Republic of Guinea WT/TPR/S/153/Rev.1 
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I. ECONOMIC ENVIRONMENT 
(1) OVERVIEW  
1. Since the first review of its trade policy in 1999, the macroeconomic imbalances in Guinea, a 
"least developed country (LDC)" have been exacer bated and Guinea has gradually fallen into an 
economic crisis which it is hoped will end in 2005.  Following th e appointment of a new prime 
minister on 9 December 2004, the Guinean authorities hope  that during 2005 they will be able to meet 
the requirements for resuming cooperation with donor s, suspended since 2003.  This suspension also 
brought to a standstill the process of reducing Guinea’ s external debt in the context of the Heavily 
Indebted Poor Countries (HIPC) Initiative;  in 2 004 Guinea’s medium- and long-term external debt 
amounted to 99.8 per cent of its GDP. 
2. The new Government intends to boost struct ural reform, bring the budget deficit under 
control (it rose from 5.3 per cent to 7.5 per cen t between 1999 and 2004 on the basis of commitments 
and excluding grants), and combat inflation, wh ich has increased since 2003 as a result of excessive 
money creation, thus making interest rates negativ e in real terms.  In March 2005, the authorities 
decided to liberalize the exchange rate for the Gu inean franc, thus bringing to an end the multiple 
exchange rates that had developed since 2002. 
3. Guinea has been unable to achieve the objectiv es set in January 2002 in its Poverty Reduction 
Strategy Paper (PRSP), which is cu rrently undergoing its first revision.1  Since 1996, the average rate 
of economic growth in real terms has been the same , on average, as the demographic growth rate, thus 
making it impossible to reduce poverty. 
4. According to official estimates, the traditional sector (non-market or informal) accounts for 
57 per cent of GDP and employs 86 per cent of the wo rking population.  The modern sector is mainly 
composed of mining, a few industrial enterprises,  and some services activities.  The manufacturing 
subsector only accounted for 3.5 per cent of GDP in 2004, a slight drop in comparison with 1999.  
Economic growth therefore depends ch iefly on agriculture, which is subj ect to the vagaries of climate, 
trade and the mining sector.  Despite the importa nce of the mining sector in formal activities, 
however, its contribution to government revenue is  modest (1.9 per cent of GDP in 2004) because 
each approved mining company has its own taxati on regime (although supplementary exemptions 
were abolished in November 2004). 
5. More generally, governance remains one of the major obstacles to foreign direct investment; 
the other constraints are the lack or unrelia bility of basic services (electricity, water, 
telecommunications and transport), and financing.  The rate of private investment fell from 12.8 per 
cent of GDP in 1996 to 5.6 per cent in 2004, whereas 22 per cent would be needed in order to achieve 
the growth objectives of the PRSP. 
6. There have been few changes since the first review  as regards the value and structure of trade.  
Three-quarters of exports are composed of mining products (bauxite, alumina, gold and diamonds).  
The trade balance surplus is more than offset by the deficit in th e services account, which showed a 
current account deficit of US$ 146 million in 2004.  The United States and the European Union are 
still Guinea’s leading trade partners. 
                                                      
 1 Government of Guinea, Ministry of the Econom y and Finance (2004a), Government of Guinea (2002), 
IMF (2004a). WT/TPR/S/153/Rev.1 Trade Policy Review 
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(2) G ENERAL BACKGROUND2 
7. Guinea lies at the western edge of the African continent and covers 245,957 km2.  To the 
west, it has 300 km of coastline on the Atlantic, with  abundant fisheries resources.  It has common 
borders with six countries, namely:  Liberia and Sierra Leone to the south;  Côte d’Ivoire to the east;  
and Guinea-Bissau, Senegal and Mali to the north.  All Guinea’s neighbours belong to the Economic 
Community of West African States (ECOWAS), as does Guinea. 
8. In 2003, Guinea’s population was estimated to be  some 8.722 million.  As a result of strong 
demographic growth in the past (the annual birth rate is now 2.6 per cent), around 45 per cent of the 
population was under 15 in 1999.  Average life expectancy was 50 years in 1999, compared with 
44 years in 1990.  Some 36 per cent of the adult pop ulation could read and write in 1999.  According 
to the UNDP, Guinea is 160th (out of 177 c ountries) in the 2004 hu man development index.3 
9. According to data provided by the Guinean aut horities, in 2004, GDP was GF 8,883 billion 
(US$ 3.95 billion at the average official exchange  rate of GF 2,250 to US$ 1 in 2004).  Per capita 
GDP was US$ 415 in 2003.  This figure takes in to account the share of traditional activities (non-
market or informal).  The primary sector, which accounted for 18.7 per cent of nominal GDP in 2004 
(Table I.1), and other informal activities (particular ly trade) constituted the main sources of income 
and employment for almost 86 per cent of the working population.  Manufacturing industries are not very developed and only accounted for 3.5 per cen t of value added in 2004 (Chapter IV(3)(v)). 
Table I.1 
Basic economic indicators for Guinea, 1998-2004 
 1998 1999 2000 2001 2002 2003 2004 
GDP at market prices (in GF billions)  4,438 4,802 5,447 5,920 6,340 7,199 8,883 
Value added (share of GDP at market prices 
as a percentage)  
Primary 17.5 18.1 17.7 18.1 18.3 18.6 18.7 
Secondary 29.5 30.0 30.6 31.0 31.1 30.9 31.0 
Tertiary 49.1 48.2 48.2 47.4 46.4 46.5 46.3 
Import duties and taxes 3.9 3.7 3.5 3.5 4.2 4.0 4.1 
Memorandum item:  
Exchange rate (US$/GF) 1 232 1 387 1 749 1 951 1 982 1 986 2 466 
Inflationa 5.1 4.6 6.8 5.4 3.0 12.9 17.5 
a Consumer price in Conakry. 
Note:  These figures do not include the informal sector. 
Source : Guinean authorities. 
10. Since 1992, the authorities have opted for a breakdown of GDP formation by category of 
activity:  "traditional" activities are included in the informal sector, whereas "modern" activities 
belong to the formal sector.  According to th is breakdown (Table I.2), in 2002, 57 per cent of 
economic activity was in the informal sector, principa lly in agriculture, livestock, fishing, forestry, 
wholesale and retail trade, passenger transport and cons truction.  Informal operators are eligible for 
financing from decentralized netw orks and people’s savings and lo an funds.  Mining and quarrying 
are in the main included in the formal sector.  Acco rding to figures prepared by the authorities, the 
important role of the informal sector has not w eakened since 1999, when Guinea’s trade policy was 
                                                      
 2 The main sources consulted were the documents provided by the Guinean authorities and the IMF (2004b). 
 3 UNDP (2004). Republic of Guinea WT/TPR/S/153/Rev.1 
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first reviewed, and its sectoral breakdown has not ch anged owing to lack of sustained development of 
the non-mining private sector.4 
Table I.2 
Traditional (informal) and modern (form al) activities in Guinea’s economy, 2002 
(Share of GDP at market prices, as a percentage)  
 Traditional Modern Total 
Market sectors 57.2 29.3 86.6 
Primary 18.6 1.9 20.4 
Mining and quarrying 4.6 12.6 17.2 
Manufacturing 2.2 2.4 4.7 
Electricity, gas and water 0.0 0.8 0.8 
Building and public works 6.2 3.0 9.3 
Wholesale and retail trade, hotels and restaurants 18.3 2.1 20.4 
Transport, warehousing and communications 2.1 3.5 5.7 
Banking, insurance, real estate (net) 4.6 2.3 6.9 
Other market services 0.6 0.0 0.6 
Non-market sectors 0.0 6.6 6.6 
Import duties and taxes 0.0 7.4 7.4 
Source : Guinean authorities. 
(3) R ECENT ECONOMIC DEVELOPMENTS  
(i) Macroeconomic indicators5 
11. The major medium-term objectives in the PRSP are the following: a rate of real economic 
growth of 5 per cent on average for 2002-2005, compared to an average of 3.7 per cent between 1996 and 2000, and an average increase in per capita GDP of 1.9 per cent for 2002-2005, compared to an 
average of 1.2 per cent between 1996 and 2000.  Th ese objectives were not achieved for the period 
2002-2004 (economic growth in real terms was an annua l average of 2.7 per cent), and the authorities’ 
forecast for 2005 (an average of 2.9 per cent) a ppears to cast doubt on the achievement of these 
objectives. 
12. In 2004, the real economic growth rate was 2.7 per cent (Table I.3), an increase over the 
1.2 per cent rate for 2003, the year following the l ast presidential elections (Chapter II(2)).  This 
development can be explained primarily by a recove ry in the secondary sector (2.9 per cent in 2004, 
compared to 0.6 per cent in 2003), although the sl owdown in agriculture in 2003 following natural 
disasters and attacks by caterpillars continued in 20 04 (2.8 per cent in 2004 compared to 3.9 per cent 
in 2003 and 6 per cent in 2002).  The main reason for the recovery in the secondary sector in 2004 
was that it had lost ground in 2003 as a result of inadequate supplies of cement and the collapse of 
manufacturing (-4 per cent), caused by the energy cr isis, which also affected the production of water 
and electricity (-5.5 per cent). 
                                                     
 
 4 WTO document WT/TPR/S/54 of 8 January 1999 (Chapter I(1)). 
 5 The main sources consulted were documents provid ed by the Guinean authorities and the IMF (2004b). WT/TPR/S/153/Rev.1 Trade Policy Review 
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Table I.3 
Trend in Guinea’s real economic growth, 1998-2004 
(Percentage) 
 1998 1999 2000 2001 2002 2003 2004 
GDP 4.6 4.5 2.0 3.7 4.2 1.2 2.7 
Per capita GDP 1.5 1.4 -1.0 0.7 1.1 -1.8 -0.4 
Primary 5.6 7.9 -03 6.3 5.1 3.6 2.9 
Agriculture  7.2 8.5 -4.0 6.7 6.0 3.9 2.8 
Livestock 5.7 6.2 6.4 3.5 3.8 4.0 3.2 
Fisheries  -10.4 8.4 8.9 9.7 3.6 3.0 2.4 
Forestry 2.7 7.3 7.3 7.3 3.0 1.0 3.2 
Secondary 4.8 6.2 4.1 5.0 4.7 0.6 2.9 
Mining 3.5 4.8 1.9 3.6 2.9 2.7 1.0 
Manufacturing 5.2 6.5 7.0 5.5 5.9 -4.0 3.0 
Electricity, gas and water 8.5 6.3 3.5 3.0 3.0 -5.5 0.9 
Building and public works 6.8 8.5 7.0 7.5 7.3 -1.0 6.0 
Tertiary 4.5 2.6 2.0 2.0 2.0 1.2 2.5 
Trade 4.7 3.2 1.9 2.0 1.8 1.1 2.8 
Transport 7.5 3.5 1.5 1.9 2.1 1.0 2.8 
Administration -1.3 2.1 1.4 0.6 2.5 1.5 1.5 
Other market services 5.7 3.0 2.7 2.9 2.0 1.5 2.5 
Import duties and taxes 0.3 1.0 -2.9 2.8 24.9 -2.8 2.3 
Note:  These figures do not include the informal sector. 
Source : Guinean authorities.  
13. Final consumption rose from 88 per cent of GDP in 1996 to 98.7 per cent in 2004, with 
households finding it difficult to meet their basic needs during a period of inflation.  The level of investment in Guinea is relatively low and stood at 8.5 per cent of GDP in 2004 (16.1 per cent in 
1999), two thirds of which came from the private sector.  The authorities estimate that a minimum of 22 per cent is needed to sustain growth at a leve l commensurate with the objectives of the PRSP.  
Foreign direct investment amounted to GF 24. 67 billion in 2004 (some US$ 10 million at the 
exchange rate prevailing at the end of the year),  and the outlook for 2005 appears encouraging with 
the projected construction of aluminium works. 
14. The PRSP also contains objectives to combat inflation, which should be around 3.5 per cent 
in 2005.  In 2004, however, the authorities recorded an  annual average inflation rate of 17.5 per cent, 
an increase compared with the rat es of 12.9 per cent in 2003 and 3 per cent in 2002 (Table I.1).  This 
inflationary trend is probably the result of budgetary  slippage and failure to  manage the money supply 
because of the importance of the informal sector (section 3(iii) below). 
15. As regards the external economy (Table I.4), Gu inea has a deficit in its current account, just 
as it did at the time of the first review.  The share of this deficit in GDP has fallen, from 7.6 per cent 
in 1999 to 1.9 per cent in 2004, mainly as a result of an improved trade balance, taking into account 
the structural deficit in market services.  The objective in the PRSP is 4 per cent for 2005.  The 
recurrent deficit in services (US$ 238.4 million in 2004) is mainly attributable to international 
transport-related services.  There was, however, a su rplus of US$ 196.7 million in the trade balance in 
2004, a marked improvement in comparison with 2002, as a result of growth in exports and a decrease 
in imports following a slowdown in investment. Republic of Guinea WT/TPR/S/153/Rev.1 
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Table I.4 
Guinea’s balance of payments, 1999-2004 
(US$ millions) 
 1999 2000 2001 2002 2003 2004 
External economy  
Trade balance 76.3 83.3 150.2 56.8 119.7 196.7 
- Goods exports, f.o.b. 635.7 666.6 712.1 708.6 726.2 769.1 
- Goods imports, f.o.b. -559.4 -583.3 -561.9 -651.8 -606.5 -572.3 
Services (net) -251.6 -242.5 -216.1 -240.2 -239.2 -238.4 
- Services exports 90.1 68.0 102.8 90.5 74.8 76.2 
- Services imports -341.7 -310.5 -318.9 -330.6 -314.0 -314.5 
Earnings (net) -82.3 -77.6 -102.3 -45.5 -31.5 -120.1 
Transfers (net) -4.3 10.5 -150.3 -199.5 -100.7 -165.1 
Capital account 158.7 -73.3 -88.3 -103.1 -35.2 -20.7 
Errors and omissions -13.2 94.6 -28.0 -29.3 -29.3 -17.2 
Overall balance -31.0 -61.3 -25.1 -83.7 -93.7 -55.1 
Memorandum item :        
Balance of current transactions as a 
percentage of GDP -7.6 -7.4 -2.5 -3.2 -1.4 -1.9 
Source : Guinean authorities. 
(ii) Budget policy 
16. As was the case at the time of the first review  of its trade policy in 1999, in managing its 
budget Guinea faces the dual challenge of increasi ng revenue (taking into account the importance of 
the informal sector and the exemptions given to  investors) and improving the efficiency of 
government spending.  In 2004, current expendi ture accounted for 10.3 per cent of GDP, while 
current revenues amounted to 10.5 per cent (compare d to an average of 18 to 20 per cent for the 
subregion as a whole).  As a result of the State cu tting back capital expenditure to 4.2 per cent of GDP 
in 2004 (against 7.7 per cent in 1999), the overall budget deficit on the basis of commitments 
(excluding grants) stood at 7.5 per cent of GDP in 2004 (Table I.5), a decrease in comparison with 
2003. 
17. As far as the breakdown of the State’s revenue is concerned, the mining sector’s share 
decreased from a peak of 10.6 per cent of GDP in 1990 to 1.9 per cent in 2004 following the downturn in global prices for bauxite.  According to  information provided by the authorities, mining 
taxes payable by the three main ope rators in the mining sector – the Compagnie des bauxites de 
Guinée  – CBG (Guinean Bauxite Company), the Compagnie des bauxites de Kindia  – CBK (Kindia 
Bauxite Company)  and the Alumina Company of Guinea (ACG) (Friguia plant) – amounted to 
US$ 64.3 million in 2003, bearing in mind that th ese companies receive tax and customs exemptions 
under the agreements on their establishment.  On  4 October 2004, however, the authorities took the 
important step of abolishing exemptions not covere d by legislation, codes, agreements or grants.
6  
One of the key recommendations in the Public Spending Review conducted by the World Bank in 
connection with the implementation of the PRSP  is "the suppression of illegal and unjustified 
exonerations", which particularly favour mining companies.7  In 2003, customs duties represented 
23 per cent of non-mining earnings, compared to 20 per cent in 1999. 
                                                      
 6 Decree No. D/2004/066/PRG/SGG of 4 October 2004. 
 7 World Bank (2004). WT/TPR/S/153/Rev.1 Trade Policy Review 
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Table I.5 
Financial operations by the Guinean State, 1999-2004 
(GF billions) 
 1999 2000 2001 2002 2003 2004 
Earnings and grants 628.3 718.6 826.5 876.9 982.8 1 014.6 
Earnings 517.2 593.3 671.5 763.9 754.1 938.9 
- Mining sector 117.3 146.7 166.6 145.3 105.9 173.9 
- Non-mining sector 399.9 446.6 504.9 618.6 648.2 765.0 
Grants 111.1 125.3 155.0 113.0 228.7 75.7 
Expenditure and net loans 773.3 898.5 979.6 1 149.5 1 321.0 1 280.2 
Expenditure 773.1 896.1 978.3 1 145.1 1 319.6 1 281.6 
- Current expenditure 429.5 509.4 672.7 776.1 929.0 908.6 
- Capital expenditure 343.6 386.7 305.6 369.0 390.6 367.0 
Loans minus repayments 0.2 2.4 1.3 4.4 1.4 1.3 
Overall balance 
(excluding grants) -256.1 -305.2 -308.1 -385.6 -566.9 -535.5 
Overall balance (including grants) -145.0 -179.9 -153.1 -272.6 -338.2 -319.5 
Memorandum items:       
Overall balance (excluding grants) 
as a percentage of GDP -5.3 -5.7 -5.2 -6.1 -7.9 -7.5 
Overall balance (including grants) 
as a percentage of GDP -3.0 -3.4 -2.6 -4.3 -4.7 -4.4 
Source : Guinean authorities. 
18. As regards spending, the authorities consider th at the uncertain security situation on Guinea’s 
borders with Sierra Leone and Liberia justifies th e Government’s spending on security (which also 
includes a large internal component).  Although this  spending is deemed "incompressible", it could be 
eased in view of the more peaceful situation on the borders concerned.8  Moreover, Guinea is one of 
the countries neighbouring Côte d’Ivoire whose economic situation has been affect ed by the crisis that 
broke out there in September 2002. 
19. In March 2004, the authorities adopted measure s to overcome the crisis and control the 
budget deficit.9  As far as expenditure is concerned, ther e is a freeze on employment and a cutback in 
spending on goods and services (including investment) othe r than wages.  With regard to earnings, the 
authorities are counting on more effective custom s operations and elimina tion of exemptions not 
covered by legislation, codes, ag reements or grants (see above). 
20. At the end of 2004, Guinea’s internal indebtedness amounted to 65.8 per cent of the money 
supply.  Excessive monetary expansion is mainly the result of over-financing of the budget deficit by 
the Central Bank of the Republic of Guinea (BCRG).  Consequently, the authorities are relying on a 
decrease in the budget deficit and stabilization of exch ange rates to bring inflation down to acceptable 
levels (see section (iii) below). 
21. In 2003, the external medium- and long-term debt was US$ 3,364 million, i.e. 92.8 per cent of 
the GDP.  In December 2000, Guinea reached th e critical point under the HIPC initiative and, 
consequently, was eligible for a reduction of US$ 800  million in its debt, corresponding to 32 per cent 
of the debt after all debt reduction mechanisms had been utilized.10  During the period 2000-2003, the 
Government received US$ 96 million.  This pro cess has been suspended since 2003 owing to the 
                                                      
 8 IMF (2004c). 
 9 Government of Guinea, Ministry of the Economy a nd Finance (2004), "Mesures de sortie de crise". 
 10 World Bank, Press Release No. 2001/193/S. Republic of Guinea WT/TPR/S/153/Rev.1 
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problems experienced by the authorities in meetin g the targets laid down in the macroeconomic 
stabilization and structural reform programme. 
(iii) Monetary and exchange policy 
(a) Institutional arrangements 22. Guinea has its own currency, its own monetary policy and its own exchange regulations.  In 
1960, the Republic of Guinea, independent since 1958,  withdrew from the franc zone and established 
the BCRG, an autonomous though not independe nt institution, and a domestic currency.
11  Three 
monetary units have been used since March 1960:  the Guinean franc from 1960 to 1972; the syli from 
1972 to 1985;  and the Guinée Nouveau Franc  – GF (new Guinean franc), introduced in 1985 
following a sharp devaluation of the syli. 
23. The BCRG’s main objective is to control inflation.12  For this purpose, it focuses on three 
intermediate objectives: the exchange rate, the money supply, and interest rates.  Its instruments are 
monetary regulation bonds in order to absorb the surplus liquidity in the banking system; the reserve 
requirement system (5.5 per cent of deposits in co mmercial banks);  the BCRG’s official market rate 
(currently 16.25 per cent), which has to be the ma jor determinant for the rates applied by the banks; 
the minimum credit rate (set at 8.5 per cent in November 2004) and the minimum rate for savings 
deposits (fixed at 11.2 per cent in November 2004).  These rates are not attractive when compared 
with inflation of 28 per cent at the end of the year and rising annually, but increasing them would 
have a negative effect on spending by  increasing internal debt servicing. 
24. At the end of December 2004, the money suppl y was GF 1,484.6 billion, an increase of 37 per 
cent in comparison with the end of December 2003, raising the liquidity rate of the economy to 
16.7 per cent of GDP.  The increase in the money supply is the result of the sharp rise in net internal 
assets (27.7 per cent in 2004), which constituted 88 per cent of the counterpart of the money supply in 
2004, as well as the increase in net external assets ( 266 per cent).  The latter trend mainly concerns 
deposit banks and the BCRG’s gold reserves.  The st rong increase in net internal assets was the result 
of net domestic credit expansion essentially attributable to an increase in the banking system’s claims 
on the State caused by the uncontrolled budget deficit. 
(b) Foreign exchange regulations13 
25. On 17 November 1995, Guinea accepted Article VIII (Sections 2, 3 and 4) of the Articles of 
Agreement of the International Monetary Fund (IMF). 
26. At the time of the first review in 1999, the o fficial rate for the Guinean franc was set on the 
Marché interbancaire des devises  – MID (Interbank Currency Market).  However, the failure of the 
banking system fully to meet the demand for fore ign currency and the increase in various charges 
(including taxes and fees) encouraged the developm ent of a parallel market.  Most of the foreign 
exchange available on this market comes from th e operations of diamond and gold mines and the 
tourism sector. 
27. In August 1999, the Guinean authorities replaced the MID by the Marché aux enchères de 
devises  – MED (Currency Auction Market)14, but this new mechanism was unable to achieve its main 
                                                      
 11 WTO document WT/TPR/S/54 of 8 January 1999 (Chapter I(2)(i)). 
 12 Central Bank of the Republic of Guinea,  "Déclaration de Politique Monétaire de la BCRG", 10 November 2004. 
 13 Law No. L/2000/006/AN of 28 March 2000 and Instru ction No. 112/DGAEM/RCH/00 of 11 September 2000. 
 14 Central Bank Instruction No. 10 7/DGAEM/RCH/99 of 25 August 1999. WT/TPR/S/153/Rev.1 Trade Policy Review 
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objective of unifying the official and unofficial exchange markets15, and it was therefore replaced on 
1 March 2005.16  The new system restores the provisions of the foreign exchange regime, which gives 
credit institutions and foreign exchange bureaux approved by the BCRG responsibility for meeting 
supply and demand for foreign currency.  Every Wednesday the BCRG publishes the reference rates 
of exchange for the Guinean franc on the basis of the (unweighted) simple average of transactions by 
approved establishments. 
28. The average GF/US$ rate on the official excha nge market rose from 1,387 at the end of 1999 
to 2,467 at the end of 2004 and 3,467 at the end of April 2005.17  According to the BCRG, the 
disparity between the US dollar exchange rate on th e official and parallel markets was 2.06 per cent at 
the end of December 2001 compared to -0.52 per cent in December 200018 and 2.99 per cent at the 
end of December 2002.19  The 2 per cent threshold is that used  by the IMF under Article VIII. As of 
2003, the disparity in exchange rates on the two markets widened considerably; it was estimated by 
the authorities to be some 27.45 per cent at the end of 2004 and, according to the IMF, constituted a 
multiple currency practice.20  The gap has narrowed to around 7 per cent since the new scheme was 
introduced on 1 March 2005. 
29. At the time of the first review in 1999, the fo reign exchange liberalization policy had enabled 
all residents of Guinea to open private foreign cu rrency accounts and had led to the establishment of 
foreign exchange bureaux whose activities are regul ated, for example, current foreign exchange 
transfers.  These measures have remained in force si nce then, but in the light of the foreign exchange 
crisis in 2005, the authorities are considering limiti ng this facility, in particular, by introducing a 
requirement to convert part of a forei gn currency account into Guinean currency. 
30. Imports of a value of US$ 2,000 or more must  mandatorily be domiciled with a commercial 
bank.  The latter must then prepare a domiciliation file and ensure that the importer completes an 
"import description".  The regime allows imports of goods without the purchase of foreign currency, 
subject to the import description formalities and banking regulations. 
31. According to the regulations in effect, th e regime governing exports of goods draws a 
distinction between imports of pr ecious materials (gold, diamonds a nd other gems), those by approved 
mining companies and other exports.  Exporters of precious materials must domicile their operations 
with a commercial bank or with the BCRG, comp lete an "export certificate" and undertake to 
repatriate the proceeds of the sale, which may be pa id into a foreign currency account to be used to 
cover the costs of the company in question.  Internat ional trade in rough diamonds is only authorized 
if the requirements of the Kimberley process are met.   The exchange rate regime for approved mining 
companies is specified in the relevant agreements , whose clauses are confidential.  These enterprises 
may be given the right to open accounts abroad by  the BCRG into which the revenue from exports 
may be paid.  This provision is intended to a llow approved mining enterprises to service debts, 
purchase equipment, etc. 
                                                      
 15 Central Bank of the Republic of Guinea (2002). The follow ing were the participants in the MED: the BCRG, the 
commercial banks and the foreign exchange  bureaux, authorized exporters of di amonds and precious metals, as well as 
government and semi-public enterp rises.  It would seem that the MED only dea lt with some 30 per cent of foreign exchange 
transactions in Guinea and the remai nder passed through the unofficial market. 
 16 Central Bank Instruction No.002/ DGCC/CH/RCH/05 of 1 March 2005.  
 17 The official rate for the Guinean franc was 300 new Guinean francs per US dollar when the new currency was 
introduced in 1985. 
 18 Central Bank of the Republic of Guinea (2002). 
 19 Central Bank of the Republic of Guinea (2003). 
 20 IMF (2004c).  The IMF considers that since the begi nning of 2004 Guinea has engage d in the administrative 
allocation of foreign exchange:  importers  of basic goods (rice and petroleum produc ts) could obtain fore ign currency at the 
official exchange rate, whereas banks coul d finance imports at exchange rates ranging between the official rate and the rate 
obtaining on the parallel market. Republic of Guinea WT/TPR/S/153/Rev.1 
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32. All exporters of goods and services other th an precious materials and approved mining 
companies are authorized to retain and freely di spose of 100 per cent of their export revenue in 
foreign currency provided that this  revenue is domiciled with one  of the local commercial banks 
(unless otherwise permitted by the BCRG).  Residents ar e usually required to cash in and repatriate to 
the bank of domiciliation all sums payable to them from abroad for exports valued at US$ 2,000 or 
more.  Exports must all be invoiced in fore ign currency.  The bank of domiciliation opens a 
domiciliation file on behalf of the exporter.  Th e exporter must complete an "export description". 
Revenue derived from sales must be repatriated with in a maximum of 90 days after shipment of the 
goods.  The banks must transmit a list of goods expor ted to the Central Bank for statistical purposes. 
33. Guinea allows the free transfer of revenue deri ved from direct investment and from its sale.  
Banks are authorized to conduct such operatio ns subject to presentation of substantiating 
documentation.  Guinea also allows expatriate personnel in a company to repatriate 50 per cent of the 
savings on their net income (Chapter II(3)(iii)(e)).  Banks are authorized to conduct such operations 
subject to presentation of documents such as a salary statement, employment contract and tax demand. 
(c) Regional foreign exchange cooperation 
34. Guinea is participating in the creation of a monetary zone with the four other member 
countries of the ECOWAS situated outside the fr anc zone (Gambia, Ghana, Nigeria and Sierra 
Leone).
21  The original timetable for the West African Monetary Zone (WAMZ) provided for the 
creation of a common central bank in December 2002 and the introduction of a single currency as of 
January 2003 (to be called the "ECO").  Member c ountries were unable to meet the criteria for first-
tier convergence and the launching of their moneta ry union was deferred until 1 July 2005.  In 
May 2005, a new date (1 December  2009) was set in view of the poor  performance by member States 
in achieving the convergence criteria. 
35. These countries set up the West African Moneta ry Institute (WAMI) to administer the 
implementation stages of the WAMZ until the neces sary conditions have been met to move towards 
the launching of the West African Central Bank.22  The creation of the WAMZ forms part of the 
monetary integration movement within the EC OWAS, whose final goal is to establish a single 
currency.  The eight member countries of th e West African Economic and Monetary Union 
(WAEMU) already have common monetary and exchange policies.23 
(4) T RENDS IN TRADE  
36. The dependence of Guinean exports on mining products has not changed since the first 
review of Guinea’s trade policy in 1999.  Three quarters of exports are composed essentially of 
mining products (bauxite, alumina, gold and diam onds), although the shares of gold and diamonds 
have considerably increased to the detriment of expo rts of bauxite and bauxite products (Table I.6).  
In 2003, the latest year for which data are availa ble, exports of mining pr oducts amounted to roughly 
US$ 587 million; the share of bauxite and alumina (a product derived from bauxite) was 60 per cent, 
gold accounted for one third and diamonds for the re mainder.  The European Union is the main 
destination for these exports, as was already the case in 1999. 
                                                      
 21 Executive Secretariat of the ECOWAS (2002). 
 22 http://www.wami-imao.org/. 
 23 Benin, Burkina Faso, Côte d’Ivoire, Guin ea-Bissau, Mali, Nige r, Senegal and Togo.  WT/TPR/S/153/Rev.1 Trade Policy Review 
Page 10 
 
 
Table I.6 
Guinea’s main exports, 2000-2004 
(Percentage share) 
 2000 2001 2002 2003 2004 
V.     Minerals 50.2 58.5 47.9 50.9 49.7 
VI.    Chemicals and related products 17.8 16.1 16.4 16.9 16.5 
XIV. Natural pearls, gemstones, pr ecious metals 26.3 24.5 28.2 23.6 23.0 
Sub-total 94.3 99.0 92.5 91.3 89.1 
Source :  Guinean authorities. 
37. Guinea’s imports chiefly consist of petroleum products (25.6 per cent of the total in 2003), 
chemicals (particularly pharmaceuticals), agri-food  products, machinery and transport equipment.  
The European Union is the main source of imports, as was the case in 1999. 
(5) O UTLOOK  
38. According to the authorities, Guinea has had to deal with external shocks since 2000, 
particularly the tense security situation in the sout h of the country, the crisis in Côte d’Ivoire, the 
deterioration in terms of trade (especially following the explosion in the price of petroleum, all of 
which Guinea imports) and a decrease in external fi nancing, together with climate conditions that 
were unfavourable to agriculture.  These shocks made it difficult to achieve the economic growth 
objectives set for 2002-2005 in the PRSP, which are necessary to alleviate poverty.  The crisis-relief 
measures adopted in March 2004, which were c ontinued in 2005, are intended to restore the 
macroeconomic balance and repair Guinea’s relations with its deve lopment partners.  The Guinean 
authorities hope to achieve the objective of introducing a three-year programme underpinned by an IMF Poverty Reduction and Growth Facility (PRGF). 
39. According to official estimates, the rate of grow th in real GDP should be some 2.9 per cent in 
2005.  This favourable trend, wh ich nonetheless falls short of the PRSP targets, would result from 
sustained growth in the primary sector and a recovery in the secondary sector, which had already 
begun in 2004.  The authorities hope to reach the figur e of 5 per cent of real economic growth as of 
2006.