POLITICS

The Republic of Guinea, also called Guinea-Conakry, is located in the west coast of Africa and became independent from France in 1958.



Guinea has lived a thrilling 2008 with the death, in December, of its President Lansana Conte at which point Moussa Dadis Camara took over as president until the 2010 elections are to take place.



ECONOMY

Guinea's national budget relies heavily on revenues from the exploitation of the mineral sector, which accounts, year in year out, for 75% of exports.

Guinea’s main industries come from its plentiful resources including 30% of the world’s bauxite deposits, iron ore, diamonds, gold, uranium, hydropower, alumina refining, rice, coffee, and timber production.

One of the world’s largest companies, BHP Billiton, has made large investments in the country through joint ventures with local organizations, seeing the country as an open market full of opportunities.



MAIN SECTORS AND INVESTMENT OPPORTUNITIES

MINING:

Richly endowed with minerals, Guinea possesses over 25 billion metric tons (MT) of bauxite – and perhaps up to one-half of the world's reserves. In addition, Guinea's mineral wealth includes09 more than 4-billion tons of high-grade iron ore, significant diamond and gold deposits, and undetermined quantities of uranium.

Joint venture bauxite mining and alumina operations in northwest Guinea historically provide about 80% of Guinea's foreign exchange. The Compagnie des Bauxites de Guinea (CBG) is the main player in the bauxite industry. CBG is a joint venture, in which 49% of the shares are owned by the Guinean Government and 51% by an international consortium led by Alcoa and Alcan. CBG exports about 14 million metric tons of high-grade bauxite every year. The Compagnie des Bauxites de Kindia (CBK), a joint venture between the Government of Guinea and Russki Alumina, produces some 2.5 million MT annually, nearly all of which is exported to Russia and Eastern Europe. Dian Dian, a Guinean/Ukrainian joint bauxite venture, has a projected production rate of 1 million MT per year, but is not expected to begin operations for several years. The Alumina Compagnie de Guinée (ACG), which took over the former Friguia Consortium, produced about 2.4 million tons of bauxite in 2004, which is used as raw material for its alumina refinery. The refinery supplies about 750,000 MT of alumina for export to world markets. Both Global Alumina and Alcoa-Alcan have signed conventions with the Government of Guinea to build large alumina refineries with a combined capacity of about 4 million MT per year.

Diamonds and gold also are mined and exported on a large scale. AREDOR, a joint diamond-mining venture between the Guinean Government (50%) and an Australian, British, and Swiss consortium, began production in 1984 and mined diamonds that are 90% gem quality. Production stopped from 1993 until 1996, when First City Mining of Canada purchased the international portion of the consortium. By far, most diamonds are mined artisanally. The largest gold mining operation in Guinea is a joint venture between the government and Ashanti Gold Fields of Ghana. SMD also has a large gold mining facility in Lero near the Malian border. Other concession agreements have been signed for iron ore, but these projects are still awaiting preliminary exploration and financing results.



AGRICULTURE AND FISHING

Guinea has considerable potential for growth in the agricultural and fishing sectors. Soil, water, and climatic conditions provide opportunities for large-scale irrigated farming and agro industry.

Agriculture employs 80% of the nation's labor force. Under French rule, and at the beginning of independence, Guinea was a major exporter of bananas, pineapples, coffee, peanuts, and palm oil.



INFRASTRUCTURES

Despite the opening in 2005 of a new road connecting Guinea and Mali, most major roadways connecting the country's trade centers remain in improving situation. Moreover, the country has great potential for hydroelectric power.



OTHER INDUSTRIES

Other industries include processing plants for beer, juices, soft drinks and tobacco.



FOREIGN INVESTORS

Global Alumina's proposed alumina refinery has a price tag above $2 billion. Alcoa and Alcan are proposing a slightly smaller refinery worth about $1.5 billion. Taken together, they represent the largest private investment in sub-Saharan Africa since the Chad-Cameroon oil pipeline. Also, Hyperdynamics Corporation, an American oil company, signed an agreement in 2006 to develop Guinea's offshore Senegal Basin oil deposits in a 31,000 square miles concession; it is pursuing seismic exploration.

The west coast of Africa is now ripe for oil development, and Guinea is actively being courted in this endeavor. Hyperdynamics and Guinea signed a psa in 2006, and have been diligently bringing oil exploration into the final stages. It is thought by many of the large oil companies that the west coast of Africa, which Guinea centers, might be able to supply the United States with near thirty percent of its oil within ten years.



LEGAL FRAMEWORK

The United States and Guinea have signed an investment guarantee agreement that offers political risk insurance to American investors through the Overseas Private Investment Corporation (OPIC). In addition, Guinea has inaugurated an arbitration court system, which allows for the quick resolution of commercial disputes.

Guinea is a member of the Organization for the Harmonization of Business Law in Africa (OHADA).



Port Infrastructure

Situated on the South Coast of Guinea, Conakry is the country's principle port and can cater for both wet and dry cargoes. Principal exports include agricultural products, cotton, bauxite and iron ore. Imports include manufactured goods and salt.

There is also a second harbour for fishing vessels

Location	Conakry port is located on the South Coast of Guinea
Draft at Berth	No. 1 Quay: 10.0m No. 2-4 Quay: 8.5m each No. 5 Quay: 6.5m
Draft at Harbour Mouth	9.75m
No of Deepwater Quays	1
Length of Quay No. 1 Quay	110m
No. 2-4 Quay	Total 460m
No. 5 Quay	160m
Cranes	Mobile cranes are available with a capacity up to 30t
Rail Connections	Conakry - linked to the national railway system
Air Connections	Conakry airport is nearby
Warehousing/Storage	Total area of 80,000m sq Storage for 5,000 TEU 60 reefer points

Euro 12 Million Conakry Port Renovation Project - 27/10/08

The foundation stone was laid to mark the beginning of the second part of the port renovation project at Conakry port. This project is divided into three parts and includes09 a reinforced security system, electrical works and access facilities from the port quay to the highway. A new dangerous goods warehouse will also be built. The Euro 12 million project is due to last for 24 months and will be financed by a German company KFW.

The project would rehabilitate and replace existing port infrastructure and equipment and help strengthen the autonomous and well-organized port authority at Conakry, thus removing constraints making the port a bottleneck to Guinea's economic development. It provides rehabilitation and repair of quays, port buildings, and transport and navigation equipment, and management, accounting and planning technical assistance to PAC.

KEY INDICATORS • Area: 245,860 sq. km • Population: 10,211,437 (2008 estimate) • Gross Domestic Product Per citizen: €1.100 • GDP growth rate: 2,9% (2008 est.). • GDP composition by sector (2008 est.): • agriculture: 22,4% • industry: 40,9% • services: 36,6% • Labor force: 3.7 million (agriculture 76%) • Industrial production growth rate: 8% • Exchange rates: Guinean francs (GNF) per US dollar - 5,500 (2008 est.)