I lived in Malabo for 2 years up until 2001. I can't say I had many problems (particuarly after spending the previous 5 years in Nigeria). Made a lot of friends and had a lot of fun with the Spanish community as well as the Guinean's. Malabo used to be a little short on Restaurant's and flights from Europe - but I believe things have changed now - particularly with direct flights to London, Madrid and Zurich.
They were at one stage building a new terminal, as the old one was basically a glorified hut - anyone know whether they ever finished it ?
As for the brother's across the Gulf of Guinea, there used to be a large Nigerian population in Malabo, maybe this is what HeloTeacher refers to.
Watch out for the Malaria - we had several people seriously hospitalised because they were daft enough not to take care with the Mozzie's.