flag Guinea Guinea: Investing

FDI in Figures

According to UNCTAD's World Investment Report 2023, FDI inflows into Guinea stood at USD 139 million in 2022, down by 29.4% year-on-year. At the end of the same period, the stock of FDI increased to USD 5.2 billion, representing around 25.7% of the country’s GDP. As Guinea has large reserves of iron ore, gold, diamonds, and bauxite, the mining sector receives the vast majority of foreign investment. The main investors in Guinea are China, the United States, France, Canada, and the United Kingdom. In 2020, a consortium owned by Singaporean, Chinese, and French investors, with a 10% stake held by the Guinean government, obtained a 25-year concession to develop the Simandou iron ore deposits, committing to invest USD 16 billion. The project was halted twice in 2022, as the Guinean junta aimed at securing better job and fiscal conditions for their economy, as well as a roadmap for constructing the 650 km-long TGR (Trans-Guinean Railway), which would facilitate the transportation of ore to the coast. As a result, the "Compagnie du TransGuinéen" joint venture agreement was formed between Guinea, the Anglo-Australian company "Rio Tinto-Simfer," and the Chinese company "Winning Consortium Simandou". The joint venture would give the Guinean government a 15% stake in the railway and the new deepwater port of Conakry, which would not be subject to dilution. As of early 2024, the project was finally taking off. According tot he World Bank, mining-related foreign direct investment rose to 15% of GDP in 2023.

Guinea is rich in natural resources, energy prospects, and fertile land. However, these assets haven't translated into significant economic progress. Historically, Guinea's economy has relied on extracting primary resources, dating back to the French colonial era and even earlier during the slave trade. This focus on extraction, coupled with limited education, and a history of undemocratic governance since colonial times, has hindered diversified economic growth driven by value addition, innovation, and productivity instead of extractive or rent-seeking activities. Both foreigners and citizens have the right to own property and businesses and are guaranteed the freedom to transfer the original foreign capital, profits resulting from investment, and capital gains on disposal of investment. However, enforcement of these rights depends on a corrupt and inefficient legal and administrative system. In fact, Guinea has lagged notably in promoting the effective rule of law: the judicial system remains vulnerable to political interference, property rights are not strongly protected, and lingering corruption further undermines judicial effectiveness and government integrity (the country ranked 141st out of 180 in Transparency International's 2023 Corruption Perception Index. With its vast mineral wealth, Guinea has the potential to emerge as a key player in the extractive sector. The country boasts approximately one-third of the world's bauxite reserves, with bauxite currently constituting over half of Guinea's export revenue. However, the military coup d'état that took place in September 2021 undermined the country’s credibility (with the new junta suspending the constitution and National Assembly), worsening the business environment. Guinea ranks 123rd out of 184 countries on the latest Index of Economic Freedom.


Country Comparison For the Protection of Investors

  Guinea Sub-Saharan Africa United States Germany
Index of Transaction Transparency* 7.0 5.5 7.0 5.0
Index of Manager’s Responsibility** 1.0 3.5 9.0 5.0
Index of Shareholders’ Power*** 5.0 5.5 9.0 5.0

Source: Doing Business - Latest available data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.

Foreign Direct Investment 202020212022
FDI Inward Flow (million USD) 176198139
FDI Stock (million USD) 4,914.75,112.35,251.8
Number of Greenfield Investments*
Value of Greenfield Investments (million USD) 488563

Source: UNCTAD - Latest available data

Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.


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Tax Rates

Value added tax (VAT) - Taxe sur la valeur ajoutée (Local name)
18% (standard rate).
Exports and the supply of international carriage are zero-rated.
A deduction of 50% is levied at source on VAT invoiced by the suppliers of goods and services by mining public companies, mixed ownership companies, oil companies and telephone companies.
Company Tax
Withholding Taxes
Dividends: 10%, Interests: 10%, Royalties: 0 (residents)/15% (non-residents).
Social Security Contributions Paid By Employers
18% (family allowances: 6%, work injuries: 4%, medical expenses: 4%, benefits: 4%).
Other Domestic Resources
Ministry of Economy and Finance
Overview of Guinea's tax measures in response to Covid-19
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Individual Taxes

Personal income tax Progressive rates up to 40%
GNF 0 - 1 million 0%
GNF 1 million - 5 million 5%
GNF 5 million - 10 million 10%
Above GNF 10 million 40%

Country Comparison For Corporate Taxation

  Guinea Sub-Saharan Africa United States Germany
Number of Payments of Taxes per Year 33.0 36.6 10.6 9.0
Time Taken For Administrative Formalities (Hours) 400.0 284.8 175.0 218.0
Total Share of Taxes (% of Profit) 69.3 47.3 36.6 48.8

Source: Doing Business - Latest available data.

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Investment Opportunities

Tenders, Projects and Public Procurement
Fontier Market Network, Tenders in Africa
African Tenders
DgMarket, Tenders Worldwide
Setting Up a Company
Consult Doing Business Website, to know about procedures to start a Business in Guinea.
Useful Resources
Agency for the Promotion of Investment (API)
Economic Developments and Prospects in Guinea - African Economic Outlook
Contact the UK Trade and Investment in Guinea.
Contact the British Embassy in Guinea.
Business Portal for Africa

Business Setup Procedures

Setting Up a Company Guinea Sub-Saharan Africa
Procedures (number) 6.00 7.51
Time (days) 15.00 21.30

Source: Doing Business.


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Latest Update: May 2024