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Guinea Diagnostic Trade Integration Study (DTIS) Update Back to Business Final Report November 14Th, 2016

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Guinea Diagnostic Trade Integration Study (DTIS) Update Back to Business Final Report November 14Th, 2016 Report No. Guinea Diagnostic Trade Integration Study (DTIS) Update Back to business Final Report November 14th, 2016 Trade and Competitiveness Global Practice Africa Region Document of the World Bank This report is the English translation of the French report and Action Matrix, validated by the Government of Guinea. For Appendix 2 in Chapter 1 and Appendix 2 in Chapter 6, please refer to the French version i ABBREVIATIONS AND ACRONYMS ABN Autorité du bassin du Niger ACE Africa Coast to Europe submarine cable AGOA African Growth Opportunity Act ANASA Agence nationale des statistiques agricoles et alimentaires (National Agency for Agricultural and Food Statistics) APIP Agence de promotion des investissements privés (Investment Promotion Agency) ASYCUDA Automated System for Customs Data AV Attestation de vérification (PSI certificate delivered by BIVAC). BCRG Republic of Guinea’s Central Bank BOT Build Operate and Transfer BRG Better Regulation for Growth Program C&F Clearing and Forwarding CAFEX Centre d’appui aux formalités d’exportation (Export Procedures assistance center) CET ECOWAS Common External Tariff CIEPEX International Center for Trade and Export Promotion (Centre international d'échanges et de promotion des exportations) CIF CIF Cost, Insurance, Freight CN Concept Note CNI National Commission for INvestments (Commission nationale des investissements) CNUCED Conférence des Nations Unies sur le Commerce et le Développement DDE Export Declaration (Déclaration descriptive d’exportation) DDI Import Declaration (Déclaration descriptive d’importation) DGD Customs Directorate DTIS Diagnostic Trade Integration Study ECOWAP ECOWAS Agricultural Policy ECOWAS Economic Community of West African States (CEDEAO in French) EDG Électricité de Guinée EIF Enhanced Integrated Framework EPA Economic Partnership Agreement (with the EU) EPZ Export Processing Zone EITI Extractive Industries Transparency Initiative ETLS ECOWAS Trade Liberalization Scheme EU European Union FAO Food and Agriculture Organization of the United Nations FDI Foreign Direct Investissement FTA Free Trade Agreement GATS General Agreement on Trade and Serivces GDP Gross Domestic Product GF Guinean Franc GI Geographical Indication HIPC Heavily Indebted Poor Countries debt relief initiative HR Human Resources HS Harmonized System trade classificaton ICT Information and Communication Technologies IF Integrated Framework IFC International Finance Corporation IMF International Monetary Fund INS National Statistical Institute (Institut national de la statistique) ISRT Inter-States Road Transit (TRIE in French) ii I-TIP Webbased Trade Information Portal JBP Joint Border Post LDC Least Developped Countries MDRI Multilateral Debt Relief Initiative MFN Most Favored Nation MRU Mano River Union Mt Million tons MT Ministry of Transports MTP Ministry of Public Works, Tourism and Trade NGO Non-Governmental Organization OHADA Organisation for the Harmonization of Business Law in Africa PAPCG Guinea National Trade Policy Action Plan (Plan d'action des politiques commerciales de la Guinée) PNDA National Agricultural Development Policy – 2015 Vision (Politique nationale de développement agricole – Vision 2015) PNIASA National Plan for Agricultural Investment and Food Security (Programme national d’investissement agricole et de sécurité alimentaire) PNT National Transport Plan (Plan national des transports) PRSP Poverty Reduction Strategy Paper PSI Pre-Shipment Inspection PSR Road Sector Plan (Programme sectoriel routier) SEZ Special Economic Zone SNDR National Strategy for the Development of the Rice Sector SOGUIPAMI Société guinéenne du patrimoine minier SOTELGUI Société des télécommunications de Guinée SPS Sanitary and Phytosanitary SWOT Strenghs, Weaknesses, Opportunities, Threats analysis TDP Degressive Protection Tax (Taxe dégressive de protection) TEU Twenty-Foot Equivalent Unit TRIST Tariff Reform Impact Simulation Tool UGPAM Union of Pineapple Growers of Maférénya UNIDO United Nations Industrial Development Organization US United States USD United States Dollars VAT Value Added Tax WAEMU West African Economic and Monetary Union (UEMOA in French) WAMZ West African Monetary Zone WAPP West African Power Pool WCO World Customs Organization WDI World Development Indicators WTO World Trade Organization WCO World Customs Organization iii TABLE OF CONTENTS ACKNOWLEDGMENTS ........................................................................................................................ xi EXECUTIVE SUMMARY AND ACTION MATRIX ......................................................................... xiv Revised and Updated DTIS Action Matrix .......................................................................................... xxvi Chapter 1: A low income country in need of structural reform ................................................................. 1 1.1 Background: A low-income economy with abundant natural resources making a transition to stability and economic recovery ................................................................................................................ 1 1.2. Competitiveness ................................................................................................................................. 4 1.3 DTIS implementation: limited progress on an ambitious agenda ....................................................... 8 Appendix. 2003-2006 Action matrix implementation scorecard ............................................................ 16 Chapter 2. Leveraging trade for growth and poverty alleviation ............................................................... 18 2.1.Introduction ....................................................................................................................................... 18 2.2. A trade basis in need of broadening ................................................................................................. 18 2.3.Challenges of trade policy ................................................................................................................. 31 2.4. Recommendations ............................................................................................................................ 45 Chapter 3. Customs reform in Guinea ....................................................................................................... 47 3.1. Background ...................................................................................................................................... 47 3.2. Current performance of Guinean customs ........................................................................................ 47 3.3. Main challenges of customs in Guinea ............................................................................................. 51 3.4. Moving forward with customs modernization in Guinea ................................................................. 55 Chapter 4. Streamlining transport for trade ............................................................................................... 59 4.1. Introduction ...................................................................................................................................... 59 4.2 Conakry port ...................................................................................................................................... 60 4.3. Roads ................................................................................................................................................ 65 4.4. Transit to Mali .................................................................................................................................. 69 4.5. Railway transport ............................................................................................................................. 71 iv 4.6. Other means of transport .................................................................................................................. 73 Chapter 5. Agriculture ............................................................................................................................... 75 5.1 Introduction ....................................................................................................................................... 75 5.2. Strengths and weaknesses of the main agricultural sectors in 2013 ................................................. 77 5.3. The challenges ahead ........................................................................................................................ 94 5.4. Conclusions and recommendations .................................................................................................. 99 Chapter 6. Services .................................................................................................................................. 103 6.1. Introduction .................................................................................................................................... 103 6.2. The state of services trade integration in Guinea ........................................................................... 104 6.3. Services trade perspectives and recommendations......................................................................... 110 APPENDIX ........................................................................................................................................... 125 References .....................................................................................................................................................
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