Overview
Each industry has its own policy and network for sales and distribution. Sales of communication products usually occur through wholesalers who import in bulk for resale to small traders or distributers in the interior of the country. Retailers often directly import luxury consumer goods. Generally, mining, utility, and industrial firms conduct heavy equipment purchases directly from suppliers. Service and customer support should not be expected and are only possible if negotiated at the time of sale. Guinea features many open-air marketplaces, numerous small shops, and a few medium-sized grocery stores. The majority of consumer sales are completed within the informal or parallel market.
Using an Agent or Distributor
Entering a successful partnership or representational relationship can be difficult in Guinea. The Guinean judicial system is understaffed, corrupt, and lacks transparency. Accounting practices in Guinean courts are frequently unreliable. U.S. businesses should exercise extreme caution when entering contractual arrangements and do so with local legal representation. The U.S. Embassy Economic/Commercial Section and Guinea’s Agency for the Promotion of Private Investment (APIP) are good points of contact with the local business community.
As of September 2023, the U.S. Embassy Conakry is supporting the establishment of an American Chamber of Commerce in Guinea led by the private sector.
Establishing an Office
There are six categories of companies recognized by the Code of Economic Activities:
- Joint Stock Companies, either S.A. (minimum capitalization of at least 100 million GNF, approx. USD 10,500) or S.A.R.L. (minimum capitalization of 10 million GNF, approx. USD 1,050)
- Partnerships
- Non-trading Real Estate Companies
- Professional Services Companies
- Cooperatives
- Special companies and conglomerates, including joint venture companies, de facto companies, and temporary groupings
Legal incorporation for new investments involves signing by-laws, depositing the start-up capital in a blocked bank account, registering the company in the Register of Economic Activities, and announcing the incorporation in the Agency for the Promotion of Private Investment (APIP). The process is fully digitalized and is centralized at APIP’s One-Stop-Shop (Guichet Unique), established in December 2011 and operated by APIP,which is under the supervision of the Ministry of Commerce, Plans, and Small and Medium Enterprises and the Ministry of Economy and Fiance.
Fees for individuals starting companies total 212,500 GNF (approximately USD 25). Total fees for limited liability partnerships are 530,000 GNF (approximately USD 61) plus a sliding fee to register the statutes and procès-verbal (receipt): 1 percent of capital for companies with a capitalization between 10 and 100 million GNF (approx. USD 1,154 to 11,540), 0.5 percent for companies between 100 million and 500 million GNF (approx. USD 11, 540 to 57,700), and 0.25 percent of capital for any amount above 500 million GNF (approx. USD 52,600). Corporations pay 650,000 GNF (approximately USD 75) plus 0.5 percent of capitalization between 100 million and 1 billion GNF (approximately USD 10,500 to 105,000). Cooperatives register free of charge. The company must submit two photos of the company’s director, managing director, or agent, and a copy of his or her identification and visa (if a foreigner), as well a rental contract for the physical location of the office. Corporations and LLPs must also provide proof of a bank account containing their initial capital to assess the statute registration fee, as specified above. A branch office can be established through the same procedure at a cost of 700,000 GNF (approx. USD 80). The full list of prices can be viewed on APIP’s website.
Following registration, to apply for “privileged regime” status and benefit from the provisions of Guinea’s investment code, the company will need to create at least five permanent jobs, invest of a minimum USD 20,000, and address a letter to the Minister of Investment and Public-Private Partnerships detailing the nature of the company, the installation and equipment, anticipated production and revenue for the next three years, and the number of jobs to be created. The company will benefit from attractive tax and customs advantages. More information is available on APIP’s website.
Large projects entailing new construction may need to submit feasibility studies. The proposal will be reviewed APIP and transmitted to the Ministry Commerce, Plans, and Small and Medium Enterprises.
Although employees at the One-Stop-Shop seem competent and well-trained, the new registration process is not fully streamlined.
For the latest Investment Climate Statement (ICS) which includes information on investment and business environments in foreign economies pertinent to establishing and operating an office and to hiring employees, visit the U.S. Department of Department of State’s Investment Climate Statements website.
Franchising
Franchise arrangements are rare in Guinea, however there are a few exceptions. There are franchise agreements in petroleum distributorships with the French oil company Total as well as Shell products which are distributed by Vivo Energy. There are also several franchises in the hospitality sector notably the Regus co-working space in Kaloum, and hotels including Noom Hotel downtown. There are a number of small restaurant franchises in the capital as well. In 2018, over 20 Guinean entrepreneurs attended the International Franchise Expo in New York but their visit resulted in no franchise investments.
Direct Marketing
Although the government permits direct marketing, the U.S. Embassy knows of no international direct marketing company currently operating in Guinea. This is most likely due to the lack of a reliable postal system or land line telephone network. Guinean marketing companies such as Indigo, Monarch Conakry, Attractive.com, and Equom Marketing offer services including marketing strategy and advice, graphic design, print marketing, audio/visual services, and digital marketing. Demonstration events or product fairs are generally best for high-technology or for products targeting a niche market in Conakry. Small fairs can be staged in a hotel or public space available in Guinea’s larger cities or through agreement with a local partner or government office.
The U.S. Embassy has sponsored business development seminars to introduce Guinean businesses to working partnerships with U.S. companies. The Embassy also helps organize Guinean delegations for U.S. trade and product demonstration events and helps to facilitate connections between Guinean buyers and producers with appropriate U.S. counterparts.
Joint Ventures/Licensing
Joint ventures or licensing with local Guinean companies follow the same procedures as outlined above in the Establishing an Office section. Joint ventures with the government are managed by the Ministry of Commerce, Industry, and Small and Medium Enterprises. The 2011 Mining Code grants the State the right to a 15 percent free participation in the share capital of mining companies with a mining concession. The percentage of the State’s free participation varies depending on the minerals exploited and the State has the option to purchase up to an additional 20 percent for a maximum participation of 35%. Most U.S. investors set up Guinean subsidiaries to conduct business. Hiring local experts and consultants is seen as the norm. Many larger firms secure individual tax arrangements with the government that exempt them from some taxes.
Express Delivery
There are three main international delivery companies operating in Guinea: DHL, UPS, and TNT which is operating as FedEx. The Guinean Postal Service offers express delivery to 176 countries, charging USD 53 for express letter delivery to the Unites States. Using one of these services to send a parcel from the United States to Guinea can take four to five days to reach the destination. Prices for small package and pouch delivery to the United States range from USD 60 to 100, depending on size and weight. Recipients of packages in Guinea may be required to pay duty. The shipping provider is responsible for informing the recipient of the duty and collecting payment.
Due Diligence
The use of a local attorney for consultation and guidance, especially in the case of business disputes, is strongly recommended. The judicial system in Guinea is underdeveloped, underfunded, and there are frequent reports of rampant corruption. The U.S. Embassy’s Consular Section maintains a list of local attorneys, though the list should not be interpreted as an endorsement of any of the attorneys listed. A list of local attorneys is also available from the Ministry of Justice.
There is no existing agency through which U.S. businesses can verify the credit background of counterparts in Guinea before doing business. The U.S. Embassy suggests requesting a letter of credit before commencing business transactions