Investment climate of Guinea
Guinea is slowly emerging from the twin shocks of Ebola and low commodity prices that adversely affected its economy in 2014 and 2015. Guinea recorded a low economic growth in 2015 estimated at 0.1% of gross domestic product (GDP) in real terms compared with 1.1% growth in 2014 and 2.3% in 2013. Gross Domestic Product (GDP) grew at 5.2% in 2016, driven by increased production of bauxite and gold as well as a resilient agriculture sector. Services and manufacturing continue to stagnate in the aftermath of Ebola. GDP growth is projected at 4.4% for 2017. The inflation rate was, however, still high, and is expected to be 9.7% in 2017, owing to Guinea’s currency depreciation and increased domestic prices. Real GDP growth will remain firm, at an average of 4.7% a year in 2017-18 as mining output rises and power supply improves.
Why invest in Guinea?
- The largest reserves of bauxite ore and iron richest in the world
- Low cost of investment factors, including labor
- Environment attractive business and enabling legal framework
- Substantial investments of the state in basic infrastructure
- Political and macroeconomic stability supported
- Guinea, “a new frontier” offering concrete prospects to global investors
The past six years have seen dramatic political changes for a country that had previously had only two presidents in the first 50 years after independence in 1958. Guinea badly managed the political transition following the death of President Lansana Condé in 2008. The country experienced a crisis between 2009 and 2010 that seriously affected its economic and social climate. Alpha Conde became president in 2010 after a lifelong battle against a series of despotic and military regimes which sent him into exile and prison. It was Guinea’s first democratic election since gaining independence from France in 1958, with Ahmed Sekou Toure as president. President Alpha Condé was re-elected on 31 October 2015, to a second term in the first round of the country’s disputed presidential election, garnering 57% of the votes. He was sworn in on 14 December 2015, less than three weeks before Guinea was declared Ebola free
Guinea has a population of 12.6 million, according to World Bank estimates in 2015 with an estimated growth rate of 2.65%.
According to World Bank about 37.16% of total population live in urban areas and the annual urban population growth was put at 3.98 % in 2015. Guinea has adopted a national housing policy (Vision habitat 2021) in order to improve the living standards of people living especially in the urban areas.
Doing business in Guinea?
The highlights of World Bank score of doing business in Guinea are summarised as follows;
|Topics||World Bank 2017 Rank||World Bank 2016 Rank||Change in Rank|
|Starting a Business||133||123||10|
|Dealing with Construction Permits||164||161||3|
|Protecting Minority Investors||145||145||–|
|Trading across Borders||162||162||–|
Guinea has no limitations on the conversion and transfer of money or the repatriation of capital and earnings, including branch profits, dividends, interest, royalties, or management or technical service fees. The Central Bank needs to be informed of any major transfers and the wait time to remit investment returns is less than 60 days.
Guinea established an arbitration court in 1999, independent of the Ministry of Justice, to settle business disputes in a less costly and more expedient manner. In 1993, Guinea became a member of the Organisation pour l’Harmonisation du Droit des Affaires en Afrique (Organization for the Harmonization of Commercial Law in Africa), known by its French initials, OHADA, which allows investors to appeal legal decisions on commercial and financial matters to a regional body based in Abidjan. The organization also seeks to create harmonization of commercial law, debt collection, bankruptcy, and secured transactions throughout the OHADA region. Guinea is a member of the International Center for the Settlement of Investment Disputes (ICSID), an autonomous international institution established under the Convention on the Settlement of Investment Disputes between States and Nationals of other States with over one hundred and forty member states .Guinea is also a member of the New York Convention which applies to the recognition and enforcement of foreign arbitral awards and the referral by a court to arbitration
Key development challenges
- Low level of economic and financial governance
- Managing challenges of corruption
- Inadequate level of infrastructure
- Existence of a high level of unemployment, underemployment and a low level of trained human resources:
- Maintaining macroeconomic and fiscal reform
- Maintaining socio-political stability
Guinea ranked number 142 out of the 176 countries that participated and scored 27 points out of 100 in the 2016 corruption perception index survey by Transparency International.
The World Health Organisation declared Guinea Ebola transmission free on 1 June 2016. The risk of protests resulting from tensions and resentment over slow improvements to living standards still exists. The security situation has not yet fully stabilized and therefore travellers are advised to take extra care.
Unemployment and skilled labour
Current information not readily available.
Attitude to Foreign Direct Investment
After the conclusion of the 2014-2015 Ebola Crisis and the inauguration of a new government at the end of 2015, the Guinean government has adopted a strong positive attitude toward foreign direct investment (FDI). The Government of Guinea (GOG) is proactively seeking FDI and realizes that the country needs support from foreign investment for its economy growth.
FDI is regulated by the Investment Code of 1987 (Ordinance No. 001/PRG/87), which was updated in 1995. The code is not restrictive and investments can be financed by foreign exchange or by capital goods. The Agency for the Promotion of Private Investment (APIP) is a one stop shop for investment in Guinea.
Restrictions on Foreign investment
There are no laws that discriminate against foreign investors. Foreign ownership of up to 100 percent is permitted in commercial, industrial, mining, agricultural and service sectors. There are no sector-specific restrictions that discriminate against market access applicable to foreign investment. However foreign-majority owned print media, radio, and television stations are not permitted.
Intellectual Property (IP) Rights.
Guinea is a member of the African Intellectual Property Organization (OAPI), comprised of 15 African countries, and the World Intellectual Property Organization (WIPO), comprised of 186 members. OAPI is signatory to the Paris Convention for the Protection of Industrial Property, the Bern Convention for the Protection of Literary and Artistic Works, the Patent Cooperation Treaty, the TRIPS agreement, and several other intellectual property treaties. Guinea modified its intellectual property right laws in 2000 to bring them into line with established international standards.
Guinea has the world’s largest known reserves of bauxite (aluminum ore), sizable deposits of high-grade iron ore, diamonds, gold, and uranium and potential offshore oil and gas reserves. It also has significant hydroelectric and commercial agricultural potential.
Information about Investment climate of Guinea has been summarized to include the following;
Development partners of Guinea
Double taxation Treaties in Guinea
Exports of Guinea
Investment Authority of Guinea
International Trade Agreements with Guinea
Investment Incentives in Guinea
Investment Guarantees in Guinea
Investment Opportunities in Guinea
Natural Resources of Guinea
Trading partners of Guinea
Sources of information