flag Guinea Guinea: Investing

FDI in Figures

According to UNCTAD's World Investment Report 2022, FDI inflows into Guinea increased exponentially from USD 44 million to USD 176 million between 2019 and 2020, despite the global economic crisis triggered by the Covid-19 pandemic, and remained on the same level in 2021 (USD 173 million). In the same year, the stock of FDI increased to USD 5 billion, representing around 28.9% of the country’s GDP. As Guinea has large reserves of iron ore, gold, diamonds and bauxite, the mining sector receives the vast majority of foreign investment. The main investors in Guinea are China, the United States, France, Canada, and the United Kingdom. In 2020, a consortium owned by Singaporean, Chinese and French investors, with a 10% stake held by the Guinean government, obtained a 25-year concession to develop the Simandou iron ore deposits, committing to invest USD 16 billion. The project was halted twice in 2022, as the Guinean junta aimed at securing better job and fiscal conditions for their economy, as well as a roadmap for constructing the 650 km-long TGR (Trans-Guinean Railway), which would facilitate the transportation of ore to the coast. As a result, the "Compagnie du TransGuinéen" joint venture agreement was formed between Guinea, the Anglo-Australian company "Rio Tinto-Simfer," and the Chinese company "Winning Consortium Simandou". The joint venture would give the Guinean government a 15% stake in the railway and the new deepwater port of Conakry, which would not be subject to dilution. Therefore, the project is expected to restart in 2023.

The government aims to increase investments in several sectors, including agriculture (over 13 million hectares of arable land), energy (600MW potential in hydroelectricity), infrastructure, and tourism. Reforms adopted to improve the business climate include a reduction of property transfer fees from 2% to 1.2% of the property’s value, the creation of a single desk to register new businesses, a reduction of the time required to secure a construction permit and improved import procedures. Besides these reforms, the country’s vast natural resources are also a major asset to attract investments. However, the latter are threatened by poor infrastructures, corruption, power supply issues, and a lack of skilled labour. Both foreigners and citizens have the right to own property and businesses and are guaranteed the freedom to transfer the original foreign capital, profits resulting from investment, and capital gains on disposal of investment. However, enforcement of these rights depends on a corrupt and inefficient legal and administrative system. In fact, Guinea has lagged notably in promoting the effective rule of law: the judicial system remains vulnerable to political interference, property rights are not strongly protected and lingering corruption further undermines judicial effectiveness and government integrity (the country ranked 147th out of 180 in Transparency International's 2022 Corruption Perception Index). Furthermore, the military coup d'état that took place in September 2021 undermined the country’s credibility (with the new junta suspending the constitution and National Assembly), worsening the business environment. Guinea ranks 120th out of 176 countries in the 2023 Index of Economic Freedom.


Country Comparison For the Protection of Investors

  Guinea Sub-Saharan Africa United States Germany
Index of Transaction Transparency* 7.0 5.5 7.0 5.0
Index of Manager’s Responsibility** 1.0 3.5 9.0 5.0
Index of Shareholders’ Power*** 5.0 5.5 9.0 5.0

Source: Doing Business - Latest available data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.

Foreign Direct Investment 202020212022
FDI Inward Flow (million USD) 176198139
FDI Stock (million USD) 4,914.75,112.35,251.8
Number of Greenfield Investments*
Value of Greenfield Investments (million USD) 488563

Source: UNCTAD - Latest available data

Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.


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Tax Rates

Value added tax (VAT) - Taxe sur la valeur ajoutée (Local name)
18% (standard rate).
Exports and the supply of international carriage are zero-rated.
A deduction of 50% is levied at source on VAT invoiced by the suppliers of goods and services by mining public companies, mixed ownership companies, oil companies and telephone companies.
Company Tax
Withholding Taxes
Dividends: 10%, Interests: 10%, Royalties: 0 (residents)/15% (non-residents).
Social Security Contributions Paid By Employers
18% (family allowances: 6%, work injuries: 4%, medical expenses: 4%, benefits: 4%).
Other Domestic Resources
Ministry of Economy and Finance
Overview of Guinea's tax measures in response to Covid-19
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Individual Taxes

Personal income tax Progressive rates up to 40%
GNF 0 - 1 million 0%
GNF 1 million - 5 million 5%
GNF 5 million - 10 million 10%
Above GNF 10 million 40%

Country Comparison For Corporate Taxation

  Guinea Sub-Saharan Africa United States Germany
Number of Payments of Taxes per Year 33.0 36.6 10.6 9.0
Time Taken For Administrative Formalities (Hours) 400.0 284.8 175.0 218.0
Total Share of Taxes (% of Profit) 69.3 47.3 36.6 48.8

Source: Doing Business - Latest available data.

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Investment Opportunities

Tenders, Projects and Public Procurement
Fontier Market Network, Tenders in Africa
African Tenders
DgMarket, Tenders Worldwide
Setting Up a Company
Consult Doing Business Website, to know about procedures to start a Business in Guinea.
Useful Resources
Agency for the Promotion of Investment (API)
Economic Developments and Prospects in Guinea - African Economic Outlook
Business Portal for Africa

Business Setup Procedures

Setting Up a Company Guinea Sub-Saharan Africa
Procedures (number) 6.00 7.51
Time (days) 15.00 21.30

Source: Doing Business.


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Latest Update: December 2023