The Guinean Government's principa1 promotional vehicle for the encouragement of foreign business participation in national economic activity is the Investment Code adopted January 3, 1987. The Code states that foreign investors can import necessary goods and equipment; export production; implement operating and employment policies; choose clients and suppliers; set prices freely; and repatriate earnings on imported oapita1 in accordanoe with foreign exchange regulations. Guarantees are provided for the equal treatment of Guinean and foreign investors; patent, trademark, and copyright protection, and access to Guinean courts.
The Guinean Investment Code contains special incentives, or privileges, for small and medium sized enterprises with majority Guinean ownership, for export firms, and for companies which, locate outside of Conakry. Companies which meet specific qualifications can apply for special limited customs duty exemptions, and payroll and income tax waivers. At least one-third of financing for an investment project must be in the form of cash or new equipment in order to qualify, except for small or medium enterprises, which need only 20 percent financing in the form of equity. Small and medium enterprises can have maximum investment value of 300 million Guinea francs.
To qualify as an exporter, a firm must export at least 22 percent of its production. Gold, bauxite, iron ore, and diamond producers do not qualify for export incentives, A firm for which imports amount to 30 percent or less of total production costs can qualify for incentives as a user of local resources. A production firm which has at least 90 percent of its workforce outside of Conakry, or a service company with headquarters and principal places of business outside of Conakry, also qualify for incentives.
It should be noted that as of mid-1996 the Guinea government reportedly was revising both the Investment Code and Minerals Code with a view toward creating greater transparency and reducing administrative red tape.
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