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GUINEA agreements that exist with private companies so that investors retain the right to recover their capital, while the country improves its conditions. “We need to face our partners and discuss the situation, calmly but firmly, so that we improve our revenues and better secure the investment of those who have chosen to invest here. We need to reinforce the management of the country and improve the living conditions of the people,” notes the Secretary-General of Mining and Geology, Elhadj Alimou Diallo.
A new mining code The Ministry is currently updating its mining code, to this effect, to guarantee investments and assure local partnerships. “The government is currently in the process of restructuring and will dedicate itself to all sectors to promote the image that Guinea can be an attractive country in which to invest,” says Diallo. “Chinese mining companies have been extremely proactive,” he says. “They came here fairly recently, but they came with a lot of energy and strength and because of our interest, I think we can work with them very well on a long-term perspective. We are looking for win-win solutions. We are suffering from under-employment, so we need to train our staff. We have a lot of young people who walk out of school each year without a job. They need training. These are the priorities that must be met to avoid a social crisis. “We need our investors and we are happy they are here, but we do not want to be used as a provider for the whole world. We need to move forward from selling raw material and get added value on our products. We need an immediate transformation, something that will not only enable us to improve the country’s workers and society’s revenues, but also train more people to create jobs. We need partners that will go along with us and accept the risk, who will trust us and sit down with us to discuss conditions. They bring their money and we provide our mines. Everybody must be satisfied and everybody must profit.” Another pressing challenge is transport. Many of the road and rail networks are in a state of disrepair, and parts of the country are hard to access due to a shortage of infrastructure. Air services are also in short supply, although, as Minister of Transport Boubacar Sow points out, the Republic of Guinea benefits from the Yamoussoukro Decision—a treaty adopted by all member states of the African Union in 2005 to allow free access of air traffic between member states and so allow Africa a more prominent position in the global aviation industry.
“We are putting policies into place that could make this nation a prosperous one by 2015.” Dr. Ousmane Doré, Minister of Economy, Finance and Planning.
Ministry of Economy, Finance & Planning, Conakry, Guinea.
the country in 2007 are likely to see the construction of a new heavy duty standard gauge railway and deepwater port. The French Development Agency, Germany’s KfW Bank Group and the European Investment Bank recently approved a €42 million port upgrade and expansion. Citing the Port of Conakry as the lung of the country’s economy, the Transport Minister is obviously delighted. “Each partner will finance up to €12 million and the Autonomous Port of Conakry will contribute the remainder,” he says. “Work will start in November this year, and the harbor will be deepened to 14 meters.” However, with less than 10% of the country’s roads paved, Sow recognises that the road sector is the most urgent one to address. An urban transport company is also needed. Thanks to a study sponsored by the World Bank, Guinea will acquire 100 new buses in October. The company will be privately managed in a joint venture between the State and the private sector. “We also need private partners to organize train transportation between Conakry and a dry port for storage 40 kms away. We are offering a build, operate and transfer package, for the transportation of containers, waste and passengers. Studies have shown it will be a profitable operation, which will eliminate the need for big trucks to cross the city and therefore cut down on traffic. A free zone is also planned for the future.” Finally, the Minister says, China should have faith in Guinea. He says: “We are a dynamic country and we cannot go backwards. The people are aware of it, and so our development partners. Guinea is a virgin country and the potential is there. Reforms have already started that will guarantee more FDI and soon, there will be no reason not to see a return on investment.”
Foreign relations Minister Sow says: “We have aerial agreements with all our neighbor states which means we benefit from free circulation of goods and people into our country.” In the railways, U.K./Australian exploration and mining giant Rio Tinto, which has won a major concession to develop the Simandou iron ore project, is financing a feasibility study for a rail-road from Conakry to Niger, which, if it goes ahead, will position Conakry as a port hub for West Africa, but especially serving the landlocked Mali hinterland. Currently, more than 100 million tonnes of minerals are carried in freight, but the line will be less than 300 kms from Bamako, Mali’s capital and therefore a serious contender for the region. Construction is expected to begin in 2010. Development of iron ore deposits at Simandou in the south east of
Guinea has played an active part in efforts involving regional integration and cooperation, especially the African Union and the Economic Community of West African States (ECOWAS). It takes its role in various international organizations seriously and participates actively in the decision making process. The country has good relations with its West African neighbors and has taken part in both diplomatic and military efforts to resolve conflicts in Liberia, Sierra Leone and Guinea-Bissau, sending peacekeeping forces to all three countries. It has also provided a place of refuge for more than 700,000 inhabitants from its beleaguered neighbors. Now, the country really wants to take its place on the world stage and investors can be assured, that despite the challenges, the Republic of Guinea is taking significant steps in the right direction.
Ministry of Economy, Finance & Planning B.P 579, Conakry, Guinea. Tel: +224 30 45 17 95 Fax: +224 30 45 46 52 www.finances.gov.gn
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