| Description |
Guinea has been unable to attract the capital necessary to
exploit its immense potential because the country's business environment is
unconducive to investment. The World Bank Doing Business Report (2013) notes the
extreme difficulties associated with pursuing economic activities in Guinea, and
ranks the country 175th out of 189 economies. Protecting investors, paying
taxes, and getting credits were found the most problematic and their performance
levels were below the average of sub-Saharan Africa. Guinea remains unattractive
for FDI, owing to the high level of corruption in government and lack of
transparency in the judicial system. According to the Transparency International
Corruption Perceptions Index (CPI) (2013), Guinea was ranked 150th out of 177
countries. Moreover, as commercial matters are dealt with by the ordinary courts
in Guinea, disputes between the State and foreign investors regarding
application of the Investment Code are settled by other bodies. The United
States Investment Climate Statement (2013) states that the Guinean judicial
system, which has been historically underfunded, inefficient, and overtly
corrupt, has consistently ruled in favour of government expropriation.
Government officials, notably the Minister of Mines, wield enormous influence in
judicial matters and decision-making. The high cost of and constraints on access
to credit are also hampering the growth of a dynamic private sector. Because of
the population's low purchasing power, the almost total lack of national savings
that could be mobilized through traditional monetary channels, the absence of
investment credits by a banking system which does not finance medium and long
term operations, most private investment is self financed, or financed through
microfinance schemes.
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| The Business Environment: Doing Business |
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