Investing Guinea 2019
Total Page:16
File Type:pdf, Size:1020Kb
DOING BUSINESS IN AFRICA GUINEA 2019 Potential for positive economic outcomes Infrastructure, mining, agriculture, trade, housing, urban development and more – 60 years after its independence, guided by an ambitious development plan, Guinea is putting its potential into play across all key sectors of its economy. This sends a positive message to investors, while also generating resources and jobs. CONTENTS ECONOMY AND BUSINESS SERVICES ENVIRONMENT 8 OUTLOOK Mining and services back on track 42 HOSPITALITY Conakry catches up 14 BUSINESS ENVIRONMENT Business climate change 20 INTERNATIONAL All-round diplomacy 24 FOREIGN TRADE Port traffic boosted by mining 46 BANKING AND FINANCIAL SERVICES Diversification bodes well for the future INFRASTRUCTURE 48 ICT Guinea 2.0 Mentoring young entrepreneurs 52 REAL ESTATE AND CONSTRUCTION TRANSPORT 26 Build 120,000 homes Energy and logistics pick up the pace SOCIETY 56 ENTREPRENEURSHIP Incubators: bringing an idea to life SMB 60 AGRICULTURE AND AGRIBUSINESS Agriculture is a true engine of growth 30 PORTS The Port of Conakry, a West African giant in 66 EDUCATION the making Teachers seeking schools 32 EXTRACTIVE INDUSTRIES 68 HEALTH Bauxite spearheading mining Strengthening the health system The Boké Mining Company leaves 70 YOUR TRIP nothing to chance Choosing your hotel in Conakry Excursion 38 ENERGY Guinea’s hydroelectric dreams come true 72 USEFUL INFORMATION / 3 4 \ The Autonomous Port of Conakry is undergoing unprecedented expansion. VINCENT FOURNIER/JA / 5 GUINEA IN NUMBERS Location Savanes Investment/business indicators Macroeconomic indicators (%) Boké Labé 2016 Guinea enjoys a strategic geographical position Mamou 8.5% $594 Faranah Kankan $8.48 $683,50 Kindia 6.7% million in the heart of ECOWAS billion and shares 3,400 km of borders 2020 with Côte d'Ivoire, Guinea-Bissau, Nzérékoré (est.) Liberia, Mali, Senegal and Sierra Leone. 2016 Investment rate: With its 320 km long coastline, the country is €21.7 billion Pledges registered by Guinea 25.2% of GDP $1.341 a potential maritime outlet for its landlocked neighbours. Almost four times billion to finance its National BANK, IMF SOURCE: WORLD Foreign exchange Economic & Social more than Real growth Inflation rate Nominal GDP GDP/capital reserves Development Plan the year before (PNDES) 2020 2019 SOURCES : PNDES, APIP, BANQUE CENTRALE DE LA RÉPUBLIQUE DE GUINÉE SOURCES : PNDES, APIP, 7.7%* General indicators Business environment indicators Increasingly strong growth 7.3%* 2013 Population Life expectancy 2014 2015 * According to Guinean 12.4 million 61 years 3.9% 3.7% 3.5% government estimates taking into account the PNDES priority projects SOURCE: IMF Foreign direct +25 Area Average age 8,793 72 hours investment: Places in the “Doing 2 companies founded in 2017 The time it takes Trade still in pole position (PIB en 2016) 245,857 km 17.3 years Business” rankings at the Investment Single $1,668,8 million to set up a company almost twice as much as between 2013 and 2018 Trade Extractive industries Public administration Agriculture Window, against Livestock, hunting, fishing, fish farming, forestry Market services Population Fertility rate 3,037 in 2014 in the previous four years Manufactured goods Taxes Construction Transport growth rate 4.8 children Non-market services Other Food products Electricity, gas, water 2.5% per woman of childbearing age 3% 4% 2% 1% 4% 19% Gross reproduction Birth rate Non-mining sector rate 38.7 / 1,000 5% revenues Mining sector 2.4 people 3.5/6 29 days 8,614.6 revenues The World Bank's CPIA The time it takes 7% billion 2,320 billion economic management to get a building 13% Mortality Child mortality rate Guinean Guinean score for Guinea in 2016, permit 7% rate 76.4 / 1,000 francs francs up from 2.3 five years earlier live births GUINEA ANNUAL, STATISTICS SOURCE : NATIONAL 10.6 / 1,000 COOPERATION OF PLANNING AND INTERNATIONAL SOURCE: MINISTRY 8% 10% Air links from Conakry 8% 9% Dakar Abidjan Casablanca Paris Addis-Ababa 1h25 1h50 3h35 8h30 9 hours 6 \ Location Savanes Investment/business indicators Macroeconomic indicators (%) Boké Labé 2016 Guinea enjoys a strategic geographical position Mamou 8.5% $594 Faranah Kankan $8.48 $683,50 Kindia 6.7% million in the heart of ECOWAS billion and shares 3,400 km of borders 2020 with Côte d'Ivoire, Guinea-Bissau, Nzérékoré (est.) Liberia, Mali, Senegal and Sierra Leone. 2016 Investment rate: With its 320 km long coastline, the country is €21.7 billion Pledges registered by Guinea 25.2% of GDP $1.341 a potential maritime outlet for its landlocked neighbours. Almost four times billion to finance its National BANK, IMF SOURCE: WORLD Foreign exchange Economic & Social more than Real growth Inflation rate Nominal GDP GDP/capital reserves Development Plan the year before (PNDES) 2020 2019 SOURCES : PNDES, APIP, BANQUE CENTRALE DE LA RÉPUBLIQUE DE GUINÉE SOURCES : PNDES, APIP, 7.7%* General indicators Business environment indicators Increasingly strong growth 7.3%* 2013 Population Life expectancy 2014 2015 * According to Guinean 12.4 million 61 years 3.9% 3.7% 3.5% government estimates taking into account the PNDES priority projects SOURCE: IMF Foreign direct +25 Area Average age 8,793 72 hours investment: Places in the “Doing 2 companies founded in 2017 The time it takes Trade still in pole position (PIB en 2016) 245,857 km 17.3 years Business” rankings at the Investment Single $1,668,8 million to set up a company almost twice as much as between 2013 and 2018 Trade Extractive industries Public administration Agriculture Window, against Livestock, hunting, fishing, fish farming, forestry Market services Population Fertility rate 3,037 in 2014 in the previous four years Manufactured goods Taxes Construction Transport growth rate 4.8 children Non-market services Other Food products Electricity, gas, water 2.5% per woman of childbearing age 3% 4% 2% 1% 4% 19% Gross reproduction Birth rate Non-mining sector rate 38.7 / 1,000 5% revenues Mining sector 2.4 people 3.5/6 29 days 8,614.6 revenues The World Bank's CPIA The time it takes 7% billion 2,320 billion economic management to get a building 13% Mortality Child mortality rate Guinean Guinean score for Guinea in 2016, permit 7% rate 76.4 / 1,000 francs francs up from 2.3 five years earlier live births GUINEA ANNUAL, STATISTICS SOURCE : NATIONAL 10.6 / 1,000 COOPERATION OF PLANNING AND INTERNATIONAL SOURCE: MINISTRY 8% 10% Air links from Conakry 8% 9% Dakar Abidjan Casablanca Paris Addis-Ababa 1h25 1h50 3h35 8h30 9 hours / 7 ECONOMY AND BUSINESS ENVIRONMENT OUTLOOK Mining and services back on track Confronted with a serious health crisis and a decline in the cost of raw materials, Guinea has proved its resilience. Its recovery will consolidate the investments planned under the National Economic and Social Development Plan. ince 2010, the Guinean government has strived to restore normality to Sthe national political context while stabilising the macroeconomic environment, in close cooperation with the IMF. Before reaping the benefits of its efforts, the country had to face the consequences of the Ebola epidemic – officially over in the country by June 2016, according to the WHO – and policy. According to the Guinean govern- Growth up then the decline in mineral prices on the ment, it fell to 6.5% in 2017 and is estimated to 6.6% by world market. By 2016, growth was at 6.6%. to have fallen to 4.8 % in 2018. It even reached 6.7% the following year, 2016. well above the sub-Saharan average. This Partners came to the party rebound can be linked to the stronger-than- The National Economic and Social expected increase in mining production, Development Plan 2016-2020 (PNDES), a due to the start-up of new projects, better tool for implementing the government’s agricultural yields and improved electricity Vision 2040, will intensify this momentum. production. Inflation, which is still above Based on four pillars – governance, economic sub-regional norms (at just over 8%), has transformation, human capital develop- nevertheless been dropping since 2010 and ment and sustainable resource management contained thanks to the relative stability of – it advocates stepping up investment in the exchange rate and a prudent monetary infrastructure, as well as in the productive 8 \ Katougouma mineral port, Boké mining company. economy. When Guinea’s technical and $650 million per year, in addition to other financial partners met in Paris in November financing already identified in the 2017-2020 2017, they showed their support for this pro- three-year plan. gramme by pledging a total of $21.7 billion (€18.4 billion). Conakry can also count on Tertiary sector leads the way the support of China, with whom it signed Accounting for 18% of GDP in 2016, the pri- a $20 billion 20-year investment agreement mary sector employs the largest number of 18% in September, again for the strengthening of Guinean people, particularly in agriculture. Primary sector its infrastructure development (see inter- While growth was moderate in 2016 (+3.1%), contribution to GDP. view with the Minister of Planning, p. 12). it is expected to reach 4% per year by 2020. In 2017, Guinea signed a second Extended Despite being the lowest on average, this Credit Facility (ECF) programme with the sector’s contribution to the national eco- IMF, the first one having been signed in nomy is the most stable. The secondary sector, 2012. It thus has non-concessional loans of which contributed 28% of GDP in 2016, is ➙ / 9 ECONOMY AND BUSINESS ENVIRONMENT OUTLOOK Agriculture is still the sector that employs the biggest number of Guinean people. ➙ largely dominated by the extractive sector (13% of GDP), led by bauxite and gold, which makes up nearly 80% of the value of Guinean exports.