webGuinea

Economie
Secteur Formel
Echanges Guinée — USA

Philip Michelini
US Department of Commerce
Commerce Desk Officer
Guinea Foreign Economic Trends Report — 1994

After achieving a 31 percent increase and record U.S. export sales of $871 million in 1996, the prospects for additional increases in U.S. sales to Guinea are promising for 1997. Guinean real GDP growth is estimated at 4.8 percent in 1997, with the bulk of the expansion occurring in the increased capacity and ongoing restructuring of the mining sector, particularly bauxite, diamonds, and gold. Along with greater opportunities for foreign investment in Guinea, the economic growth expected will result in higher volumes of foreign trade.

Following a temporary overall contraction in 1996, Guinean imports are projected to rebound in l997, increasing by about 14 percent in real terms to a level of nearly $800 million. of Guinean exports are forecast to grow by about 13 percent in 1997 to nearly the same value (of which mining exports will be about $640 million). The sale of U.S. products in Guinea should rise to slightly above $100 million for the first time, or a 13-14 percent import market share. The U.S. share of Guinea's exports should hold steady at about 11 percent in 1997, or about $135 million in purchases.

Beyond the expected economic growth, Guinea's intemational trade in 1997 will be facilitated by a planned reduction of import tariffs and the abolition of export taxes, except for gold and diamonds. The Guinean authorities also plan to conduct a review of their trade policies by the end of September, leading hopefully to rationalizing and simplifying the trade regime and harmonizing trade practices within the context of World Trade Organization rules.

American-made goods are very popular in Guinea. Best U.S. sales prospects in 1997 and 1998 are

• mining and materials handling equipment (both new units and spare parts)
• grains (wheat and wheat flour, semi or wholly milled rice, corn meal, malt extract)
• packaged processed foodstuffs (vegetable oils and fats, canned fruits and vegetables,
  sauces and condiments, soft drinks, and beer)
• textiles (especially worn clothing, like denim jeans)
• new passenger cars and diesel electric locomotives, and their spare parts
• cigarettes
• telecommunications equipment, including cellular telephones and television
  and radio transmission apparatus
• personal computers and software
• consumer electronics (radios, recorders, cassettes, paging devices, etc.).
  

A steady market exists m Guinea for used cars and used tires. A few Conakry merchants have also introduced U.S. manufactured outboard motors and U.S. made furniture.

New areas offering potential U.S. sales in 1997 and later years include pharrnaccuticals and environmental protection products and services. Respecting the pharmaceuticals sector, the Guinean Government in 1997 is to undertake to improve the supply and distribution of essential generic drugs; it will also try to privatize the central pharmacy. Guinean government operations are also planned to begin in 1997 to improve the urban environtnent regarding sanitation and air pollution, and to Improve the urban and rural drinking water supply.

In 1997, the Guinean Government is expected to continue its sustained high-level effort to attract more American investment to the country. Guinean cabinet officials and leading technocrats in the government now travel frequently to the United States seeking to promote their country and make business contacts with American entrepreneurs and investors. Guinean officials have expressed repeated interest in
seeing a major American bank established in Cininea and in renewing negotiations for a Bilateral Investment Treaty with the United States.

For more information about U.S. trade and investment in Guinea, contact:

This article appeared in Business America. April 1997

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