The Republic of Guinea has in the past few years witnessed a fundamental reshaping of the country’s institutions. Democratic and economic reforms have unrecognizably changed the investment landscape. Guinea can achieve far more, much more quickly in collaboration with external investors than it can alone. As the rising country’s gaze has turned outward, it has become increasingly focused on working with foreign investors to make even greater strides in its development, while in the process guaranteeing greater rewards for its partners through cost-effective and win-win projects.
There is no doubt that Guinea is now on the map. With the combination of its tremendous untapped resources and the new priorities set by the Government, Guinea can become a global player in the mining industry. Simandou is already one of the biggest integrated projects in the world – Alhassane Haidara, Chief Investment Officer at the African Development Bank Group (AfDB), Mining Indaba, February 2014
Improving living standards for the country’s population and guaranteeing Guinea’s partners returns on investments
Guinea has created the Private Investment Promotion Agency (APIP), designed specifically to encourage private investment in the country and implement government policies that support external investors.
The agency acts as an intermediary between the State and the private sector, closely collaborating with other public and private institutions to implement competitive, business-focused policies.
President Condé has a vision for the future of his country that its immense economic potential will be realized through win-win partnership with the private sector. Guinea’s future depends on a thriving private sector and high quality investment from abroad. My message to investors is: Be there – Tony Blair, Former Prime Minister of the United Kingdom, Abu Dhabi conference, November 2013
Ensuring continuing improvements to Guinea’s investment climate
For the investor, APIP ensures a streamlined process to maximise efficiency. The one-stop-shop provides a single window through which to access the country’s vast range of opportunities.
The agency works tirelessly to identify any barriers to external investment and direct Government action to overcome them, ensuring continuing improvements to the country’s investment climate.
Through this approach, the legal and regulatory environment for business is constantly being refined.
Mining: a new investment dynamic
- In May 2014, Guinea and its partners signed the Investment Framework (IF) for the $20bn Simandou South Project, which will be the largest integrated iron ore and infrastructure project ever developed in Africa. The IF was ratified by the National Assembly in June, allowing the Project to move onto the next steps: Consortium of investors, Bankable Feasibility Study.
- Several other major mining agreements in the bauxite sector were amended and ratified in 2014.
- In October 2013, a $6bn investment deal was signed with China Power Investment for bauxite and alumina production.
- At the sidelines of the Guinea Investment Conference held in Abu Dhabi in November 2013, a $5bn investment deal was signed with the UAE for bauxite and alumina production.
- $50bn of investment is expected in the mining sector over the next decade.
Today, we have reinforced our partnership with the Republic of Guinea. This new agreement will create considerable benefits for the two parties – Abdulla Kalban, Chairman of GAC, DUBAL’s Chief Executive Officer and Chief Executive Officer and Managing Director-designate of EGA, November 2013
Competitiveness and resilience
Guinea’s mining policy fully takes into account the economic and financial realities of global markets. The Guinean government is working towards the creation of a more resilient and competitive mining sector by developing new projects and diversifying the resources it exploits.
Projects in countries deemed to be more stable, more reliable and more consistent will win the race for investment capital. Many African government leaders understand this dynamic. The new Minister of Mines in the Republic of Guinea, Minister Magassouba, acknowledged the competitive dynamic in his first remarks as Minister earlier this year – Alan Davies, chief executive, Diamonds & Minerals, Rio Tinto, Mining Indaba, February 2016