Economy of Guinea

Guinea is richly endowed with minerals, possessing an estimated quarter of the world's proven reserves of bauxite,[3] more than 1.8 billion metric tons (2.0 billion short tons) of high-grade iron ore, significant diamond and gold deposits, and undetermined quantities of uranium.

Guinea also has considerable potential for growth in the agricultural and fishing sectors. Land, water, and climatic conditions provide opportunities for large-scale irrigated farming and agroindustry. Remittances from Guineans living and working abroad and coffee exports account for the rest of Guinea's foreign exchange.

Economy of Guinea
Statistics
GDP growth
3.8% (2015),
10.5% (2016),
8.2% (2017e),
6.0% (2018f) [1]
153rd (2018)[2]

All values, unless otherwise stated, are in US dollars.

Economic history

What did Guinea export in 2016
2016 Guinea Product Exports Treemap from Atlas of Economic Complexity

Guinea was part of the franc zone countries that included most of the former French Colonies. After Independence, these countries did not become completely economical free. France decided against monetary autonomy hence they could not use a freely convertible currency. The state intervention of the new governments was characterized by stops of quotas on imports and internal price controls. In the time up to c. 1980, the franc-zone countries had on average a lower inflation and a higher economic growth compared to the Anglophone counterparts, who could use their own currencies. But regarding the time after c. 1980 and the economic liberalism, characterized by Structural Adjustments, the franc zone countries could not outperform the rest.[4]

Since 1985, the Guinean Government has adopted policies to return commercial activity to the private sector, promote investment, reduce the role of the state in the economy, and improve the administrative and judicial framework. The government has eliminated restrictions on agricultural enterprise and foreign trade, liquidated many parastatals, increased spending on education, and vastly downsized the civil service. The government also has made major strides in restructuring the public finances.

The IMF and the World Bank are heavily involved in the development of Guinea's economy, as are many bilateral donor nations, including the United States. Guinea's economic reforms have had recent notable success, improving the rate of economic to 5% and reducing the rate of inflation to about 99%, as well as increasing government revenues while restraining official expenditures. Although Guinea's external debt burden remains high, the country is now current on external debt payments.

Current GDP per capita of Guinea shrank by 16% in the 1990s.

The government revised the private investment code in 1998 to stimulate economic activity in the spirit of a free enterprise. The code does not discriminate between foreigners and nationals and provides for repatriation of profits. Foreign investments outside Conakry are entitled to especially favorable conditions. A national investment commission has been formed to review all investment proposals. The United States and Guinea have signed an investment guarantee agreement that offers political risk insurance to American investors through OPIC. Guinea plans to inaugurate an arbitration court system to allow for the quick resolution of commercial disputes.

Mean wages were $0.45 per man-hour in 2009.

Economic sectors

Mining

Bauxite mining and alumina production provide about 80% of Guinea's foreign exchange. Several U.S. companies are active in this sector. Diamonds and gold also are mined and exported on a large scale, providing additional foreign exchange. Concession agreements have been signed for future exploitation of Guinea's extensive iron ore deposits.

Guinea is richly endowed with minerals, possessing an estimated one-third of the world's proven reserves of bauxite, more than 1.8 billion metric tons (MT) (2.0 billion short tons) of high-grade iron ore, significant diamond and gold deposits, and undetermined quantities of uranium.

Lately, with the increase of alumina demand from the booming economy of China, there is a renew interest in Guinea riches. The consortium Alcan and Alcoa, partner with the Guinean government in the CBG mining in north western Guinea, have announced the feasibility study for the construction of a 1 million TPa alumina smelter. This comes with a similar project from Canadian start-up Global Alumina trying to come with a 2 billion dollar alumina plant in the same region. As of April 2005, the National Assembly of Guinea has not ratified Global's project.

Revenue from bauxite mining is expected to fall significantly in 2010 due mainly to the world economic situation.[5]

Agriculture

Guinea also has considerable potential for growth in the agricultural and fishing sectors. Land, water, and climatic conditions provide opportunities for large-scale irrigated farming and agroindustry. Possibilities for investment and commercial activities exist in all these areas, but Guinea's poorly developed infrastructure continues to present obstacles to investment projects.

Energy

Three primary energy sources make up the energy mix in Guinea - biomass, oil and hydropower. With 78%, biomass (mostly charcoal) makes the largest contribution in primary energy consumption in Guinea. It is locally produced, while Guinea imports all petroleum products.

Communications

The people of Guinea are among the poorest in West Africa[6] and this reality is reflected in the development of the country's telecommunications environment. Radio is the most important source of information for the public in Guinea, and the only one to reach the entire country.

There is a single government-owned radio network, a growing number of private radio stations, and one government TV station. The fixed telephone system is inadequate, with just 18,000 lines to serve the country's 10.5 million inhabitants in 2012. The mobile cellular system is growing rapidly and had an estimated 4.8 million lines in 2012. Internet usage is very low, reaching just 1.5% of the population in 2012.

Economic statistics

The following table shows the main economic indicators in 1980–2017.[7]

Year 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
GDP in $
(PPP)
5.51 bil. 7.53 bil. 9.92 bil. 12.96 bil. 13.70 bil. 14.98 bil. 15.90 bil. 15.78 bil. 16.64 bil. 17.94 bil. 19.35 bil. 20.44 bil. 21.57 bil. 22.57 bil. 24.37 bil. 26.47 bil.
GDP per capita in $
(PPP)
916 961 1,134 1,354 1,398 1,490 1,542 1,489 1,530 1,607 1,690 1,740 1,791 1,828 1,926 2,041
GDP growth
(real)
3.7 % 5.1 % 4.0 % 4.5 % 4.2 % 6.3 % 7.0 % −0.6 % 6.9 % 6.0 % 7.3 % 8.4 % 8.8 % 8.8 % 8.2 % 9.7 %
Inflation
(in Percent)
25.7 % 5.6 % 6.8 % 31.4 % 34.7 % 22.9 % 18.4 % 4.7 % 15.5 % 21.4 % 15.2 % 11.9 % 9.7 % 8.2 % 8.2 % 8.9 %
Government debt
(Percentage of GDP)
72 % 67 % 91 % 98 % 95 % 61 % 58 % 61 % 69 % 58 % 27 % 34 % 35 % 42 % 43 % 40 %
2006Guinea exports
Guinea's export destinations in 2006.

GDP: purchasing power parity - $26.5 billion (2017 est.)

GDP - real growth rate: 6.7% (2017 est.)

GDP - per capita: purchasing power parity - $2,000 (2017 est.)

GDP - composition by sector:
agriculture: 19.5%
industry: 38.4%
services: 42.1% (2017 est.)

Population below poverty line: 47% (2006 est.)

Household income or consumption by percentage share:
lowest 10%: 2.7% (2007)
highest 10%: 30.3% (2007)

Inflation rate (consumer prices): 8.9% (2017 est.)

Labor force: 5.558 million (2017)

Labor force - by occupation: agriculture 76%, industry and services 24% (2006 est.)

Unemployment rate: 2.8% (2017 est.)

Ease of Doing Business Rank 179th[8]

Budget:
revenues: $382.7 million
expenditures: $711.4 million, including capital expenditures of NA (2004 est.)

Industries: bauxite, gold, diamonds; alumina refining; light manufacturing and agricultural processing industries

Industrial production growth rate: 8% (2017 est.)

Electricity - production: 1 billion kWh (2015 est.)

Electricity - production by source:
fossil fuel: 63.55%
hydro: 36.45%
nuclear: 0%
other: 0% (1998)

Electricity - consumption: 930 million kWh (2015 est.)

Electricity - exports: 0 kWh (2016)

Electricity - imports: 0 kWh (2016)

Agriculture - products: rice, coffee, pineapples, palm kernels, cassava (tapioca), bananas, sweet potatoes; cattle, sheep, goats; timber

Exports: $2.115 billion (2017 est.)

Exports - commodities: bauxite, alumina, gold, diamonds, coffee, fish, agricultural products

Exports - partners: China 35.8%, Ghana 20.1%, UAE 11.6%, India 4.3% (2017)

Imports: $2.475 billion (2017 est.)

Imports - commodities: petroleum products, metals, machinery, transport equipment, textiles, grain and other foodstuffs (1997)

Imports - partners: Netherlands 17.2%, China 13.2%, India 11.8%, Belgium 10%, France 6.9%, UAE 4.5% (2017)

Debt - external: $1.53 billion (31 December 2017 est.)

Economic aid - recipient: $359.2 million (1998)

Currency: 1 Guinean franc (GNF) = 100 centimes

See also

Further reading

  • LaVarre, Jr., William J. (August 1922). "Discovering Diamonds In British Guiana". The World's Work: A History of Our Time. XLIV: 425–433. Retrieved 4 August 2009.

References

  1. ^ "World Bank forecast for Guinea, June 2018 (p. 153)" (PDF). World Bank. Retrieved 11 September 2018.
  2. ^ "Ease of Doing Business in Guinea". Doingbusiness.org. Retrieved 23 January 2017.
  3. ^ "Bauxite and alumina" (PDF), Mineral Resources Program, U.S. Geological Survey, January 2009
  4. ^ Baten, Jörg (2016). A History of the Global Economy. From 1500 to the Present. Cambridge University Press. pp. 331–332. ISBN 9781107507180.
  5. ^ Mining Weekly, "Guinea bauxite income seen down 60% in 2010" 28 September 2009 (original source: Reuters)
  6. ^ "", BBC News, 14 March 2012. Retrieved 4 February 2014.
  7. ^ "Report for Selected Countries and Subjects". Retrieved 7 September 2018.
  8. ^ "Doing Business in Guinea 2012". World Bank. Retrieved 18 November 2011.

External links

Agriculture in Guinea

In Guinea in western Africa, agriculture accounts for 19.7% of the total GDP and employs 84% of the economically active population.

BRVM

The Bourse Régionale des Valeurs Mobilières SA ("Regional Securities Exchange SA"), or BRVM, is a regional stock exchange serving the following west African countries:

Benin

Burkina Faso

Guinea Bissau

Côte d'Ivoire

Mali

Niger

Senegal

Togo.The exchange is located in Abidjan, Cote d'Ivoire. Market offices are maintained in each country.

BRVM is a private corporation with 2,904,300,000 CFA francs in capital.

The BRVM Composite Index climbed 18 percent in 2015.

Bank of West Africa (BAO)

Banque d'Afrique Occidentale (also B.A.O. or BAO or Banque de l'AOF): (French for Bank of West Africa) was a bank French colonial authorities established in 1901 in Dakar, Sénégal, as the central bank of the colonies of French West Africa.

Central Bank of West African States

The Central Bank of West African States (French: Banque Centrale des États de l'Afrique de l'Ouest, BCEAO) is a central bank serving the eight west African countries which share the common West African CFA franc currency and comprise the West African Economic and Monetary Union (UEMOA):

Benin

Burkina Faso

Guinea-Bissau

Ivory Coast (Côte d'Ivoire)

Mali

Niger

Senegal

TogoThe Bank is active in developing financial inclusion policy and is a member of the Alliance for Financial Inclusion.

Central Bank of the Republic of Guinea

The Central Bank of the Republic of Guinea (French: Banque Centrale de la République de Guinée, BCRG) is the central bank of Guinea. The bank is located in the capital city of Conakry. The current governor is Dr Louncény Nabe.

Corruption in Guinea-Bissau

Corruption in Guinea-Bissau is among the highest levels in the world. In Transparency International's Corruption Perceptions Index for 2014, it was ranked 161st out of 175 countries. The previous year, it was at 163rd out of 177 countries. This marked a decline from its 2012 ranking, 150th out of 174 countries. In 2013, Guinea-Bissau scored below the averages for both Africa and West Africa on the Mo Ibrahim Foundation’s Index of African Governance.The Heritage Foundation stated that corruption is characteristic of the Bissau-Guinean government and economy. Government mismanagement in Guinea-Bissau, according to Transparency International's 2014 report on the country, has “created an environment conducive to corruption on a grand scale.” There is a culture of impunity, and citizens have no right to access information.Much of the corruption in Guinea-Bissau is related to the fact that the country is a hub of international drug trafficking. “Abject poverty, state collapse, lack of means and endemic corruption,” states one source, “have made Guinea Bissau a heaven for the Colombian drug lords.”

Economy of Guinea-Bissau

Guinea-Bissau is among the world's least developed nations and one of the 10 poorest countries in the world, and depends mainly on agriculture and fishing. Cashew crops have increased remarkably in recent years, and the country now ranks sixth in cashew production.

Guinea-Bissau exports to Asia non-fillet frozen fish and seafood, peanuts, palm kernels, and timber. License fees for fishing in their sea-zone (Gulf of Guinea) provide the government with some small revenue. Rice is the major crop and staple food. Due to European regulations fish and cashew-nuts exports to Europe are totally prohibited as well as agriculture products in general.

Foreign relations of Northern Cyprus

Northern Cyprus is recognised only by Turkey, a country which facilitates many of its contacts with the international community. After declaring independence from the Republic of Cyprus, Northern Cyprus' relations with the rest of the world were further complicated by a series of United Nations resolutions which declared its independence legally invalid. A 2004 UN Referendum on settling the Cyprus dispute was accepted by the Turkish Cypriots but rejected by the Greek Cypriots. After that, the European Union declared its intentions to assist in reducing the economic isolation of Northern Cyprus and began giving aid to the territory. However, due to pressure from Greece and the Republic of Cyprus, this aid coming from EU funds cannot be used on Greek Cypriot land and property nor on public bodies. As a result, these funds can be used only on around 20 percent of the territory under the de facto control of Northern Cyprus.There is an embargo against the entity in many areas, decisively affecting its attempts at international contacts and representation.

Geology of Guinea-Bissau

The geology of Guinea-Bissau is oldest in the east and becomes younger toward the west, with sediments from the past 66 million years nearer the coast. Some rock units in the northeast are as much as 680 million years old and throughout the geologic past Guinea-Bissau was influenced by the Mauritanide Belt orogeny and was submerged or partially submerged as a marine shelf or river delta for most of its existence.

Guinea-Bissau peso

The peso was the currency of Guinea-Bissau from 1975 to 1997 and was divided into 100 centavos. It replaced the escudo at par. In 1997, Guinea-Bissau adopted the West African CFA franc, using a conversion rate of 65 pesos to the franc.

Guinean franc

The Guinean franc (French: franc guinéen, ISO 4217 code: GNF) is the currency of Guinea. It is subdivided into one hundred centimes, but no centime denominations were ever issued.

List of banks in Guinea

This is a list of commercial banks in Guinea

First Bank of Nigeria - Formerly International Commercial Bank (ICB)

Banque Islamique de Guinée (BIG)

Banque Internationale pour le Commerce et l’Industrie de Guinée (BICIGUI)

Société générale de banques en Guinée (SGBG)

Banque Populaire Maroco-Guinéenne (BPMG)

Ecobank Guinée (EBG)

Skye Bank Guinée (SBG)

Banque Sahélo-Saharienne pour l'Investissement et le Commerce (BSIC)

Banque Africaine de Development Agricole et Minier (BADAM)

Orabank Guinée (ORANBANK)

NSIA Banque Guinée (NSIA Banque)

Banque pour le Commerce et l'Industrie Guinée (BCI)

FIBank Guinée (FIBANK)

UBA Guinée (UBA)

Banque de Developpement de Guinée (BDG)

List of banks in Guinea-Bissau

This is a list of commercial banks in Guinea-Bissau

Banco Da Africa Ocidental

Banco Da Uniao

Banque Régionale de Solidarité

Ecobank

List of companies of Guinea

Guinea, officially the Republic of Guinea, is a country in West Africa. Formerly known as French Guinea, it is today sometimes called Guinea-Conakry to distinguish it from its neighbor Guinea-Bissau and the Republic of Equatorial Guinea. Guinea has abundant natural resources including 25 percent or more of the world's known bauxite reserves. Guinea also has diamonds, gold, and other metals.

List of regions of Guinea by Human Development Index

This is a list of regions of Guinea by Human Development Index as of 2018 with data for the year 2017.

Mining industry of Guinea

The mining industry of Guinea was developed during colonial rule. The minerals extracted consisted of iron, gold, diamond, and bauxite. Guinea ranks first in the world in bauxite reserves and 6th in the extraction of high-grade bauxite, the aluminium ore. The mining industry and exports of mining products accounted for 17% of Guinea’s gross domestic product (GDP) in 2010. Mining accounts for over 50% of its exports. The country accounts for 94% of Africa’s mining production of bauxite. The large mineral reserve, which has mostly remained untapped, is of immense interest for international firms.In recent years, the mining industry in Guinea has suffered from controversy, specifically with respect to the iron ore mining industry and the block of mines in Northern Guinea.

Mining industry of Guinea-Bissau

Mining in Guinea-Bissau is limited to small-scale production of construction materials, such as clays, granite, limestone, and sand and gravel. The country’s prospective minerals include bauxite, diamond, gold, heavy minerals, petroleum, and phosphate rock.

Portuguese Guinean real

The real (plural réis) was the currency of Portuguese Guinea until 1914. It was equal to the Portuguese real. Paper money specifically for Portuguese Guinea was first issued in 1909, supplementing Portuguese currency. Denominations were between 1000 réis (1 mil réis) and 50 mil réis.

The real was replaced by the escudo at a rate of 1 escudo = 1000 réis.

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