Doing_Business_In_Guinea_2019_US

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2019 EDITION

Guinea Mines, agriculture, energy, services: finally capitalizing exceptional development opportunities

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Table of Contents 2|3

Table of Contents

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Publisher: Planet Médias 77 rue du Faubourg Saint Denis 75010 Paris - France Tél.: (+33) 1 80 91 61 94 Fax: (+33) 1 80 91 61 95 contact@doingbusinessin.fr www.doingbusinessin.fr Publication Manager: Dany Laloum Chief Editor: Fahim Djebara Editor: Laurent Pointier Translator: Tilly de Hes Technical Director: Céline Devaux Art Director: Jean-Philippe Doutaud Advertisement: Dany Laloum Chloé Pham Van Hoa - Eric Laloum Printed in Europe

Agence de promotion des investissements privés (APIP-Guinée) 252 rue Ka 022 - BP 2024, Boulbinet Conakry - République de Guinée Tel.: (+224) 656 31 11 14 / 656 31 11 13 info@apip.gov.gn www.apip.gov.gn · Managing director: Mr Namory CAMARA · Director of the One-Stop Shop: Maténin Kourouma · Director of Business climate improvement: Lamine Solano · Project Coordinator: Céllou Barry · Director of Business Support: Yolande Challoub · Director of Communication and Marketing: Biro Kaba · Regional Antennas Coordinator: Amadou Bah

#1 GUINEA ON THE MARCH • Pan-african heritage at independence >>> • The mining sector spearheads the export markets >>> • The economic and macroeconomic situation: is guinea bouncing back? >>>

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# 2 AN ENABLING BUSINESS ENVIRONMENT • Seven reasons to invest in Guinea >>> • PNDES: a framework for Guinea’s economic restructuring >>> • Corporate taxation >>> • Key reforms to improve the business environment >>> • Stronger governance since 2010 >>> • Role of the private investments promotion agency (APIP-Guinea) >>> • New investment codes >>> • Stronger framework for public-private partnerships >>>

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#3 ON THE ROAD TO DIVERSIFICATION • Transportation: bringing out the economic potential of Guinea >>> • Modernization of conakry port infrastructure and management >>> • Guinea, the water tower of west Africa >>> • Focus on cash crops >>> • Business and conference-related tourism outrank holiday tourism >>> • Telecommunications: Guinea increasingly connected >>> • A more stable and dynamic banking sector >>>

52 56 58 62 68 72 74

#4 - ABUNDANT MINERAL RESOURCES • Mines: to bolster the guinean economy >>> • How to better develop and share strategic infrastructure >>> • Major reforms in the mining industry >>> • Local content, mineral processing and building up human resources >>>

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#5 - EVERYDAY GUINEA • Where to stay in Conakry >>> • Living in Conakry >>> • Conakry at a glance >>> • Practical information >>> doingbusinessin Guinea | 2019 Edition

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Alpha CondĂŠ, President of the Republic of Guinea

doingbusinessin Guinea | 2019 Edition

years has been closely connected to our flourishing mining sector and our

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growing agricultural sector, although the global economic context has also

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We see clearly that our country’s robust economic growth over the past two

contributed. The trend is also the result of steady reform measures over the last nine years aimed at improving the business environment and attracting national and international investors. The Ebola outbreak and the drop in world prices in the mining sector in 2014 did not change anything: Guinea’s economic transformation is well on its way. We have shortened the time needed to establish a business and to obtain a construction permit. One-stopshops, the enabling investment code and revisions to our sectoral codes have made conducting business easier than ever before.

We are very satisfied with the strength of our mining sector. But we know that it alone cannot drive our economic growth indefinitely. In order to create wealth and jobs, Guinea has developed ambitious programs in agriculture, agro-industry, livestock production, fishery, energy and trade, thanks to its hydropower potential, its fertile soil and its strategic position in West Africa.

The country is also increasing its investments in transportation infrastructure and encouraging the development of information and communications technology, as well as tourism.

To finally make our immense economic potential a reality, we have drawn up the 2016-2020 National Socio-Economic Development Plan with an inventory of priority actions. We will be implementing these actions thanks to our technical and financial partners, our own resources, and private operators who choose to seize this opportunity to come and grow with us.

#1 doingbusinessin Guinea | 2019 Edition

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GUINEA ON THE MARCH • Pan-african heritage at independence >>> • The mining sector spearheads the export market >>> • The economic and macroeconomic situation: is Guinea bouncing back? >>>

doingbusinessin Guinea | 2019 Edition

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PAN-AFRICAN HERITAGE AT INDEPENDENCE For the last eight years, Guinea has been a symbol of Pan-Africanism by developing its diplomatic relations throughout Europe and Asia, thereby expanding opportunities for economic partnerships.

PAN-AFRICAN GUINEA, OPEN TO THE WORLD The 7 November 2010 election of Alpha Condé as President of Guinea was an indication of the return of a constitutional government after the November 2008 military coup. Guinea’s return to the African Union on 9 December 2010 ended a two-year suspension.

PRESIDENT OF THE AFRICAN UNION Alpha Condé is the first democratically elected president of Guinea since the country became independent in 1958. Under the AU system of rotating presidencies, he was President of AU between January 2017 and January 2018. During that time he strove to settle the crises in Guinea-Bissau and in

The Gambia as a mediator under the auspices of ECOWAS (Economic Community of West African States). Also during his presidency, Morocco became a member of the Union again; the process was touchy, but went smoothly.

In 1963, Guinea was one of the founding members of the OAU (Organisation of African Unity) later named the AU (African Union). During those years Guinea did not host any of the OAU bodies. This shortcoming has been rectified since July 2018, when Guinea was selected to host the headquarters of AMDC (African Minerals Development Center) whose mission is to promote the preponderant role of natural resources in the development of Africa.

doingbusinessin Guinea | 2019 Edition

Pan-African heritage at independence

(Source: National Institute of Statistic, Statistical Yearbook, November 2017 issue)

Geographic and economic indicators • 245,857 km2 • Neighboring countries: Guinea Bissau, Senegal, Mali, Côte d’Ivoire, Sierra Leone, Liberia • 4 natural regions, 8 administrative regions, 33 prefectures/urban communities (plus 5 urban communities in Conakry), 304 sub-prefectures • 6,250 Km of waterways • An estimated 6,100 MW of potential hydroelectricity production • 75% of the arable lands still available for cultivation • Close to one half of the world’s known bauxite reserves

Breakdown of 2016 GDP • Trade 19% • Mining industries 13% • Government administration 10% • Agriculture 9% • Livestock, Hunting, Fishery, Fish farming, Forestry 8% • Market services 8% • Manufactured goods 7% • Taxes 7% • Construction 5% • Transport 4% • Non-market services 4% • Food products 2% • Electricity, gas and water 1% • Other 3% (Source: Ministry of Planning and International Cooperation)

GDP per sector • Primary sector 18% • Secondary sector 28% • Tertiary sector 47% • Taxes 7% (Source: Ministry of Planning and International Cooperation)

doingbusinessin Guinea | 2019 Edition

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Population and human development indicators • P opulation: 11.23 million • L ife expectancy: 60 yrs.

• A verage age: 17.3 yrs.

• P opulation growth: 2.8% • F ertility rate: 4.8 children per woman • B irth rate: 38.7/1000 •M ortality rate: 10.6/1000 • I nfant mortality rate: 67.5/1000

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|||||||| Demographic, geographic and economic data

Pan-African heritage at independence

FRANCE, BELGIUM, ITALY …

CLOSE RELATIONS WITH EUROPE As soon as Alpha Condé was elected (2010), Guinea strengthened its relations with the EU (European Union), which had helped the country establish a constitutional government. Since 2014 Guinea has been receiving funds from the 11th European Development Fund that pledged 244 million euros for the 2014-2020 period. President Hollande of France visited Conakry in 2014 and President Condé of Guinea visited France in 2017. He was the first Guinean President to come to France on a state visit. Guinea is bonding with many countries in Europe. On 1 February 2018, for example the Belgian diplomatic representation was changed into an embassy, thus providing Enabel, the Belgian Development Agency with an opportunity to present a series of projects on entrepreneurship, urban sanitation and agriculture.

Relations with Italy had become slack since 1998 but have improved, and Conakry even received an interest-free loan of 20 million euros in 2018 to construct sanitation infrastructure.

CHINA, AN INELUCTABLE PARTNER Asia: a huge investment agreement was signed in September 2017 with Beijing, an ineluctable partner in Asia. The agreement calls for a 20-billion dollar investment in infrastructure over a period of 20 years. It will be paid back through mining concessions granted to Chinese operators. Guinea has also increased its relations with India, Turkey as well as Japan after President Condé paid a state visit to Tokyo in June 2017. JICA (the Japanese International Cooperation Agency) has announced that it will open an office in Conakry and participate in the implementation of the 2016-2020 PNDES (Guinea’s national socio-economic development plan)

doingbusinessin Guinea | 2019 Edition

OUR VALUES

■ ■ ■ ■ ■

Respect for commitments Customer orientated Innovation Reactivity Simplicity

Automobile insurance Goods in transit insurance Fire insurance Dwelling package Policy Builder’s risk insurance Crop insurance Accident insurance Travel accident insurance Health insurance Life insurance

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A relation built on trust

Interview

Jean-Marc Grosgurin, French Ambassador to Guinea

Interview

FRANCE REMAINS A MAJOR PLAYER IN THE GUINEAN ECONOMY” Jean-Marc Grosgurin was appointed Ambassador from France to the Republic of Guinea on 26 July 2016. Since September 2014, he had been French Ambassador to Yemen, first living in Sanaa, then in Riyadh, Saudi Arabia.

What does France represent to the Guinean economy?

France has remained a key player in the Guinean economy. French entrepreneurs are developing business activities with high added value, especially in the fields of control and expertise (Bureau Veritas, Tractebel), construction and public works (Sogea-Satom, Leduc, Colas, Matière), banking (Société Générale, BNP Paribas), airports (Bolloré), telecommunications (Orange), transport (CMA-CGM, Air France), pharmaceuticals (Laborex), gas and oil (Total), and the agri-food industry (Castel, Nutriset). In the work plans of the French private operators a

significant amount of activities are connected to their social and environmental corporate responsibility as well as training of local workers.

France exports mainly pharmaceutical products (28%) and electrical, electronic and computer equipment (28%), and imports mainly minerals (88%)1. The value of foreign direct investment amounted to 105 millions euros in 2016 with 29 subsidiaries earning between 600 and 700 million euros in areas that employed between 2,500 and 3,000 workers, mainly local workers2.

How is the French business network organized in Guinea?

In 2018, a survey showed that more than 160 French companies were conducting business in Guinea. In June 2018, following the 2018 Business Forum – which the Embassy actively supported – the French investors club in Guinea (CIFEG) was created. The club is aiming to become the leading platform for contacts among French companies in Guinea, whether they are already established, or still studying the market. It will be an opportunity to share good practices, hold sectoral and theme-specific meetings, and share information on business opportunities. The private business network is also supported by the French foreign trade advisers (CCEF - conseillers du commerce extérieur de la France), and by some 15 company directors who represent their profession and share information on the country’s business environment. In addition to these business networks, 1) Source: French customs 2) Source: Banque de France/SER Abidjan

doingbusinessin Guinea | 2019 Edition

Guinea also receives financial support from French funders. The French Development Agency (AFD) has an office in Conakry.

In Paris, in November 2017, it pledged 477 million euros, of which 319 million was allocated for the year 2018-2020 through the PNDES, Programme national de développement économique et social (the national program for economic and social development). For 2019, the AFD commitment should be 130 million euros.

Furthermore, the BPI (Banque publique d’investissement) is helping French exporters with their insurance credits, thereby especially encouraging the creation of infrastructure projects.

Have recent changes in the business environment contributed to increasing the interest of French investors and entrepreneurs?

On the whole, Guinea has become more attractive. The Quantum Global Study, which assesses African countries’ attractiveness for international investments, compared the figures for 2016 with those of 2013, 2014, and 2015. The study showed that Guinea is number 8 out of the 24 countries that have become more attractive. The main lever of growth is the mining sector, particularly bauxite. This thrust can be traced especially to the introduction of a legal framework that promotes investments by ensuring a certain legal and financial stability for Guinea’s business partners. The APIP, l’Agence de promotion des investissements privés (Private Investments Promotion Agency), the mining code, the trade court for the special zone in Conakry, together with the stable currency exchange and inflation rate, all contribute to improving the business environment in Guinea, although much remains to be done.

In which sectors are French entrepreneurs most active and to what extent does the French Embassy contribute to promoting the investment opportunities and objectives contained in the PNDES? France is active in many sectors. In cell phone services, Orange is the market leader in Guinea. Total is the main oil and gas distributor for land and aerial vehicles. Laborex is number 1 in the distribution of medicines and accounts for more than one-fourth of France’s exports to Guinea. Canal+ is the main distributor for cable transmission. On 16 and 17 November 2017, Paris hosted the consultative group’s conference on the Plan national de développement économique et social, (National economic and social development plan, PNDES) which brought together Guinea’s present and potential technical and financial partners. More than 21 billion dollars were pledged at this event, far more than the government had hoped for, and funding was provided for close to 50 infrastructure projects in the country. France thus committed to the implementation of several projects, totaling 501 million euros.

Furthermore, the Embassy take action to inform the French business community of opportunities put forth in the PNDES. It is now up to the Guinean authorities to establish and run the coordination bodies provided for in the PNDES and to propose detailed and operational projects to the funders. Lastly, the Embassy is working closely with AFD to better inform institutional and private partners about PNDES and the investment opportunities and goals it represents

doingbusinessin Guinea | 2019 Edition

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Interview

THE MINING SECTOR SPEARHEADS THE EXPORT MARKET Bauxite and gold sales in 2017 enabled Guinea to practically double its export revenue and, at the same time the mining industry bought less equipment, thereby reducing the cost of imports.

The Guinean trade balance registered a profit of US $1,110.01 million while just a year before there was a deficit of US $2,015.91 million. The coverage rate, as was logical, rose from 54.51% in 2016 to 131.86% in 2017.

VALUE OF EXPORTS DOUBLED Much of the growth comes from the large increase in total FOB exports (FOB plus the costs of transport to the national border) which rose to US $ 4,594.06 million in 2017 compared to $ 2,414.35Â million in 2016. The value of agricultural, fishery and forestry products rose from US $80.89 million in 2016 to $194.04 million in 2017. But it

was the mining industry (mainly bauxite and gold) that produced the steep rise in export revenue in Guinea.

The volume of bauxite exports rose from 20,897.29 million kilos in 2016 to 47,133.59 million kilos in 2017. Bauxite is Guinea’s main mineral ore and is used in producing aluminum; the value of exports jumped from US $882.99 million in 2016 to $1,888.40 million in 2017. The volume of gold exports rose from 29.96 million grams in 2016 worth US $1,111.17 million to 45.09 million grams in 2017 worth $1,692.46 million.

doingbusinessin Guinea | 2019 Edition

GUINEE

AMA Guinée

“A combination of port, airport and logistic expertise for Shipowners, mining and industrial Companies in Guinea”

SHIP AGENCY PORT HANDLING LOGISTICS SPECIALIZED TRANSPORT: MINING AND INDUSTRIAL PROJECTS GUINÉE

Immeuble GETMA - AFRICA PORTS & AIRPORTS Cité chemin de Fer, Immeuble Kassa, BP 1648, Conakry I, République de Guinée Cell: 00 (224) 628 68 47 00 - 00 (224) 631 35 62 35 • Email: info@amaguinee.com doingbusinessin Guinea | 2019 Edition www.africa-port.com

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Maritime Agencies Maritime Agencies

GETMA

The mining sector spearheads the export market

A DROP IN IMPORTS The total value of FOB imports amounted to US $3,484.05 million in 2017 compared to US $4,429.44 million in 2016. This decrease can be traced to the sharp drop in the purchase of industrial equipment, (especially for mining vessels, floating cranes, tug boats and food products (rice, milk, meat, fruit juices, butter, etc.) The value of the

imported industrial equipment decreased from US $2,186.48 million in 2016 to US $ 676.28 million in 2017 and for foodstuffs, the cost of imports dropped from US $616.70 million in 2016 to US $425.41 million in 2017. In 2017 the European Union was the leading source of Guinean imports (40.45%), followed by Asia (20.87%), ECOWAS countries (14.57%) and the Americas (9.10%)

|||||||| Value of FOB exports per main destination zone (US $ millions) 2013 Asia European Union ECOWAS American continent

2015

2017

92.77

544.78

3,062.01

797.49

469.10

150.40

61.61

380.86

145.56

109.60

124.46

71.88

Eastern Europe

63.32

48.21

47

EFTA countries

459.45

25.51

30.31

Central Africa

0.25

0.71

10.29

Maghreb

2.33

3.65

7.46

Arab countries

4.34

7.88

5.53

295.10

175.99

1,063.61

1,886.26

1781.15

4,594.06

Other TOTAL Source: BCRG/DGES/DSBP and DGD

doingbusinessin Guinea | 2019 Edition

DJOMA GROUP YOUR BUSINESS PARTNER Originally created to import and distribute merchandise, the Djoma Group now does business in real estate, mining, logistics and the media.

In 1989, at age 24, Kabinet Sylla, a native of Siguiri, in the district of Djoma created a company to distribute oil products (Wolf Oil Corporation, lubricants), then added tires, plant-based health products, caustic soda, (Bayer, ICI, Solvay) and even textile goods.

30 years of experience In 2010, the company changed its name to BMI (Business & Marketing International), the first step in the creation of a multisectoral holding company called the Djoma Group. Despite diversification into logistics, mining and media, its basic values remained the same: professionalism, performance, attentiveness, safety and innovation BMI BMI is the foundation stone of the Djoma Group that added real estate and specialized in several sectors that were complementary to the other subsidiaries in the holding company. BMI, to be more specific, has the technical capacity and manpower needed to constitute a unique partner in the construction business, import/export sector, and transactions (representation and distribution of industrial and commercial products).

Djoma Logistique In 2016, a new subsidiary called Djoma Logistique was created in the Boké corridor in response to the mining boom. It offered Djoma clients a 6 ha logistics base in Kolaboui with a fleet of 200 dump trucks, semi-tippers and tow-trucks as well as a +400 m² warehouse. Colas, GAC, UMS, BAM-Alufer and CDM China have already used their services. Djoma logistique is a fast-growing subsidiary that plays a role in industrial, commercial and oil-related logistics to the tune of 50 billion Guinean francs in sales in 2017, and 16,000 transports of a million tons of aggregates.

SOON ON YOUR SCREENS In 2016 the Djoma Group created Djoma Media which plans to launch radio and television channels by 2019 to promote peace and national unity through programs that project the Guinean culture, traditions and national languages.

Cité chemins de fer - Immeuble Labe Kaloum, Conakry +224 627 12 35 35/666 12 35 35 info@djomagroup.com - http://www.djomagroup.com

doingbusinessin Guinea | 2019 Edition

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Djoma Mining In 2013, the Djoma Group created Djoma Mining, a subsidiary that has a permit to explore for gold and minerals in a 100 km² area of the rich Birimian gold deposits in the Siguiri basin. Djoma Mining plans to invest in the development of environmentally-managed mining and harmonious coexistence with the communities living along the rivers. The Group provides services by carrying out studies, geological prospecting, and the marketing of diamonds, gold, precious gemstones and ferrous metals.

THE ECONOMIC AND MACROECONOMIC SITUATION: IS GUINEA BOUNCING BACK? The mining sector drives the strong Guinean growth. with support from PNEDES to develop infrastructure and diversify the economy No sooner had Guinea recovered from the political crisis stemming from the 2008 military coup when Ebola fever struck the country (2014 to 2016) and the world prices for Guinea’s mineral ore export plummeted. These events would have knocked out many a country, but not Guinea which stood up to the challenge by continuing its institutional reforms and balancing its accounts. Many things are not perfect, but positive results are clearly visible.

The country is beginning to harvest the fruits of its efforts and will be able to do even better thanks to the 2016-2020 PNDES (national socio-economic development plan).

The corrected 2016 growth rate, with more than 3 percentage points above IMF forecasts reached 10.5% compared to 3.8% the preceding years.

This figure is well above the average for Africa.

The estimate for 2017 is 8.2%. Inflation is slightly above the norm for the sub-region (slightly over 8% but has been steady and going down since 2010).

doingbusinessin Guinea | 2019 Edition

SIMACO ENGINEERING, from urban sanitation to the mining industry. a company in full swing Yéro Sidibé is the CEO of Simaco Engineering, a company founded in 2003 and originally focused on urban road management and the restoration of areas polluted by waste, as well as construction, maintenance and renovation of public buildings and paved roads. Since that time, it has evolved to position itself as a developer of mining projects.

What services does Simaco Engineering provide in the field of sanitation?

Simaco feels that this activity is a matter of public interest, since garbage collection in the main waste deposit areas is a major issue. We worked with the Satarem company on sanitation in Conakry in 2013 during the Ebola epidemic and know that our collaboration helped contain contamination and break the disease transmission chain in certain outbreak areas. And when we participated in the construction of a water purification facility for the Société des eaux de Guinée (SEG), our company built up a reputation for local-level corporate social responsibility.

Does Simaco now work in the mining sector?

During the last few years SIMACO has been active in mining development through sub-contractors. We worked with ASHAPURA GUINEA RESOURCES on bauxite drilling, blasting, and extraction and even transportation from the quarry to the export location.

This new focus enables us to enjoy a position in a sector where local enterprises usually play a secondary role.

Does Simaco Engineering have projects that would be eligible for this type of support?

We would like support with machinery purchases that will enable us to repair degraded asphalt roads at a low cost. Our company would also like to develop a preferred partnership with services of the Ministry of Mines and Geology, such as Soguipami, the Guinean mining assets company (Société guinéenne de patrimoine minier) and CPDM, the Mining promotion and development centre (Centre de promotion et de développement miniers) and also with services of the Ministry of Public Works through its road maintenance department, in order to obtain access to mining operations without sub-contracting. Much has been done already, and I would like to thank our institutional partners, especially the government that promoted the emergence of an investor-friendly business environment by adopting the PPP law and creating a ministry in charge of public-private partnerships.We would also like to thank Soguipami for its help in our work with Ashapur in the exploration of a bauxite quarry, under the auspices of the Ministry of Mines and Geology, as well as our technical and financial partners such as the Société générale des banques en Guinée, Orabank, Ecobank and other local banks that back us.

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So you have great ambitions for local enterprises?

State intervention in certain fields should facilitate the growth of local business firms, which are the levers of national economic development and, as in Nigeria, it is important in Guinea to help the upcoming generation prepare to take over the national economy. With this in mind the government should continue to support efforts made by our companies to move away from sub-contracting by acquiring the necessary skills, by obtaining funding from financial institutions and national and international subsidies, and by establishing public-private partnerships (PPPs).

Economic and macroeconomic situation, is guinea bouncing back?

ECONOMIC DIVERSIFICATION Since 2016 the strong growth has been buttressed by the development of the mining sector and the worldwide increase in the price of mineral ore. This has created a certain dependence on the mining sector, although agriculture, electricity, and even manufacturing also contributed. Close to 80% of the external revenue came from mineral ore in 2017, mainly bauxite (41%) gold (37%).

To become less dependent, Guinea counts not only on revenue from the mining sector but also on the US $ 21.7 billion PNDES funding intention signed in Paris. The authorities want to use this funding to develop national infrastructure and the productive economy, especially agriculture that creates more jobs than the mining sector.

THE INTERNATIONAL COMMUNITY AGREES TO THE PLAN To implement its ambitious policy, Conakry can rely on support from China; Conakry and China signed a 20-year 20 billion dollar agreement last

September 2017. Guinea can also rely on the IMF having signed the first ECF (Extended Credit Facility) program in 2012 and the second one in December 2017 which granted the country a 3-year 170 million dollar non-concessional loan.

Last October, the IMF program evaluation stressed that the performance criteria fulfillment level is good.

|||||||| GDP growth rate 2020 .................... 6.0%* 2019 .................... 5.9%* 2018 .................... 5.8%* 2017 .................... 8.2%* 2016 .................. 10.5%* 2015 .................... 3.8% 2014 .................... 3.7% 2013 .................... 3.9% 2012 .................... 5.9% (Source: IMF, GDP growth rate, data updated in 2018, *estimates)

doingbusinessin Guinea | 2019 Edition

2012

2013

2014

2015

2016

2017

2018

2019

2020

Inflation (%)

15.2

11.9

9.7

8.2

8.1

8.9

8.2*

8*

8*

Current account balance (% of GDP)

-20

-12,5

-13,4

-12,5

-31,1

-6,9*

-21,1*

-16,4*

-17,4*

Source: IMF (*estimates)

A SOUND BUDGET These good results can be chalked up to the implementation of reform measures since 2010. Public finances have been cleaned up, and monetary and fiscal management, as well as governance, have been strengthened and made more transparent with the help of IMF and the World Bank. The decreased budget deficit, which had reached -16.7% of the GDP in 2011, was made possible through better control of expenditures and also an increase in public revenue, which grew from 7,976

billion Guinean francs in 2012 and is expected to reach 16,434 billion in 2018. But Guinea’s performance is below that of its neighboring countries.

Reform measures have been introduced to recover more tax money and expand the tax base. Lastly, since reaching the completion point of the HIPC (Heavily Indebted Poor Countries) initiative in 2012, Guinea’s public debt, which is an estimated to be 43% in 2019, is one of the lowest in the sub-region

SETA GUINEE

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|||||||| Macroeconomic indicators

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Economic and macroeconomic situation, is guinea bouncing back?

#2 doingbusinessin Guinea | 2019 Edition

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AN ENABLING BUSINESS ENVIRONMENT • Seven reasons to invest in Guinea >>> • PNDES: a framework for guinea’s economic restructuring >>> • Corporate taxation >>> • Key reforms to improve the business environment >>> • Stronger governance since 2010 >>> • Role of the private investments promotion agency (APIP-Guinée) >>> • New investment code >>> • Stronger framework for public-private partnerships >>>

doingbusinessin Guinea | 2019 Edition

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SEVEN REASO TO INVEST

Guinea is currently creating the regulatory, infrastructural and economic conditions needed for the development of its incredible resources, especially mining and agriculture. This is opening up huge investment opportunities, but the government does not feel it can handle these development challenges without considerable input from the private sector.

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solid and A well-supported development0program ​The PNDES will be the Guinea government’s compass for the coming years and will be essential to its private partners, with their 675 programs and projects aiming to structurally transform the national economy. At the November 2017 Paris meeting of the consultative group, Conakry’s technical and financial partners showed their confidence by pledging a hefty $21.7 billion to fund the PNDES. Guinea is also counting on support from China, along with that of IMF, which is assisting with Guinea’s reforms and is funding national needs.

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Ever increasing electrical capacity For an entrepreneur, access to enough electrical power is of prime concern, especially in industry. This explains Guinea’s tremendous efforts in the last few years to make up for lost time. The total electricity production capacity increased between 2012 and 2018 from 212 MW to 774 MW. This capacity will continue to grow with the current construction of two additional hydroelectric plants capable of developing the country’s hydroelectric potential and thereby quickly lowering the cost of electricity.

doingbusinessin Guinea | 2019 Edition

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A much healthier business environment Among the top reforming countries in the world, Guinea gained no less than 26 points on the World Bank’s Doing Business rankings between 2013 and 2018, thus demonstrating constant improvement in the way it conducts business. Every sector is affected...simpler formalities for creating businesses, easier property transfers, modernized judicial institutions… Similarly, several sector codes (investments, PPPs, mining, oil, agriculture, etc.) have been, or will soon be, revised in order to improve and modernize the overall business environment.

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ONS IN GUINEA

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A sub-regional trade hub The government has great ambitions to make the port of Conakry a sub-regional trade hub and, with this in mind, entrusted port management to a private enterprise in 2018. As the principal port for goods entering and leaving the country, the port of Conakry is also indispensable to its neighbors, particularly Mali. Upgrading the national highway should shorten travel time between Bamako and the Guinean capital.

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The mining sector on a roll Thanks to the growing world appetite for Guinea minerals, especially bauxite and gold, and to the sectoral reforms of the last eight years, investments in the mining industry continue to grow.

Close to $10 billion were mobilized between 2011 and the end of 2018.

Government is also increasing its knowledge of the country›s geology with an eye on diversifying the exploration of minerals, while the mining companies are continuing to develop industrial manufacturing projects locally.

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Agriculture: land and water Because of its large areas of unused cultivatable lands and a hydroelectric capacity that is unique to West Africa, Guinea has excellent natural conditions for agriculture. Several national and international companies have been taking advantage of these favorable conditions for the last few years by investing in cash crops such as pineapple, bananas, cashew nuts, and even coffee.

doingbusinessin Guinea | 2019 Edition

Services: a gold mine of opportunities

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There are amazing opportunities in the service sector, especially in the finance sector that is being totally restructured, and with the ICTs where much remains to be done. Tourism is another big one. After having made up for its lack of infrastructure in the capital, thanks to the recent construction of high-end hotels, some major markets are now worth developing, such as tourist seaside resorts or even adventure tourism into the country›s majestic mountains. A national strategy for the tourism sector is being developed

PNDES: A FRAMEWORK FOR GUINEA’S ECONOMIC RESTRUCTURING

PNDES, the Plan national de développement économique et social (National Socio-economic Development Plan) is the Guinean government’s economic compass for the coming years. It is an ambitious plan for the structural transformation of the economy and seeks to promote inclusive growth that can improve the everyday lives of people. It is built on an assessment of the country’s important needs and resources that can offer business opportunities and especially counts on the increase in investments in infrastructure to contribute to the 8% growth target for the years 2018-2020.

From an institutional vantage point, this Vision 2040 operational tool for a prosperous, emerging Guinea, stems from the third Poverty Reduction Strategy Papers (PRSP) that ended in 2015. It fits in with the main regional and international development agendas: Vision 2020 of the Economic Community of West African States (ECOWAS), the African Union’s Vision 2063 for the continent’s structural transformation, and the 2030 UN Sustainable Development Goals (SDG).

doingbusinessin Guinea | 2019 Edition

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PNDES: A framework for Guinea’s economic restructuring

A CROSS-CUTTING PLAN The PNDES is underpinned by four of society’s crosscutting pillars and hence serves to unite and coordinate the current sectoral strategies: • promotion of governance to consolidate the rule of law, democracy, security, social harmony, and ensure the efficiency of public action; • sustainable and inclusive economic transformation which relies, in particular, on mineral resources to develop agriculture, industrial diversity and investment in infrastructure; • development of human capital to provide better access to healthcare, education and training, and more autonomy for women; • sustainable management of natural capital that is aimed at better protection of natural resources and at better national preparation to face natural disasters.

A PLEDGE OF $21.7 BILLION IN FUNDING As evidence of support for the country, its technical and financial partners pledged $21.7 billion for the PNDES in November 2017 at a meeting of the Consultative Group in Paris. The PNDES has been costed at $14.6 billion, of which 49.3% is for pillar 2 and 38.2% for pillar 3. The State has allocated a budget of 30%, while the private sector, through the Public-Private Partnership (PPP), is expected to provide 38.2%.

675 PROJECTS AND PROGRAMS UNDER THE NATIONAL INVESTMENT PLAN The National Investment Plan brings together the 675 priority projects and programs. Half of them are related to the second pillar, mainly for energy, agriculture and transportation. More than a quarter of them concern the third pillar. The other projects such as water and waste management, and the construction of social housing are being given special priority.

52 FLAGSHIP PROJECTS A list of 52 of the most mature, so-called “flagship projects”, has been drawn up and includes 16 in infrastructure, 11 in environment, 8 in education and 4 in energy, allocated as follows: 43 are to be carried out by the public sector, 6 through PPP and 3 by private actors. The total cost is $6.5 billion.

The Ministry of Planning and International Cooperation will be in charge of monitoring the implementation of the PNDES

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CORPORATE TAXATION INCENTIVES The Investment Code provides for certain general guarantees and incentives, the most important of which is the progressive scale of 3 to 8 years of tax exemption under certain conditions. There are also specific incentives, particularly for investments in the regions to promote SMEs, natural resources, raw materials and export companies.

Guinean exchange control legislation allows foreign direct investment in cash and in kind by foreign companies in the capital of a company domiciled in Guinea. The banks are authorized to transfer revenue from direct investments (dividends and profits) and proceeds from the sale or liquidation of a foreign investment.

There is no cap on foreign contribution to the capital of companies domiciled in Guinea.

PRINCIPAL FISCAL AND SOCIAL OBLIGATIONS The flat-rate minimum tax The flat-rate minimum tax (IMF – Impôt minimum forfaitaire) is due no later than 15 January of each year. The rate is 3% of turnover, capped according to the size of the company: large companies pay between 75 and 100 million Guinean francs while medium size companies pay between 15 and 45 million Guinean francs.

Telephone companies, banks and insurance companies, and companies importing, storing, stocking and distributing petroleum products are exempt from making IMF payments provided that the taxable income for the previous financial year was profitable.

Corporate tax Tax returns must be filed and outstanding corporate taxes must be paid by 30 April of each year.

The tax rate is: - 35% of taxable profits for telephone companies, banks and insurance companies, and companies importing, storing, stocking and distributing petroleum products; - 30% of taxable profits for companies holding a mining title; - 25% of taxable profits for the other legal entities.

Single land tax The rate is: - 10% of the annual rental value (buildings occupied by the owners).

- 15% of the annual rental value (rented buildings).

- 2% (completed but unoccupied buildings).

doingbusinessin Guinea | 2019 Edition

Mohamed Lahlou, Director PwC Guinea

Interview The business environment in Guinea has changed over the last few years. Has this contributed to making the country more appealing?

The Guinean economy is growing faster than expected thanks to the dynamic mining sector, driven by bauxite and gold mining, a fast growing agricultural sector, better access to electricity, construction work and a larger scale of investments than expected. Guinea stabilized its main macroeconomic indicators and then won the trust of its international partners. Guinea nowadays is a country of opportunity and business. Thanks to its natural resources and tropical climate, Guinea has the strength to overcome the difficulties facing the population and has opportunities to offer its young people. The country is already attracting a goodly number of investors to agriculture, industry, tourism and mining. The number of airlines now serving Conakry is evidence of the country’s attractiveness. In the flourishing mining sector, last November PwC Guinea helped the SMB/Winning Consortium draw up three legal and fiscal agreements as well as a business plan for the expansion of a bauxite mine, the construction of a railway and a refinery as part of an investment costed at close to three billion dollars.

What are the main activities of PwC in Guinea?

PwC is a global organization with 756 offices and more than 236,000 people working in 158 countries, our value incite our clients’ trust and solve their local problems. We have two independent law firms PricewaterhouseCoopers Conseil and Fiduciaire de Guinée.

Our clients see PwC as the leading services provider in Guinea. PwC has been in Guinea since the beginning of the 1980s and now has a staff of 40 professionals who have the expertise needed to understand our clients’ stakes and challenges, and to help our clients with their business and growth. Since we have the most dense consultancy network in French-speaking Africa, we easlily mobilise skills in order to serve our clients.

What are the main requirements of the PwC international clients in Guinea?

Our activities cover many fields and services.

PwC, for instance helps its clients establish its legal, fiscal and accountancy bases, develop their activities and solve difficult situations. In the various company development phases PwC reassures the stockholders through its auditing work as statutory auditors. During the last few years, large numbers of potential investors have called for our help in matters such as drawing up business plans and identifying partners. We have the privilege of belonging to one of the world’s biggest intellectual services networks.

Hence the number of customers who place their trust in us rank among the biggest economic players in Guinea

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Interview

Corporate taxation

Value Added Tax (VAT) The tax rates for the Value Added Tax are as follows: - General: 18% applicable to all taxable operations carried out in Guinea; - Zero: 0 applicable to exports and international transport.

Exemptions a) Sales of stamps credited to the State budget and import of related goods. b) The following transactions, provided that they are subject to specific taxes exclusive of any turnover tax: interest income and other income received by banks and credit institutions; transactions relating to the transfer of immovable property and tangible movable property subject to registration duties, excluding transactions of the same nature carried out by property dealers or leasing companies. c) Transactions related to the rental of undeveloped land or bare premises. d) Sales, imports, prints and compositions of printed periodicals regardless of their titles. e) Services or activities of a social, educational, athletic, cultural, philanthropic or religious nature provided by non-profit organizations managed on a non-paying or volunteer basis. Transactions carried out by these organizations are taxable when they are located in a competitive sector. f) The following goods: rice, wheat, flour and additives used in its production; bread; edible oils; palm kernel oil; fish; domestic gas. g) The following goods if listed in a ministerial order: pharmaceuticals, fertilizers and plant protection products, books, school supplies. h) The sale of used goods produced by persons who used them for their business operations. i) In-port mooring, towing, navigation services for vessels arriving to load goods being exported and for transit, loading and transshipment of goods for the export market.

Deduction from wages and salaries The employer pays the deductions made from wages and salaries on the 15th of each month.

The amount of the deduction is calculated by applying the following rates to the monthly income: - Between 0 and 1 million Guinean francs of income: 0% - Between 1,000,001 and 5 million Guinean francs of income: 5% - Between 5,000,001 and 10 million Guinean francs of income: 10% - Between 10,000, 001 and 20 million Guinean francs of income: 15% - Over 20 million Guinean francs of income: 20% Lump sum payments on salaries This is a 6% tax on the total amount of wages, salaries, indemnities and earnings.

doingbusinessin Guinea | 2019 Edition

Income tax on securities The payment of income tax on variable-income investments and on fixed-income investments and other debt income.

The rate is 10% on interest paid to persons, whether domiciled or not in Guinea, and on dividends and similar income.

Cabinet 2i Experience, expertise and results Mamady Kaba is the manager of Cabinet 2i, a company he founded in 2003 to help private companies grow and foreign companies take root.

Its experience, its unique knowledge of the Guinean market, its business opportunities and its know-how have enabled 2i to help bring dozens of Guinean and international companies closer together.

80 million dollars raised over the last two years During the last two years, 2i and its financial partners raised more than 80 million dollars which they invested in Guinea as follows: 20 million in the hotel business, and 60 million in energy, especially through public-private partnerships.

Contribution to the National Social Security Fund Payment by the employer of contributions deducted from the total amount of wages paid.

The rate is 23%, of which 18% is employer contribution and 5% employee contribution.

The employer and employee contributions shall not exceed 2.5 million Guinean francs and the minimum is 440,000 Guinean francs.

Contribution to patents Companies engaged in manufacturing or sales/ marketing activities are subject to patents.

Withholdings tax on foreign services The withholdings tax is 15% for amounts paid to foreign service providers that do not have an establishment in Guinea, for services rendered, or actually used in Guinea, unless there is a tax treaty to the contrary

Public sector partner As a development support tool for public sectors, Cabinet 2i was successful in organizing an economic forum in 2007 for the promotion of international investments in Guinea. The forum was attended by several hundred decision-makers in Paris. Cabinet 2i that settled two legal disputes between Guinean public providers and international private providers of telecommunications and energy.

A 100 million dollar investment fund forthcoming soon Cabinet 2i is now well prepared to provide support for the PNDES, (National Economic and Social Development Plan), and soon will be able to make a 100 million dollar fund available for investments.

This should confirm its rank among international companies as second to none in terms of its results.

Cabinet 2i - Immeuble Labé, cité des chemins de fer, commune de Kaloum - BP 1975 - Conakry - République de Guinée (+224) 30 43 34 64 - contact@ingenierie-international.com www.ingenierie-international.com

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Apprenticeship tax (AT) - The AT rate is 3% of the total payroll for employers with fewer than 10 employees.

- For companies with more than 10 employees, the employer pays 1.5% of the total payroll as a contribution to professional training and apprenticeship.

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Corporate taxation

Interview

Gabriel Curtis, Minister of Investments and Public-Private Partnerships

Interview “PPPS, LEVERS OF ECONOMIC DIVERSIFICATION”

Between February 2014 and May 2018 Gabriel Curtis was head of the Promotion Agency for Private Investment (APIP) of Guinea, then in May 2018, he was appointed to head the Ministry of Investments and Public-Private Partnerships.

He had also served as the Permanent Secretariat of the President’s Council for Private Investment and PPPs. Here this former investment banker discusses how this type of business partnership is being unrolled in Guinea.

How were the priority sectors of the National Economic and Social Development Plan (PNDES) chosen for implementation under the PPP? For many years in Guinea, mining was the most appealing sector for Foreign Direct Investments (FDI). Thanks to the PNDES, Guinea is now diversifying its economy. This readily explains why governance, economic transformation, sustainable development, and human resources buttress the four PNDES pillars. Special emphasis is being placed on the private sector, as

close to one-third of the PNDES’ 675 projects and programs will be structured as PPPs. Agriculture, energy, mining, and information and communications technology (TIC) sectors have been selected because of their strategic importance to the country’s development. These sectors are the veritable drivers of sustainable and steady growth and will create large numbers of jobs. They also take the comparative advantage of Guinea into account. Ultimately, they contribute to developing PPPs whose strength lies in their capacity to benefit from private sector incentives whilst catering to the public interest.

Are you satisfied with how Guinea manages to implement these types of partnerships?

Results already show that PPPs offer a solution to the country’s development problems. It is a tool that enabled us to build hydroelectric facilities like the Kaléta and the Souapiti dams, as well as the Soguipah, a Guinean palm oil and rubber tree production company. These are very satisfying. In addition to the energy sector, the government would also like to use PPPs to lever investments in the agricultural sector and the construction of industrial units, in other words, to diversify our economy. The Ministry of Investments and Public-Private Partnerships, that I have the honor of heading, is working very diligently on this.

What are the largest projects currently being carried out as PPPs? The mining sector is still a very attractive one to investors, but the range of development sectors to be managed by PPPs has expanded to include

doingbusinessin Guinea | 2019 Edition

infrastructure, industrial projects, and energy.

Renewable energy projects, especially solar, are also under PPPs. Furthermore, several other projects have been concluded in the construction of road infrastructures and buildings in Conakry and inland. Moreover, agriculture is certainly not lagging behind. Besides the Soguipah project mentioned above, two agricultural hubs are being planned to facilitate major investments throughout the supply chain of the agricultural sector, with support from the African Development Bank. In the short and medium term, several other projects will receive support from my ministry, in particular to help create a special economic zone in the BokĂŠ administrative region. Guinea has a business climate that is attracting more and more investors thanks to constantly improving and enabling business conditions and the many opportunities we have to offer. This can be seen in our growth rate and in the increasing amount of Foreign Direct Investment (FDI) we receive. In 2017, we hit a record of three billion dollars.

consortium of Chinese banks took a major step forward by signing two credit agreements for a total amount of $598 million which represents the first installment and covers the reconstruction of the national Coyah-Mamou-Dabola highway and the Conakry city roads.

Since the adoption of the new PPP law in 2017, are there any remaining related Guinean regulations that still need improvement?

The new PPP law is a vast improvement over the old BOT (Build-Operate-Transfer) law.

The National Assembly adopted the PPP law on July 4, 2017 and the Head of State promulgated it by decree. The texts on implementing the law were drawn up jointly by the Ministry for Investment and PPP and the Ministry of Economic and Financial Affairs. The government is setting up the technical units described in the new law, in particular the PPP unit, to facilitate the development and management of these partnerships, and we are now working on actually implementing the legal and regulatory provisions

How is the 20-year 20-billion dollar partnership agreement with China being deployed?

The framework agreement signed with China for the financing of infrastructure provides for close to a billion dollars in expenditure per annum. Reimbursement is underwritten by future royalties generated by mining projects run by Chinese companies in Guinea. In September 2018, our government and a

doingbusinessin Guinea | 2019 Edition

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Interview

Aly Thérian, chief executive officer

ADM PARTNERS CONSULTING Bridging Europe and Africa A European-based consulting firm to promote investment opportunities in Guinea and throughout Africa especially during its second Guinée Business Forum to be held in 2019 ADM Partners Consulting was established in 2017 in Normandy, France with a branch office in Conakry. Its Guinée Business Forum in April 2018 was attended by close to 150 businesses of which 73% succeeded in establishing business relations.

Among ADM’s many stated objectives are to act as consultants to businesses and project promoters, as well as organise exploration missions, assisting with implementation actions in Africa and with establishing professionals in their field.

Several companies created in Guinea with the help of ADM In 2017, Aly Thérian, the CEO of ADM invited both Guinea’s ambassador in France, and France’s ambassador in Guinea to Normandy to discuss the business opportunities that are available in Guinea. H.E. Amara Camara and H.E. Jean Marc Grosgurin were chosen as partners for the forum, with the Normandy companies of DERRUDER, SIA and CENTRIMEX as sponsors.

ADM’s business trips to Guinea on behalf of Normandy enterprises have already contributed to the creation of several Guinean companies such as GMP ANALYSE SA, FGC SA, VERT LA FORET, FILIPO RICHIR and IFA GUINEE SA.

THREE QUESTIONS FOR ALY THÉRIAN Why did you create ADM Partners in 2017?

I realized that trade was lacking between Guinean and the French enterprises and more broadly between African and European business communities which made many African businesses turn to Asia for partners. In the meantime, many European business leaders dealt with intermediaries who were only interested in making money and were unable to provide the right services. This was discouraging for everyone. So we created ADM Partners to work with the businesses to make sure that they were in contact with the right people for their particular projects.

You helped create several companies in Guinea.

How did you do it?

Since I am a member of MEDEF Métropole Rouen Normandie and of UPEG, I knew of businesses who wanted to invest in Africa but that did not go through with it. I invited them to join me, and to see the available opportunities for themselves and this worked.

How do you feel about the 2nd Forum to be held next 1 to 4 April?

There is a lot of enthusiasm for the 2nd Forum. We have partners from Guinean institutions and also from Europe, Paris, Brussels …

African companies from Mali, Senegal, Tunisia, Gabon and Sierra Leone, etc. are planning to participate. The focus will be on the sectors that are part of the Guinean National Socio-Economic Development Plan (PNDES), namely infrastructure, agriculture, mines, etc.ines.

Head officel: 47, rue André MARTIN - 76710 Montville +33682666972 - alytherian@adm-partners-consulting.com Office in Guinea: Immeuble Kindia - Cité chemin de fer, Kaloum, Conakry +224627666463 - aly.therian@gmail.com

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xxxxxxxx

Bureau Africain d’Etudes et de Contrôle

Engineering and Architecture bp 825 - Conakry - Guinée tel. 224 664 241 795 / 621 448 404 www.baec-scp.com baec-central@baec-scp.com

Our profession? Creativity that is harmonious with the environment, optimally functioning, life enhancing, æsthetically pleasing, doingbusinessin and sound Guinée | Édition 2019

KEY REFORMS TO IMPROVE THE BUSINESS ENVIRONMENT As evidence of the continuous improvement of its business environment, Guinea moved up 26 performance levels between 2013 and 2018 on the World Bank’s Doing Business rankings.

Up by ten score points. Guinea’s score increased by 10 points on the World Bank’s Doing Business indicators set from 2016 to 2017 as a result of the decisive, much needed policy implemented by the government for nearly eight years to make the business climate healthier. With a boost of 26 points since 2013, Guinea now stands at 152 among the 190 countries ranked and plans to continue its efforts through its National and Social Economic Development Plan (PNDES);

- Ease of transferring holdings: thanks to a reduction in transfer taxes and associated legal costs; - Less red tape for housing and construction: especially the reduction in time (from 69 to 29 days) needed to process construction permit applications; - More protection for investors: since 2014, legal institutions are now more compliant with the rules of the Organization for the Harmonisation of Corporate Law in Africa (OHADA).

At the global level: (2013/2019)

149th

152nd

+26

SEVERAL REFORMS CONTRIBUTE TO THE EASE OF SETTING UP A BUSINESS

- Simplification: it now takes 72 hours to create a company, and companies can determine the number of the shares in a limited liability company;

Starting a business:

111th

+47

Protection of minority investors:

+28

SEVERAL ONE-STOP SHOPS (SINGLE WINDOW) MAKE IT EASIER FOR ENTREPRENEURS

- To develop the private sector, the Agency for the Promotion of Private Investment (APIP) was restructured and a one-stop shop is now assigned to inform and support the entrepreneur; - A one-stop shop was created for the mining industry in 2016, and land registry and mining permit services have been digitized;

doingbusinessin Guinea | 2019 Edition

MORE REFORM MEASURES IN THE MAKING Several priority actions need to be pursued under the PNDES. Examples: ease of access to financial services for businesses, especially the SME-SMI; greater simplification in procedures connected to construction, property registration, access to water and electricity, and also the formalizing of the private sector.

The private sector consultation platform that the President introduced at the end of 2017 should facilitate dialogue between the public and private sectors. Legal procedures for the commercial sector will also change thanks to the simplification of procedures and the promotion of alternative measures to resolve conflicts (reconciliation, mediation, arbitration).

Obtaining a construction permit:

50th

+102

Registering property:

138th

+13

SEVERAL LAWS AND SECTORAL CODES CREATED OR MODERNIZED

- A more attractive investment code was promulgated in 2015; - A new code was adopted in 2011 and, at the same time, Guinea joined the Extractive Industries Transparency Initiative (EITI); - An oil and gas code is in the validation stage; as well as one for livestock and animal products - In July 2017, Guinea adopted a new framework law on public-private partnerships (PPP), which simplifies the signing of this type of contract

Number of companies created per sector (2014-2017) • Trade 12,464 • Services 5,431 • Construction-Public Works 3,367 • Transport-logistics 932 • Communication/ICT 745 • Agriculture/livestock/fishery 710 • Energy-mines 673 • Industry 466 • Tourism, hotel industry, art 407 • Education, healthcare 210 • Financial institutions 38 • Other 94 (Source: 2014 – 2017 report on starting businesses in Guinea, Studies and Statistics Department)

48.81% 21.27% 13.18% 3.65 % 2.92% 2.78% 2.64% 1.82 % 1.59% 0.82% 0.15% 0.37%

||||||| Higher rankings in WB Doing Business (2013-2019)

Global Starting a business Obtaining a construction permit Getting electricity Registering Property Getting credit Protecting minority investors Paying taxes Trading across borders Enforcing contracts Resolving insolvency

Ranking 2013 178 th 158th

Ranking 2019 152nd 111th

152nd

50th

88th 151th 154th

146th 138th 144th

177th

149th

183th 133 rde 131st 141th

181th 167th 118th 116th

(Source: World Bank Doing Business)

Growth in the number of companies using a one-stop shop 2018*

2017

2016

2015

2014

8,045

8,793

8,814

4,911

3,032

* November 2018 - (Source: APIP- Agency for the Promotion of Private Investment)

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Focus

- A one-stop shop for real property is being created.

It will be responsible for handling applications for various permits and titles (real estate, construction permits, certificates of habitability and usage, etc.) and related procedures.

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Key reforms to improve the business environment

STRONGER GOVERNANCE SINCE 2010 In 2010, the government inherited a difficult situation with the State and government structures in decay, finances structurally out of balance, and a weak macro-economic situation. Making governance stronger and better soon became a priority.

As a partner and signatory to the Extended Credit Facility (EFC) in 2012 (renewed in 2017), the International Monetary Fund (IMF) has been providing assistance to straighten out the country’s finances, to improve the monetary and fiscal management, and to make governance more transparent.

BETTER MANAGEMENT OF PUBLIC SECTOR ACTIONS A program to overhaul and modernize government (PREMA) is being implemented to make the administration an effective lever of national development. To increase openness, the authorities have fast-tracked the improvement of procurement contract procedures, introduced a system of annual review of public enterprises of an administrative nature, as well as a quarterly publication on the implementation of the budget.

Similarly, since 2017, a stronger law is in place on the prevention and punishment of corruption.

The audit of the electoral lists, awaited for many months, was completed last September.

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Enforcing contracts: th

118

+13

Resolving insolvency: th

116

+25

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A MORE CREDIBLE JUDICIARY A national judicial reform policy (Politique nationale de réforme de la justice -PNRJ 2014-2024) was launched subsequent to the 2011 general assembly for that sector to make the judicial system more credible and closer to the citizenry. It led to the creation of the Conseil supérieur de la magistrature which is responsible for ensuring the integrity of the judicial branch of the Economic and Social Council and of the National Human Rights Institute. A Court of Audit (Cour des comptes) was created in 2015 to help protect national heritage and control financial management. Its first report, which covered the year 2016 was presented in 2018.

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Stronger governance since 2010

LAUDABLE EFFORTS A new structural reform agenda negotiated with the IMF at end 2017, was included in the second ECF program thanks to its numerous objectives: modernize the fiscal system, overhaul the currency market and strengthen the capacity for national statistics. Guinea’s ranking in various fields is evidence of the progress that is being achieved. In the World Economic Forum’s global report on competitiveness, Guinea rose in rank from 147 out of 148 in 2013-2014 to 119 in 2017-2018

|||||||| World Economic Forum’s global report on competitiveness rankings (0 to 7) Indicators

2013-2014

2017-2018

General

2.91

3.47

Institutions*

2.87

3.42

Infrastructure*

1.73

2.43

Macroeconomic environment*

3.11

4.12

Health and primary education *

3.59

3.54

Higher education and training

2.42

2.91

Efficiency of goods market

3.54

4.26

Efficiency of labor market

4.28

4.36

Development of financial markets

2.97

4.60

Technological maturity

2.43

2.97

Size of market

2.44

2.45

Business sophistication

2.97

4.06

Innovation

2.40

3.57

(Source: World Economic Forum Global Competitiveness Report, 4th pillar called “basic requirements”

doingbusinessin Guinea | 2019 Edition

ROLE OF THE PRIVATE INVESTMENTS PROMOTION AGENCY (APIP-GUINÉE) Since its inception, APIP-Guinée has been directly accountable to the Office of the President. It was created to implement the national investment policy and to assist the business community.

As part of its role in promoting private investment, APIP serves as the permanent secretariat for the Presidential Investment Council–Public-Private Partnership (CPI-PPP), and promotes direct contact between the State, the private sector and civil society. Its essential role is primarily to help Guinean and foreign entrepreneurs use the investors’ one-stop-shop to facilitate the creation of new companies.

‘‘LIVECHAT’’ ON THE APIP SITE The investment portal provides a solid basis of information, establishes ties between public and private sector companies and allows businesses to enter their details in a directory. The portal was created in collaboration with APIP regional branches. ‘LiveChat’ allows for online interaction with entrepreneurs to guide them to the most appropriate services.

GOING DIGITAL In the coming months, the national system for registering companies in Guinea, SYNERGUI, will make it possible to create a company online, thus replacing a manual system and its physical onestop-shop with an electronic unit that combines all actors involved in business creation.

AN ‘‘INVESTMENT PROMOTION CARAVAN’’ In addition to these digital tools, an investment promotion caravan was launched in October-November 2018 in the seven regions of the country to publicize government policy and the APIP services nationally, to identify investment opportunities and to capitalize on local businesses.

‘

doingbusinessin Guinea | 2019 Edition

ASSISTANCE TO GUINEANS ABROAD APIP has an enterprise support department to help entrepreneurs access funding and markets.

The department has a service for Guineans abroad, supporting members of the diaspora who want to invest in their home country

• The one-stop shop for creating a business company facilitates the related administrative work, access to the advantages of special provisions of the investment code and the follow up to projects that have been approved.

Email : matenin.kourouma@apip.gov.gn Tel.: (+224) 656 31 11 16

AT A GLANCE …

• The Direction appui aux entreprises defines support programs and measures for investors, contributes to capacity building for national entrepreneurs and assists Guineans abroad Email : yolande.colle@apip.gov.gn Tel.: (+224) 656 31 11 32

private investment promotion agency of guinea,

(APIP) the Investor’s one-stop shop

Presentation: The Private Investment Promotion Agency of Guinea (APIP) is directly accountable to the Ministry in charge of investments and public-private partnerships and was created to implement the national investment policy on promoting private investment in Guinea. How? Through the one-stop shop for investors, (i.e. Guinean and foreign entrepreneurs).

The service in charge of Guineans from abroad is accountable to the Direction promotion des investissements. APIP is also the permanent secretariat of the Conseil présidentiel des investissements et des Partenariats public-privé (CPI-PPP) whose role is to promote discussion between the pubic-private investor and thus improve investment in Guinea.

Main goals: - Investment promotion, - One-stop-shop for creating a business - Assisting investors throughout the investment process, - Support for investors, more assistance for Guinean entrepreneurs and those abroad, - Facilitate access to the advantages of the Investment Code.

Our role: - Receive, inform and guide investors, - Lessen administrative formalities related to setting up a business , - Carry out sectoral studies and identify investment opportunities, - Encourage young and female entrepreneurs.

• The Direction système d’information, études et statistiques is responsible for introducing digital tools and solutions to improve the agency’s performance, the goal being to facilitate promoters’ access to information, and simplify red tape and procedures. This department also produces studies and statistics required to evaluate opportunities and trends in the Guinean private sector.

Email : alouseny.kallo@apip.gov.gn Tel.: (+224) 656 31 11 44 • The Direction améliorations du climat des affaires seeks to use advocacy in carrying out the actions plan connected to the business environment and in making the concept of reforms in Guinea more user friendly.

Email : lamine.solano@apip.gov.gn Tel.: (+224) 656 31 11 36

Focus

A SUBCONTRACTING EXCHANGE FOR LOCAL BUSINESSES The government is establishing a Subcontracting and Partnership Exchange (BSTP) to facilitate access to business opportunities for Guinean companies. The first phase will involve the strong mining sector only, before the exchange is rolled out to cover all promising sectors. BSTP should make it simple for investors to identify local suppliers, assess their capacity and contact them.

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• The Direction promotion des investissements is responsible for promoting investment opportunities in Guinea, assisting investors, and monitoring investment projects.

Email: dpi@apip.gov.gn Tel.: (+224) 656 31 11 15

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Role of the Private Investments Promotion Agency (APIP-Guinée)

Interview

Namory Camara, Managing Director Private Investment Promotion Agency of Guinea

Interview “MORE THAN 80% OF BUSINESSES CAN BE ESTABLISHED WITHIN 48 HOURS” Investing in Guinea has improved greatly over the last four years. (several reform measures have streamlined the investment process and more of the same will follow, coordinated by APIP, especially with regard to land ownership and the creation of sector-specific one-stop-shops).

How has the one-stop-shop helped the investment business?

We have made great strides forward. The time needed to create a business has been reduced from 30 days to 72 hours on average. More than 80% of the businesses are established within 48 hours and costs have gone down since the price of a partnership share in a limited liability company (LLC) is no longer regulated. We launched an electronic platform called Synergui (National Business Registry System of Guinea) that connects all parties involved in creating a business (Court of First Instance, Taxation Division, Customs, Social Security, Treasury, etc.). We also want to make it possible for individual entrepreneurs, and other types of companies to create their businees on line. Thanks to all this progress, we went from the creation of about 3,000 companies per year prior to 2014 to almost 8,065 from January to november 2018 .

How far are you with one-stop-shops for land ownership?

The Ministry of Urban Planning has created one-stop-shops that include all the seervices needed to obtain a construction permit. The World Bank’s International Financial Corporation (IFC) will back the first operational phases. The one-stop-shop will reduce the time involved and the number and cost of the procedures. It will be computerized and hence more efficient. It used to take 69 days to obtain a building permit; now it takes 29 days, and more reforms are in the making, especially to reduce the rate of the property transfer taxes and to facilitate access to rural lands. Thanks to Guinea’s reforms, the country ranks 50 out of the 190 economies in the “construction permits” section of the World Bank’s “Doing Business 2019” section.

Tell us about the your partnerships and sub-contracting market.

This project, with support from SFI, was launched in December 2018 for the purpose of making tendering more transparent and for giving entrepreneurs access to information in real time, and in particular to encourage local content in the supply chain, technology transfer and employability in the major projects currently underway.

What major reform measures will be implemented in the short and medium terms?

The government made this enormous undertaking central to its policy on improving the business environment. Plans are now underway to create a one-stop-shop for foreign trade which will provide paperless customs clearance for goods entering Guinea and cut back on cost, time and procedures. Work on implementing this investment code is still underway.

A commercial court (Tribunal de commerce) was created and the presiding judge and magistrates of the court have been appointed. Furthermore, an accredited management centre (centre de gestion agréé) was established to encourage informal businesses to register and receive tax benefits during their start-up phase

doingbusinessin Guinea | 2019 Edition

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New Investment Code

A new Investment Code was adopted in May 2015, which offers strong enough guarantees to make Guinea a favourable destination for private investors

PRINCIPAL RIGHTS AND GUARANTEES A guaranteed right to a 10% holding in the company’s shares (except for reserved sectors); the right to transfer funds, after-profit taxes, and dividends to a foreign country in a currency of the investor’s choice; the right to acquire goods, rights and concessions.

This new Investment Code establishes a preferential regime that offers tax and customs advantages during the start-up and operational phases of a business. The regime’s tax levels vary depending on the economic zone where the business has been established. Zone A covers the Conakry region and Boffa, Boké, Coyah, Dubréka, Forécariah, Fria and Kindia prefectures; Zone B covers the rest of the country. To take advantage of these incentives, investors must fulfil certain criteria and must operate in at least one eligible sector of activity.

CUSTOMS AND DUTIES • During the start-up phase, 100% exemption from VAT, 99.5% exemption from the Processing and Liquidation Fee (RTL) and 98% exemption from CIF (Cost, Insurance and Freight); • During the operating period, 100% exemption from commercial tax, one-off property tax, lump sum payment and apprenticeship tax.

ELIGIBLE SECTORS OF ACTIVITY • A griculture, livestock production, fishery, forestry and conservation of plant, animal or fish products; • On-site production and processing of local resources; • Tourism and ancillary activities, ICT, social housing, sanitation and treatment of urban and industrial waste; • Road, port, airport and railway infrastructure; • Healthcare and education services, construction and maintenance of industrial equipment, teleservices and road, air and sea transport; • Arts and artisanal sector.

• Criteria for accessing the preferential tax regime • A new company must invest at least 200 million Guinean francs and create at least five permanent jobs; • An existing company seeking to expand must increase production and/or the number of jobs by at least 35%;

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NEW INVESTMENT CODE

TAX BENEFITS • During the start-up phase, 100% exemption from taxes on all imports of tools, raw materials and inputs; 98% exemption from RTL and 94% exemption from revenue duty.

• The Investment Code offers a sliding-scale reduction of between 100% and 25% during the first six years in Zone A and for the first eight years in Zone B for several taxes (minimum flat-rate tax, tax on industrial and commercial profits, corporate tax, commercial tax and one-off property tax). It also introduces a sliding-scale reduction of between 100% and 25% on the lump sum payment, registration tax and apprenticeship tax during the first eight years of operations for businesses in Zone A and the first ten years for Zone B |||||||| Flow of Foreign Direct Investments (in millions of dollars) FDI FDI stocks

2015

2016

2017

48 2 140

1 597 3 737

577 4 314

(Source: UNCTAD - UN Conference on Trade and Development)

doingbusinessin Guinea | 2019 Edition

Stronger framework for Public-Private Partnerships

STRONGER FRAMEWORK FOR PUBLIC-PRIVATE PARTNERSHIPS In July 2017 Guinea adopted framework legislation that simplified negotiations for public-private partnerships (PPPs); 38.2% of the National and Social Economic Development Plan (PNDES) projects are to be funded through PPPs.

The new law on PPPs, which was developed in conjunction with the World Bank’s International Finance Corporation, replaces the overly restrictive procedures of the1998 BOT (Build-Operate-Transfer) law and the system for delegating public services as set out in the 2012 Public Contracts Code .

A RANGE OF POSSIBLE CONTRACTS According to the new law of July 2017, PPP contracts can benefit from the advantages and exemptions set out in the Investment Code.

PPP contracts through two commonly applied procedures can use either of two commonly applied procedures, namely the main tendering procedure or, exceptionally, the over-the-counter (OTC) procedure. The law also allows private companies to make an offer to the State for the implementation, management, maintenance, designing or funding of a PPP project through an ‘unsolicited bid’.

The PPP can be concluded on the basis of three types of contracts: • Leasing, with the operator bearing the cost of the operations and taking payment from the revenue; the State can charge a fee; • Concession, where the concession-holder administers a public service; • Partnership contract which allows the private operator to be paid by the public authorities regardless of revenue collected from service users.

Mining and petroleum rights remain applicable as per the Mining Code and the Petroleum Code respectively, but PPPs relating to public infrastructure in these sectors are subject to the PPP laws. Certain construction and services contracts (intellectual services, equipment or furniture supplies, etc.) are governed by the Public Contracts Code.

A PPP PORTFOLIO The sectoral ministries, as contracting parties, underwrite the PPP projects. The Ministry of Economic Affairs and Finance implements the public commitments and controls the use of public funds through the public contract and infrastructure authorities, the Autorité de régulation des marchés publics and the Administration de contrôle des grands projets et marchés publics.

A portfolio of potential projects, mainly in the field of energy, transport and water, has been created on the basis of six criteria: level of priority for the public sector, strength of expected revenue, ease of implementation, economic impact, level of preparation/maturity of project and attractiveness for investors

|||||||| Distribution of PPP projects per sector • Energy................................. 39% • Ports and airports................ 23% • Water.................................. 16% • Roads.................................. 14% • Telecom................................ 3% • Sanitation.............................. 3% • Other..................................... 2% (Source: Report International Finance Corporation/ CPCS April 2017)

doingbusinessin Guinea | 2019 Edition

Daouda Camara, Managing Director

STRATHEG is a Guinean company which specializes in the field of studies, project supervision and consulting services for companies designing and preparing work projects. It was founded in March 2000 and is listed in the trade register under the number RCCM/GC-KAL/015.548A/2007.

SECTORS OF ACTIVITY As an engineering consulting firm with several years of experience, STRATHEG provides services in the following sectors: • Public works • Construction in rural areas • Water and sanitation • Environment • Hydrology and agricultural development • Urban/rural development

SERVICES OFFERED STRATHEG offers a growing number of services in both urban and rural areas. Our unique, participatory approach considers the opinions of all parties concerned throughout project implementation.

Our services include: - Feasibility studies and project planning for the construction/renovation of buildings, and public works; - Technical studies, planning and evaluation of development projects; - Studies on the socio-environmental impact of urban and rural planning projects and of large-scale engineering projects; - Support missions, project management and delegated project ownership to oversee and supervise project planning and implementation.

Some references in pictures

Head office: Akra Bldg 2nd Floor, William Tubmann Ka 032, Street, Almamya District, Kaloum Tel: +(224) 664 24 30 78 / 628 24 77 76 - Landline: +(224) 654 65 43 70 Email: daoudacam@yahoo.fr. Website: www.stratheg.com

doingbusinessin Guinea | 2019 Edition

46 | 47 pages

• Social activities and community support partnerships with companies and development agencies through joint ventures and local representation in Guinea, as well as elsewhere in the sub-regions.

Interview

Madani Dia, Executive Secretary, PCSPG (Guinean private sector dialogue platform)

Interview

“A STRUCTURED PUBLIC-PRIVATE DIALOGUE HAS PROVEN ITS WORTH” The PCSPG was launched in June 2015. Its Executive Secretary pointed out the benefits derived from it up to now but added that a lot more needs to be done to promote dialogue between the private sector and the State.

What is the role of the PCSPG? It is an association composed of all the employer and socio-professional organizations whose aim is to serve as a support tool to promote dialogue between the public and the private sectors, to improve the private sector regulatory body, and to support the structural transformation needed for economic emergence.

What has PCSPG accomplished since it was created?

We participated in nearly all the discussions on the business climate, such as the discussions on reforms introduced during the last few years which in some cases, led to a higher ranking for Guinea in the World Bank’s Doing Business classification.

We provided input into the discussions on the PPP (Public-Private Partnership) law and finance laws, even though it was not fully considered on the latter.

The State is beginning to understand that a liberal economy cannot function well without the private sector. The biggest enemy is not competition from the private sector, but rather the unfair competition from a handful of administrateurs who create informal companies that are not bound by the same

rules and regulations as the others, especially in the area of taxation. At present, a call for tenders to work on a road longer than 100 kilometers can result in more than 100 submissions, even though there are probably no more than two or three companies that can do this work in Guinea!

What solutions do you propose?

The first solution is to give small businesses the status of “individual entrepreneur” so that they can be identified, have legal status and pay a flat rate tax.

This could probably be implemented very soon since it is stipulated in the OHADA Treaty (Organization for the Harmonization of Corporate Law in Africa Treaty) that Guinea signed and ratified. The second solution is more difficult to apply since it involves regulating the business profession. At present, anyone can apply to the APIP (Agence des promotions des investissements privees) to create a company, such as a construction company, whether they have the skills, or not. We suggest that it be mandatory for applicants to demonstrate their technical competency before receiving even the most basic certification .

How does PCSPG operate?

Whenever an issue is brought forward, we convene with committees specialized in that area. Last year negotiations were held with the Ministry of Urban Affairs to establish a fee schedule. We met with the heads of architecture associations, construction engineers, surveyors and the chamber of notary publics to be sure that our discussions would be constructive. They were sometimes rowdy but ever instructive and effective. We were able to reach a compromise and an order was drafted and signed.

We saw the usefulness of a structured public-private dialogue which would benefit all ministries. In October 2017, the President personally launched a steering committee of the Guinea Business Forum with an exemplary multi-sector composition. It was meant to be the discussion and decision-making forum par excellence for the public-cum-private sectors, but, unfortunately, it has never met. We could be ahead of Rwanda if we managed to make this dialogue operational

doingbusinessin Guinea | 2019 Edition

e r u S tter e b e b to red ! insu

SICKNESS - AIR TRAVEL MULTI RISK - FIRE - VEHICLE CIVIL LIABILITY - PERSONAL INJURY - ASSISTANCE TO PASSENGERS CASUALTY: THEFT, WATER DAMAGE, GLASS BREAKAGE, TECHNICAL RISKS (Construction all risk (CAR), Machinery breakdown, IT risk) INTERIM DEATH INSURANCE - SUPPLEMENTAL RETIREMENT INSURANCE - CREDIT - SURETY - CHILDREN’S FUTURE Quartier Koulewandy - Commune de Kaloum P.O.Box 4340 Conakry, Republic of Guinea - Tel : +224 62 34 40 78 - 68 21 21 89

#3 doingbusinessin Guinea | 2019 Edition

50 | 51 pages

ON THE ROAD TO DIVERSIFICATION • Transportation: bringing out the economic potential of Guinea >>> • Modernization of Conakry port infrastructure and management >>> • Guinea, the water tower of West Africa >>> • Focus on cash crops >>> • Business and conference-related tourism outrank holiday tourism >>> • Telecommunications: Guinea increasingly connected >>> • A more stable and dynamic banking sector >>>

doingbusinessin Guinea | 2019 Edition

52 56 58 62 68 72 74

TRANSPORTATION: BRINGING OUT THE ECONOMIC POTENTIAL OF GUINEA Several major projects in transportation infrastructure should eliminate the obstacles to national development and allow the country to benefit from its geographic position.

Insufficient and poor quality basic transportation infrastructure seriously hampers Guinea’s development. To invest in upgrading the system, the government has been earmarking more national resources for the last two years and entered into non-concessional debts with several of its partners (China, Europe, Japan, multilateral institutions, etc.) who are supporting the National Economic and Social Development Plan (PNDES).

3,000 KM OF PAVED ROADS BY 2020 Guinea shares 3,400 km of border with Côte d’Ivoire, Guinea-Bissau, Liberia, Mali, Senegal and Sierra Leone. Trading with these countries is important in the fight against poverty. Thanks to the country’s multipronged approach to the development of its transportation network (road, sea, air, rail), the country could become a hub for West African trade. At the national level, the government is trying to improve traffic conditions on regional and country roads, so vital to its agricultural development.

doingbusinessin Guinea | 2019 Edition

52 | 53 pages Saran Djansy Sangaré, Administrative and Financial Director

EcoBetape was created as a transportation logistics company in 2003. In 16 years it has grown into one of Guinea’s biggest partners in the construction, mining and agriculture sectors.

CONSTRUCTION AND INFRASTRUCTURE With a complete assortment of worksite equipment, EcoBetape is capable of designng and conducting public works projects: construction, excavation, development of roads for mining operations and paved roads, maintenance of construction works.

TRANSPORT OF MINERALS, OIL AND GAS The company has a modern, multi-use fleet of heavy duty trucks adapted to a wide range of needs: tipper trucks and dumpers to transport bauxite and aggregates, flatbed trucks to transport merchandise and tank-trucks to transport oil and gas.

RENTAL OF WORKSITE EQUIPMENT AND HEAVY DUTY VEHICLES EcoBetape allows you greater flexibility thanks to its competitive rental prices and its high performance equipment. The company offers a wide variety of new equipment and vehicles to meet all worksite and transportation needs.

THEY COUNT ON ECOBETAPE Vale, Ecobank, Orange, Vivo Energy, BICIGUI, (FER, Guinea), DEM Group, Compagnie des bauxites de Guinée, Direction nationale du génie rural, Total... In its areas of activity, EcoBetape has some of the biggest local and international, public and private sector actors as its clients.

EcoBetape Immeuble Khazen, rue de la Gare, Almamya Kaloum - BP 5164 - Conakry - Guinée www.ecobetape.com

doingbusinessin Guinea | 2019 Edition

Transportation: bringing out the economic potential of Guinea

BRINGING BAMAKO CLOSER TO THE PORT OF CONAKRY Since April 2018, top priority has been given to upgrading the 370 km road which connects Coyah, Mamou, and Dabola. This would bring Bamako (Mali) closer to its natural port, the port of Conakry. The project has been costed at 357 million euros and will be funded through a 20-billion dollar 20-year agreement with China.

The upgrading of 66 km of roads in Conakry is also being discussed as part of this project.

13 PRIORITY PROJECTS FOR TRANSPORTATION INFRASTRUCTURE In total, the PNDES aims to increase the paved roads from 2,220 km in 2016 to 3,000 km in 2020.

This should open up at least half of the rural communities and the prefectures that currently have no paved roads. Thirteen of the PNDES priority projects are devoted to transportation infrastructure.

Several institutions, including a Road Agency, will be created, and reform measures will be introduced to improve the business environment in this sector.

RAILROAD: REVIVE THE CONAKRY TO KANKAN LINE The Conakry-Kankan line was built at the beginning of the last century. One of the PNDES priorities is to upgrade this line under a public-private partnership (PPP) agreement. In this sector, the authorities are giving pride of place to the acombination of transporting people and goods, along with mining operations, as has been the case since 2010 for the Conakry-Kagbélen line in greater Conakry. Furthermore, the plan is for mining projects that require new railroads to also provide facilities that improve access to the farming areas.

AIR TRANSPORT: PRIORITY TO THE MAINTENANCE OF THE EXISTING FACILITIES Without setting aside plans for a PPP to build a new airport in Mafèrinyah, the PNDES is prioritizing the upkeep of existing facilities, especially the Boké, Labé, Nzérékoré, Faranah and Siguiri secondary airports. The first Guinea Airlines’ regional flights will depend on the modernization of these facilities.

This company was created in February 2017, and entered into a strategic partnership for management, maintenance, training, etc. with Ethiopian Airlines and ASKY Airlines in January 2018

Focus

«“GREATER CONAKRY 2040” The goal of the 2040 Greater Conakry project is to more evenly distribute the capital’s population. The population may double between now and the next 20 years to reach six million inhabitants. The objectives of this project are to facility people’s mobility and to improve, health infrastructures, and the attractiveness of the smaller nearby cities. Among the projects that are farthest along are the development of the Kouriah industrial zone, the creation of subsidized public housing, the Conakry port expansion, the waste recovery program and more effective utilization of the oceanfront at the southern end of the capital.

doingbusinessin Guinea | 2019 Edition

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MODERNIZATION OF CONAKRY PORT INFRASTRUCTURE AND MANAGEMENT Very soon 774 million dollars will be invested in the Conakry port. Its container terminal was renovated in 2014 and the management of its conventional part has been entrusted to a private operator.

Since the PAC (the Conakry Autonomous Port) was not able to handle the increase in traffic, port authorities were forced into modernizing the installations and improving their management.

The first step was to design a project to extend the eastern section of the port by 88.7 hectares, and to increase the port’s capacity to throughput goods and mineral ore.

846 ADDITIONAL METERS China Harbour Engineering Company (CHEC), which was put in charge of studies, the supply of materials and the implementation of the work itself in application of the EPC (Engineering, Procurement and Construction) regime, signed a memorandum of agreement in April 2013 with the Guinean government. A framework agreement with a consortium of five Chinese banks was then

doingbusinessin Guinea | 2019 Edition

CONAKRY’S CONVENTIONAL PORT TURNED OVER TO THE PRIVATE SECTOR At the same time, on 10 August 2018, Guinea signed a 25-year contract with Albayrak, a Turkish company, to manage the conventional part of the port that handles goods that are not containerized.

This Turkish conglomerate, established in 1952, deals in textile, waste disposal, media, agricultural equipment, real estate, logistics, etc. and runs the Trabzon Port in Turkey and the Mogadishu Port in Somalia. It has pledged to invest 200 million US dollars (173 million euros) over the next two years in the Conakry port and ultimately 500 million dollars.

“The installations are aging and need major investments that the State cannot afford,” said Aboubacar Sylla, Minister of Transport. He added that “the State is a poor manager (…). Many ships remain in the harbor for long periods of time because of lack of docking space”. The contract with the Turkish company includes the construction of a 530-meter dock; 80% of the staff will be Guinean. The customs duties should reach 13 million dollars per year, compared to 4.5 in 2017.

Remember that the mineral terminal, the third component of the PAC (after the conventional non-containerized port and the containerized port)

|||||||| Growth in ship numbers in the Conakry Autonomous Port (PAC)

Container ship Ore carrier Ro-Ro Bulk carriers Tankers Standard freighters Refrigerated cargo ships Trawlers Aluminum ship Aluminiers

2012 144 84 78 13 50 112 / 193 7 8

2016 242 88 64 49 47 55 18 537 3 /

(Source: Autonomous Conakry Port, Statistics Service, Ministry of Transport)

doingbusinessin Guinea | 2019 Edition

2017 240 95 60 50 45 47 17 530 3 /

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drawn up by the Industrial and Commercial Bank of China (ICBC) to provide 85% of the 774 million dollars, that the project would cost. CHEC is responsible for building three new 846-meter docks and for developing 41.6 hectares of open area.

The project provides for the construction of a parking area for 600 trucks, with a 4-km long access road and a 550-meter interchange. CHEC, which already participated in port modernization elsewhere on the continent, started working in Conakry at the beginning of the millennium and constructed the new PAC container terminal that was inaugurated in November 2014 by Conakry Terminal, a subsidiary of Bolloré Africa Logistics.

is managed by the Kindia (CBK) bauxite company, a subsidiary of the Russian company Rusal in Guinea. Furthermore the management of the 50 busses offered in January 2017 by the Istanbul city hall to the Conakry Governate was turned over to Albayrak which has also shown interest in waste management in the country’s capital city Conakry

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Modernization of Conakry port infrastructure and management

GUINEA, THE WATER TOWER OF WEST AFRICA

The Kaleta dam became operational in 2015. Two others are being built and should capitalize the country’s huge hydroelectric potential. The distribution system is currently being developed.

Lack of access to electricity prevents the proper functioning of households and business companies in Guinea, especially in the mining industry, where the electrification rate is almost 30%. To correct this, the authorities are developing hydroelectric projects that previous governments since independence have been unsuccessful in carrying out. The projects are attempting to make use of the 6,250 km of waterways that have an estimated hydroelectric production potential of 6,100 MW. Only 15% of this energy source was tapped by 2016. The government believes this figure could be raised to 40% in 2020.

240 MW SINCE 2015 At its inauguration in 2015, the Kaleta dam was slated to eventually provide an additional 240 MW to the national system. The dam cost 446 million dollars; 75% of this amount was funded through a preferential rate credit granted by Afreximbank.

The PIDA (Programme on Infrastructure Development in Africa) hailed the project as a complete success. This is the first of three dams to exploit the potential of the KonkourĂŠ whose source is in the Fouta-Djalon range and which empties into the Sangareya Bay, north of Conakry. The Garafiri dam which was operationalized in 1999 also drew water from this river.

doingbusinessin Guinea | 2019 Edition

Interview

ENTERPRISE PERFORMANCE GREATLY IMPROVED After improving the technical and business performance of Électricité de Guinée, objectives included in the management contract signed in 2015, Veolia is now preparing the leaders who will manage the company as of 2019.

How has the management contract improved EDG operations and services?

The outlook is very upbeat: business performance has improved greatly since the three years of the management contract. From a technical perspective, between 2015 and 2018 production increased by 72%, reaching 2,030 GWh, directly attributable to the reconstruction of the transmission and distribution grids and to the commissioning of plants, notably the Kaleta hydroelectric plant. The expansion of the transmission network (medium voltage and low voltage by 24% and high voltage by 19%) has made service more stable. Concomitantly, the quality of service has improved with the construction of more than 540 stations and the installation of a hundred transformers. This should reduce the rate of tripping for faults at power stations, the rate of transformer damage, and power outage times by 32% (350 hours in 2015 and 240 hours in 2018).

What other important objectives remain?

The focus during the final year is preparing for the transition. The first objective is accelerating the pace of capacity development, especially by recruiting young people and introducing new skills. We also need to provide EDG with high performance work tools: this involves the rolling out of an enterprise resource planning system (ERP) throughout the country, improving customer relations by opening a customer service centre, opening a one-stop shop, and the opening of a key accounts office. Strengthening EDG’s production and distribution means remains a priority. In 2019, the Samou stations will be upgraded and a national dispatching centre will be operational

What about business performance and company restructuring?

Sales has increased by 161%, reaching 1.370 trillion GNFs in 2018, and cash flow has increased by 96%.

These excellent results are due to a sales and marketing doingbusinessin Guinea | 2019 Edition

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Abdenbi Attou, Electricité de Guinée Chief Administrator

software which was introduced in Conakry and will be rolled out to the rest of the country. This software programme is used for secured payments, census reports, the settlement of receivables, and automatic connections to the meters in Sabou. Moreover, the number of active customers has increased by 51%, reaching 360,000 in 2018. Every business performance indicator has improved, especially collections and billing. The company has undergone true transformation. There was a 53% reduction in operating expenses, and there, several other reforms underway to modernize and improve EDG operations. Framework contracts signed with the largest suppliers and the creation of a public procurement commission has led to reduced costs and greater transparency of the tendering process. To strengthen EDG capacities, the average number of training hours in the maintenance of power grids, electrical safety certification, risk management, and even in customer relations was increased to 18.4 hours per employee in 2018. The certification and clearance of accounts since 2015 and the regularization of EDG’s fiscal situation since January 2018 have contributed to putting in order our financial department.

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Interview

Guinea, the water tower of West Africa

SOUAPITI, SUPPORTING KALETA AND GARAFIRI Next step: the Souapiti dam located 135 km north of Conakry was constructed by the China International Water and Electric Corporation (CWE), the same company that built Kaleta. It has a capacity of 550 MW and thanks to its 6 billion cubic meter reservoir will allow the Kaleta and Garafiri dams to be run at full speed. Partial operationalization in 2019 will help alleviate the electricity shortage during the dry season (an estimated 400 MW).

Last September, the Guinean government and EximBank China signed a loan agreement for 1.175 billion dollars, part of its total cost of 1.383 billion. The remaining 15% will be provided by the project’s company in which the State and the CWE are partners working through an EPC regime set up in 2016.

Work on the third dam, Amaria, located in the Dubreka prefecture was launched by the Tebian Electric Apparatus (TBEA) in January 2018 and is expected to reach a capacity of 300MW after 56 months of construction. This contract is part of a global agreement signed with the Guinean Minister of Mines and Geology on bauxite, found abundantly in the region, in particular with the construction of an alumina factory and an aluminum foundry.

A STRONGER NATIONAL TRANSPORT SYSTEM These infrastructures will only fulfill their goals if substantial investments are made to increase their capacity. The Guinean electricity system is composed of merely two interconnected systems, one in the west between Conakry and Labé, the other in the center around Dabola. In February 2018, the Guinean and Malian governments launched a Guinea-Mali multinational energy interconnection project for 225 KV costed at 300 million euros. It should cover the construction of a 714 km line, of which 588 will be in Guinea, where electricity will be brought to 121 localities. It is also with this in mind that at the Forum on China-African Cooperation on August 2018, Conakry signed a partnership agreement with GEIDCO, the Global Energy Interconnection Development and Cooperation Organization headquartered in Beijing

|||||||| More and more MW installed and available power Installed power - hydraulic - thermal Available power - hydraulic - thermal

2012 214,2 127,6 86,6 145 110 35

2014 338 127,4 210,6 168,5 83,2 85,3

2016 593,5 367,1 226,4 411,4 320,1 91,3

(Source: Électricité de Guinée (EDG) – Statistics and performance analysis division / World Bank)

doingbusinessin Guinea | 2019 Edition

2018 773,97 367,6 406,37 / / /

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doingbusinessin Guinea | 2019 Edition

FOCUS ON CASH CROPS The Guinean government intends to turn agriculture into a sector that guarantees increased exportation.

Several cash crops are being singled out to reach this goal.

THE GUINEAN PINEAPPLE IS BACK The BES, the Bureau d’exécution stratégique that is accountable to the office of the Prime Minister is working with the Ministry of Agriculture and Dalberg Advisors to revive the pineapple sector. Besides increasing the farmland areas being cultivated and access to fertilisers and irrigation, marketing efforts are being made to help producers (meet export standards) and exporters (gain access to markets). The BasseGuinée region is spearheading this activity.

CASHEW NUTS, A SECTOR WITH A FUTURE PNDES intends to create Agropoles for crops with the greatest economic future. This includes sesame seeds, palm oil, cocoa, and cashew nuts which enjoyed a bullish market over the last few years in spite of the downturn in 2018. The ambitious target for this crop is to plant a million hectares of cashew trees by the year 2020 and produce 60,000 tons of cashew nuts per year. In 2016, 204,000 hectares were planted and 175,000 more in 2017 in the Boké, Fria, Dubréka and Boffa prefectures (Basse-Guinée).

doingbusinessin Guinea | 2019 Edition

EXPORTS ON THE RISE IN 2017

The export value of agricultural, fish and forest products rose in 2017, as did the price of some of them on the international market.

This was partly thanks to the reforms implemented during the last two years that concerned access to inputs (fertilizers, seed, plant health products), price subsidies and better farmer supervision.

THE ZIAMA, PROTECTED GEOGRAPHIC INDICATION (PGI) Guinea created its own brand of coffee, the Ziama de Macenta that has benefited from a Protected Geographic Indication (PGI) obtained in 2014 from the African Intellectual Property Organisation (OAPI), with support from the French development agency (AFD) and CIRAD the French Agricultural Research Centre for International Development. This coffee is a Robusta type coffee but its quality resembles that of Arabica. It is grown in the Ziama mountains about 800 km from Conakry

The value of agricultural exports rose from US $80.89 million in 2016 to $194.04 million in 2017, in other words 4.22 % of total exports in 2017 compared to 3.35% in 2016.

The value of fishery exports reached $136.03 million in 2017 (2.96% of total exports), compared to $29.36 million in 2016.

In 2016, Guinea was removed from the European Union’s blacklist of countries that did not cooperate in fighting illegal, unreported and unregulated fishing (IUU).

This augurs well for the coming years for the fishery sector that is being completely restructured.

The export value of forest products (wood, rubber, etc.) rose from $121.10 million in 2016 to $145.30 million in 2017, in other words, 3.16% of total exports.

doingbusinessin Guinea | 2019 Edition

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Focus

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Focus on cash crops

doingbusinessin Guinea | 2019 Edition

Mohamed Kagnassy, Agricultural Adviser to the President

Interview “MAKING AGRICULTURE THE ECONOMIC DRIVER”

Agriculture is a source of many jobs in Guinea but contributes little to the GDP. How can we change that?

The agricultural sector should actually contribute a great deal to the GDP given our fertile land, our many rivers, abundant rainfall, and readily available local work force. At the time of independence in 1958, the agricultural share of the GDP was over 90%, a figure that has dropped to a mere 19% in the last few years. This downturn can be traced to the meager budgets earmarked for many years to agriculture, as well as to the increased development of mining operations, to the detriment of agriculture. Yet, I have great hope that all the initiatives taken, especially the president’s initiative to support the agricultural sector, will turn this sector into a driver of the Guinean economy. The goal is to allocate 10% of the national budget (instead of the roughly 6% of the past years) to agriculture, and increase productivity by 6% per annum.

How? President Condé has adopted an agricultural policy based on achieving results through mechanization, the use of improved seed and fertilizers (100,000 tons were made available in 2017), the promotion of farming organizations, and, improved access to the production zones. We are striving to have Guinean farmers produce more, increase their income and hence contribute to sustained economic growth through production intensification, rather than through the expansion of farmlands.

What sectors do you think are most attractive to private investors?

Modernization requires private investment.

We were fortunate to receive support from development partners such as the Islamic Development Bank (IDB) that granted Guinea 47 million dollars to reenergize some sectors and market certain agricultural products. Thanks to support from the coopérative agropastorale de Burquiah and VB International, a French importer, the pineapple sector is getting off the ground again. In 2018, 350 hectares were planted, yielding 15,000 tons. Cashew nuts, bananas and mangos also generate export opportunities, and the coffee and cocoa market is flourishing.

doingbusinessin Guinea | 2019 Edition

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Interview

Interview

Does the need for infrastructure create investment opportunities?

The challenges of water management to lessen dependency on the rainy season, and the opening up of the production zones are priorities.

Combining the efforts of government, the private sector and our other partners should make it possible to establish agriculture that is adapted to most of the situations related to climate change. Guinea has had to come a long way and everything is now a priority. The country needs everyone, all at the same time.

That is why we are creating opportunities for investors. We want to facilitate the terms of land ownership, especially in the rural areas, in order to reduce the risks associated with investments in the agricultural sector

SETRA S.A. The Société d’étude et de travaux (SETRA SA) was established on 4 February 1987 and ranks among the top national and foreign companies in Guinea. It has grown steadily since the beginning and now includes projects worth several billion Guinean francs.

Over time, our activities have diversified to include the entire building and public works sector.

SETRA SA is recognized for the quality of its service, and the sustainability and safety of its work sites.

ZOOM… Agriculture in Guinea, in numbers: • 6.2 million hectares of arable land • 700,000 ha of cultivatable land, 936,000 ha of wetlands, 204,516 ha surveyed • Rainfall between 1,200 and 4,000 mm/per annum, depending on the region • 6,250 km of waterways

As an enterprise, SETRA S.A stands out for its expertise in the following areas: - Construction, - Public Works, - Rural engineering, - Urban roadwork, SETRA S.A has acquired state-of-the-art equipment to ensure quality service to its clients.

Our emphasis on quality, health, safety, environment and community is the hallmark of SETRA operations, which serves to protect our employees, clients, and equipment.

The SETRA SA head office is located at the corner of Fidel Castro Ruz Highway and Ma 296 Street, Coléah Cité district, Matam, Conakry.

Tel: (+224) 657 443 424 / (+224) 664 333 191 (+224) 622 211 543.

Email and website: setra_sa@yahoo.fr - www.setra-sa.com

doingbusinessin Guinea | 2019 Edition

Gold medal winner at the International Construction Trophy 2018

Photo credit: Mécanique Générale Paris.

The fuel that cleans your engine km after km

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BUSINESS AND CONFERENCE-RELATED TOURISM OUTRANK HOLIDAY TOURISM Conakry is catching up with its luxury hotel offer for the growing number of tourists on business trips.

Major challenges still remain in the holiday tourism sector.

Six years ago Conakry saw Chinese investors together with Guinean shareholders build the 18-story Primus Kaloum hotel in the Kaloum husiness district in the south of the Conakry peninsula at a cost of over $100 million U.S. The 5-star

hotel was officially opened by President Alpha Kondé in October 2018. Its 315 rooms including 40 apartments, 12 meeting rooms and 4 restaurants will help the capital city make up for its shortage of top-qualityg hotels.

To show that the hotel industry offers a full range of services, that same day the Head of State inaugurated the 128-room Hotel Onomo which had been operating since the end of 2017. For several years now, this hotel group has been offering “simple, comfortable hotel accommodations” for business people in Africa at unbeatable price/quality rates.

Hotel Onomo Conakry, also in Kaloum on the Atlantic coast cost 23 million euros.

doingbusinessin Guinea | 2019 Edition

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EDUCATION

CONSTRUCTION

REAL ESTATE

HOSPITALITY

UNICON, tranforming Africa´s potential Republic of the Congo_ Ginea_Ivory Coast_ Equatorial Guinea_ Spain www.unicondevelopment.com Tel: (+34) 96 331 98 17

Business and conference-related tourism outrank holiday tourism

COMBINING BUSINESS AND PLEASURE The government is counting on its infrastructure to develop its holiday tourism. One of the main projects now being implemented is located on the Loos Islands, more specifically in Soro village on Kassa Island. With its incredible flora and fine sand beaches, this chain of islands is a paradise just a stone’s throw away from the capital and easily accessible by ferry.

THE FIRST “GRAND SHERATON” IN WEST AFRICA These last two are among the most recent to open their doors in Conakry. The State-owned Palm Camayenne is the first 5-star hotel. It was built in 1964 but refurbished and upscaled in 2013 by the Unicon Group which now manages it. The following year, the Millenium Hotel opened for business. It is also located in Dixinn, on the north coast road and like the Palm Cayenne offers very high quality services.

Through its current National Strategy for the Promotion of Tourism, Guinea is banking on its beaches and mountains endowed with the most spectacular landscapes in West Africa. The government is also depending on the resumption of services by international airlines; close to a dozen airlines land on the renovated international airport in Conakry. The new national airline, Guinea Airlines, created in partnership with Ethiopian Airlines, could play a role in the future, especially by providing domestic flights. But first, the airports in Boke, Kankan, Labé, Nzérékoré and Faranah will have to be modernized

At the end of September 2016, the Noom Conakry became the first 5-star hotel to be built in Africa by the Mangalis Group, a subsidiary of Teyliom, a Senegalese holding company. In December 2016, the American group Starwood Hotels & Resorts Worldwide Inc., a subsidiary of Marriott International, opened its first West African Grand Sheraton in the Guinean capital. The hotel cost close to 60 million dollars doingbusinessin Guinea | 2019 Edition

Thierno Ousmane Diallo, Minister of State, Minister of Hotels, Tourism and Handicrafts

Interview “OUR SUCCESS DEPENDS ON OUR CAPACITY FOR TEAMWORK”

One of the main tourism projects is the development of the Loos Islands, south of Conakry. How far along are you?

Good progress has been made in carrying out this development project through the “Conakry 2040” general development plan. It has already been approved by the government and its special interministerial commission composed of the Ministry of Tourism, the Ministry of Urban Affairs and Territorial Development and the Ministry of Economic Affairs. The commission has reported its conclusions and submitted a draft agreement. A construction contract that includes the construction of a hotel was signed by the Minister of Urban Affairs and Territorial Development and the project promoter. The last step will be having it signed by the participating stakeholders.

When will the National Tourism Strategy be available?

The deadline was set for March 2019. A report has already been made available following a location study and a SWOT (“Strength, Weakness, Opportunities, Threats”) workshop in December 2018. SWOT is an analytical tool used to determine the various options available in a specific strategic domain. Two workshops for the pre-validation and validation of the National Strategy for the Promotion of Tourism and Sustainable Ecotourim together with plans for priority actions were held in Conakry (14 and 26 February 2019).

How are discussions on this strategy unfolding with the other ministries involved?

Discussions are excellent. Everyone understands that the success of this strategy depends on our capacity to work as a team and create synergy among all the stakeholders. Tourism is a multisectoral activity, and the actions of the ministries responsible for health, security, visas, transportation, agriculture,crafts, public works and even ICT are essential for its development.

What are your ministry’s other priorities to improve the reception of tourists who come for holidays or business?

Our priorities are the construction of accommodations in Conakry and inland, improving conditions for the tourists’ arrival and stay, upgrading the main tourism sites and making them more accessible. Capacity building for people from both public and private tourism sectors and accommodations is also a priority; especially through the future ECOWAS tourism training center. Overall, we are focusing on improving the business climate in the tourism and accommodations sector

doingbusinessin Guinea | 2019 Edition

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Interview

TELECOMMUNICATIONS: GUINEA INCREASINGLY CONNECTED Guinea has made great strides in Information and Communication Technology (ICT) inter alia by increasing access to fiber optics, creating a national fiber optics system, and providing an Internet exchange point.

FIRST SUBMARINE CABLE CONNECTION In 2012 Guinea operationalized ACE (Africa Coast to Europe Submarine Cable) after connecting it to the ACE landing point. This first component in increasing the geographic reach of the broadband network, ensuring high speed Internet connection at low cost, was carried out as part of Warcip-Guinea (West African Regional Communications Infrastructure Program).

OPEN ACCESS WITH GUILAB To finance Guinea’s connection to the ACE cable, in March 2011 the State created GUILAB (broadband Guinea) through a public-private partnership with private national operators. GUILAB is responsible for operating and maintaining the national landing. The company provides its shareholders, in proportion to their financial participation, access to capacity on the cable allocated to the country, respecting the principle of open access to all licensed operators. Guinea’s investment is close to 34 million USD, largely funded by the World Bank.

doingbusinessin Guinea | 2019 Edition

DIGITAL BACKBONE The fiber optic digital network is being constructed throughout the country starting from the ACE cable landing. Since 2015, the Chinese company Huawei has been responsible for building this 4000 km fiber optic cable, costed at 238 million dollars,

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CREATION OF A LOCAL INTERNET EXCHANGE POINT The Internet national exchange point (IXP-Guinée) was inaugurated by the Guinean Prime Minister in October 2018. Its purpose is to develop the national connection by ensuring that all the traffic generated by mobile operators and Internet providers originating and terminating in Guinea is handled by the country instead of through costly international connections. This facility could enable Guinea to become a regional interconnection station and contribute to reducing the cost of access to Internet.

of which 85% is funded by the Chinese government and 15% by Guinea. The Société de gestion et d’exploitation du backbone national (SOGEB) was created to support the project.

A NEW CABLE FOR MORE ROBUST HIGH-SPEED ACCESS A Memorandum of Agreement was signed on 23 October 2018 between GUILAB (broadband Guinea) and Cabo Verde Telecom, the historical operator for Cape Verde, to connect the two countries through a fiber optic submarine cable called “Cap Amilcar Cabral”. The project with a budget of close to 44 million dollars, is owned by Cabo Verde Telecom, GUILAB and the future partners in West Africa. The purpose of the MoA is to ensure the security of Guinea’s international Internet traffic

|||||||| Number of telephone and mobile Internet subscribers (in ‘000s) 3rd quarter 2017

3rd quarter 2018

Total mobile

11,222

12,009

- share prepaid

11,208

11,946

Penetration rate

99%

101,2%

Total Internet mobile

2,913

3,772

Penetration rate

25,7%

31,8%

(Source: Autorité de régulation des Postes et Télécommunications de Guinée, ARPT)

|||||||| Cell phone services and statistics per operator in 3rd quarter 2018 Orange Market shares (cell)

MTN

Cellcom

59%

24%

17%

61.7%

30.1%

8.2%

Market shares (revenue)

68%

18%

14%

Mobile Money users (in ‘000s)

1.094

104

/

338

262

88

Market shares (Internet mobile)

Chefs-lieux of prefectures and sub-prefectures covered (Source: Autorité de régulation des Postes et Télécommunications de Guinée, ARPT)

doingbusinessin Guinea | 2019 Edition

A MORE STABLE AND DYNAMIC BANKING SECTOR The Guinean banking market has increasingly diversified over the last few years. Generally healthy, it is nonetheless coping with the same problem as its neighbors, namely insufficient credit supply to businesses.

In 2017, the Société générale de banques en Guinée, the Banque internationale pour le commerce et l’industrie, the subsidiaries of the pan-African Ecobank Group and the French banks Société générale and BNP Paribas accounted for more than 11 billion Guinean francs of the total 19,653 billion on the balance sheets of the sixteen banks operating in Guinea. In the last few years, several banks have joined the ranks of these institutions, which have historically dominated the Guinean national banking system.

A MORE DIVERSIFIED SECTOR Five banks have penetrated the market since 2010, bringing the total to sixteen. They comprise three from Nigeria – the United Bank for Africa (in 2010), SkyE Bank (in 2010, which Nigeria nationalized in September 2018) and First Bank of Nigeria (in 2015 following the acquisition of shares in the Banque international pour le commerce de Guinée) – the Ivorian Nouvelle société interafricaine d’assurance (NSIA, in 2011), which was already operating as an insurance company in Guinea, and the Cameroonian Afriland First Bank (in 2012).

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A more stable and dynamic banking sector

GOOD RESULTS IN 2017 In 2017 the net income of these banks amounted to 291 billion Guinean francs, against 273 billion in 2016. At the end of December 2017, the net external position of the commercial banks was 2,034.24 billion Guinean francs, against 1,439.71 billion a year earlier. During this same period, deposits in foreign currency and in Guinean francs rose 27.8% and 8.36% respectively thanks to the dynamic economy, especially in the mining and agricultural sectors, and as a result of the policy pursued by the Guinean Central Bank (BCRG) during the last few years.

The cash flow in the banking sector has improved, rising from 10.6% in 2016 to 16.7% in 2017, but private sector credit has remained weak, showing just 2.3% growth.

Loans from commercial banks to the government increased by 16.5%. The decision taken in March 2017 to reduce required reserves from 18% to 16% released a considerable amount of liquidity, but most of it was absorbed by the banks’ underwriting of a loan of 500 billion Guinean francs to the State to finance road infrastructure.

The banks remain reluctant to extend credit to the private sector because of their deteriorating loan portfolio: non-performing loans rose to 10.7% in December 2017, against 9.4% in 2016 and 6% in 2015. Of the 5,520 billion Guinean francs that the sixteen banks pledged to businesses, only 799 billion were long-term loans.

The reform now underway should consolidate the unification of the official and parallel currency markets and avoid the overvaluation of the national currency. Market diversification pushed access to Guinean banking services from 3.7% in 2010 to an estimated 8% in 2015. Furthermore, there were 1.2 million users of Mobile Money in the third quarter of 2018, against 890,000 in December 2017

|||||||| Balance sheet of the Guinean banks as at 31 December 2017, and other indicators Total bank balance

(in millions of Guinean francs)

Ecobank Guinée Société générale de banques en Guinée Banque internationale pour le commerce et l’industrie (groupe BNP) Orabank United Bank for Africa First international Bank Banque populaire maroco-guinéenne Banque sahélo-saharienne pour l’investissement et le commerce First Bank of Nigeria Banque islamique de Guinée Afriland First bank Banque pour le commerce et l’industrie NSIA Banque Guinée SkyE Bank Banque de développement de Guinée Banque nationale de Guinée

4,172,300 3,919,776 3,011,069 1,497,980 1,120,474 1,024,002 964,262 796,315 596,497 566,802 538,981 522,868 452,688 240,978 123,441 105,420

(Source: Association professionnelle des établissements de crédit de Guinée)

doingbusinessin Guinea | 2019 Edition

Private clients 175,364 101,333 80,438 31,616 22,253 46,722 17,722 17,653 18,987 17,504 9,368 2,957 8,681 7,173 0 742

Corporate clients 5,568 4,717 436 3,794 4,663 11,680 1,343 2,228 2,186 4,320 2,443 812 1,466 2,037 2 280

Agencies 20 23 31 14 6 18 8 10 7 8 8 6 6 2 1 2

No.11inincurrency currencyexchange exchangeespecially especiallyininthe theUS USdollar dollarmarket market No. No.11ininthe theinternational internationalguarantees guaranteesmarket market No. No.11ininequity equityfunding funding(GNF (GNF584 584billion billionon on31 31July July2018) 2018) No. No.11ininextending extendingnew newcredit creditto toboth bothcompanies companiesand andindividuals individuals No. No.11ininoutstanding outstandingloans loans No. No.11ininLarge LargeCorporations Corporationsand andmining mining No. Thoroughlyintegrated integratedinto intothe theleading leadingbank bankgroup, group,our ourbank bankhas hasoperations operations Thoroughly throughoutthe thecontinent continentand andisisthe theleader leaderininAfrica Africa throughout

fast-changing environment, environment, Societe Societe Generale Generale InIn aa fast-changing Guinée(SGBG) (SGBG)has hasemerged emergedas asthe thereference referenceBank Bank Guinée forthe themining miningindustry industryand andfor forinternational internationalinvestors investors for operating inin strategic strategic sectors sectors such such as as Energy, Energy, operating Agriculture, Building, Building, Infrastructure Infrastructure and and Real Real Estate.

Estate.

Agriculture, It’sthe thefavorite favoritebank bankofofall allbusinesses, businesses,whatever whatevertheir their It’s sizeand andcountry countryofoforigin. origin. size

24 24 18 18 51 51 106 000 000 106

Branches Branches money POP POPPOINTS POINTS money ATM ATM CLIENTS including including CLIENTS 637 CORPORATES CORPORATES 55 637 329 EMPLOYEES EMPLOYEES 329

presentininthe thefour fourregions regionsof ofthe thecountry countrywith withits its ItItisispresent network of of 24 24 branches branches and and 18 18 money money POP POP Points Points network (This innovative innovative solution solution allows allows SGBG SGBG to to conduct conduct (This bankingbusiness businessthrough throughaapartner partnersuch suchas asaaGas Gas banking station or or aa supermarket supermarket beyond beyond the the traditional traditional station branchnetwork). network).The TheGroup’s Group’sstrength, strength,the thequality qualityof of branch itsservices servicesand andthe theexperience experienceof ofits itsstaff staffare aredefinite definite its assets inin supporting supporting clients clients inin the the management management of of assets theirprojects projectsand andday-to-day day-to-dayoperations operations their SociétéGénérale Généralede deBanques Banquesen enGuinée Guinéeelected electedas asthe the ‘Best ‘BestBank’ Bank’in inGuinea Guineain in2017 2017and and2018 2018 Société byGLOBAL GLOBALFINANCE FINANCE by

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SOCIETE GENERALE GENERALE DE DE BANQUES BANQUES EN EN GUINÉE GUINÉE :: SOCIETE USING LOCAL LOCALEXPERTISE EXPERTISE USING

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Global Transaction Banking 1.

Global Transaction Banking Global Transaction Banking

CASH MANAGEMENT AND ELECTRONIC BANKING COMPANIES

Global Transaction Banking (GTB) was created with the aim of facilitating the transactional activities of major economic and financial players, both domestically and globally. GTB offers a wide range of payment and cash management as well as trade finance solutions for financial institutions and companies including multinational corporations and large and mediumsized companies that do business internationally.

Current account management

Electronic banking : internet Banking, Host to host, consultations etc.

Payments : in local or foreign currency, multiple payments, swift, payroll, suppliers, etc.

Collections : cash collection, cheques, transfers received.

GTB covers the following business lines:

Liquidity management : cash pooling, term deposits, overdrafts, etc.

INTERNATIONAL TRADE

Domestic guarantees

International transactions governed by ICC rules and practices (Documentary credit or letter of credit, Documentary collections, international guarantees).

International transfers (open account).

Discounts based on documentary credits.

N°1 in the issuance of letters of credit.

Extensive network of correspondent banks around the world for safer and faster international transfers.

TPE (POS) for companies. .E-commerce service May include :

ATM at the Company’s site Business cards Purchasing or prepaid cards Salary cards ATMs Electronic payment activities for individuals (cards, ATMs)

FOREIGN EXCHANGE Opening of foreign currency accounts for clients (USD – EUR – GNF).

Exchange rates freely negotiated on daily basis Leader in the foreign exchange Market.

2

2.2.2.

Les Les produits produits et et services services SGBG SGBG 2.

SGBG SGBG products products and and services services DAY-TO-DAY DAY-TO-DAY BANKING BANKING BANQUE BANQUE AU AU QUOTIDIEN QUOTIDIEN

of payroll, of payroll, MT940 MT940 (end-of-day (end-of-day account account SERVICES SERVICES POUR POUR VOS VOS SALARIÉS SALARIÉS

statements), statements), MT101 MT101 (payment (payment orders). orders).

Local Local and and foreign foreign currency Current Accounts.

Accounts.

Comptes Comptes Courants Courants en currency monnaie en Current monnaie locale locale et en et en Conventions Conventions Entreprises Entreprises : crédits : crédits à taux à taux SERVICES FORFOR YOUR YOUR EMPLOYEES devises. devises. préférentiels, préférentiels, produits produits et EMPLOYEES services et services pourpour les les Payment Payment Methods Methods : commercial : commercial bills,bills, cheques, cheques, SERVICES salariés salariés d’entreprises d’entreprises clientes clientes à des à des conditions conditions provision provision funds, of Paiement funds, direct debits, mass mass transfers. transfers.

Moyens Moyens deof Paiement de :direct effets : debits, effets de commerce, de commerce, Corporate Corporate Agreements Agreements preferential : preferential avantageuses, avantageuses, services services sur:mesure sur mesure de retrait de rate retrait derate de chèques, chèques, misebanking mise à disposition à disposition de fonds, de fonds, prélèvements Electronic Electronic banking services services : salary :prélèvements salary cards, cards, VisaVisa credits, credits, products products and and services services on favourable on favourable salaires. salaires. cards, cards, POSPOS and and cashcash advance. advance. automatiques, automatiques, virements virements de masse. de masse. terms terms for employees for employees for corporations, for corporations, tailortailormade made salary salary withdrawal withdrawal services. services.

International International Services Services : salaires, :import/export import/export Services Services Monétiques Monétiques : cartes : cartes salaires, cartes cartes direct direct debits, debits, transfers transfers received received and and issued, issued, Visa, Visa, terminaux terminaux de paiement de paiement électronique, électronique, cash cash PLACEMENTS PLACEMENTS documentary documentarycredits creditsand anddocumentary documentary advance. advance.

INVESTMENTS INVESTMENTS Dépôts Dépôts à terme à terme : de: 3de mois 3 mois à 12àmois 12 mois en GNF en GNF collection, collection, international international guarantees, guarantees, foreign foreign Services Services à l’International à l’International : domiciliations : domiciliations import/ import/ exchange exchange transactions. transactions. et devises et devises (USD (USD et EUR), et EUR), avecavec une une rémunération rémunération export, export, transferts transferts reçus reçus et émis, et émis, crédits crédits et et Term Term deposits deposits : from :banque from 3 to 3 12to months 12solide. months in GNF in GNF and and attractive attractive dans dans une une banque solide.

Electronic Electronic Banking Banking and and Cash Cash Management Management remises remises documentaires, documentaires, garanties garanties internationales, internationales, currencies currencies (USD (USD and and EUR), EUR), with with an attractive an attractive tools tools : de: change.

Compte Compte à Préavis à Préavis : dépôts : dépôts de quelques de quelques joursjours à à opérations opérations de change. remuneration remuneration fromfrom a solid a solid bank. bank. quelques quelques semaines, semaines, retrait retrait à tout à tout moment moment avecavec SGBGnet SGBGnet : account : account management management by by Banque Banque Electronique Electronique et et outils outils de de Cash Cash Notice Notice Accounts Accounts : deposits from aplacement fewaplacement days few days toqui a toqui a un préavis un préavis de 48h de: deposits 48h Compte Compte defrom de distance distance for private clients. clients.

Management Management : for: private few weeks, few weeks, withdrawal withdrawal at any at any time time with with 48 hours 48 hours génère génère des des intérêts intérêts et pour et pour toutetoute opération opération il faut il faut notice notice for interest bearing bearing investment investment accounts accounts SGBGnet SGBGnet : gestion : gestion vos vos comptes comptes SOGECASHNET SOGECASHNET : de enables : de enables corporate corporate faire faire unfor préavis. uninterest préavis. and and for any for operation any operation you must you must givegive notice. notice. domestiques domestiques à distance. à distance. clients clients to manage to manage theirtheir company company accounts accounts by distance by distance in complete in complete safety. safety.

It helps It helps SOGECASHNET SOGECASHNET consultation : time consultation multimulti- FINANCEMENTS FINANCEMENTS customers customers save:save time and and do do banking banking FINANCING FINANCING comptes, comptes, consultation comptes comptes exactly exactly whenwhen theyconsultation they needneed to. With to. With our online our online Financement Financement du cycle du cycle d’exploitation d’exploitation : : d’engagements, d’engagements, téléchargement des banking banking service, service, you téléchargement you no longer no longer have have todes to Financing Financing the operating the operating cycle cycle : overdraft : overdraft facility, facility, découvert, découvert, facilité facilité de caisse, de caisse, escompte escompte de papier de papier soldes soldes et écritures, et écritures, consultation consultation autres autres stand stand in a in queue a queue or wait or wait for your for your turn turn in the in the commercial commercial paper paper discount, discount, campaign campaign credits, credits, commercial, commercial, crédits crédits de de campagne, campagne, cautions, cautions, banques banques des et intradays, intradays, téléchargement bank. bank.

It et is aIt convenient is ades convenient waytéléchargement way to have to have 24 hour24 hourguarantees, guarantees, financial financial guarantees, guarantees, spotspot credit. credit. garanties garanties financières, financières, crédit crédit spot.spot. des des avis/reporting avis/reporting virement virement a-day a-day access access to spécifiques, your to spécifiques, your account account balance, balance, Investment Investment financing financing : : make make payments payments andinternationaux, and viewview youryour statements statements domestiques domestiques et internationaux, et transferts transferts Financement Financement deslong-term des investissements investissements : and : foreign medium medium and and long-term loans loans in local in local and foreign andd’ordre… and anytime. anytime. deanywhere fichiers deanywhere fichiers d’ordre… crédits crédits à moyen à moyen et long et long terme terme en monnaie en monnaie currencies currencies (US (US and and EUR).

EUR).

Complex, Complex, structured structured locale locale et syndicated enetdevises enfinancing. devises (US (US et EUR). et EUR).

Financements Financements and and syndicated financing.

SOGECASH SOGECASH WEB WEB integration integration of vos your of vos your SOGECASH SOGECASH WEB WEB : : intégration : : intégration de de complexes, complexes, structurés, structurés, syndication. syndication. domestic domestic accounts accounts into into your your group’s group’s multi-multicomptes comptes domestiques domestiques dans dans l’abonnement l’abonnement country country subscription, automatic automatic processing processing multi-pays multi-pays desubscription, de votrevotre groupe, groupe, traitement traitement automatique automatique du du paiement paiement des des salaires, salaires, relevés relevés de compte de compte fin de fin journée de journée MT940, MT940, SGBG SGBG NETWORK NETWORK réception réception des des ordres ordres de paiement de paiement MT101.

MT101.

Conakry Conakry andand its suburbs its suburbs

TheThe provinces provinces

RÉSEAU RÉSEAU SGBG SGBG

Contacts Contacts : : Lorenzo Lorenzo BERTHO BERTHO : lorenzo.bertho@socgen.com : lorenzo.bertho@socgen.com Conakry et sa et banlieue sa banlieue La province La province Abdourahim Abdourahim BAH:Conakry BAH: abdourahim.bah@socgen.com abdourahim.bah@socgen.com Global Global Transaction Transaction Banking Banking (GTB)(GTB) : : Mamadou Mamadou FOFANA FOFANA : mamadou.fofana@socgen.com : mamadou.fofana@socgen.com Site Internet Site Internet : www.guinee.societegenerale.com : www.guinee.societegenerale.com Contacts Contacts Privilégiés Privilégiés Service Service Clients Clients : Tél::+224 Tél: +224 664 888 664444 888 444 DCE DCE : Lorenzo : Lorenzo BERTHO BERTHO : Lorenzo.bertho@socgen.com : Lorenzo.bertho@socgen.com / Abdourahim / Abdourahim BAH:BAH: abdourahim.bah@socgen.com abdourahim.bah@socgen.com

Global Global transaction transaction banking banking (GTB)(GTB) : Mamadou : Mamadou FOFANA: FOFANA: mamadou.fofana@socgen.com mamadou.fofana@socgen.com Site internet Site internet : www.guinee.societegenerale.com : www.guinee.societegenerale.com / Service / Service clients clients : Tél.::Tél. +224 : +224 664 888 664444 888 444 3 3

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#4 doingbusinessin Guinea | 2019 Edition

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ABUNDANT MINERAL RESOURCES • Mines: to bolster the Guinean economy >>> • How to better develop and share strategic infrastructure >>> • Major reforms in the mining industry >>> • Local content, mineral processing and building up human resources >>>

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MINES: TO BOLSTER THE GUINEAN ECONOMY Bauxite and gold are propellers of the mining sector.

A wide range of minerals and more local processing should provide support to an evolving economy.

For the last three years, resumption of world demand together with the introduction of a new mining policy and investments in bauxite development have been the backbone of the mining industry, the source of close to 80% of Guinean exports, 13.3% of its GDP and close to 15% of State revenue.

The government has been encouraging mining projects by allocating the resources needed to contribute to economic transformation through the modernization of infrastructure and the development of agriculture and job-generating services.

A FREEWAY FOR GUINEAN BAUXITE Bauxite and gold accounted for close to 80% of the value of Guinea’s exports in 2017 and 2018.

During the last few years, Guinea has benefited from China’s demand for bauxite and the inconsistency of its former suppliers like Indonesia and Malaysia. China is the world’s leading producer and consumer. Guinea, which has an estimated one-third to one-half of the world’s known bauxite reserves, enough to produce 100 million tons of bauxite per year for 400 years, has attracted 10 billion dollars in foreign investments in bauxite in eight years,

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Mines: to bolster the Guinean economy

Production per company Compagnie des bauxites de Guinée Compagnie des bauxites de Kindia Société minière de Boké Henan-Chine Compagnie des bauxites de Dian Dian Total production Total exports

2014

2015

2016

2017

2018*

16,915 3,372

16,440 3,597 866

17,708 3,538 11,177

17,504 3,124 29,564 1,509

20,287 18,611

20,904 19,721

32,423 29,448

51,701 48,638

8,725 2,542 19,674 4,007 577 35,526 34,615

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|||||||| Bauxite production and exportation (in ‘000s of tons)

(Source: Database of the Strategy and Development Office, Ministry of Mines and Geology - * January to July 2018)

Funding also comes from the United States, Germany, China, the United Arab Emirates, Great Britain, South Africa, Australia and other countries.

Last November, for instance, the SMB-Winning Consortium and Guinea signed three agreements worth three billion dollars for the construction of a refinery, a 135 km railroad, and applications for new bauxite exploration permits for the northwest region.

A SPATE OF BAUXITE PROJECTS In 2015, the Société minière de Boké (SMB) started bauxite operations in its permit zones and soon became the biggest bauxite producer in the country. The earlier producers, – Compagnie des bauxites de Guinée (CBG, 49% State, 51% Halco Mining) in Boké, and the world giant Rusal in Fria and Kindia, – are investing to increase their capacity. In 2016, CBG was granted a 643 million dollar loan for this purpose by some international institutions. In 2018, Rusal started operations at the Dian-Dian mine for bauxite and aluminum at a cost of close to 220 million euros and revived its aluminum refinery in Friguia, which had been closed since 2012, at an estimated cost of 825 million dollars.

The newcomers include Guinea Alumina Corporation (GAC), a subsidiary of Emirates Global Aluminum (EGA), which intends to open its site in Boké this year. The British company Alufer Mining opened the Bel Air quarry in Boffa in December 2018, while Henan-Chine started operations in its Boké permit zone in 2017, and in December 2018 signed a new agreement that included a bauxite transformation plant.

|||||||| Gold production and exports (in ounces) Production per company

2014

2015

2016

2017

2018*

Société AngloGold Ashanti

176,797 300,254 305,359 380,269 212,984

Société minière de Dinguiraye

203,402 214,853 194,985 208,882 134,461

SEMAFO

4,965

KASSIDY

776 776

0

0

0

2,076

2,122

Total production

385,164 516,659 500,344 591,227 349,567

Total exports

379,520 527,147 501,828 585,050 357,316

(Source: Database of the Strategy and Development Office, Ministry of Mines and Geology * January to July 2018)

doingbusinessin Guinea | 2019 Edition

Mines: to bolster the Guinean economy

A HEALTHIER GOLD MINING SECTOR Export income from gold in Guinea for the first six months of 2017 was estimated to be 470 million dollars, compared to 304 million dollars for 2016.

In addition to good management by gold mining operators, the excellent performance can also be attributed to the efforts made to clean up the sector in May 2016. This was intended to restore the balance between the quantity of gold exported and revenue in dollars repatriated by the country as required by law. In order to do this, the Minister of Mines tightened the control over the Comptoirs d’achat et d’exportation (COAB – Gold purchasing and exporting houses) and subsequently cancelled licenses and closed almost a dozen of them. Now, working with the Central Bank, nearly all the revenue is being repatriated as compared to 42% before the Ministry imposed tighter controls.

A GREAT MINERAL POTENTIAL Besides bauxite, iron, gold and diamonds, Guinea has an abundance of minerals and natural mining resources such as limestone, copper, lead, zinc, cobalt and nickel. The government is determined to learn more about them through geological research. In the meantime, the Office national du pétrole and its private partners continue to drill for oil or gas in areas known for their reserves

|||||||| Number of companies per mineral substance and per phase since 2010 Bauxite

Gold

Diamond

Quarries

Iron

Base metals

Allocated

87

303

48

67

14

4

Withdrawn

68

242

52

4

55

21

Renewed

4

64

3

12

3

/

(Source: CPDM/Ministry of Mines and Geology)

|||||||| Number of licenses per mineral substance and per phase since the land registry was put on line in 2016 Bauxite

Gold

Diamond

Quarries

Iron

Base metals

Exploitation

9

3

2

48

0

0

Research

37

177

23

0

5

2

Development

9

13

7

0

4

0

(Source: CPDM/Ministry of Mines and Geology)

doingbusinessin Guinea | 2019 Edition

What is the right approach for an inclusive mining activity that creates shared values?

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Moussa Mara

Mamady Camara

BUILDING A FUTURE OF PRIDE FOR GUINEA Guinea Alumina Corporation (GAC) is developing a bauxite mine-rail-port complex in Boké province.

The project has a total budgeted cost of some US $1.4 billion, and the first bauxite exports are expected during the second half of 2019.

The company is wholly owned by Emirates Global Aluminium of the United Arab Emirates, one of the largest aluminium producers in the world.

GAC’s concession is located close to existing mines that are operated by other companies, and the project has been conceptualised to improve and leverage existing infrastructure. Currently some 700 people are working to build the mine facilities in the Sangaredi area, and across the 100km rail link between the mine and the port approximately 700 people are upgrading the existing system. In the Kamsar area, where the port is located, some 2,500 people are engaged in civil and mechanical engineering work to build a 1.5km jetty where GAC’s products will be shipped.

Once steady-state operations have been reached, production is expected to level at some 12 million tonnes of bauxite per year.

“Our project is one of the largest greenfield investments in Guinea in the past 40 years,” said Moussa Mara, Mine Production Manager. “But it’s not enough to just mine bauxite, our goal in GAC is to make society better by being here.

I’m from Guinea, but I’ve lived abroad and now come back to work for GAC. We have so many resources in Guinea, we just need to make good use of them to develop our country.”

More than 80% of the almost 4,000 people currently working on the GAC project are Guinean; most are from Boké province. GAC established recruitment centres in Kamsar, Sangaredi and Boké towns at the start of the project to facilitate the employment of local people. Contractors and sub-contractors are required to recruit staff through these centres too.

GAC’s long-term operation will be run by some 400 staff. GAC’s vision is to go beyond the norm and offer job opportunities to Guineans at all levels of management.

Mamady Camara is Superintendent of Training and Performance Development at GAC. He said: “Every day we are getting closer to the operations phase, which will last for decades. My job is to develop our people and build strong and exciting career paths at GAC. I feel a sense of pride when I see employees progressing.”

GAC has invested over US $1 million in a programme called GAC Skills to develop local talent for the future, and has provided more than 22,000 hours of skills training and development for staff in the past two years. Key focus areas are leadership, English language, and relevant professional specialisations.

“We create jobs, but even more importantly we create opportunity in our supply chain and then on throughout the local economy,” said Mr Mara.

GAC has worked with local entrepreneurs and government to build the supply chain capacity it needs, and wherever possible prioritises local firms, then Guinean companies and finally potential international suppliers.

“The mining sector in Guinea has always relied on imported materials, equipment and expertise, so we are realistic about the scale of the task,” said Mr Mara. “But we recognise that the development of a competitive and effective local supply chain is vital both for the economic growth of the Boké region and the long-term success of our business.”

More than half of the supply contracts GAC has awarded since 2016 by number have been awarded to Guinean companies with a total value of almost US $40 million.

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GAC is fast approaching actual mining, when employment will stabilize at some 400 positions—most of which will be for Guineans

Guinea Alumina Corporation www.gacguinee.com

doingbusinessin Guinea | 2019 Edition

HOW TO BETTER DEVELOP AND SHARE STRATEGIC INFRASTRUCTURE Besides contributing to the construction of energy and public transport installations, the mining companies are increasingly sharing their infrastructures.

The government is very anxious for the mining sector to use part of its revenue for economic diversification and the development of basic infrastructure. The authorities hence decided to sign a framework agreement that commits China to invest close to 20 billion dollars in 20 years in infrastructure in return for access to Guinean mineral resources. The Guinean Parliament approved 515 million euros funding in December 2018 as part of this contract.

PORT AND MINE OPERATORS As part of another economic model, the Guinean Ministry of Mines and Geology signed a 2.89 billion dollar global agreement with the Chinese company Tebian Electric Apparatus stock (TBEA) for bauxite production and processing, a hydroelectric dam at Amaria and a deep-water port at Tayighbé. Up to now, the ports have been managed by the mining companies. These facilities are essential for the mining sector but in time must become multisectoral.

This is especially applicable to the bauxite industry.

Enormous quantities are exported directly from the Boké region to China. In October 2016, SMB-Winning was one of the first to expand the

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SHARING INFRASTRUCTURE “Considering the inordinate cost and other problems, like environmental impacts, connected to the construction of large-scale infrastructure, today’s companies have to explore all opportunities for sharing the public and private infrastructure that already exists,” said Malick N’Diaye, President of the Guinea Chamber of Mines. To defray costs, in 2014 the government adopted the Schéma directeur du développement des infrastructures auxiliaires aux mines (SDIAM Guidelines for the development of infrastructure that supports mining), which emphasize the idea of sharing (mutualisation). The sharing agreement that the Compagnie des bauxites de Guinée (CBG), Rusal and the Guinea Alumina Corporation (GAC) signed in 2015 made these companies’ projects more economically viable.

Malick N’Diaye, who is also the GAC Financial

Focus

AFRICAN MINERALS DEVELOPMENT CENTRE (AMDC) IN GUINEA At its 31st Summit in July 2018 the African Union (AU) selected Guinea as the headquarters for the African Minerals Development Centre (AMDC).

Guinea’s candidacy was submitted in October 2015 together with that of Kenya, Mali, Zambia and Sudan.

The AU Commission created the AMDC with support from the UN Economic Commission for Africa (ECA) and the African Development Bank (AfDB) to promote the role of mineral resources in Africa’s processing and development and as part of the collaboration and coordination between the African governments and the private sector for the implementation of the African Mining Vision, as defined by the AU member states. As a specialized AU institution, the AMDC must make sure that the member states obtain a maximum of revenue and benefit from their mineral resources, all the while ensuring that both the mining companies and the governments respect the need for transparency and accountability. Although Guinea was one of the founders of the OAU (renamed AU), it has yet to host any of the AU institutions.

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river port of Katougouma, at Dapilon (Boké), in order to increase its exporting capacity. Within three years, SMB became the biggest Guinean producer of bauxite, which is first loaded onto trucks, then onto barges at the Rio Nunez River and finally onto mineral ore tankers on the Atlantic coast.

In December 2017, the African Development Bank (AfDB) approved a loan of 100 million dollars to the Guinea Alumina Corporation (GAC, subsidiary of the Emirates Global Aluminum) for a bauxite project that includes the modernization of an existing multi-sector railroad system and the development of a port in Kamsar. As for the world’s mega-iron ore deposit in Simandou, it cannot start operations until the construction of a 650 km railroad, 35 bridges, 24 km of tunnels and a port.

Director, stressed that “… this innovative concept facilitates private investment in State-supported infrastructure, without counterpart repayment.

All this infrastructure will help make the mining sector and Guinea more attractive in the future”.

The GAC, which is developing a bauxite mine in the Boké region, announced in December 2018 that its first train of 120 wagons left the Kamsar platform on the Atlantic coast some 30 kilometers from Boké to head for the mining site near Sangaredi, as part of a railroad infrastructure test. This was the first successful test and involved the Compagnie des bauxites de Guinée

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How to better develop and share strategic infrastructure

Interview

Mohamed Lamine Sy Savané, CEO, Centre for Mining Promotion and Development (CPDM)

Interview

“we offer high-quality, transparent, dependable and efficient services to our investors in the mining sector” The CPDM was created in 1995 as part of the reforms taken to revive the mining sector. Today, it relies on modern tools to discharge its role in supporting the mining industry.

What are the main objectives of the CPDM? The role of the CPDM, under the authority of the Ministry of Mines and Geology, is to implement the government’s policy on the promotion and exploitation of its mineral resources. More specifically, the CPDM is responsible for processing applications for mining titles, reviewing requests for tax exemptions on equipment, materials and fuel, and also receiving mining company reports and transmitting them to the appropriate mining administration services. CPDM thus serves as a go-between and facilitator for government services and mining investors in helping with the regulatory, institutional and technological aspects of mining rights management. It is the cornerstone of open mineral resources management.

CPDM tools have been modernized these last few years …

The Système d’information géologique et minière (SIGM) was established in 1999 but was not properly managed and had remained unchanged since 2002, which held CPDM back in its work. We were no longer able to provide reliable land registry information, nor adequately manage the mining

lands. In light of this, and following an audit by SIGM in 2014, the government, backed by the World Bank, and through the project “Support to Governance in the Mining Sector” (PAGSEM) decided to modernize the land registry system, a process that lasted from 2015 to 2017. The main focus was on improving the land registry system, which is now one of the most modern in the world, as well as on introducing a new computerized system that meets the highest standards and a new land registry procedure for the effective and transparent management of mining titles and various other authorizations.

How does the CPDM improve the conditions for business investments?

CPDM makes geological and land registry information available to the public and decision-makers on the Web, and organizes and participates in promoting events to attract investors. The land registry procedure, rates and tariffs for set duties, taxes, and fees for mining titles and other authorizations, geological and mineralogical maps and related reports are now available on line at http://cpdm. mines.gov.gn/fr and http://mines.gov.gn. Similarly, in March 2017, we created a Web portal to access official, updated land registry data.

How do people in the mining industry feel about its relations with CPDM? People in the mining industry appreciate the transparency of the procedures and the speed with which the applications are processed. The time for processing research permit applications, for instance, has dropped from three months to less than two weeks, on average. This discussion gives me the opportunity to invite investors in the mining sector to come to Guinea. We will offer them excellent services that are transparent, dependable and efficient. The rich Guinean mining sector offers a variety of high quality mineral resources and is enjoying unprecedented growth thanks to the robust reforms that have been undertaken since 2011

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EXPERTISE, COMMITMENT AND CUSTOMER SATISFACTION

Interview

Abdoulaye Magassouba, Minister of Mines and Geology

Interview

Abdoulaye Magassouba has been the Minister of Mines and Geology since 4 January 2016. He explains how his ministry is trying to develop the mining industry by maximizing its positive effects and reducing its negative effects.

What major reforms were made during the last few years to improve the business environment in the mining sector?

To make the never-ending promise of the mining sector come true and turn it into a driver of the national economy, the President of the Republic, Alpha CondĂŠ, when first elected in 2010, decided to completely revise the governance of that sector. Despite the quality, diversity and abundance of mineral resources in Guinea, the mining sector had never lived up to expectations. The new mining policy focuses on the legal and regulatory framework, institutional capacity, governance, and distribution of profits to the stakeholders.

An incentivizing mining code was adopted in 2011. The code was amended in 2013 to include major innovations derived from international best practices for promoting processing, labor, and local SMEs, as well as environmental protection, transparency, and corruption control. Furthermore, in 2014 we adopted an important policy to combine the use of infrastructure related to mining, created

the CISPMI (Interministerial Committee for Monitoring Integrated Mining Projects) and modernized the mining land registry service.

Thanks to these policy changes, the time needed to process research permit applications was reduced from 3 months to 2 weeks on average.

In 2014, our country was granted the ITIE (Extractive Industries Transparency Initiative) conformity status, and all our agreements with mining companies are henceforth published on the Internet. In just a few years, our country has become the torchbearer of the African Mining Vision (AMV). As a result it was selected in 2018 to host the AU’s African Minerals Development Centre (CADM).

Are you satisfied with the amount of investments that the reforms have attracted?

The investors showed their interest by starting new projects and reviving the ones pending.

Between 2011 and the beginning of this year, 10 billion dollars were invested in the mining sector, 3 billion of which are now being spent.

This is more than double the amount invested in mining between 1958, the year of our independence, and 2011, which has led to the creation of more than 17,000 direct jobs and over 40,000 indirect jobs between 2011 and the end of 2018 without mentioning the induced job growth. The bauxite production that had leveled at less than 20 million tons per year, for the first time reached 60 million tons in 2018. For its bauxite production, Guinea rose from 7th to 3rd place worldwide, just before Brazil and after China (whose main supplier we are) and Australia. The number of operational mining companies rose from 6 in 2010 to 11 in 2018. And the contribution of the mining sector to the State budget rose by 43% in 2017. Regular monitoring improved the performance of the artisanal gold and

doingbusinessin Guinea | 2019 Edition

diamond sectors. The repatriation of foreign currency from the export of these products rose from 42% before 2016 to over 90% in 2018. The money thus recovered, especially the quasi-billion dollars in 2017, guaranteed the stability of the Guinean franc. Furthermore as a result of the stricter monitoring and controls, several hundred research permits were withdrawn from permit holders who did not respect their legal and contractual obligations and commitments.

What mineral ores other than bauxite and gold would you like to mine as soon as possible?

Mineral ore production diversification is one of the challenges we still need to face to turn the mining sector into an effective lever of economic transformation. With this in mind we launched several projects that could improve our knowledge of Guinea’s geology. Nearly 40 years have passed since we conducted, – or completed, – any geological research program of our own. In 2018, we started a geophysical survey project to look for precious metals (gold and silver). The project (that was actually started in 1979) to create an integral geospatial and geoscientific databank, and the plans for a hydro-geological and geotechnical databank will soon be completed. These programs have been funded by the State. We need to add the geochemical stream sediment survey, which received financial assistance from the World Bank to seek indices of basic metals such as copper, chromium, cobalt, zinc, lead, nickel, etc.

Has the management of impacts from the mining sector improved?

This is still the most urgent challenge. In 2018, we found a partial answer through the creation of the Bourse de sous-traitance et de partenariats (Sub-contracting and partnership exchange) and activated the FODEL, Fonds de développement économique local (Local economic development fund) to provide payments of 0.5% or 1% of the mining companies’ revenue to the communities neighboring the mining sites. Further, the 2019 financial laws provide for the allocation of 15% of the State’s revenue from the mining sector to the local communities through FODEL. A strategy study has been made on the socio-environmental impacts, and we see that the monitoring and control system is gradually improving, as is the capacity of the BGEE, Bureau guinéen d’études et d’évaluation environnementale (Guinean office for studies and environmental evaluation)

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How far are you in dealing with another challenge, the local processing of mineral ore?

Before 2010, Friguia was the only facility to invest in processing. It was revived in 2018 and now employs over 2,000 Guinean laborers.

Thanks to the mining policy, we were able to start six new refinery projects and a new aluminium smeltering project. The decision to encourage local processing should enable us to increase added value and revenue for the State, reduce unemployment, and also build up human resources needed to industrialize our country, not only the mining sector.

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Interview

MAJOR REFORMS IN THE MINING INDUSTRY In 2011, Guinea adopted a new mining policy that changed the legal and regulatory framework, institutional capacities, governance and the fair allotment of benefits among the stakeholders.

THE MAIN REFORMS • Adoption of an enabling mining code in 2011, amended in 2013. This code includes major innovations based on international best practices for the promotion of local processing and development, employment and SMEs, environmental protection, transparency, and corruption control • In 2014, a policy was adopted on sharing auxiliary infrastructure for the mining sector with a Schéma Directeur des Infrastructures Annexes aux Mines (SDIAM – guidelines for infrastructure connected to mining), that was updated in 2018 to be used as the best framework for the development and use of these infrastructures • In 2016, the Comité interministériel de suivi des projets miniers intégrés (CISPMI - interministerial committee for monitoring integrated mining projects), a sort of one-shop-stop was created to facilitate and accelerate administrative procedures required for obtaining permits and authorizations for integrated mining projects, thereby putting an end to administrative red-tape that extended waiting times and increased costs;

• Modernization of the land registry system for mining areas moving from a land registry system that was obscure and inefficient for investors to a system that is among the most modern in the world and has been accessible online since March 2017. Now the time for processing applications for research permits has been reduced from 3 months to 2 weeks on average; • In 2014, the implementation of a transparency policy enabled Guinea to comply with the standards of the Extractive Industries Transparency Initiative (EITI). This sense of transparency now governs the online publication of all the agreements signed with mining companies; • As a result of the adoption, in 2017, of the Lettres de politique de la responsabilité sociétale des entreprises (Policy letters on Corporate Social Responsibility) and the Promotion du contenu local (Promotion of Local Content), the numerous investments now being made are leading to new projects that benefit the Guinean population as a whole

doingbusinessin Guinea | 2019 Edition

Interview

“We are making every effort to further develop our relations with the Ministry of Mines and Geology” The Guinea Chamber of Mines, which was created in 1997, has close to 60 full, associate and affiliate members working with government bodies, its partners and public opinion.

How do you conduct your discussions with the State?

The Guinea Chamber of Mines is determined to promote discussion with all parties involved in the mining sector, starting with the State. The Chamber is often consulted during the preparation of important reforms, e.g. during the adoption of the 2011 Mining Code when we were asked to express our concerns about the people living on the work sites and on aspects that might encourage investors.

Yet, I must confess that our comments and concerns have not always been taken into account. But that did not prevent us from doing everything we could to move forard in our discussions with the Ministry of Mines and Geology so that together we can look for permament solutions to the new challenges.

Were these reforms effective in attracting investors?

The economic context is marked by globalisation and competition. By ratifying the Mining Code amendments that make the fiscal regime more user friendly, Guinea is sending a positive message. This has quite naturally attracted iron ore and bauxite

What are the main challenges facing you?

Let’s start with the recurring issue of the VAT about which we had encouraging discussions with the Minister of the Budget and the Minister of Mines and Geology. Most mining companies are exempt from the VAT, but they first have to pay it and then wait for reimbursement. The VAT payments have risen enormously and the government cannot manage to keep up with the reimbursement schedule.

As for customs and duties for the mining sector, we have studied the questions related to the approval of the list of equipment and raw materials that are exonerated with an eye on the introduction of the one-stop-shop. We want to go even further by digitalising this list. This will save a lot of time and make the exemptions that we are granted even more transparent. These issues were also taken up with the Minister of the Budget and the Minister of Mines and Geology. Another prime concern at CMG is the harmonization of standards. Since the Guinean mining sector is booming, I would like to encourage all mining companies to join the CMG to consolidate respect for “Best Practices” in their mining operations, ethical conduct, and compliance with environmental standards and, more importantly, to ensure that their installations are long-lasting and respectful of the communities around them. Lastly, we set up a committee to review the mines and quarries collective convention. Lastly, because of the 2014 reforms to the Labour Code and the 2013 amendments to the Mining Code, we have established a committee to review the mines and quarrying collective convention in order to better adapt it to the realities of today

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Malick N’Diaye, President of the Chamber of Mines of Guinea (CMG)

production, transformation and export projects that are now in the development phase. At the same time the land registry reform has introduced greater transparency and made it easier to obtain the available mining permits.

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Interview

LOCAL CONTENT, MINERAL PROCESSING AND BUILDING UP HUMAN RESOURCES The government is adopting many measures to ensure that the extractive industry and the wealth it produces are more beneficial for the guinean people.

In 2017, the Guinean government adopted a policy to promote local content in the mining sector. The policy includes measures that will be implemented to maximise the economic and social benefits of investments in the extractive industry as well as measures to build up the capacity of human resources and local entrepreneurs.

Several public and private projects are already contributing to the fulfilment of this goal.

AUGMENT HUMAN RESOURCES Training skilled laborers to work in the mining sector is a government priority that is being especially well met by the Institut supérieur des mines et de la géologie de Boké (ISMGB Higher Institute of Mining and Geology of Boké) which is being upgraded into a sub-regional centre of excellence. It is with this in mind that the Head of State, in September 2018, appointed the members of the ISMGB Board, as re-

doingbusinessin Guinea | 2019 Edition

quired by the World Bank, one of the funders of this ambitious project. Eight Regional Arts et Métiers (arts and trade crafts) Schools in Boké, Labé, Siguiri, Nzérékoré, Coyah, Dabola, Kindia and Mamou are now being constructed to strengthen the country’s human resources and compensate for the shortage of technical and professional schools, and take pressure off the Ecole nationale des Arts et Métiers (ENAM) de Conakry. Funding is also being provided by the Saudi Development Fund (SDF) and the Islamic Development Fund (IDF). The construction of a training and upskilling unit (Unité de formation et de perfectionnement) was started in October 2018 on the premises of the Centre de formation professionnelle de Boké.

This unit is being funded by the Abou Dhabi Fund for Development, and offers training in skills that quickly prepare students to meet the needs of the private sector. The private companies are not dragging their feet. The Guinea Alumina Corporation (GAC), in January 2019 announced that its Projet 150 which it had started in November 2017 was progressing well Thanks to this 3 million dollar program, 150 Guinean apprentices received a technical diploma in mechanics, electrical engineering, maintenance and welding.

ENCOURAGE LOCAL PROCESSING OF PRODUCTS FROM THE MINES According to data from the Ministry of Mines and Geology, the Russian company Rusal produced 390,233 tons of alumina between January and August 2018 at its Friguia plant. This good news was the result of the revival, estimated at 825 million dollars, of Rusal’s alumina

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refinery that had been closed since 2012. In an interview with DBI the Minister of Mines and Geology said that Guinea’s new mining policy led to plans for six new refineries and a new aluminum smelting plant. Furthermore the Compagnie de bauxite de Guinée (CBG) recently commissioned a pre-feasibility study for the construction of an alumina refinery. Another project being considered is an alumina refinery by China Power Investment Corporation.

And on 17 December 2018, the Henan-China international mining development company (CDM) signed an agreement for the construction and exploitation of a bauxite mine, a railroad and an alumina factory in the Boké and Télimélé prefectures. While the SMB-Winning consortium, the biggest bauxite producer in Guinea, signed three agreements, including one for the construction of a refinery in November 2018.

Tebian Electric Apparatus (TBEA), a Chinese company, has a 2.89 billion dollar global agreement that also includes plans for the construction of a refinery (a million tons a year) and an aluminum smelting plant (200,000 tons a year). The most recent agreement was signed on 17 December 2018 and covers the construction of a new alumina refinery in Fria.

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Local content, mineral processing and building up human resources

Local content, mineral processing and building up human resources

LOCAL CONTENT In December 2018, the Guinean government, with backing from the World Bank’s International Finance Corporation, launched the Subcontracting and Partnerships Exchange (BSTP) as a platform for information and technical support and for introducing local enterprises (that are looking for contracts) to foreign enterprises in order to make better use of the local productive capacity. In the first phase, the mining industry will lead the way for the BSTP because of the large number of opportunities for subcontracting it has to offer. National companies should register on their Internet platform to increase their visibility and access procurement contracts. This exchange would equip the Guinean private sector thanks to training and access

to the technical supervision, which is much needed according to Malick N’Diaye, President of the Guinea Chambre des mines. He was pleased with the establishment of the BSTP but stressed that “the problem of local content is not so much access for local populations to these contracts, but rather the development of their technical and financial capacity to satisfy the mining industry’s needs. This will require the government to give special emphasis to the availability of credit lines for local SMEs and the small number of large companies so that they can compete with foreign companies. The mining industry would be pleased to buy local products but the products and services must be of good quality and must be competitive.”

|||||||| Location of main mineral ores

Source: ministère des Mines et de la Géologie - 2006

doingbusinessin Guinea | 2019 Edition

Focus THE MINING PROMOTION AND DEVELOPMENT CENTER The Centre de promotion et de développement minier (CPDM) was created to liaise with the government on supporting investment incentives policy and works with several departments of the Ministry of Mines and Geology. It is the one-stop shop for investors in the mining industry and participates in the preparation of permit applications, administrative formalities, accelerated examination of investment applications and the obtaining of mining permits.

Thanks to the Centre de promotion et de développement minier: • The Guinean public is better informed; • The mining companies have a stronger legal base thus adding stability and sustainability to the agreements; • Guinea, by improving the business environment, makes business more appealing and attracts larger investment to capitalize its immense mining resources.

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In September 2016 CPDM set up a new management system for the mining land registry system. The system includes a portal to mining permits that is open to the public.

The aim is to increase transparency.

This system can be used to review and renegotiate mining permits and agreements via the Comité technique de revue des titres et conventions miniers (CTRTCM Technical committee for reviewing mining permits and agreements). CTRTCM is accountable for the review process and the outcomes.

The CPDM also plays a role in promoting investment opportunities in the Guinean extractive industry. It joins with other departments of the Ministry of Mines and Geology at Mining Indaba, the biggest forum on developing the mining industry in Africa, held each year in Capetown, South Africa. Close to 100 countries attend. Besides promoting Guinea’s mining potential there, the CPDM also reports on the permit allocation procedures and the reform measures that have been undertaken since the beginning of the decade to improve the business environment.

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Local content, mineral processing and building up human resources

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EVERYDAY GUINEA 100 102 104 106 108 112

• Where to stay in Conakry >>> • Living in Conakry >>> • Conakry at a glance >>> • Practical information >>> • Acronyms >>> • Advertisers’ contacts >>>

doingbusinessin Guinea | 2019 Edition

WHERE TO STAY IN CONAKRY

FOR A FEW DAYS Palm Camayenne Hotel First luxury hotel built in Guinea after independence. It was built in Dixinn in 1964 and renovated in 2013/ The hotel has 123 rooms and suites, thre restaurants, two bars, a big swimming pool, a garden as well as three conference rooms and a business center. info@palmcamayenne.com www.palmcamayenne.com Onomo Hotel Onomo strives to offer the best price-quality conditions in Africa. Its hotel in Conakry has 123 rooms, 3 for people with limited moblity, 12 “superior double” rooms, and a ‘Made in Onomo’ hotel-residence with 29 apartments. onomo.conakry@onomohotel.com www.onomohotel.com

Sheraton Grand Conakry Sheraton Grand Conakry recommends hotels that “offer the highest level of design and service”. It is located in the Kipé residential district, in northwestern Conakry. The hotel was inaugurated in December 2016 with rooms between 36 m2 for the Club rooms to 186 m2 for the presidential suite. www.sheratongrandconakry.com Hotel Noom Of all the new hotels in the capital, this is the one that banks most on being “so modern”. Its terraces and restaurant attract many regular Conakry customers. The hotel is located in the heart of the city on the Kaloum peninsula. info.conakry@noomhotels.com conakry.noomhotels.com/fr/

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LIVING IN CONAKRY

by Lina Netzer, Manager, MAPS Agency www.mapsguinee.com “The monthly rent for apartments intended for foreigners varies from 1,500 to 5,000 euros depending on the size, standing and location. A foreigner with a family, or a senior executive, must pay at least 2,500 euros to be comfortably housed. The rent for villas is between 3,000 and 8,000 euros, without utilities. There are places with lower rent that are not as well situated (size, district, distance from center of city, etc). Conakry is more expensive than Dakar or Abidjan, - which explains the higher expatriation allowance - especially due to the increase in demand resulting from the growth of the mining industry. The shortage of electricity is also a factor that adds to the cost of housing: residences have their own generators and owners pay for the fuel. Apartment sizes vary between

160 and 360 m2. The most popular ones are in Camayenne and Coleah, on the southern ridge, close to the city center. This is also the case for “Minière” which is half way between the city and the Albert Camus French school (primary to high school). Next comes Ratoma, Taouyah and Kipé for people who want to live near the school”

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ONCE UPON A TIME THERE WERE 3 STARS The ONOMO hotels are located in business areas and near airports in the capital and other main cities across Africa. We offer simple, accessible, interactive, comfortable hotels that fit in with their natural and cultural environment.

Our priorities are service, safety and culture, not to forget our good food, “Onomoflavour”

ONOMO Hotel Conakty Quartier Tombo across from the 02 octobre gardens near the Résidence 2000 Commune de KALOUM - Conakry - Guinea +224 6 24 93 16 16 sales.conakry@onomohotel.com www.onomohotel.com

doingbusinessin Guinée | Édition 2019

CONAKRY AT A GLANCE Conakry was originally located on Tombo Island, not far from the Loos Islands off the southern tip of the 40 km long Kaloum Peninsula. During the colonization period, a dyke was built to connect Tombo to the Kaloum Peninsula. This stimulated urban growth to the north, first up the Kaloum Peninsula and then further north. The area had 3.7 million inhabitants in 2016 and is composed of five communes: Kaloum, Dixin (location of the University of Conakry and many embassies), Ratoma, Matam and Matoto (location of the airport). The Conakry region with its five communes makes up one of the country’s eight regions. Trying to reach Kaloum, the business and government center, by car is a nightmare since there are only two access roads, and both are jam-packed during peak hours. The Grand Conakry Vision 2040 should reorganize and develop the city as well as provide more liveable housing.

Vision 2040 also includes plans to redistribute the population of the capital city and make the smaller neighboring cities more appealing. In October 2017, the authorities produced a master plan for developing Kaloum and the Loos Islands to the south of Conakry. It includes plans to develop the coast and build or renovate low-cost housing and road infrastructure.

MEDICAL CARE The Ambroise Paré Clinic on the Corniche nord (northern coastal road) as it enters the city center provides quality healthcare services. It has 60 beds and surgical equipment that is constantly being improved, provides regular training for its medical staff and has an emergency service that includes a fleet of medically-equipped ambulances.

SCHOOLS http://www.lyceealbertcamus-conakry.net The French school, called the Albert Camus Lycee, was founded in 1963 near the French Embassy and established in Kipé in 1986 (where it is still located). “Its curriculum is set by the French Ministry of National Education, Higher Education and Research”. Under the authority of the AEFE, the Agence pour l’enseignement du français à l’étranger (Agency for French education abroad), the lycées offer the French educational cycle,from nursery school through high school. There are close to 500 French lycées in 137 countries around the world

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PRACTICAL INFORMATION FORMALITIES INCLUDING HEALTH Nationals of the following countries do not need visa: Algeria, Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, Cuba, Egypt, The Gambia, Ghana, Guinea-Bissau, Liberia, Mali, Mauritania, Morocco, Niger, Nigeria, Senegal, Sierra Leone, Tanzania, Togo and Tunisia.

Nationals of other countries must apply for a visa at a Guinean diplomatic representation before travelling. A visa at the Guinean Embassy in Paris, for instance, costs 60 euros for a one-month, single entry visit. Multiple-entry visas can also be requested. A yellow fever vaccination is required and must be entered on the vaccination certificate.

Malaria pills are strongly recommended.

GOING THERE More and more airlines are flying into the Conakry Gbessia International Airport, namely Air France, Royal Air Maroc, Brussels Airlines, Turkish Airlines, Ethiopian Airlines, Emirates Airlines, Tunis Air, Mauritania Airlines. Guinea Airlines is being developed in partnership with Ethiopian Airlines and Asky Airlines. It will serve airports in West Africa and connect the major cities within Guinea.

CLIMATE Guinea has a tropical climate that varies from region to region. There are major climatic differences between the coast and the center where the Fouta-Djalon rises to over 1500 m above sea level. The west is humid, the center has a mild climate, the northeast is tropical and the southeast is sub-equatorial. On the other hand, Conakry, which is on the coast, has little temperature variation throughout the year. The winter daytime temperatures are around 30°C (86°F) and during the rainy seasons the temperature is about 27°C (80.6°F) although high humidity gives an impression of greater warmth.

CURRENCY The Guinean franc (GNF) can only be exchanged within the country and travellers can only take 100,000 GNF with them when leaving the country. Credit cards (Mastercard, Visa, etc.) are accepted in some of the hotels. There is a floating rate for the GNF; a euro corresponds to approximately 103,00 Guinean francs.

TIME ZONE GMT: + 00:00

doingbusinessin Guinea | 2019 Edition

SOGEAC, the société de gestion et d’exploitation de l’aéroport de Conakry (Conakry airport management and operations company) MISSIONS: SOGEAC has been entrusted by the State to manage, operate, maintain and renovate Conakry’s airport infrastructure. This includes fire fighting and ground handling services (airport assistance) for airlines.

For Sogeac this mission entails active collaboration with its partners to: • Promote this stop-over by strengthening the existing connections and attracting new airlines; • Continually improve the quality of the service and the installations with special attention to safety and security measures; • Increase capacity in order to meet the everyday needs of the users; • Modernize the airport and upskill the employees.

The last few years have seen a considerable increase in the traffic on its site thanks to the arrival of new companies, e.g. Emirates, Groupe Transair, Turkish Airlines, Ethiopian Airlines and TunisAir. These contacts will be maintained through meetings to encourage airlines to open new stop-over.

This should allow traffic to grow even more and offer travellers more connections.

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Acronyms

acronyms

AEFE AFD AfDB AMV APIP ARPT AT AU BCRG BES BGEE BOT BPI BSTP CADM CBG CBK CCEF CDM CFE CFU CHEC CI CIF CIFEG CIRAD CISPMI CMG CNSS CPDM CPI-PPP CTRTCM CWE ECA ECF ECOWAS EDF EDG EGA EITI ENAM EPC ERAM

Agency for French education abroad (Agence pour l’enseignement du français à l’étranger) Agence française de développement African Development Bank Africa Mining Vision Private Investment Promotion Agency of Guinea (Agence de promotion des investissements privés) Autorité de régulation des postes et télécommunications de Guinée Apprenticeship tax African Union Central Bank of the Republic of Guinea (Banque centrale de la République de Guinée) Bureau d’exécution stratégique Guinean office for studies and environmental evaluation (Bureau guinéen d’études et d’évaluation environnementale) Build, operate, transfer Banque publique d’investissement Subcontracting and partnership exchange (Bourse de sous-traitance et de partenariats) African Minerals Development Centre (Centre africain de développement minier) Compagnie des bauxites de Guinée Compagnie des bauxites de Kindia French foreign trade advisers (Conseillers du commerce extérieur de la France) Compagnie de développement des mines internationales Henan-Chine Centre de formalités d’entreprises Single land tax (Contribution foncière unique) China Harbour Engineering Company Corporate tax Cost, Insurance, Freight French investors club in Guinea (Club des investisseurs français en Guinée) French Agricultural Research Centre for International Development (Centre de coopération internationale en recherche agronomique pour le développement) Interministerial Committee for Monitoring Integrated Mining Projects (Comité interministériel de suivi des projets miniers intégrés) Chamber of Mines of Guinea (Chambre des mines de Guinée) Contribution to the National Social Security Fund (Contribution à la caisse nationale de sécurité sociale) Mining promotion and development center (Centre de promotion et de développement minier) Presidential Investment Council–Public-Private Partnership (Conseil présidentiel des investissements et des partenariats public-privé) Technical committee for reviewing mining permits and agreements (Comité technique de revue des titres et conventions miniers) China International Water and Electric Corporation United Nations Economic Commmission for Africa Extended Credit Facility Economic Community of West African States European Development Fund Électricité de Guinée Emirates Global Aluminium Extractive Industries Transparency Initiative École nationale des Arts et Métiers Engineering, Procurement and Construction Écoles régionales des Arts et Métiers

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C+, MAJOR PLAYER IN FRENCH-SPEAKING AFRICA

IN AFRICA, CANAL+ IS PRESENT IN… …more than 25 countries in Africa, with more than 30 partners and with more than 5 500 jobs created in the continent.

SUPPORTING… …African development and audiovisual production through a range of dedicated programs.

COMMITED TO… …strongly promote African cinema by supporting producers, actors and film directors in their audiovisual projects, especially during festivals.

IN AFRICA, CANAL+ PROVIDES PAY TV OFFERS FOR EVERYBODY …with LES BOUQUETS C+, a unique television offer with more than 200 exclusive channels and radios.

INNOVATIVE SERVICES … with myCANAL, a new service giving access to a selection of CANAL+ best contents on all screens; and IROKO+, the first mobile SVOD service in French-speaking Africa.

C+, KEY PLAYER IN LOCAL DEVELOPMENT Present in Guinea through its subsidiary, CANAL+ GUINEA is directed since August 2017 by Mr Aubin Mwansa as General Manager who launched commercial operations in April 2018 after integration of historical partners.

C+ GUINEA REPRESENTS… MORE THAN 500 STORES AND 15 WHOLESALERS ACROSS THE COUNTRY MORE THAN 150 DIRECT JOBS AND MORE THAN doingbusinessin Guinea | 2019 Edition 500 INDIRECT JOBS

Acronyms

acronyms

EU FDI FMT FOB FODEL GAC GNF GUILAB HIPC ICBC ICT IDB IFC IMF IRVM ISMGB IUU JICA NIP NSIA OAU OHADA PAC PAGSEM PCSPG PGI PIDA PNDES PNRJ PPP PRSP PwC RTL RTS SDF SDG SDIAM SIGM SMB SOGEAC SOGEB SOGUIPAH SWOT SYNERGUI TBEA VAT WARCIP

European Union Foreign Direct Investment Flat-rate minimum tax / Minimum tax rate (IMF Impôt minimum forfaitaire) free on board Local economic development fund (Fonds de développement économique local) Guinea Alumina Corporation Guinean franc Guinéenne de large bande Highly Indebted Poor Countries Industrial and Commercial Bank of China Information and Communications Technology Islamic Development Bank International Finance Corporation International Monetary Fund Income tax on securities (Impôt sur le revenu des valeurs mobilières) Institut supérieur des mines et de la géologie de Boké Illegal, Unreported and Unregulated Fishing Japan International Cooperation Agency National Investment Plan New InterAfrican Insurance Company (Nouvelle société interafricaine d’assurance) Organization of African Unity Organisation for the Harmonisation of Business Law in Africa / Port autonome de Conakry Support to Governance in the Mining Sector project (Projet d’appui à la gouvernance dans le secteur minier) Plateforme de concertation du secteur privé guinéen Protected Geographical Indications Programme for Infrastructure Development in Africa National program for economic and social development (Plan National de développement économique et social) Politique nationale de réforme de la justice Public-Private Partnership Poverty Reduction Strategy Paper PricewaterhouseCoopers Processing and Liquidation Fee (Redevance pour traitement de liquidation) Deduction on wages and salaries (Retenue sur traitements et salaires) Saudi Development Fund Sustainable Development Goals Schéma directeur des infrastructures annexes aux mines Système d’information géologique et minière Société minière de Boké Société de gestion et d’exploitation de l’aéroport de Conakry Société de gestion et d’exploitation du backbone national Société guinéenne de palmiers à huile et d’hévéas Strength, Weakness, Opportunity, Threat Système national d’enregistrement des entreprises en république de Guinée Tebian Electric Apparatus stock Value Added Tax West African Regional Communications Infrastructure Program

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Advertisers’contacts

Advertisers’ contacts

ADM PARTNERS CONSULTING Conseil Aly THÉRIAN, CEO http://adm-partners-consulting.com Page n°: 36

BONAGUI Bottling, Compagny Jean NTAMBWE, CEO www.eccbc.com Page n°: 105

AFFECTIO MUTANDI Corporate Social Responsability Pierre-Samuel GUEDJ, President www.affectiomutandi.com Page n°: 83

BPMG (Banque populaire maroco-guinéenne) Commercial bank www.bpmg.net.gn Page n°: 61

AFRICA PORTS & AIRPORTS Transport and Logistics Agency Jean-Jacques GRENIER, CEO www.amaguinee.com Page n°: 15 AFRIMARINE Maritime, Transport and Logistics Agency Ibrahima SOW, CEO Business Development http://afrimarine-guinea.com Page n°: 89 FRENCH AMBASSY Représentation diplomatique Jean-Marc GROSGURIN, Ambassador of France https://gn.ambafrance.org Page n°s: 12 - 13 APIP-GUINÉE Private Investment Promotion Agency of Guinea Namory CAMARA, Managing Director www.apip.gov.gn Page n°: 44 BAEC (Bureau africain d’études et de contrôle) Engineering and Architecture Pascal FABER, Director, DPLG Architect www.baec-scp.com Page n°: 37 BETEC Consultancy Agassimou DOUMBOUYA, CEO www.betecsa.org Page n°: 29

BRUSSELS AIRLINES Airline www.brusselsairlines.com Page n°: Inside front cover CABINET 2i Consultancy Mamady KABA, Bottling, Co. www.cabinet-2i.fr Page n°: 33 CANAL + INTERNATIONAL Allocation of television channels Aubin MWANSA, Country Manager www.canalplus-afrique.com Page n°: 109 CMG (Chamber of Mines of Guinea) Malick N’DIAYE, President https://chambredesminesgn.com Page n°: 93 CPDM (Centre for Mining Promotion and Development) Mohamed Lamine SY SAVANÉ, CEO www.mines.gov.sn Page n°: 88 DJOMA GROUP Real Estate, Mining, Logistics and Media Kéléty Touré Fatoumata DIAKITÉ, QHSE Manager www.djomagroup.com Page n°: 17

doingbusinessin Guinea | 2019 Edition

Ministry of Investment and Public-Private Partnerships Gabriel CURTIS, Minister http://invest.gov.gn Page n°s: 34 - 35

EDG (Électricité de Guinée) Electricity marketing and management in Guinea Antoine BRANCO, Sales Manager https://edg.com.gn Page n°: 59

Ministry of Mines and Geology Division de l’administration publique centrale Mohamed Lamine SY SAVANÉ, Minister www.mines.gov.gn Page n°s: 90-91

GAC (Guinea Alumnia Corporation) Bauxite mines Malick N’DIAYE, Director of Finance and Administration www.gacguinee.com Page n°s: 84-85

Minister of State, Minister of Hotels, Tourism and Handicrafts www.facebook.com/www.Mithagco n° de page: 71

HAROPA PORTS Port systems Patrick BRET, Sales Manager for Africa www.haropaports.com Page n°: Inside back cover LANALA ASSURANCES Insurance Bernard GOUMOU, CEO www.lanala-assurances.com Page n°: 11 LC AVIATION Guinée Africa partner for aircraft and helicopter rental Daniel COLIN, Manager www.csaviation.fr Page n°: 115 MANUTENTION GUINÉENNE Caterpillar Representative in Guinea Gilles LE PERRIGAUD, Country Manager www.manuguinee.com Page n°: Back cover

NCWEST PRODUCTION AFRICA Audiovisual production and services Nicolas CUQUEL, CEO http://ncwestproduction.com Page n° : 64 NSIA ASSURANCES Insurance Momar SECK, CEO www.groupensia.com Page n°: 77 NSIA BANQUE Commercial Bank Souleymane TALL, CEO www.groupensia.com Page n°: 75 ONOMO Hotel Souana NODJITAN, Director www.onomohotel.com Page n°: 103

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ECO-BETAPE Construction and public works Lansana SANGARÉ, CEO www.ecobetape.com Page n°: 53

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Advertisers’ contacts

Advertisers’ contacts

Advertisers’ contacts

PALM CAMAYENNE Hotel Leonardo VAQUERO, CEO www.palmcamayenne.com Page n°: 101 PCSPG (Plateforme de concertation du secteur privé guinéen) Association for Employer and Socioprofessional Organisations Madani DIA, Executive Secretary http://pcspgn.org Page n°: 48 PWC (PricewaterhouseCoopers) Audit Mohamed LAHLOU, Director PwC Guinea www.pwc.com Page n°: 31 SETA GUINÉE Automobile Dealership Saîd MOUDAD, CEO dirseta@biasy.net Page n°: 21 SETRA (Société d’études et de Travaux) Construction and Public Works El Brahim KOUROUMA, CEO www.setra-sa.com Page n°: 66 SGBG (Société générale de banques en Guinée) Commercial Bank Gilles MULSANT, Sales Manager https://guinee.societegenerale.com/fr Page n°: 75 SIMACO ENGINEERING Construction, Transport, Sanitation and Mining Yéro SIDIBÉ, CEO tradin2002@yahoo.fr Page n°: 19

SOGAM (Société guinéenne d’assurances et de réassurances) Insurance Thierno Mamadou DIALLO, Administrator, Delegate General http://sogamguinee.com Page n°: 49 SOGEAC Conakry airport management Alpha Oumar DIALLO, Sales Manager www.aeroportdeconakry.com Page n°: 107 STRATHEG Consultancy Daouda CAMARA, Managing Director https://stratheg-sarl.business.site Page n°: 47 SUNU ASSURANCES Insurance Mandiaye GUEYE, CEO http://sunu-group.com Page n°: 27 TGH PLUS INDUSTRIES Distributor Renault Trucks Sidi TIDJANI, Director www.guinea.renault-trucks.com Page n°: 55 TOTAL GUINÉE Oil and Gas Distribution Cheick Omar DIALLO, Director www.total.com Page n°: 67 UNICON DEVELOPMENT Design, engineering and construction Miguel Angel Garcia CUENCA, Deputy CEO www.unicondevelopment.com Page n°: 69

SOBRAGUI Bottling Company Ariski AZZOUG, CEO www.sobragui.com Page n°: 111 doingbusinessin Guinea | 2019 Edition

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LC AVIATION

YOUR AVIATION PARTNERS IN AFRICA FOR AEROPLANES AND HELICOPTERS AVIONS ET HELICOPTÈRES

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Safety • Cost Control • Experience Sécurité • Contrôle des coûts • Expérience doingbusinessin Guinea | 2019 Edition

csaviation.com

contact: info@lcaviation.aero

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P O R T

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# S M A R T

PORTS OF LE HAVRE / ROUEN / PARIS • First North-European port of call on import and last • New logistics parks and land available. one on export.

• 57 sea and river terminals 24h/7days.

• 700 ports of call worldwide.

• Trafis Lab, the first applied research laboratory • First-class multimodal services for a European about logistics grouping together Customs, SOGET, hinterland.

Le Havre University and HAROPA. doingbusinessin Guinea | 2019 Edition

#HAROPA

www.haropaports.com