Operational risks: 4.00
The government has gone some way towards making Guinea more amenable to foreign investors. However,
corruption and bureaucracy remain formidable impediments to doing business in the country. The transport
infrastructure is poor and the supply of water and electricity are erratic.
Attitudes towards Foreign Investment
The government has, since the mid-1980s, demonstrated an enthusiasm for foreign investment. A National
Investment Commission (Commission Nationale pour l' Investissement, CNI) has been established within the
Ministry of Industry, through which foreign investment applications (and incentives) are processed.
Labour
There is a large supply of labour, however, the work force is poorly educated with only 36% of the population
literate. There is a critical shortage of skilled managers and administrators to fill the middle-level positions.
Foreign business may occasionally have to deal with industrial action.
Bureaucracy
As a hangover from the Marxist days, Guinea's unwieldy bureaucracy is likely to cause significant delays.
Corruption
Foreign businesses can expect to encounter a high degree of corruption at all levels. The privatisation
programme and operation of the legal system are often opaque, broadening the scope for corruption.
Corruption, along with bureaucratic inertia, has been highlighted as prime reasons for the dropping off of FDI
inflows at the end of the 1980s.
The paying of bribes is officially illegal, however, the reality of conducting business operations is that bribes are
expected and progress will be greatly hindered unless they are made.
Infrastructure
Guinea's transport infrastructure is of poor quality:
- Road: The road network comprises some 30,500km. Of this, a little over 5,000km is paved, primarily
between the major centres. The majority of roads may become impassable during the May to October
rainy season, hampering transport from Conakry to the interior.
- Rail: There are 1,086km of railway lines in the country, although they too are in poor condition.
- Ports: Guinea has a sea port at Conakry.
- Air: International flights operate from the main airport in Conakry, though flight schedules and services are limited.
- Waterways: There are 1,295km of navigable waterways, principally along the main rivers (including the Niger).
- Water and Power Supply: The supply of water and telecommunications is also erratic, although electricity provision in the major cities is somewhat improved since the completion of the Garafiri dam in 1999.
Natural Hazards
The Guinean climate can be harsh, with months of hot and sticky humidity, when malaria thrives, to the dry
December - May period with desert harmattan winds. The natural environment is threatened by deforestation
and desertification, soil contamination and erosion. There is a shortage of portable water across the country,
exacerbating the spread of water-borne diseases.
Activism
With no national parks, flora and fauna are unprotected from the encroachment of man. Logging is seriously
depleting national supplies of valuable hard woods and forest elephants have been poached, drastically reducing
numbers in the interior. Despite this, there is little pressure from local activist groups to address such issues.
Guinea is an impoverished country and environmental issues are low on the list of priorities for many
Guineans.
Practical Advice
- Instability: Guinea continues to suffer from the wider instability in the region. There is a high number of
refugees in the country as a result of the wars in neighbouring Sierra Leone and Liberia. Their presence is
a burden and can periodically prove destabilising, leading to conflict between local Guineans and incomers
as the refugees create a pressure on already over-stretched resources.
- Violent political demonstrations: Political demonstrations can erupt into violence and, although foreign
nationals (non-refugee) have never been targeted, it is worth keeping a wide berth of such political
gatherings or demonstrations.
- Banditry is common, particularly along the border regions with Liberia and Sierra Leone.
- Petty crime in the capital is also a problem. Visitors to the country are advised to have a friend or
identifiable colleague meet them at the airport, as the airport arrivals is a known place for rich pickings by
thieves.
- Illegal business scams: Foreign nationals have been lured into illegal business scams in Guinea, so a
full investigation of new business partners is essential.
- Poor medical facilities: Medical centres are poorly equipped and extremely limited. Medicines are in
short supply and sterility of equipment is questionable. Treatment can be unreliable.
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