The economy of Guinea is a developing economy, characterized by low per capita income and high levels of poverty. The country is largely dependent on agriculture and exports, with the majority of its GDP coming from the agricultural sector. The primary exports are coffee, cocoa, timber and gold. Agriculture accounts for around 40% of GDP and employs 65% of the population.
According to cheeroutdoor, Guinea’s infrastructure is weak and underdeveloped due to limited investment in recent years. Road networks are inadequate and access to electricity is limited in many rural areas. Access to safe drinking water is also lacking in many areas, particularly in rural parts of the country.
Inflation has been relatively stable at around 4-5% since 2016 but poverty remains high with almost half of the population living below the poverty line according to World Bank estimates from 2018. The government has implemented various policies aimed at improving economic growth such as reforming public finances through reducing public debt levels; investing heavily in infrastructure projects; encouraging foreign investment; promoting entrepreneurship initiatives; increasing access to finance for SMEs; providing incentives for green energy projects; improving access to education; developing sustainable tourism initiatives; and protecting human rights across all sectors of society including labor rights and gender equality measures which have been embraced by both local citizens and foreign investors alike.
Despite these efforts, economic growth has remained sluggish due to weak domestic demand as well as a lack of foreign direct investment (FDI). Guinea’s main trading partners are France, China, India, Nigeria, Cote d’Ivoire, Senegal, Germany and Belgium. The main imports include machinery, fuel products, food products and pharmaceuticals while the main exports are gold ore, bauxite ore (aluminum ore), diamonds and other minerals such as iron ore or manganese ore.
The government has taken steps to improve its business environment by creating new laws that encourage foreign investment such as tax incentives or simplified procedures for obtaining visas or residence permits. It has also established export processing zones which provide investors with tax holidays or duty-free imports/exports depending on their investments into specific industries such as manufacturing or technology-related activities.
Overall Guinea’s economy remains fragile but there have been some improvements in recent years due to increased government focus on economic development which could lead to more sustainable growth over time if sustained efforts are made to attract more FDI into the country while also providing improved access to finance for small businesses so that they can grow their operations further down the line.
The reconciliation with France allowed a French company to start extracting iron ore from Mont Nimba, for the French oil company to start extracting oil from Guinea’s continental shelf, and to start the extraction of the rich bauxite deposits discovered in the 1970s. The country now became the world’s second largest producer of this mineral, and at the same time signed an agreement with Mali, whose perspective was the formation of an economic and political federation between the two countries.
In late March 1984, Sekou Touré died in the United States, undergoing treatment for an old disorder. A week later, Colonel Lansana Conté announced a military coup that overthrew the country’s interim president, Louis Beavogui.
The new regime dissolved the structures around the “party state”, the constitution, mass organizations and parliament. Guinea’s Democratic Party was banned and the country’s name changed as the People’s Republic and Revolutionaries were deleted. The private sector received support, the semi-state companies were closed down and France, the United States and a number of African states were called upon to contribute to revitalizing the economy.
Abbreviated as GIN by abbreviationfinder.org, Guinea’s foreign debt reached US $ 800 million, and on that basis, the regime decided to devalue the currency syllable by 100% and cut public spending. Both demands were made for the incorporation of Guinea into the French currency area of Africa, CFA.
Note: the capital city of Guinea is Conakry with a population of 1,767,000 (2018 estimate). Other major cities include Siguiri, Boké, Kindia, N’Zérékoré, Kankan.
In December 1984, Colonel Conté cut the number of ministers in his government and assumed the role of head of state, prime minister and defense minister
As part of the economic recovery, in December 1985, the regime launched a program to support the cultivation of rice and privatized the state’s commercial, industrial and agricultural enterprises. However, the goal of self-sufficiency with food could not yet be met.
In order to reduce public spending, massive redundancies were made in 1987 by state employees. In 1988, Conté banished a group of officers from the capital. Their strong dissatisfaction with the low wages had been a threat to stability. In January of that year, an 80% increase in wages led to a tripling of prices. Subsequent demonstrations forced the government to freeze prices for consumer goods and housing.
- COUNTRYAAH: Find major trading partners of Guinea, including major exports and major imports with latest trade value and market share as well as growth rate.
With the introduction of multi-party rule, opposition leader Alpha Condé returned from his exile and led the formation of the National Democratic Forum, which consisted of 30 opposition groups. Despite the democratic opening, however, the political persecution continued.
Lansana Conté was re-elected president at the December 1993 election, but with less than 51% of the vote. Alpha Condé was accused of conducting a “coup d’état” and clashes between the police and opposition sympathizers. In January 1994, dozens of people died during unrest in Macenta near the border with Liberia.
In June 1995, the ruling parties won 76 out of the parliament’s 114 seats in an election which the opposition termed fraud. The country’s gross domestic product increased by 5% annually, and in recognition of the good economic prospects, the Paris Club canceled $ 85 million of Guinea’s foreign debt, and rescheduled another 85 million.