Research and consulting in Guinea

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Research and consulting in Guinea

Country overview:

IOA has been a long-time provider of research and consulting services on all aspects of commerce and life in Guinea. Our analysts have assessed the gap between Guinean’s poverty and the country’s mineral wealth, which could potentially make the country one of Africa’s richest. In 2024, the economy will surpass US$ 22 billion, a 200% rise in 20 years. Political uncertainty continues, hindering national development needed to upgrade poor infrastructure. A return to civilian rule was scheduled for 2024, but has thus far failed to materialise, something which could serve as a flashpoint for further political unrest in the near future.

Despite these hindrances the country’s vast mineral reserves mean it is still set for significant growth in the near future. Besides exporting small amount of gold and diamonds, the country is best known for its role as a major global contributor of bauxite, a mineral which is used as the precursor to aluminum. In 2025, this will be further augmented by the opening of the Simandou mining complex which will render the country a world leading supplier of iron ore.

Key opportunities in Guinea:

  • Guinea holds 4 billion tonnes of high-grade iron ore ideally suited to steelmaking
  • The country is the world’s largest bauxite exporter and holds 23% of the world’s bauxite reserves
  • Guinea’s fishing industry has room to grow, and tourism can take root

Key concerns/risks in Guinea:

  • The lack of economic freedom hinders economic growth in the country
  • Workers are underpaid, and more than 40% of Guineans live below the poverty line
  • Government corruption is worsening, as is environmental degradation
Guinea

Tips on doing business in Guinea:

Starting a business:

  • Foreigners may have full ownership of any local enterprise, except for media companies. Additionally, foreigners can acquire property through purchase, though this in effect only grants the buyer a leasehold and not full ownership
  • A popular form of legal entity used by foreign investors domestically is the Guinean Limited Liability Company (SARL). This type of entity requires at least 1 shareholder and 1 director of any nationality who can be either an individual or a corporate body. Individuals involved must not be Guinean

Doing business:

  • The country is known for its corruption and inefficient bureaucracy, which are widely considered the biggest obstacles to local business operations
  • The Guinean government has indicated its willingness to become more investor friendly and encourage FDI but little progress has been made outside of favourable one to one negotiations with individual mining companies
  • The country is not a signatory to investment or free trade deals with the US, EU or the local ECOWAS region, though it does have such ties to other African states, Turkey, the UAE and Switzerland amongst others

Culture and society:

  • As an Islamic country, local cultural mores lean towards the formal
  • Women are advised to wear headscarves and foreigners should take care not to cause religious offense
  • French is the local lingua franca, though a small number of professionals educated abroad also speak English. The border area with Mali should be avoided owing to the risk of incursions of Islamist militants from neighbouring Mali, who have been known to engage in kidnapping

A sample IOA research report on Guinea: