Borrowing from relatives or through a tontine in Equatorial Guinea
In Equatorial Guinea, lending between individuals remains largely informal, among relatives or in tontines, since no platform is licensed by COBAC, and such a loan is best formalised with a written IOU drafted in Spanish.
Heavy reliance on family networks
With a banking penetration rate estimated at around 27% in 2023, a large share of households cannot borrow from a bank. The extended family, colleagues or the village community therefore remain the first source of funding for most people.
No authorised peer-to-peer lending platform in Malabo
No online peer-to-peer lending service appears among the institutions licensed by COBAC in the country. Any app or page presenting itself as one should therefore be approached with great caution before sharing personal data or money.
Tontines and savings circles
Tontines bring together members who contribute regularly and receive the pot in turn. In Malabo as in Bata, they fund celebrations, school fees or a small stock of goods, with no formal interest but with strong social pressure.
A written IOU in Spanish
A dated and signed document stating the amount in CFA francs XAF, the due date and the repayment terms limits misunderstandings. Drafted in Spanish and signed before witnesses or a notary, it will be easier to enforce in a dispute.
Transfers via mobile money
Muni Dinero, BGFIMoney and Getesa Money, relaunched in 2026, make it possible to send small sums. Their use remains limited, with about 50,000 active accounts according to BEAC, but they leave a trail that helps prove a loan.
Loans between market traders
At the markets of Malabo or Bata, traders advance each other goods or cash for a few days. These trust-based credits work as long as business keeps turning over, but they can turn into conflict when a bad season hits.
Microfinance as a regulated alternative
Where it is available, which remains rare in Malabo as in Río Muni, COBAC-licensed microfinance offers a safer framework than informal borrowing. Its limits in the country are described on the page about microcredit in Equatorial Guinea.
Loan sharks and excessive rates
Some informal lenders demand repayments far above the sum advanced or the handover of a valuable item. Such a loan outside the banking system offers no protection at all and can worsen the situation of an already fragile household.
People without a regular income
The unemployed, young UNGE graduates without a job and informal workers often depend on these loans between relatives. Other possible solutions for them are detailed on the page about loans for the unemployed in Equatorial Guinea.
The diaspora in Spain and money transfers
Equatoguineans settled in Spain send money to their families, sometimes in the form of a loan. A written exchange, even by text message, stating the amount and the repayment date avoids tension between Madrid and Malabo.
Fake CFA franc lenders on Facebook
Facebook pages promise fast CFA franc loans to individuals across CEMAC in exchange for upfront fees. Once the fees are paid, the so-called lender vanishes, a pattern reported throughout the subregion and one to recognise quickly.
The case of São Tomé and Príncipe
In São Tomé and Príncipe, the neighbouring archipelago south of Bioko Island, informal financial mutual aid also plays a central role in household life. The page on peer-to-peer loans in São Tomé and Príncipe shows how these practices work there.
Putting a loan between relatives on a sound footing
- Agree clearly on the amount lent in CFA francs XAF and the date of each repayment.
- Draw up an IOU in Spanish, signed by both parties and by a witness.
- Pay the money by bank transfer or mobile money to keep a record of the transaction.
- Log every repayment received with its date and the payment method used.
- If difficulties arise, renegotiate in writing rather than letting the debt build up.
Costs and risks of informal borrowing
| Situation | Possible cost | Main risk |
|---|---|---|
| Family loan | Often interest-free | Tension if payments are late |
| Tontine | Regular contributions | A member defaulting |
| Informal lender | Repayment far above the sum lent | No legal protection |
| Mobile money transfer | Operator fees | Wrong number entered |
| Notarised IOU | Notary fees | Fixed cost for a small sum |
Records worth keeping
- Signed and dated IOU
- Copy of both parties' DIP
- Transfer receipts or mobile money confirmations
- Written exchanges about the repayment schedule
- The tontine's notebook or register
Traps of private lending in the country
- Lending a large sum to a relative with nothing in writing, then being unable to prove the debt in a family disagreement.
- Paying processing fees to a so-called private investor met on Facebook who promises a loan with no collateral.
- Joining a tontine without knowing the members or the rules that apply if a participant drops out.
- Accepting an informal lender who demands a land title or an identity card as security.
Common concerns about borrowing between individuals
Is a loan between individuals legal in Equatorial Guinea?
Occasionally lending money to a relative is not prohibited. However, lending to the public as a business without COBAC approval amounts to illegal banking activity, and such lenders offer no protection whatsoever to the people who borrow from them.
Is it necessary to go before a notary?
It is not mandatory, but a notarial deed strengthens the evidence for a large amount. For a small sum, an IOU signed before witnesses together with proof of transfer is generally enough to document the agreement.
Are tontines regulated?
Tontines operate under rules set by their members, outside COBAC supervision. Their strength depends on trust within the group and on a carefully kept register of contributions and payouts that every member can consult.
Can money be lent through mobile money?
Yes, Muni Dinero, BGFIMoney or Getesa Money can be used to send money. The electronic record helps prove the payment, but it is still advisable to add a written note stating that it is a loan and not a gift.