Guinea

The Republic of Guinea is located in West Africa with an Atlantic coastline. It borders Guinea-Bissau, Senegal and Mali to the north; Sierra Leone, Liberia and Côte d’Ivoire to the south.

GDP: $15.13 billion (2014 est.)

Annual Growth: Estimated to be c.6% 2016-17

Population: 10.5 million

Inflation: 9.7%

Major Industries:

  • Agriculture: Rice, coffee, fruit, livestock, timber
  • Mining: bauxite, gold, diamonds, iron ore
  • Light manufacturing; agricultural processing

Major trading partners: South Korea, India, China, Spain, Netherlands, Ireland

Mining Industry

  • Mining accounts for over 70% of the country’s exports.
  • Several ‘majors’ present in country.
  • Deposits of bauxite, iron ore, gold and diamonds with significant geological potential.
  • Country accounts for c. 25% of global bauxite reserves (Source: USGS).

Transitioning to a Stable Democracy

  • Guinea’s first democratic presidential elections were held in November 2010 and parliamentary elections were held in September 2013.
  • Guinea is receiving increased support from global institutions including the United Nations, the World Bank, the IMF and the EU.
  • In September 2012, the Executive Boards of the IMF and the World Bank agreed that Guinea had reached the final stage of the Enhanced Heavily Indebted Poor Countries Initiative (HIPC). As a result, the country will benefit from debt relief under the HIPC Initiative and the Multilateral Debt Relief Initiative (MDRI), and from additional relief from bilateral creditors.
    • Total external debt service savings amount to $2.1 billion over 40 years, corresponding to a reduction of 66%.
  • Democratic presidential elections held in October 2015, with the incumbent Alpha Conde winning the vote with a significant majority in the first round
  • He was inaugurated for a second five term on the 14th December 2015 – will support ongoing stability in coming years
  • He is focused on creating economic wealth for the country as a whole and encourages foreign investment within this context.

Mining Code 

  • Final amendments to the ‘new’ code were promulgated in April 2013.
  • Government right to 15% non-dilutable free-carried interest and to acquire up to a further 20% interest for cash.
  • These are maximum levels of Government participation – final terms in every case to be negotiated individually in a Mining Agreement between the Government and the mining company and will include royalties, tax rate, tax holidays etc.

Sources: CIA Factbook; EIU, USGS