Guinea Trade

Subchapters:

  • Business Relationships
  • Foreign direct investment
  • FTAs ​​and Treaties
  • Development Cooperation
  • Prospective fields of study (MOP)

Business relations

The main customers of the Republic of Guinea in 2021 were: United Arab Emirates (17.1%), India (14.7%), China (10.8%), Switzerland (7.9%).

Main exported products: bauxite (58%), gold (36%), diamonds (3%), aluminum (1%).

The main suppliers for the Guinean economy in 2020 were: China (19.2%), India (10.8%), Japan (8.9%), United Arab Emirates (7.4%).

Main imported products: capital goods (62%), machinery and mechanical equipment (15%), petroleum and derivatives (12%), food products, beverages and tobacco (8%).

  • Allcountrylist: Overview of major industries in Guinea, including mining, construction, transportation, tourism, and foreign trade.

Trade relations with the EU

As a whole, the EU27 represents Guinea’s main trading partner. Imports from the EU account for 25% of total imports into the country and 19% of total Guinean exports go to the EU.

2017 2018 2019 2020 2021
Exports from the EU (million EUR) 1,155.20 1,055.80 945.8 927.1 834.6
Imports into the EU (million EUR) 443.6 516.5 736.1 731.2 465
Balance with the EU (million EUR) -711.5 -539.3 -209.8 -195.9 -369.6

Source: European Commission

Trade relations with the Czech Republic

Trade relations between the Czech Republic and Guinea are negligible. Mutual trade has so far been characterized by occasional transactions rather than the stable establishment of certain exporters/importers or mutual investments.

2017 2018 2019 2020 2021
Exports from the Czech Republic (billion CZK) 0 0.1 0 0 ON
Imports to the Czech Republic (billion CZK) ON ON ON ON ON
Balance with the Czech Republic (billion CZK) 0 -0.1 0 0 ON

Source: CZSO

Trade relations with countries outside the EU

Countries outside the EU are Guinea’s main trading partners.

2017 2018 2019 2020 2021
Exports from countries outside the EU (million EUR) 2,750.6 2,325.6 2,407.8 6,664.4 6,804.4
Imports to countries outside the EU (million EUR) 2,517.7 2,361.3 2,213.4 2,437.2 3,327.6
Balance with non-EU countries (million EUR) 232.9 -35.8 194.4 4,227.2 3,476.7

Source: EIU, Eurostat

Foreign direct investment

Guinea is increasingly seeking foreign investment to boost tax and export revenues and support infrastructure projects and overall economic growth. China, Guinea’s largest trading partner, has dramatically strengthened its role in the past few years with a series of infrastructure investments.

Investors should proceed with caution and understand that the potential for profit comes with significant political risk. Over the past few years, the Government of Guinea has implemented reforms to improve various aspects of the investment climate. For example, it reduced property transfer fees from 2 to 1.2% of the property value, or reduced the time needed to obtain building permits and improved import procedures.

As of 2019, Guinea has implemented a Permanent Taxpayer Identification Number system that requires all payments to be made by instant “real time sales system” (RTGS) transfers.

The government is also looking to invest in solar and other energy sources to compensate for the hydroelectric deficit during Guinea’s dry season. To this end, the government has entered into several MoUs with the private sector to develop solar projects.

FTAs and treaties

In 2017, a presidential decree decided to establish a special economic zone (SEZ) in Boké. A temporary license to carry out free trade transactions can be obtained with the special approval of the Ministry of Economy and Finance. There is still a lack of funds to develop SEZs sufficiently to attract investors.

Guinea is a member of the Mano River Union, which includes standardized customs tariffs between Guinea, Sierra Leone and Liberia.
Guinea is also a member of the ECOWAS regional economic community, where preparations are currently underway for a customs union (free movement of goods and services between 15 member countries).
Moreover, Guinea is a signatory to the AfCFTA under the auspices of the AU. The AfCFTA officially entered into force on 30 May 2019 and aims to create a single market for butter goods with free movement of people and capital, expand intra-African trade and increase Africa’s global competitiveness. The AfCFTA is to create a pan-continental customs union and eliminate tariffs on 90% of traded goods. Negotiations on the implementation of the AfCFTA agreement are still ongoing and the agreement cannot yet be used to import or export with reduced tariff rates.

Treaties with the EU

Cooperation between Guinea and the EU is primarily based on the EU/ACP Economic Partnership Agreement, the so-called Cotonou Agreement.
Cooperation was suspended due to the Ebola crisis that paralyzed the country in 2013-16. Cooperation is now fully restored.

Contracts with the Czech Republic

1959 Agreement on Cultural Cooperation between the Czechoslovak Socialist Republic and the Republic of Guinea
Air Services Agreement between the Czechoslovak Socialist Republic and the Republic of Guinea 1961
Agreement between the Government of the Czechoslovak Socialist Republic and the Government of the Republic of Guinea on Scientific and Technical Cooperation 1960

No contract was concluded between the Czech Republic and Guinea. Since the entry of the Czech Republic into the EU, economic relations have been regulated by the common policy of the EU.

Developmental cooperation

Guinea is a net recipient of development aid. The 11th National Indicative Program of the European Development Fund for the period 2015-2020 has allocated €244 million in funding to the Republic of Guinea.

Main sectors supported:
– Consolidation of the rule of law (strengthening security, access to an independent judiciary and supporting the development of modern governance to ensure proper and transparent governance)
– Sanitation and hygiene (development of sanitation and community infrastructure, waste management, access to energy)
– Health (improved access to public, quality basic care)

Prospective fields of study (MOP)

Prospective sectors for investment in the Republic of Guinea include, in particular, the mining industry, energy, telecommunications, infrastructure and the agri-food industry.

Guinea Trade