2023-09-05 16:44:33
From the elaboration of citizens’ budgets oriented towards investments, to reassuring financial programs for partners, through a mining policy that defends and preserves Guinea’s interests, the transitional authorities bring together the fundamentals of a governance that lays down the solid foundations for Guinea’s development.
Guinea celebrates this September 5, 2023, Year 2 of the seizure of power by the CNRD (National Rally Committee for Development). Over the past two years, the projects opened in the economic field have been as numerous as they are ambitious.
The first to be noted is the launch of the Interim Reference Program (PRI) and the Economic Recovery Plan (PRE), its operationalization tool. Backed by national and international development benchmarks such as “Guinea Vision 2040”, “ECOWAS Vision 2050” and “Agenda 2063 of the African Union”, PRI aims to be a development tool for the country. Its overall cost is estimated at 108 trillion Guinean francs, or more than 12.2 billion USD, for 358 projects.
The government hopes, through its implementation, to promote sustained and diversified growth of 6.6% on average annually over the period 2022 – 2025.
It should be noted that since September 5, 2021, the macroeconomic analysis framework has also been strengthened. The inflation rate rose to single digits, standing at 6% in July. At the same time, growth is consolidating, reaching 5.5% of GDP in 2022. It should stand at 6.4% of GDP at the end of December 2023.
Enhanced credibility with financial partners
The fight led under the leadership of the transitional president, Colonel Mamadi Doumbouya, to reduce social divisions and promote inclusive growth is echoed favorably by technical and financial partners. About 400 million USD have been mobilized from the World Bank, IDB, ADB and AFD within the framework of project support. Added to this is “the signing of the agreement for the use of SDRs received from the IMF for USD 284 million, the clearance of the State’s domestic arrears, the reduction of the treasury indebtedness with the BCRG whose situation has become positive again in favor of the treasury in the order of GNF 643 billion and the exceptional mobilization of non-tax revenue to the tune of 83 million USD”, explains a note from the Ministry of Economy and Finance.
The State has invested in the mechanization of agriculture and the construction of road infrastructures. Investments made possible thanks to an increased mobilization of internal resources. Thus, 1,800 billion Guinean francs are mobilized in the context of domestic savings through the issuance of Treasury Bonds.
So many efforts coupled with budget transparency that ended up better positioning the country. In such a short time, Guinea has been removed from the list of fragile countries of the African Development Bank (AfDB). It has also moved from a low-income country to a middle-income country in the latest World Bank classification. A leap that only two African countries have been able to achieve. In reality, this increase is explained by the increase in per capita income, which rose from 1,010 USD in 2021 to 1,180 USD in 2022.
The fishing sector is revitalized
The fishing sector is changing under the CNRD. After the redeployment of more than 300 agents in the decentralized services, the State is stepping up its efforts to supply the local market with fish. At least 373,888 tonnes were transported in 2022 compared to 309,042 tonnes in 2021, an increase of 21%.
Also, the government proceeded to the opening of a line of credit of 22 billion Guinean francs to support the supply of the local market in fish, the installation of modern fishmongers, the acquisition of boats, fishing inputs artisanal and as well as the development of fish farming.
A priority presidential program aimed at boosting small-scale fishing set in motion with the support of Japanese cooperation proceeded with the distribution of 10,000 layers of conventional nets, the supply of 110 outboard motors, 21,000 floats and searchlights for landing stage lighting.
The reforms undertaken in the sector are producing results. A total of $10 million in revenue from fishing was paid into the public treasury. This is encouraging for a sector which, in 2021, was faced with a ban on the export of fishery products to European Union markets and an insufficient infrastructure to support the production and conservation of fishery products.
Essential reforms in the mining sector
Mining contributes 20% to GDP and accounts for around 80% of export earnings. A strategic sector in full mutation since the advent of the National Council for Unity and Development.
After signing the framework agreement for the Simandou project, the Guinean State and its partners Rio Tinto and Winning Consortium Simandou succeeded in signing the Compagnie du Transguinéen (CTG) shareholders’ agreement. The relaunch of work by Colonel Mamadi Doumbouya in March and the signing of the founding agreements for rail and port infrastructure nurture the hope that this 15 billion dollar investment project has reached a point of no return in its phase of development. Need we remind you that Simandou is the largest untapped iron deposit in the world with an iron content estimated at 65%. The Transguinéen, a 650 km multi-user and multi-user railway, should contribute to diversifying the Guinean economy.
The reforms also went through the development of a strategy relating to the pooling of construction works for alumina refinery projects with rigorous monitoring of schedules. Added to this is the renovation and equipment of the National Geology Laboratory and the deployment of 24 of its agents to monitor gold and bauxite processing operations.
Furthermore, it should be noted that the State has switched to the application of the bauxite reference price. In the same wake of the application of the Mining Code, it maintains discussions with mining companies with a view to the repatriation of 50% of foreign exchange earnings, as well as the construction of their headquarters. The acquisition of wheeled machinery and the construction of four prefectural and three regional directorates have contributed to improving the working conditions of the executives of the Ministry of Mines. As a result, the revenue mobilized by this department totaled 118.92 billion Guinean francs.
The assessment in two years of governance of the CNRD remains encouraging. And the government seems to be part of the same dynamic by betting on investments in basic infrastructure. This is evidenced by the 2024-2026 Multiannual Budget Programming adopted last month which projects 108,131.81 billion Guinean francs in revenue and 132,604.59 billion Guinean francs in expenditure.
Elie Camara
For the Synergy of the online press
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