Investment Code

In line with objectives set in the economic recovery programme formulated after the advent of the Second Republic, the government created a favourable framework to encourage private undertakings and to spur on national and foreign economic players to invest in Guinea. The Investment Code of the Republic of Guinea was approved by Ordinance N-001/PRG/87 of January 3, 1987 and modified by Act L/95/029/CTRN of June 30, 1995. It defines the environment and conditions under which investors can operate, guarantees they are entitled to and incentives for those who significantly contribute to the achievement of Guinea's priority goals of economic and social development. The provisions of the Code apply under conditions of reciprocity, ascertain and protect free enterprise and free transfer of capital, the principle of equality between public and private sectors, the preservation of vested interests and equal treatment between foreign natural persons/body corporates and Guinean nationals. Preferential treatments giving right to tax advantages are determined according to the following objectives and priority sectors of activity:
  • Development of small and medium sized enterprises;
  • Development of non-traditional exports;
  • Processing natural resources and local raw materials within Guinea;
  • Opening activities in the least developed areas (in economic terms);
  • Creation of farming enterprises, namely in the sectors of subsistence crops and rural development;
  • Commercial scale farming including a stage at which produce is processed and packed;
  • Livestock enterprises with cattle health protection equipment;
  • Fisheries with processing and cold storage facilities;
  • Private clinics and school establishments (Health and Education);
  • Tourism and Hotel trade;
  • Investment bank and other credit establishments.

General conditions determining the eligibility for one or more preferential treatments include : the nature of the activity, methods of financing the enterprise, job creation and training Guinean nationals.

The application for preferential treatments may be introduced by any natural person or corporate body, whether public or private, Guinean or foreign, upon the incorporation of the company and registration in the trade register.

The opening of the right to one or several preferential treatments is ascertained by an order of approval issued by the Minister responsible for the Promotion of the Private Sector, Industry and Commerce.

In addition to complying with rules and regulations governing its activities and with clauses provided for in its accreditation, any authorized enterprise is required, throughout the duration of its preferential treatment period, to:

  • strictly observe its programme of investment as authorized by the accreditation;
  • comply with national and international quality standards applicable to goods and services;
  • keep accurate accounting books in accordance with laws and regulations in effect in the Republic of Guinea and related thereto;
  • employ Guinean nationals in priority provided that such persons are qualified and available on competitive terms;
  • provide the tax administration with yearly accounts certified to by a qualified accountant registered in the Republic of Guinea.

The Investment Code also provides for penalties in case enterprises fail to meet their obligations and commitments. Among other things, these sanctions may result in the deprivation of the right to the preferential treatment so granted.

Any dispute or contention arising in connection with the interpretation or the application of the Investment Code is settled by competent Guinean courts or by arbitration.

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