Equatorial Guinea has formally relocated its capital from Malabo on Bioko Island to the mainland city of Ciudad de la Paz (formerly Oyala), following a presidential decree that concludes nearly two decades of planning and construction.

President Teodoro Obiang Nguema Mbasogo, Africa’s longest-serving leader since seizing power in a 1979 coup, cited strategic reasons for the move. At 83, Obiang has ruled for 47 years, presiding over an oil-fueled economy that made the country one of Africa’s wealthiest per capita, yet left more than 60 percent of its population in poverty amid persistent allegations of corruption and nepotism benefiting his family.

Ciudad de la Paz was first announced in the 2000s, with construction beginning around 2010. Built as a modern administrative hub deep in the equatorial forest, the project—estimated at $1–2 billion—includes government complexes, universities, airports, and highways funded by oil revenues. Supporters argue the relocation decentralizes power from overcrowded Malabo, home to more than 300,000 people, while critics dismiss it as a “vanity project” that ignores pressing national hardships.

Obiang’s regime has long been marked by authoritarian control, surviving coup attempts and facing human rights scrutiny. Oil discoveries in the 1990s transformed the economy, but wealth concentration has fueled inequality, with the ruling family owning luxury assets abroad while basic services like healthcare remain underdeveloped.

Economically, the relocation could stimulate mainland growth, create jobs in construction and services, and better exploit continental oil and gas reserves. Yet the costs strain a budget heavily dependent on volatile oil prices, with GDP per capita having fallen by 70 percent since its 2014 peak. Poverty reduction remains elusive, with the World Bank estimating 76 percent of the population lives below the poverty line. Transparency in contracts will be critical, though critics fear entrenched cronyism.

Beyond the stated strategic aims, informed observers suggest the move enhances regime security, as Malabo’s island location leaves it vulnerable to naval threats or coups, while Ciudad de la Paz is more isolated and defensible.

It also addresses urban overcrowding, symbolically cements Obiang’s legacy as a “modernizer,” and politically consolidates control away from opposition strongholds. Overall, the relocation appears designed to reinforce regime stability amid speculation about Obiang’s declining health.