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FEATURE STORY

Guinea Set to Win the Hearts of Investors

May 31, 2012

Woman in small shop Ghana. Photo: © Arne Hoel/The World Bank

Photo: Arne Hoel/World Bank


"Guinea is Back" - A new program of reforms in Guinea

Guinea's new government is set to win the hearts of investors to become a preferred destination for investment in Africa.  Just last year the new President, Professor Alpha Conde, passed a decree to create the Agency for Promotion of Private Investments (APIP), a one stop shop that aims to improve the country's business environment. The APIP and its one stop shop for business registration opened its doors on December 7, 2011 allowing entrepreneurs to register their businesses in one location, cutting time and cost in the registration process. Since then, with the active support of the World Bank Group's Investment Climate team, a series of other reforms to make it easier to start and operate a business in the country have been passed.

Oumar Yasané, CEO of Yanstechnologie, a computer shop, said: "I learned about the one stop shop through the media, so I decided to go and see the APIP. I arrived and was asked for two passport photos, a residence certificate, a photocopy of my ID card and 212 000 GNF. I submitted them and in less than two weeks, I was called to pick up my documents. I was amazed at how quickly my business was created."


" I submitted all the requirements and in less than two weeks, I was called to pick up my documents. I was amazed at how quickly my business was created. "

Oumar Yasané

CEO of Yanstechnologie, a computer shop

Developing Guinea's Business Reform Agenda

In order to develop the country's business reform agenda, the government drew on experience from international experts and top reformers worldwide and in the region. In January 2012, the Minister of Industry and Small and Medium Enterprises led a delegation from Guinea comprised of public and private sector representatives to Mali to learn from experiences of the eight member states of the West Africa Economic and Monetary Union (UEMOA) and Rwanda, themed: "Sharing Knowledge to Improve the Business Climate." 

"We are happy to have IFC's technical support for the improvement of investment climate in Guinea, which is a necessary condition for the general economic development of the country, and that of the private sector in particular," said Mrs Rahamatoulaye Bah, Minister of Industry and SMEs. 

Guinea's Reform Priorities

Upon consultation with the private sector, top reformers and the World Bank Group's Investment Climate Department, the government of Guinea prioritized these areas for reform:

  1. Starting a Business
  2. Getting Electricity
  3. Dealing with Construction Permits
  4. Registering Property

The reform priorities are aimed at rebuilding the country and are a direct response to the strong political willingness to reform Guinea.

Results

  • Starting a Business: One Stop Shop was created to facilitate business creation
  • Dealing with Construction Permits: One Stop Shop for construction permits streamlines the process of issuing permits and reduces costs as a result of a decree passed that eliminates two variable portions (15% for each additional square meter above 300 m2 and 30% for each additional floor) of the construction permit fee - now only a fixed amount is paid no matter the surface of the construction.
  • Getting Electricity: (1) Excavation permits are now directly obtained by the electricity company (Electricity de Guinee – EDG). (2) Bank guarantee will now be accepted as deposit, and not only in cash.
  • Registering Property: A one stop shop for construction and property registration has been created to enhance transparency and streamline construction and property controls.

Facts and Figures

Starting a Business:

  • Total number of businesses created from January to May 15th, 2012: 437
  • Reduction in the number of days required to create a business from over 40 days to: an average of 3 days

Dealing with Construction Permits: Average number of days to obtain a permit is 32 days [from 287 days] 

Getting Electricity: Procedures for the request for electricity connection and request for excavation permit are now conducted together. The client does not have to follow up with Public Works, saving time and reducing the number of points of contact to access electricity 

Registering Property: Number of property transfers processed: 121 (January to May 2012)  

 


Results

  • Starting a Business: One Stop Shop was created to facilitate business creation
  • Dealing with Construction Permits: One Stop Shop for construction permits streamlines the process of issuing permits and reduces costs as a result of a decree passed that eliminates two variable portions (15% for each additional square meter above 300 m2 and 30% for each additional floor) of the construction permit fee - now only a fixed amount is paid no matter the surface of the construction.
  • Getting Electricity: (1) Excavation permits are now directly obtained by the electricity company (Electricity de Guinee – EDG). (2) Bank guarantee will now be accepted as deposit, and not only in cash.
  • Registering Property: A one stop shop for construction and property registration has been created to enhance transparency and streamline construction and property controls.

Facts and Figures

Starting a Business:

  • Total number of businesses created from January to May 15th, 2012: 437
  • Reduction in the number of days required to create a business from over 40 days to: an average of 3 days

Dealing with Construction Permits: Average number of days to obtain a permit is 32 days [from 287 days] 

Getting Electricity: Procedures for the request for electricity connection and request for excavation permit are now conducted together. The client does not have to follow up with Public Works, saving time and reducing the number of points of contact to access electricity 

Registering Property: Number of property transfers processed: 121 (January to May 2012)  


Results

  • Starting a Business: One Stop Shop was created to facilitate business creation
  • Dealing with Construction Permits: One Stop Shop for construction permits streamlines the process of issuing permits and reduces costs as a result of a decree passed that eliminates two variable portions (15% for each additional square meter above 300 m2 and 30% for each additional floor) of the construction permit fee - now only a fixed amount is paid no matter the surface of the construction.
  • Getting Electricity: (1) Excavation permits are now directly obtained by the electricity company (Electricity de Guinee – EDG). (2) Bank guarantee will now be accepted as deposit, and not only in cash.
  • Registering Property: A one stop shop for construction and property registration has been created to enhance transparency and streamline construction and property controls.

Facts and Figures

Starting a Business:

  • Total number of businesses created from January to May 15th, 2012: 437
  • Reduction in the number of days required to create a business from over 40 days to: an average of 3 days

Dealing with Construction Permits: Average number of days to obtain a permit is 32 days [from 287 days] 

Getting Electricity: Procedures for the request for electricity connection and request for excavation permit are now conducted together. The client does not have to follow up with Public Works, saving time and reducing the number of points of contact to access electricity 

Registering Property: Number of property transfers processed: 121 (January to May 2012)  

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