Conditions for Doing Business in Guinea
Guinea: flow of FDI in 2018 - 482,7 mln US Dollars (at current prices, UNCTAD)
FDI - Foreign Direct Invetsment
Africa Capacity Index (ACI) 2019
Since 2011, the African Capacity Building Foundation (ACBF – specialized agency of the AU, located in Harara, Zimbabwe https://www.acbf-pact.org/) publishes an annual Africa Capacity Report (ACR).
The ACR measures and examines the capacity of African countries to pursue their development agenda, focusing on key determinants and components of capacity for development. ACBF defines capacity as the “ability of people, organizations, and society as a whole to manage their affairs successfully” and capacity development as the process by which “people, organizations, and society as a whole unleash, strengthen, create, adapt, and maintain capacity over time.
Capacity of African countries, examined in ACR, is reflected by Africa Capacity Index (ACI). The ACI - is a composite index computed from a quantitative and qualitative assessment of four sub-indices or indicator “clusters” on a specially designed questionnaire. “The policy environment cluster” considers the conditions that must be in place to make transformational change and development possible. “The processes for implementation cluster” assesses the extent to which countries are prepared to deliver results and outcomes. “The development results at country level cluster” refers to tangible outputs that encourage development. And “the capacity development outcomes cluster” measures change in the human condition.
Guinea ACI 2019 Rank 17 Score 55.8
Cluster 1 Policy environment for capacity development 78.3
Cluster 2 Processes for implementation 56.0
Cluster 3 Development results at country level 100.0
Cluster 4 Capacity development outcomes 32.2
Incentives and Guarantees for foreign investors
In Guinea there are two main lows which regulate foreign investments juridically – The Investment code (1987), Economic activity code (1992). Besides these two codes, economic activity for foreign investors is determined in regulatory enactments on corresponding areas.
In Guinea, in 2015 a new Investment Code was adopted.
According to this code, there are incentives for investors to motivate for cooperation:
- phase of establishing the enterprise (art. 21 of the annex to the Code):
- customs incentives:
- exemption from import duties on the import of equipment for VAT at 100%. Levied fees: registration tax - 0.5%, processing and liquidation fees (fr. La redevance de traitement et de liquidation – RTL) - 2% of the CIF price;
- fiscal incentives:
Exemption from collection:
- for patent - 100%;
- for a single land tax - 100%;
- lump-sum payment - 100%;
- on training tax - 100%, with the exception of a contribution of 1.5% of salary to finance vocational training.
- operational phase -
- customs incentives (art. 22 of the annex to the Code):
- for imported equipment a processing and liquidation fee is charged (fr. la redevance de traitement et de liquidation - RTL) - 2% of the CIF price, tax - 6%, VAT - 18%. Customs tariffs apply if they are favorable to investors.
- fiscal incentives (art. 24-28 of the annex to the Code):
- in zone A (art. 26):
- reduced the minimum single tax, tax on industrial and commercial profits, corporate tax, patent tax and single land tax as follows:
- 1-2nd years - 100%
- 3-4th year - 50%;
- 5-6th year 25%;
- the lump-sum payment, tuition tax and registration fee are reduced as follows:
- 1-2nd years - 100%
- 3-4th year - 50%;
- 5, 6, 7, 8th year 25%;
- in zone B (art. 27 of the annex to the Code):
- reduced the minimum single tax, tax on industrial and commercial profits, corporate tax, patent tax and single land tax as follows:
- 1, 2, 3rd years - 100%
- 4, 5, 6th year - 50%;
- 7-8th year 25%;
- the lump sum payment, tuition tax and registration fee are reduced as follows:
- 1, 2, 3rd year - 100%
- 4, 5, 6th year - 50%;
- 7, 8, 9, 10th years 25%.
Distribution of zones (Art. 34 of the Code):
- Zone A - Conakry region, prefectures: Coyah, Forecariah, Dubréka, Boffa, Fria, Boké, Kindia;
- zone B - the territory of Guinea outside zone A.
http://www.apip.gov.gn/code-des-investissement
Industrial exploitation of diamonds is a subject of intense interest. Guinea has rouphly 1/3 of the world's stock of bauxite and is the second largest global producer of the ore, with known reserves of 12 billion tones and as much in probable deposits. The country also has proven large deposits of iron ore and other known reserves include chrome, cobalt, copper, lead, manganese, molybdenum, nickel, platinum, titanium, uranium, zinc, chalk, graphite and granite (the only mineral exploited on an industrial scale).
With the purpose of foreign investments’ advancement in Guinea was created National investments Commission.
Guinea signed to the Convention on the Settlement of Investment Disputes between State and Nationals of other States on 27 August 1968 and benefits from a wide range of market access. It is a member of the Economic Community of West African States, the West African Economic and Monetary Union, New Partnership for Africa's Development and the African Union. Also, Guinea benefits from the United States' market access initiative - the Africa Growth and Opportunity Act and the Cotonou Agreement between the African, Caribbean and Pacific countries and the European Union for renegotiating the Lomé Convention. It is also a member of the World Trade Organization [UNCTAD. World investment directory. Volume X. Africa. United Nations. N.Y. and Geneva. – 2008, p. 309].
International calling code – 224.
Internet country code – .gn
Prospects for economic cooperation with Guinea:
- agroindustry;
- processing of foodstuff;
- mining;
- fishing;
- manufacturing;
- construction;
- energy;
- transportation;
- education;
- scientific cooperation on oceanography and agroindustry;
- tourism.
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