rank: 179)
37.65: Congo, Dem. Rep. (Rank: 182)
34.86: Central African Republic (Rank: 184)
Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the
indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is reflected on a scale from 0 to 100, where 0 represents the
lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Equatorial Guinea
1
28
55
82
Rank
104
109
122
136 146 146
160 162
163 168
177 174
182
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Distance to Frontier (DTF) on Doing Business topics - Equatorial Guinea
100
80
60 54.96 54.95 55.25
DTF
53.44
44.45
40.00 40.00 41.54
40
32.05
20
0.00
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2018 Equatorial Guinea
Starting a Business
This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited
liability company to start up and formally operate in economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and
50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of
local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5
married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators.
The most recent round of data collection for the project was completed in June 2017. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
â—
Submitting all relevant documents and obtaining
all necessary clearances, licenses, permits and
The business:
certificates
â—
Submitting all required notifications and receiving - Is a limited liability company (or its legal equivalent). If there is more than one type
all necessary inspections of limited liability company in the economy, the most common among domestic firms
is chosen. Information on the most common form is obtained from incorporation
â—
Obtaining utility connections for water and
lawyers or the statistical office.
sewerage
- Operates in the economy’s largest business city and the entire office space is
â—
Registering and selling the warehouse after its approximately 929 square meters (10,000 square feet). For 11 economies the data
completion are also collected for the second largest business city.
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
Time required to complete each procedure
and has a start-up capital of 10 times income per capita and has a turnover of at
(calendar days)
least 100 times income per capita.
â—
Does not include time spent gathering information - Performs general industrial or commercial activities, such as the production or sale
â—
Each procedure starts on a separate day (2 of goods or services to the public. The business does not perform foreign trade
procedures cannot start on the same day) activities and does not handle products subject to a special tax regime, for example,
liquor or tobacco. It does not use heavily polluting production processes.
â—
Procedures fully completed online are recorded
- Leases the commercial plant or offices and is not a proprietor of real estate and the
as ½ day
amount of the annual lease for the office space is equivalent to 1 times income per
â—
Procedure is considered completed once final capita.
document is received - Does not qualify for investment incentives or any special benefits.
â—
No prior contact with officials - Has at least 10 and up to 50 employees one month after the commencement of
operations, all of whom are domestic nationals.
Cost required to complete each procedure (% of - Has a company deed 10 pages long.
income per capita)
The owners:
â—
Official costs only, no bribes
â—
No professional fees unless services required by - Have reached the legal age of majority. If there is no legal age of majority, they are
law or commonly used in practice assumed to be 30 years old.
- Are sane, competent, in good health and have no criminal record.
Paid-in minimum capital (% of income per capita - Are married and the marriage is monogamous and registered with the authorities.
â—
Funds deposited in a bank or with third party - Where the answer differs according to the legal system applicable to the woman or
before registration or up to 3 months after man in question (as may be the case in economies where there is legal plurality), the
incorporation answer used will be the one that applies to the majority of the population.
Page 5Doing Business 2018 Equatorial Guinea
Starting a Business - Equatorial Guinea
Standardized Company
Legal form Limited Liability Company (SARL)
Paid-in minimum capital requirement XAF 1,000,000
City Covered Malabo
Indicator Equatorial Sub-Saharan OECD high Overall Best
Guinea Africa income Performer
Procedure – Men (number) 16 7.6 4.9 1.00 (New Zealand)
Time – Men (days) 33 24.0 8.5 0.50 (New Zealand)
Cost – Men (% of income per capita) 103.4 49.9 3.1 0.00 (United Kingdom)
Procedure – Women (number) 16 7.7 4.9 1.00 (New Zealand)
Time – Women (days) 33 24.1 8.5 0.50 (New Zealand)
Cost – Women (% of income per capita) 103.4 49.9 3.1 0.00 (United Kingdom)
Paid-in min. capital (% of income per capita) 30.3 25.6 8.7 0.00 (113 Economies)
Figure – Starting a Business in Equatorial Guinea and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
89.78: Congo, Dem. Rep. (Rank: 62)
82.39: Cameroon (Rank: 122)
76.82: Regional Average (Sub-Saharan Africa)
64.69: Congo, Rep. (Rank: 177)
54.96: Equatorial Guinea (Rank: 182)
37.02: Central African Republic (Rank: 188)
Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a
business. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Page 6Doing Business 2018 Equatorial Guinea
Figure – Starting a Business in Equatorial Guinea – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
50
30
Cost (% of income per capita)
40
25
Time (days)
20 30
15
20
10
10
5
0 0
1 2 3 4 5 *6 *7 *8 9 * 10 * 11 * 12 * 13 * 14 * 15 * 16
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2018 Equatorial Guinea
Details – Starting a Business in Equatorial Guinea – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Notarize the company's articles of association 9 days on average 3-6% of the
Agency : Notary company's capital
Although it is not required by law, lawyers prepare company statutes in practice. By law,
however, a public notary must legalize the statutes and prepare the public deed. There is
one notary in Malabo (island) and one in Bata (mainland).
2 Register the company at the Commercial Registry 2 days on average 3% of the company's
Agency : Commercial Registry (Registro de la Propiedad y Mercantil) capital
For registration, the entrepreneur must provide the legalized copies of the statutes. By
law, the company must use a unique company name, but in practice, they do not verify
the name beforehand. The registry simply refuses the application if the name already
exists.
3 Open a bank account and obtain a bank certificate (solvencia bancaria) 1 day no charge
Agency : Bank
Legally, the company must deposit the minimum capital before company registration.
However, this is not possible in practice because copies of the legalized statutes and the
registration certificate are required to open a bank account.
4 Obtain a certificate of solvency from the Ministry of Finance 2 days CFA 10,000 – 15,000
Agency : Ministry of Finance (stamps)
A certificate of solvency must be obtained at the Ministry of Finance.
5 Apply for registration with the Department of Business and Private 1 day CFA 100,000
Investment at the Ministry of Commerce
Agency : Ministry of Commerce
Entrepreneurs must register a company at the Department of Business and Private
Investment at the Ministry of Commerce. An annual fee is charged and it varies by
company.
6 Apply for registration with the Department of Commerce at the Ministry of 1 day (simultaneous CFA 150,000
Commerce with previous
Agency : Ministry of Commerce procedure)
Entrepreneurs must register a company at the Department of Commerce at the Ministry
of Commerce. This annual fee varies by company.
7 Apply for tax registration 1 day (simultaneous 1% of the company's
Agency : Public Treasury with previous capital (tax
Companies must be registered with the Tax Authorities. The documents required to apply procedure) identification number
for tax registration include the notarized statutes. The fees are paid at the bank into an – NIF) + 1% of the
account of the Public Treasury. After obtaining the Treasury’s confirmation of receipt of
capital (minimum
payment, the applicant returns to the tax authorities to obtain the tax identification
fiscal quota) + CFA
number. To save time, the applicant (or a designated agent) would first visit all agencies
2,000 (tax ID number)
(tax administration, labor, social security, etc.) to apply for the respective authorization or
document, make all bank payments, and obtain the confirmation from the Treasury. The
applicant would then visit all agencies again to obtain the final authorization.
8 Apply for registration with the Ministry of Labor 1 day (simultaneous CFA 300 (form) +
Agency : Ministry of Labor with previous CFA 6,750 (for
As with tax registration, fees are paid to the Treasury through a private bank. Once procedure) registration of small
operational, the employer pays 1% of salaries to the Workers Protection Fund (Fondo de enterprises) or CFA
Protección del Trabajador). Employees pay 0.5% of their salary. Although the indicated
12,500 (medium-
fees are official fees, fees might be higher in practice.
sized enterprises)
9 Pay fees to the Treasury’s bank account 1 day included in
Agency : Bank procedures 7 and 8
All payments to public institutions (ministries, for example), must be made directly to the
Treasury’s bank account through a private bank.
Obtain a confirmation from Treasury for receipt of payment 4 days on average no charge
10 Agency : Public Treasury (simultaneous with
All new businesses must obtain a confirmation from the Treasury for receipt of payment previous procedure)
in order to obtain a license from the Ministry of Commerce.
Provide a confirmation of payment and obtain a license from the 14 days no charge
11 Department of Business and Private Investment at the Ministry of (simultaneous with
Commerce previous procedure)
Agency : Ministry of Commerce
All new businesses must provide a confirmation of payment and obtain a license from
Department of Business and Private Investment.
Page 8Doing Business 2018 Equatorial Guinea
Provide a confirmation of payment and obtain a license from the 14 days no charge
12 Department of Commerce at the Ministry of Commerce (simultaneous with
Agency : Ministry of Commerce previous procedure)
All new businesses must provide a confirmation of payment and obtain a license from the
Department of Commerce.
Obtain the tax identification number (NIF) 2 days included in procedure
13 Agency : Ministry of Finance (simultaneous with 7
The company must obtain a tax identification number (NIF) at the Ministry of Finance. previous procedure)
Obtain a registration number from the Ministry of Labor 1 day (simultaneous included in procedure
14 Agency : Ministry of Labor with previous 8
All new businesses must obtain their registration number at the Ministry of Labor. procedure)
Obtain a Social Security number for the company's employees 1 day (simultaneous no charge
15 Agency : Social Security Institute (INSESO) with previous
All new businesses must ensure that their employees have their social security numbers. procedure)
Register the company's employees with Social Security 1 day (simultaneous CFA 300 per page
16 Agency : Social Security Institute (INSESO) with previous
The company must register its employees for social security in the first month that the procedure)
employees receive a salary. Social security payments are 21.5% of salary for the
employer and 4.5% for the employee. To register for social security, the company must
purchase special forms to list all employees.
Takes place simultaneously with previous procedure.
Page 9Doing Business 2018 Equatorial Guinea
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in June 2017. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
â—
Submitting all relevant documents and obtaining
The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
â—
Submitting all required notifications and receiving largest business city. For 11 economies the data are also collected for the second
all necessary inspections largest business city.
- Is 100% domestically and privately owned; has five owners, none of whom is a
â—
Obtaining utility connections for water and
legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage
the local association of architects or engineers. BuildCo is not assumed to have any
â—
Registering and selling the warehouse after its other employees who are technical or licensed experts, such as geological or
completion topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure
upon its completion.
(calendar days)
â—
Does not include time spent gathering information The warehouse:
â—
Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or stationery.
though procedures that can be fully completed - Will have two stories, both above ground, with a total constructed area of
online are an exception to this rule approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
â—
Procedure is considered completed once final meters (9 feet, 10 inches) high and will be located on a land plot of approximately
document is received 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
warehouse is valued at 50 times income per capita.
â—
No prior contact with officials
- Will have complete architectural and technical plans prepared by a licensed
Cost required to complete each procedure (% of architect. If preparation of the plans requires such steps as obtaining further
income per capita) documentation or getting prior approvals from external agencies, these are counted
as procedures.
â—
Official costs only, no bribes
- Will take 30 weeks to construct (excluding all delays due to administrative and
regulatory requirements).
Building quality control index (0-15)
â—
Sum of the scores of six component indices: The water and sewerage connections:
â—
Quality of building regulations (0-2) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
â—
Quality control before construction (0-1) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
no sewerage infrastructure, a septic tank in the smallest size available will be
â—
Quality control during construction (0-3)
installed or built.
â—
Quality control after construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
â—
Liability and insurance regimes (0-2) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
â—
Professional certifications (0-4) 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 10Doing Business 2018 Equatorial Guinea
Dealing with Construction Permits - Equatorial Guinea
Standardized Company
Estimated value of warehouse XAF 164,822,479.50
City Covered Malabo
Indicator Equatorial Sub-Saharan OECD high Overall Best
Guinea Africa income Performer
Procedures (number) 13 14.8 12.5 7.00 (Denmark)
Time (days) 144 147.5 154.6 27.5 (Korea, Rep.)
Cost (% of warehouse value) 4.2 9.9 1.6 0.10 (5 Economies)
Building quality control index (0-15) 1.0 8.0 11.4 15.00 (3 Economies)
Figure – Dealing with Construction Permits in Equatorial Guinea and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
63.91: Congo, Dem. Rep. (Rank: 121)
63.07: Congo, Rep. (Rank: 125)
59.74: Cameroon (Rank: 140)
56.91: Regional Average (Sub-Saharan Africa)
54.95: Equatorial Guinea (Rank: 160)
38.86: Central African Republic (Rank: 180)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for
dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component
indicators.
Figure – Dealing with Construction Permits in Equatorial Guinea – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
3.5
140
3
Cost (% of income per capita)
120
100 2.5
Time (days)
80 2
60 1.5
40 1
20 0.5
0 0
1 2 3 4 5 6 7 *8 9 10 11 12 13
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 11Doing Business 2018 Equatorial Guinea
Figure – Dealing with Construction Permits in Equatorial Guinea and comparator economies – Measure of Quality
15
13.0
Index score
10 9.0
8.0 8.0
6.0
5
1.0
0
Equatorial Guinea Cameroon Central African Republic Congo, Dem. Rep. Congo, Rep. Sub-Saharan Africa
Details – Dealing with Construction Permits in Equatorial Guinea – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Buy stamped paper 1 day XAF 4,000
Agency : Municipality
Building permit and water connection applications to the Municipality must be made on
stamped paper.
2 Request authorization for building permit at the Municipality 15 days no charge
Agency : Municipality
The permit application includes all architectural and building plans, measurements, and
cost assessments. The application must be submitted on stamped paper. The file is
forwarded for review to the Technical Office and subsequently passed to the mayor for
signature. If the Technical Office has doubts that the proposed project budget fits the
project size and nature, a site visit might be undertaken. This can only be done with the
stamped paper.
3 Pay fees at the bank and obtain payment receipt 1 day XAF 1,648,225
Agency : Commercial Bank
Payment can be made only after the approval of the dossier.
4 Deposit payment receipt at the Municipality 1 day no charge
Agency : Municipality
After the payment is done, the voucher should be presented at the Municipality.
5 Obtain building permit 30 days no charge
Agency : Municipality
After the Municipality receives the payment receipt, the dossier is authorized again and
finally signed by the mayor. This procedure cannot be simultaneous with the previous
one.
6 Receive inspection from the Municipality 1 day no charge
Agency : Municipality
Inspections are random and occur during construction. A final inspection or occupancy
permit is not required. However, it is important to stress that this can only happen during
the construction period, once the building permit was granted.
7 Request authorization for water connection 14 days XAF 75,000
Agency : Municipality
The water connection is undertaken by the Municipality. As with the building permit
application, the application must be made on stamped paper. This request is done once
the construction is finalized.
8 Pay for water connection 1 day no charge
Agency : Commercial Bank
A payment receipt is required to obtain authorization for the water connection. This
procedure is enabled whenever the request has been made. It can be paid at a commercial
bank, not at the Municipality.
9 Deposit proof of payment and obtain final payment receipt from 1 day no charge
Municipality
Agency : Municipality
The payment is made only after the request is made.
10 Obtain authorization for water connection 14 days no charge
Agency : Municipality
After the fees are paid, the Mayor's office approves the application for water connection.
As a result this cannot be a simultaneous with the previous one.
11 Receive connection to water services 45 days no charge
Agency : Municipality
Once the authorization is obtained, municipal engineers connect the building to the
network.
Page 12Doing Business 2018 Equatorial Guinea
12 Request and obtain an engineer's assessment of property 14 days XAF 200,000
Agency : Private Engineer
An assessment by an external engineer is made once the utilities connection are in place.
13 Register the building 7 days XAF 4,944,674
Agency : Property Registry
Building registration is not required but is advised. Fees refer to official fees, as
published in the Law of Fiscal Fees (Ley de Tazas Fiscales). The fee is 3% of the value of
warehouse construction. This happens once the assessment has been made.
Takes place simultaneously with previous procedure.
Page 13Doing Business 2018 Equatorial Guinea
Details – Dealing with Construction Permits in Equatorial Guinea – Measure of Quality
Answer Score
Building quality control index (0-15) 1.0
Quality of building regulations index (0-2) 0.0
How accessible are building laws and regulations in your economy? (0-1) Not easily 0.0
accessible.
Which requirements for obtaining a building permit are clearly specified in the building Available only on 0.0
regulations or on any accessible website, brochure or pamphlet? (0-1) request.
Quality control before construction index (0-1) 0.0
Which third-party entities are required by law to verify that the building plans are in By law, there is 0.0
compliance with existing building regulations? (0-1) no need to verify
plans
compliance; Civil
servant reviews
plans.
Quality control during construction index (0-3) 0.0
What types of inspections (if any) are required by law to be carried out during construction? Unscheduled 0.0
(0-2) inspections.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 0.0
inspections are
not always done
in practice during
construction.
Quality control after construction index (0-3) 0.0
Is there a final inspection required by law to verify that the building was built in accordance Final inspection 0.0
with the approved plans and regulations? (0-2) is not required by
law.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 0.0
does not always
occur in practice.
Liability and insurance regimes index (0-2) 1.0
Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or 1.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer;
Professional in
charge of the
supervision;
Construction
company; Owner
or investor.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certifications index (0-4) 0.0
What are the qualification requirements for the professional responsible for verifying that the There are no 0.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) specific
requirements.
What are the qualification requirements for the professional who supervises the construction There are no 0.0
on the ground? (0-2) specific
requirements.
Page 14Doing Business 2018 Equatorial Guinea
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
â—
Submitting all relevant documents and obtaining
The construction company (BuildCo):
all necessary clearances and permits
â—
Completing all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the economy’s
receiving all necessary inspections largest business city. For 11 economies the data are also collected for the second
largest business city.
â—
Obtaining external installation works and possibly
- Is 100% domestically and privately owned; has five owners, none of whom is a
purchasing material for these works
legal entity. Has a licensed architect and a licensed engineer, both registered with
â—
Concluding any necessary supply contract and the local association of architects or engineers. BuildCo is not assumed to have any
obtaining final supply other employees who are technical or licensed experts, such as geological or
topographical experts.
Time required to complete each procedure
- Owns the land on which the warehouse will be built and will sell the warehouse
(calendar days)
upon its completion.
â—
Is at least 1 calendar day
The warehouse:
â—
Each procedure starts on a separate day
â—
Does not include time spent gathering information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
â—
Reflects the time spent in practice, with little
approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
follow-up and no prior contact with officials
meters (9 feet, 10 inches) high and will be located on a land plot of approximately
Cost required to complete each procedure (% of 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
warehouse is valued at 50 times income per capita.
income per capita)
- Will have complete architectural and technical plans prepared by a licensed
â—
Official costs only, no bribes architect. If preparation of the plans requires such steps as obtaining further
â—
Value added tax excluded documentation or getting prior approvals from external agencies, these are counted
as procedures.
The reliability of supply and transparency of - Will take 30 weeks to construct (excluding all delays due to administrative and
tariffs index (0-8) regulatory requirements).
â—
Duration and frequency of power outages (0–3)
The water and sewerage connections:
â—
Tools to monitor power outages (0–1)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
â—
Tools to restore power supply (0–1)
is no water delivery infrastructure in the economy, a borehole will be dug. If there is
â—
Regulatory monitoring of utilities’ performance no sewerage infrastructure, a septic tank in the smallest size available will be
(0–1) installed or built.
â—
Financial deterrents limiting outages (0–1) - Will have an average water use of 662 liters (175 gallons) a day and an average
wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
â—
Transparency and accessibility of tariffs (0–1)
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
Price of electricity (cents per kilowatt-hour)* gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the
â—
Price based on monthly bill for commercial
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
warehouse in case study
the sewerage connection.
*Note: Doing Business measures the price of
electricity, but it is not included in the distance to
frontier score nor the ranking on the ease of getting
electricity.
Page 15Doing Business 2018 Equatorial Guinea
Getting Electricity - Equatorial Guinea
Standardized Company
Price of electricity (US cents per kWh) 21.4
Name of utility Segesa
City Covered Malabo
Indicator Equatorial Sub-Saharan OECD high Overall Best
Guinea Africa income Performer
Procedures (number) 5 5.3 4.7 2 (United Arab
Emirates)
Time (days) 106 115.3 79.1 10 (United Arab
Emirates)
Cost (% of income per capita) 1185.2 3737.0 63.0 0.00 (Japan)
Reliability of supply and transparency of tariff 0 0.9 7.4 8.00 (28 Economies)
index (0-8)
Figure – Getting Electricity in Equatorial Guinea and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
60.35: Cameroon (Rank: 121)
53.44: Equatorial Guinea (Rank: 146)
45.91: Regional Average (Sub-Saharan Africa)
33.59: Congo, Dem. Rep. (Rank: 175)
28.42: Congo, Rep. (Rank: 181)
24.64: Central African Republic (Rank: 183)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting
electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Page 16Doing Business 2018 Equatorial Guinea
Figure – Getting Electricity in Equatorial Guinea – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
1200
100
Cost (% of income per capita)
1000
80
800
Time (days)
60
600
40
400
20
200
0 0
1 2 3 *4 5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in Equatorial Guinea and comparator economies – Measure of Quality
8
7
6
Index score
5
4
3
2
0.9
1
0 0 0 0 0
0
Equatorial Guinea Cameroon Central African Republic Congo, Dem. Rep. Congo, Rep. Sub-Saharan Africa
Page 17Doing Business 2018 Equatorial Guinea
Details – Getting Electricity in Equatorial Guinea – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application to Segesa and await external site inspection 45 calendar days XAF 0
Agency : Segesa
The owner of the warehouse (the client) applies for a new electricity connection with
Segesa’s office and provides a list of all appliances located in the warehouse.
At the same time, the client submits an application for the excavation permit and the
utility will obtain this excavation permit on behalf of the client.
2 Receive site inspection by Segesa, await estimate and pay Segesa for 14 calendar days XAF 0
external works
Agency : Segesa
The engineers from Segesa, accompanied by the client, will conduct a site visit of the
warehouse to assess the connection cost. The client will be presented with the estimated
cost for the work to be done. The client will discuss in greater details both the estimated
cost and the work to be done. The quote is divided as follows: price of materials + 30%
for technical works of Segesa + 15% IVA + 8% for maintenance of the equipment in the
years to come. The client signs the contract with Segesa.
3 Buy transformer and install transformer post 37 calendar days XAF 35,000,000
Agency : Client
The client has two options: he can buy the transformer through the utility or buy a
transformer from the market. To accelerate the procedure, the client often chooses to buy
the transformer himself and to install the transformer post. The transformer needs to be
imported. Segesa provides the technical specifications of the transformer.
4 Have transformer tested by Segesa 1 calendar day XAF 0
Agency : Segesa
Segesa inspects the transformer to verify that it complies with Segesa standards.
5 Receive external works, meter installation and final connection from 10 calendar days XAF 4,071,000
Segesa
Agency : Segesa
Segesa will request an excavation permit from the Ministry of Construction, which takes
on average 2-3 business days to be obtained. And then, Segesa will do the external works
which consist of laying the cables from the transformer to the electrical network. Then
Segesa does a final inspection, installs the meter and the electricity starts flowing.
Takes place simultaneously with previous procedure.
Page 18Doing Business 2018 Equatorial Guinea
Details – Getting Electricity in Equatorial Guinea – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 0
Total duration and frequency of outages per customer a year (0-3) 0
System average interruption duration index (SAIDI) ..
System average interruption frequency index (SAIFI) ..
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI N/A
Mechanisms for monitoring outages (0-1) 0
Does the distribution utility use automated tools to monitor outages? No
Mechanisms for restoring service (0-1) 0
Does the distribution utility use automated tools to restore service? No
Regulatory monitoring (0-1) 0
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of No
supply?
Financial deterrents aimed at limiting outages (0-1) 0
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages No
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 0
Are effective tariffs available online? Yes
Link to the website, if available online http://www.segesa.g
q/es/segesa-
commercial/tarifas-
de-electricidad/
Are customers notified of a change in tariff ahead of the billing cycle? No
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 19Doing Business 2018 Equatorial Guinea
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in June 2017.See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
â—
Preregistration procedures (for example,
The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
â—
Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. For 11
business citya. economies the data are also collected for the second largest business city.
- Are 100% domestically and privately owned.
â—
Postregistration procedures (for example, filling
- Have 50 employees each, all of whom are nationals.
title with municipality)
- Perform general commercial activities.
Time required to complete each procedure
The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
â—
Does not include time spent gathering information
- Is fully owned by the seller.
â—
Each procedure starts on a separate day - though - Has no mortgages attached and has been under the same ownership for the past
procedures that can be fully completed online are
10 years.
an exception to this rule
- Is registered in the land registry or cadastre, or both, and is free of title disputes.
â—
Procedure is considered completed once final - Is located in a periurban commercial zone, and no rezoning is required.
document is received - Consists of land and a building. The land area is 557.4 square meters (6,000
â—
No prior contact with officials square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
located on the land. The warehouse is 10 years old, is in good condition, has no
Cost required to complete each procedure (% of heating system and complies with all safety standards, building codes and legal
property value) requirements. The property, consisting of land and building, will be transferred in its
â—
Official costs only (such as administrative fees, entirety.
duties and taxes). - Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of
â—
Value Added Tax, Capital Gains Tax and illicit
any kind.
payments are excluded
- Will not be used for special purposes, and no special permits, such as for
residential use, industrial plants, waste storage or certain types of agricultural
Quality of land administration index (0-30)
activities, are required.
â—
Reliability of infrastructure index (0-8) - Has no occupants, and no other party holds a legal interest in it.
â—
Transparency of information index (0–6)
â—
Geographic coverage index (0–8)
â—
Land dispute resolution index (0–8)
â—
Equal access to property rights index (-2–0)
Page 20Doing Business 2018 Equatorial Guinea
Registering Property - Equatorial Guinea
Standardized Company
Property value XAF 164,822,479.50
City Covered Malabo
Indicator Equatorial Sub-Saharan OECD high Overall Best
Guinea Africa income Performer
Procedures (number) 6 6.2 4.6 1.00 (4 Economies)
Time (days) 23 59.3 22.3 1.00 (3 Economies)
Cost (% of property value) 12.5 7.8 4.2 0.00 (5 Economies)
Quality of the land administration index (0-30) 4.0 8.6 22.7 29.00 (Singapore)
Figure – Registering Property in Equatorial Guinea and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
51.71: Regional Average (Sub-Saharan Africa)
45.85: Congo, Dem. Rep. (Rank: 158)
44.45: Equatorial Guinea (Rank: 162)
41.92: Central African Republic (Rank: 169)
37.33: Cameroon (Rank: 176)
36.04: Congo, Rep. (Rank: 177)
Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering
property. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Figure – Registering Property in Equatorial Guinea – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
8
20 7
Cost (% of income per capita)
6
15
Time (days)
5
4
10
3
2
5
1
0 0
1 2 3 4 5 6
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 21Doing Business 2018 Equatorial Guinea
Figure – Registering Property in Equatorial Guinea and comparator economies – Measure of Quality
30
25
Index score
20
15
10.0
10 8.6
7.0
5 4.0 3.0 3.5
0
Equatorial Guinea Cameroon Central African Republic Congo, Dem. Rep. Congo, Rep. Sub-Saharan Africa
Details – Registering Property in Equatorial Guinea – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain non-encumbrance certificate 7 days Negative certificate
Agency : Land Registry (Registro de la Propiedad y Mercantil) (2000 XAF) + Literal
It is common practice to obtain a non-encumbrance certificate and a literal certificate to certificate (2000 XAF)
verify that the property has no charges or liens, and to observe past inscriptions and + Search (1000 XAF)
transactions. The certificates are issued by the Registro de la Propiedad y Mercantil
2 Lawyer prepares sales contract 2 days 5% of the property
Agency : Lawyer value (common
It is common practice to hire a lawyer to write the contract. The lawyer requires the practice)
property title (copy) and a copy of the company representative’s passport. In practice,
banks hold the property title when granting a mortgage.
3 Notary legalizes the sales contract and prepares the public deed (escritura 3-10 days Paid in Procedure 4
publica)
Agency : Notary
Parties submit the sale and purchase agreement to the Notary. The Notary informs them
of the fees to be paid. Official Notary fees are fixed at 1.5% property value according to
law 2/2007, but in practice the parties must pay the salary of the notary at a rate of
approximately another 1.5% of the property value. The fees are normally paid in cash at
the Notary, although they can also be paid through stamps from the Treasury.
4 Go to Treasury to buy stamps to pay the notary and registration fees 1 day 3% of property value
Agency : Commercial Bank or Treasury (Notary fees) +
The most common practice is to pay the Notary fees and the Registration fees at the 4%-5% property
corresponding accounts in commercial banks. With the proof of payment, parties can go value (Registration
back to the notary and to the registry to carry on with the property transfer process. Both
fees)
the notary and registration fees can be paid together at this time.
5 Return to notary to present him the payment stamps 1 day Paid in Procedure 4
Agency : Notary
Parties receive the public deed at this time.
6 Registration of the public deed at the Property Registry 5 days Paid in Procedure 4
Agency : Land Registry (Registro de la Propiedad y Mercantil)
The fee to register the public deed is between 4% and 5% of the property value. The
entire public deed is hand-written into the public registry’s books at this time.
Takes place simultaneously with previous procedure.
Page 22Doing Business 2018 Equatorial Guinea
Details – Registering Property in Equatorial Guinea – Measure of Quality
Answer Score
Quality of the land administration index (0-30) 4.0
Reliability of infrastructure index (0-8) 0.0
What is the institution in charge of immovable property registration? Property Registry
(Registro de la
Propiedad y
Mercantil)
In what format are the majority of title or deed records kept in the largest business city—in a Paper 0.0
paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions No 0.0
and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Catastral Service
(Servicio de
Catastro)
In what format are the majority of maps of land plots kept in the largest business city—in a Paper 0.0
paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for recording boundaries, checking plans and providing No 0.0
cadastral information (geographic information system)?
Is the information recorded by the immovable property registration agency and the cadastral Separate 0.0
or mapping agency kept in a single database, in different but linked databases or in separate databases
databases?
Do the immovable property registration agency and cadastral or mapping agency use the No 0.0
same identification number for properties?
Transparency of information index (0–6) 0.0
Who is able to obtain information on land ownership at the agency in charge of immovable Only 0.0
property registration in the largest business city? intermediaries
and interested
parties
Is the list of documents that are required to complete any type of property transaction made Yes, in person 0.0
publicly available–and if so, how?
Link for online access:
Is the applicable fee schedule for any property transaction at the agency in charge of Yes, in person 0.0
immovable property registration in the largest business city made publicly available–and if
so, how?
Link for online access:
Does the agency in charge of immovable property registration commit to delivering a legally No 0.0
binding document that proves property ownership within a specific time frame–and if so, how
does it communicate the service standard?
Link for online access:
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the agency in charge of immovable property registration?
Contact information:
Are there publicly available official statistics tracking the number of transactions at the No 0.0
immovable property registration agency?
Number of property transfers in the largest business city in 2016:
Who is able to consult maps of land plots in the largest business city? Only 0.0
intermediaries
and interested
parties
Is the applicable fee schedule for accessing maps of land plots made publicly available— Yes, in person 0.0
and if so, how?
Page 23Doing Business 2018 Equatorial Guinea
Link for online access:
Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0
specific time frame—and if so, how does it communicate the service standard?
Link for online access:
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the cadastral or mapping agency?
Contact information:
Geographic coverage index (0–8) 0.0
Are all privately held land plots in the economy formally registered at the immovable property No 0.0
registry?
Are all privately held land plots in the largest business city formally registered at the No 0.0
immovable property registry?
Are all privately held land plots in the economy mapped? No 0.0
Are all privately held land plots in the largest business city mapped? No 0.0
Land dispute resolution index (0–8) 5.0
Does the law require that all property sale transactions be registered at the immovable Yes 1.5
property registry to make them opposable to third parties?
Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
Is there a specific compensation mechanism to cover for losses incurred by parties who No 0.0
engaged in good faith in a property transaction based on erroneous information certified by
the immovable property registry?
Does the legal system require a control of legality of the documents necessary for a property Yes 0.5
transaction (e.g., checking the compliance of contracts with requirements of the law)?
If yes, who is responsible for checking the legality of the documents? Registrar;
Lawyer.
Does the legal system require verification of the identity of the parties to a property Yes 0.5
transaction?
If yes, who is responsible for verifying the identity of the parties? Notary.
Is there a national database to verify the accuracy of identity documents? No 0.0
For a standard land dispute between two local businesses over tenure rights of a property Juzgados de
worth 50 times gross national income (GNI) per capita and located in the largest business Primera Instancia
city, what court would be in charge of the case in the first instance? de Malabo
How long does it take on average to obtain a decision from the first-instance court for such a Between 1 and 2 2.0
case (without appeal)? years
Are there any statistics on the number of land disputes in the first instance? No 0.0
Number of land disputes in the largest business city in 2016:
Equal access to property rights index (-2–0) -1.0
Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
Do married men and married women have equal ownership rights to property? No -1.0
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