Guinea is an independent republic which lies on the on the bulge of Africa and forms part of the West African Region. The capital city is Conakry. Other major towns are Kankan and Siguiri, Kindia and the port of Kamsar.
<
P>The official language is French. The local currency is the Guinea franc. (
US$ / G Fr - current exchange rate).
The international time zone for Guinea is GMT and the international dialling code is +224. Airlines serving the international airport at Conakry include Air Afrique, KLM, Air France and Sabena as well as many regional airlines. Visitors require visas in order to visit Guinea.
Malaria, tuberculosis, cholera, hepatitis A, yellow fever (regional), typhoid fever and schistosomiasis may be contracted while travelling in Guinea. The risk of contraction is based on a number of factors including location, individual's state of health, current immunisation status, and the local disease situation.
International banking transactions can be carried out through the Banque Centrale de la Republique du Guinea and the Banque Internationale pour le Commerce et l'Industrie. Consulting and accounting services can be provided by Ernst & Young (through their Paris office); they should also be able to advise on appropriate local legal and other service providers.
Since 1996, Guinea has made progress in the restructuring of the budget and management and in addressing the issue of corruption. Real GDP growth in 2002 was 4.2%. 80% of Guinea's labour force is employed in agriculture, which accounts for about a third of GDP. Coffee is the largest export crop but cotton, fruit, oil and nuts are also exported. Forestry exists to a small degree and has potential for growth. Agricultural production continues to strengthen as does housing construction and this has positive impact on growth figures. The inflation rate in 2002 was 3%.
The mining industry in Guinea is its most dynamic industry sector and main source of foreign exchange. Guinea has abundant natural resources, including 30% of the world’s known reserves of bauxite, along with diamonds, gold, and other metals. Bauxite and aluminum are currently the only major exports. The country also has great potential for hydroelectric power. Despite excellent economic progress made in the latter nineties, the fall in demand and drop in prices of bauxite and aluminum and the tenuous security situation in neighboring countries dragged down economic performance.
Other industries include processing plants for beer, juices, soft drinks, and tobacco. The oil industry is dependant on the importation of all petroleum products. Electricity is provided by the parastatal utility Societe National d'Electricite (SOGEL)..
Fishing is carried out by European countries for which the Guinean government receives compensation. Industries use primary products to produce goods such as tobacco, soft drinks, juices and beer which are mainly sold locally. However, manufacturing is focused mainly on aluminia smelting.
Guinea's main export markets can be found in Belgium, Spain, Ireland, Ukraine, Russia and the US. The Guinean government encourages a free market economy and is implementing a programme of privatisation. It is also active in promoting foreign investment. In 2002 exports amounted to US$ 775.9 million and imports were worth US$686.1 million. The overall fiscal deficit (excluding grants) widened to 8.2% in 2002 from 7.5% of GDP in 2001, owing to expenditure overruns that overshadowed progress achieved in revenue mobilization. GDP in 2000 was US$3.1 billion.
Progress has been made in the execution of social spending and the implementation of structural reforms, in particular in the monetary and public finance areas. About eight small enterprises were liquidated or privatized as scheduled by end-2002, but more remains to be done in this area, notably for the public utilities.
De facto pegging of the Guinean franc to the US dollar over the past several months has resulted in a significant loss in official reserves and worsened macroeconomic imbalances, and underscored the need for the exchange rate to be determined by market forces.
The country has taken steps to prepare for the introduction of the common external tariff (CET) of the West African Economic and Monetary Union (WAEMU); this would simplify the country’s tariff system and enhance trade liberalization.
NGOs play an important role in project implementation in Guinea and help reduce dependency on public administration. They have played especially useful roles in the agriculture, education and health sectors. Guinea is rated 157th on Human Development Index in 2003.
