Policies Towards Foreign Direct Investment

The Government of the Republic of Equatorial Guinea is still actively soliciting foreign investments. The government considered 2019 to be the “Year of Energy,” with new licensing rounds for hydrocarbons fields and various events to encourage investment. This was supposed to continue into the 2020 “Year of Investment,” focusing on hydrocarbons, mining exploration, and petrochemicals, which was disrupted by the pandemic. In 2017, the Government started the donor facilitation initiative with the World Bank, as part of a strategy towards membership in the World Trade Organization. The government also passed a law to establish a “Single Window” for investors and simplify the process to register a business, which launched in Malabo in January 2019 but was generally moribund pending identification of priority investment areas from the April 2019 third national economic conference, the final report for which has yet to be published. The government continued to partner with the World Bank on reviewing improvements to the process. A second office was expected to open in Bata in 2020 but was put on hold due to COVID-19

Statutorily, the Minister of Economy, Finance, and Planning approves investment permits. A new state entity, Holdings Equatorial Guinea 2020, was created to help guide diversification efforts. This entity was expected to serve as a hub for foreign investors. For now, however, investors still work with the relevant government ministries to negotiate contracts. The government, including at the highest levels, has regular meetings and conferences with business leaders and investors, though we are unaware of any formal business roundtable. For example, in November 2018, the World Bank and the Singapore Cooperation Programs led a conference in Equatorial Guinea on improving the business climate.

The country’s Minister of Mines and Hydrocarbons, Gabriel Mbaga Obiang Lima, has been leading a campaign to increase investment. In response to the COVID-19 pandemic and its effects on oil prices and African economies, the Minister of Mines and Hydrocarbons granted oil and gas companies a two-year extension on their exploration programs. The Ministry of Mines and Hydrocarbons will also encourage flexibility on the work programs of producing companies to ensure growth and stability in the market. The measure reflects broader efforts to drive global investment into Equatorial Guinea in line with its 2020 Year of Investment campaign. The extensions may particularly aid U.S. companies, which represent the majority of investment in Equatorial Guinea’s energy sector and are currently in the early stages of exploration and seismic interpretation of several new areas in existing offshore blocks. The Year of Investment, which was to include several in-country conferences and a global investment roadshow, was adapted to COVID-19 restrictions by using webinars and video conferencing to connect with investors. In February 2021, a consortium led by Noble Energy/Chevron, Marathon Oil, and EGLNG achieved the first gas flow from the successful execution of the Alen Gas Monetization project, a $475-million investment representing the first phase of Equatorial Guinea’s Gas Mega Hub plan. The Ministry of Mines and Hydrocarbons is currently promoting several capital-intensive projects – including the construction of modular oil refineries, a gold refinery, liquefied petroleum gas strategic tanks, a urea plant, and the expansion of a compressed natural gas project – which are open for investment. In December 2020, the Ministry announced a forecast of $1.1 billion in foreign direct investment in oil and gas activities in 2021.

The government also took several steps to support small and medium enterprises suffering during the pandemic, such as delaying and lowering tax payments, temporarily reducing the cost of electricity, and providing some small grants for micro-enterprises.

The Equatoguinean authorities have been willing to receive and protect all Foreign Direct Investment, including through changes in the country’s legal framework in recent years.

Currently there is no law or practice that discriminates against investors based on their origin, sex, age, race, political creed, or religion. The Law on the Investment Regime of the country establishes in Article 12 that the State commits itself to fair and equitable treatment for all investors. Decree No. 72/2018, dated April 18, 2018, and amended Article 2 of Decree No. 127/2004, dated September 14, 2004, eliminates the requirement of having an Equatoguinean partner to invest in the country’s non-oil sector.

Law 7/1992 and Law 54/1994 provide for the creation of an Investment Promotion Center, which must advise the government on investment policies, promote investments and support investors with information and in the resolution of conflicts. These Laws also provide for the creation of a National Investment Commission. Neither the Center nor the Commission is currently operational. Given the need for these types of organizations, in 2015, through Decree No. 134/2015, the Government mandated the Ministry of Commerce and Business Promotion to create and start up an agency to promote, integrate and coordinate the national policy of attraction of investors. In April 2021, this task was still in process and expected to start operating in 2023.

In November 2018, the Government organized a high-level seminar on the business climate in Equatorial Guinea with participation of the public and private sectors and development partners. For three days, they reflected on the position of Equatorial Guinea in each of the parameters of the Ease of Doing Business Ranking and the International Competitiveness Index of the World Economic Forum. As a result of the recommendations of this seminar, the government issued Decree 109/2019, creating a committee in charge of improving the national business environment, bringing together representatives of the government, private sector, and civil society to debate and propose reforms. The World Bank has subsequently partnered with the government to create and implement a plan to improve the business climate.

Even though the country does not currently have an investment promotion agency, the Ministry of Commerce has prioritized the implementation of a national agency for investment promotion within its Enhanced Integrated Framework program with World Trade Organization. The ministry has plans to establish a Foreign Trade Single Window to complement the existing one for domestic businesses.

Limits on Foreign Control and Right to Private Ownership and Establishment

The government is generally supportive of foreign direct investment. The Foreign Investment Law (Decree 72/2018 of April 2018) modified the provisions of Decree 127/2004 stipulating that shareholder capital firms and companies operating in the petroleum sector must have Equatoguinean shareholders. The government requires that Equatoguinean partners hold at least 35 percent of share capital of foreign companies or companies created by foreigners in the hydrocarbons sector only. Equatoguinean partners must also account for one third of the representatives on the Board of Directors. Apart from the hydrocarbons sector, investments must not be part of public-private partnerships with a government entity. The Minister of Mines and Hydrocarbons generally approves any major deal in the hydrocarbons sector. Decisions regarding larger investment deals may rise to the presidential level. U.S. investors may reach out to the Equatoguinean Embassy in the United States for guidance regarding connection to the appropriate ministry for outreach efforts.

The Hydrocarbons Law and the National Content Regulation establish various requirements for international oil and gas companies that wish to operate in Equatorial Guinea. These include a minority partner stake for either the state oil company (GE Petrol) or the state gas company (Sonagas). In addition, there are national content requirements, many established in 2014 by the then-Ministry of Mines, Industry, and Energy, which apply to both producers and service companies, including that 70% of staff must be Equatoguinean, 50-100% of services (depending on category) must be procured from national company partners, and a percentage of the company’s revenue must be allocated to corporate social responsibility projects approved by the Ministry of Mines and Hydrocarbons (the Ministry was divided into two in 2017, including a separate Ministry of Industry and Energy). Ministerial Order 1/2020 (April 2020) established that companies can employ foreign laborers in the oil and gas sector for a maximum period of three years, though companies may apply for extensions in exceptional cases, with compliance overseen by the Ministry’s Director General of National Content. Minister of Mines Gabriel Mbaga Obiang Lima was quoted as saying, “With the release of this new order, the Ministry of Mines and Hydrocarbons intends to enhance the capacity of local service companies while guaranteeing the creation of local jobs for our trained and educated youth.” While Equatorial Guinea sought foreign direct investment in several of its capital-intensive energy and petrochemicals projects through its 2020 Year of Investment campaign, the country simultaneously prioritized the procurement of local goods and services and the stimulation of local jobs. The legislation follows the completion of capacity building and training programs, particularly at the gas and oil industry-supported National Technological Institute for Hydrocarbons in Mongomo. Given the generally low quality of education in the country, international companies complain about the difficulty of recruiting qualified locals.

Equatorial Guinea belongs to the Organization for the Harmonization of Business Laws in Africa (OHADA) and falls under the OHADA Uniform Act on the law of commercial companies and economic interest groups of January 30, 2014.

Law 4/2009 on the Land Ownership Regime in Equatorial Guinea establishes that foreigners cannot own land but rather purchase a lease with a maximum duration of 99 years.

The foreign investor is required to justify the origin of the funds used for the creation of a company in Equatorial Guinea.

In 2019, the government began its second attempt to join the Extractive Industries Transparency Initiative (EITI), submitting an incomplete application and meeting with civil society and other interested organizations. By 2020, the government established two EITI commission offices in Malabo and Bata — the largest cities — and published gas and oil contracts on its EITI website.

Other Investment Policy Reviews

In the past three years, the Government of the Republic of Equatorial Guinea has not conducted an investment policy review through any institutions, such as the Organization for Economic Cooperation and Development, the World Trade Organization, or the United Nations Conference on Trade and Development. In October 2019, the World Bank presented its Diagnostic Trade Integration Study (DTIS) that analyzed various sectors of the Equatoguinean economy and prospects for increased economic development and trade.

Business Facilitation

According to the World Bank’s Doing Business Report 2020, starting a business in Equatorial Guinea requires 16 procedures and usually takes 33 days, the same as in 2019. Equatorial Guinea was ranked 183 of 190 in the World Bank’s Doing Business Report 2020 for ease of “starting a business.” In 2017, the Government of the Republic of Equatorial Guinea passed Decree No. 67/2017, published in September 2017, to establish a “Single Window” or “single window” to simplify the process to register a business and speed the process to seven business days. The “single window” was launched in January 2019, after the Government of the Republic of Equatorial Guinea equipped facilities for processing applications, and trained staff. There is a webpage with information, https://www.ventanillaempresarialge.com/en/welcome/ , but businesses cannot yet register online. Generally, business must register with various agencies at the national level and some local offices. The Single Window does not eliminate steps, but it does consolidate visits to five offices into one. The below chart illustrates the steps that an entrepreneur can complete at the Single Window:

The country does not have a business facilitation mechanism for equitable treatment of women and underrepresented minorities in the economy. There are laws that make it illegal to discriminate against women. There is an ongoing effort from the government to include people with disabilities in public administration, including with internship programs and contracts.

By Presidential Decree No 45/2020 from April 24, 2020, the government reduced the paid-in minimum capital requirement for Limited Liability Companies to operate in the country from 1,000,000 XAF to 100,000 XAF. In 2019, the Government established a committee to monitor the country’s performance on the main indicators of ease of doing business, as well as to propose reforms to improve the national business climate. The committee — comprised of several CEOs, the private sector, business organizations and civil society — developed a roadmap with actions to be implemented to facilitate the establishment of companies in the country. While not possible to register online, the government is exploring the option for a business to register by phone.

In February 2020, registration of trade certificates and businesses were included in the Single Window. Currently, would-be investors can access government websites for information on setting up businesses in the country. This includes websites for:

• Single Window [I https://www.ventanillaempresarialge.com/en/welcome/]
• Ministry of Finance, the Economy and Planning [https://minhacienda-gob.com /]

Currently, work is being done to include records from the Single Window in the Ministry of Labor and in the National Institute of Social Security. A Ministerial Order is under discussion to include data of the Ministry of Labor in the Single Window.

The National Institute for Business Promotion and Development launched an entrepreneurship training program with financing available. The program teaches entrepreneurs – with a focus on microbusinesses — how to develop business plans around their ideas, with the best project selected for investment. The United Nations Development Program (UNDP) is one of the donors, with an emphasis on supporting female entrepreneurship.

Outward Investment

Although Equatoguinean citizens may legally invest outside the country, the government of the Republic of Equatorial Guinea does not promote foreign investment. The government and media do not praise or showcase Equatoguineans with business interests abroad. While there are no known restrictions on foreign investment, some individuals and companies have faced delays when transferring money overseas or converting local currency into foreign exchange, exacerbated by new CEMAC rules on foreign currency reserves enacted in 2019.

With technical assistance from UNDP, Equatorial Guinea is currently implementing the WTO Enhanced Integrated Framework program. This multilateral partnership is dedicated to assisting least developed countries (LDCs) use trade as an engine for growth, sustainable development, and poverty reduction. EG’s Action Plan through the Ministry of Commerce prioritizes promoting national products in the subregional and international markets. To encourage agricultural production, the Ministry plans to establish a national food certification institute within the Chamber of Commerce, pending funding from the government. The project was delayed by the pandemic.

After pausing all timber exports and firing the Minister of Agriculture, Timber, Livestock, and the Environment in the fall of 2020, the government lifted the export ban in October via Decree 93/2020. This authorized export of round wood, an industry dominated by Chinese companies. The previous decree had authorized only exports of transformed wood, with the goal of promoting the wood transformation industry in the local economy.

Transparency of the Regulatory System

The Government of the Republic of Equatorial Guinea publicly publishes labor laws; officials, however, do not consistently apply laws or regulations. While foreign companies are expected to follow every detail of the labor law or face penalties, there is reportedly less strict enforcement of local companies. U.S. businesses have complained that bureaucratic procedures are neither streamlined nor transparent and can be extremely slow for those without the proper political or familial connections. Many regulations are created within ministries, while others are the result of laws passed by the legislature. Although most regulations are created at the national level, some decisions may be taken at the municipal level (such as those for construction permits).

Proposed laws and regulations are not published in draft form for public comment, but there have been reports of informal sharing with representatives of specific industries for comment. Regulations and laws are generally not published online but are available in hardcopy for a fee.

Private industry representatives report that accounting, legal, and regulatory procedures are generally neither transparent nor consistent with international norms.

According to the 2020 Fiscal Transparency Report, Equatorial Guinea does not meet the minimum requirements of fiscal transparency but has made substantive improvements. More information is available at: https://www.state.gov/2020-fiscal-transparency-report/.

The government recently made some progress on transparency of its public finances and debt obligations. Although not available to the public several months until after the start of the fiscal year, the 2018 budget included information on debt obligations for the first time in several years, including both public and private debt obligations. The 2019 budget also included debt obligations. The government has been working on fiscal transparency as part of its International Monetary Fund (IMF) program and another program with the African Development Bank that began in 2019. The Ministry of Finance, the Economy, and Planning announced plans to move customs to an electronic system to improve transparency and prevent corruption. The Automated Customs System (Sistema Aduanero Automatizado or SIDUNEAWorld) was implemented on April 30, 2020, upon the Ministry’s announcement. By late May 2020, it had already registered 49 shipping manifests via http://siduneage.com:8080/asycuda/index.jsf and continues to work with the World Bank on implementation.

Regulations are generally not reviewed on the basis of scientific or data-driven assessments.

The government is set to implement a national agency to centralize public contracts. In 2019, the World Bank conducted a diagnostic study of public contracting in EG, the results of which were presented to the Ministry of Finance. The presentation led to an agreement with the World Bank to provide technical assistance to draft EG’s law on public procurement. The law will widen the spectrum for potential contractors through public tender offers, representing a significant step toward fiscal transparency.

In October 2020, the Ministry of Finance published a tax payment manual and launched an information office to provide taxpayers with comprehensive information on taxes and tax filling processes. To further transparency, the Ministry implemented a physical and virtual library allowing anyone to access tax-related laws and regulations in person or through the Ministry of Finance’s website.

In April 2020, the Ministry of Finance issued a communiqué on restructuring internal arrears, with an audit to evaluate the government’s obligations to construction companies. The African Legal Support Facility financed the process of regulating those arrears, carried out by McKinsey law firm.

International Regulatory Considerations

Equatorial Guinea is a member of the Central African Monetary and Economic Union (CEMAC), which includes a regional central bank (the Bank of Central African States, or BEAC) and various regulations including lower tariffs on intra-regional trade.

Equatorial Guinea is not a signatory to the Trade Facilitation Agreement (TFA). The country is not a member of the World Trade Organization (WTO) but has been an observer since 2002. In 2007, EG submitted its application for membership to the WTO’s general council, which established a working group in February 2008 to review the application. To date, Equatorial Guinea’s accession process to the WTO is pending the Memorandum on the Foreign Trade Regime (MFTR). In 2020, the Ministry of Commerce confirmed that full membership to the WTO remains a priority for the government. The Ministry is implementing a Strategic Action Plan for EG’s accession, including hiring an international consultant to prepare a memorandum on the country’s trade regime, which was under review by the legislature in early 2021.

The Constitution establishes the separation of powers, though the same law grants the Head of State the ability to appoint and remove members of the judicial branch. According to the new National Development Strategy, the judicial system requires a profound reform. Any Supreme Court decision on commercial matters can be appealed in the Organization for the Harmonization of Business Law in Africa (OHADA) Commercial Court, based in Abidjan, Ivory Coast.

Legal System and Judicial Independence

Equatorial Guinea’s legal system is a mix of civil and customary law. Law No. 7/1992 states that disputes that cannot be resolved through direct negotiation by the involved parties shall be referred to Equatoguinean courts. Either party can also submit the dispute to international arbitration. Foreign investors are asked to declare their desired international arbitration venue in their initial application to invest in the country. Arbitration must take place in a neutral location and Spanish will be the official language of the arbitration.

Equatorial Guinea was ranked 105 of 190 in the World Bank’s Doing Business Report 2020 for “enforcing contracts.”

Labor law is meant to protect workers, including a requirement for written contracts and regulation of child labor. Labor courts adjudicate matters related to employment. Several companies have complained that cases are rarely decided on the merits, with most judgements favoring labor, and penalties are excessive. Appeals generally proceed to the supreme or constitutional court. The court system and staff are generally considered under-resourced and unprepared, according to companies and public statements by President Teodoro Obiang Nguema Mbasogo. Both the Labor Law and the Penal Code were set to be updated in 2020, with drafts submitted to the Legislature, which was suspended amid the COVID-19 pandemic.

The judicial system is not independent of the executive branch as the president is officially the head of the court system, with the power to appoint or remove judges at will.

Laws and Regulations on Foreign Direct Investment

Most investment is focused in the extractive industries and infrastructure development. Laws No. 7/1992 and 2/1994 and Decrees No. 54/1994 and 127/2004 regulate foreign investment. Certain industries have additional regulations. The enforcement of laws and judicial decisions has not been reliable nor consistent, according to investors. The executive branch heavily influences the judicial branch, as the president is also the chief magistrate of the Republic of Equatorial Guinea. While the government has made efforts to streamline foreign investment procedures and simplify business registration processes, these processes have not all been implemented. Decree No. 72/2018 of April 2018 revised No. 127/2014 of September 2014, eliminating the mandatory 35% national participation in foreign companies, except in the hydrocarbons sector. The implementation of the “Single Window” for business registration in January 2019 was intended to simplify the registration process and reduce the time necessary to complete the process to seven business days, according to the government. The centralized Single Window also clarified the rates to be paid and the procedures to follow. The Ministries of Commerce and Finance, the Economy, and Planning were planning to evaluate the system in 2020 to determine its effectiveness, though this was disrupted by the pandemic. There is a webpage with information ( https://www.ventanillaempresarialge.com/en/welcome/ ) but businesses cannot yet register online. Investors must work with the relevant government ministries to negotiate contracts.

The government published Decree 45/2020 in April 2020, reducing the minimum capital needed to register a limited-liability company from 1 million XAF (USD 1713) to 100,000 XAF (USD 171).

Competition and Antitrust Laws

Equatorial Guinea does not have an agency that actively enforces any competition laws. Equatorial Guinea became a member of the Organization for the Harmonization of Business Laws in Africa (OHADA) in 1999, and any OHADA competition laws should apply in Equatorial Guinea. OHADA legislation is a civil legal system that aims to provide a common business and legal framework across all 17 member states, while enhancing the legal certainty and predictability of international transactions in the region. One important law affecting international project financing, the 2010 “Uniform Act Organizing Securities,” created a uniform, modern security law for OHADA nations. It allowed the possibility of appointing a security agent, acting in its own name on behalf of lenders, and reinforced lenders’ rights by enabling them to use new, efficient security enforcement mechanisms, such as out-of-court appropriation (“pacte commissoire”).

Other new and revised laws for the OHADA region followed, including:

• Uniform Act related to general commercial law act, revised in December 2010
• Uniform Act related to commercial companies and economic interest groups, revised in January 2014 and effective May 2014
• Uniform Act organizing collective proceedings for clearing debts, revised in September 2015 and effective December 2015
• Uniform Act on the harmonization of accounting, adopted in January 2017 and effective January 2018.

A new “Uniform Act on Mediation,” adopted in 2017, provides an enhanced legal framework for all aspects of mediation in OHADA’s 17 member states. This new alternative dispute resolution mechanism aims to achieve more rapid and easier enforcement of agreements in the OHADA zone. Although the sophistication and reliability of OHADA’s legal regime in certain specific business law areas offers a degree of comfort to investors in the region, other aspects of transactions remain subject to the national laws of the relevant countries. For example, the determination of tax registration fees remains the strict prerogative of individual nations. Thus, the amount of tax registration fees varies from one member state to another, even in the same cross-border transaction. This encourages forum shopping and contradicts OHADA’s goals of harmonizing business regulations.

The government can expropriate a property for public use when the general interest prevails over the individual. The process consists of notifying the owners of the future public utility, as well as the amount of the compensation. If the government does not follow due process, the property owner can sue, once they have exhausted administrative remedies, through the Supreme Court of Justice.

Expropriation and Compensation

Law No. 7/1992 states that the government will not expropriate foreign investments except when acting in the public interest with fair, just, and proper compensation. The Government of the Republic of Equatorial Guinea does not generally nationalize or expropriate foreign investments, although a Spanish investor had his property confiscated in 2013. The Government of the Republic of Equatorial Guinea has an extensive record, however, of expropriating locally owned property, frequently offering little or no compensation. The government has also withdrawn blocks for hydrocarbons exploration when companies failed to invest within an allotted period, though this generally appears to follow the terms of published tenders.

Dispute Settlement

ICSID Convention and New York Convention

Equatorial Guinea is not a party to the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention — also known as the Washington Convention), although Law No. 7/1992 states that international arbitration may be based on ICSID. Equatorial Guinea is party to the New York Convention of 1958 on the Recognition and Enforcement of Foreign Arbitral Awards. OHADA’s Uniform Act of Collective Procedures for the Realization of Liabilities should be applied but is not enforced in practice.

In the government-approved roadmap to improve the business climate, Equatorial Guinea must accede to the ICSID.

For members of OHADA, disputes are resolved in the Court of Abidjan using the OHADA Uniform Arbitration Law. The country does not have a bilateral investment treaty nor a free trade agreement with the United States. There are no public statistics on penalties and judgments, but the judiciary is reportedly working on a website where this information will be published. For now, the judiciary does not publish sentencing statistics.

Investor-State Dispute Settlement

Equatorial Guinea is not a party to the New York Convention of 1958 on the Recognition and Enforcement of Foreign Arbitral Awards.

In October 2018, Equatorial Guinea announced the resolution of litigation begun in 2014 over Orange Group’s ownership stake in the incumbent fixed line and mobile operator Guinea Ecuatorial de Telecomunicaciones Sociedad Anonima (Getesa). Agence Ecofin cited a statement from the Embassy of Equatorial Guinea in France, confirming that on September 26, 2018, the government signed an agreement with Orange Middle East & Africa under which it paid EUR 50 million (USD 57.5 million) to the French-based telecoms giant in return for relinquishing Getesa shares. The final payment followed Equatorial Guinea’s initial share payment to Orange of EUR 45 million in October 2016, thereby settling the balance of an agreed EUR 95 million-redemption price for Orange’s 40% stake. TeleGeography’s GlobalComms Database says that Equatorial Guinea’s government lost a Paris Court of Appeal case against a fine imposed in July 2014 by the International Court of Arbitration for reneging on a 2011 agreement to buy Orange’s Getesa stake in the event of a new entrant launching (a clause it failed to honor after the 2012 launch of majority state-owned cellular company GECOMSA). In October 2018, the government agreed to pay EUR 150 million, including interest, to Orange.

A Spanish businessperson signed a joint venture agreement with President Obiang in 2009 to build 36,000 homes in Equatorial Guinea. President Obiang allegedly pulled support for the project at the last minute, leaving the Spanish citizen ruined and bankrupted. In March 2012, the Spanish citizen submitted a claim before the ICSID, which ruled in favor of Equatorial Guinea in 2015. In August 2017, Madrid’s provincial court ordered a magistrate to revise the claim, acknowledging the Spanish competency to rule the case because of the bilateral investment treaty between the countries. The case was ongoing at the start of 2020, but it is unclear if it will continue as the claimant died of COVID-19 in April 2020.

In 2021, the Embassy received information about a U.S. company that has done a few projects in Equatorial Guinea in the past three years. The company reported that the government made an initial payment, but the second payment was more than a year overdue. Government officials reported they were working to resolve the issue.

International Commercial Arbitration and Foreign Courts

The Organization for the Harmonization of Corporate Law in Africa (OHADA) Uniform Act on arbitration rules would apply at the Court headquarters in Abidjan, but it may be unapplicable in any one of the seventeen Member States of the Organization. The Court has already held hearings in several OHADA member states in recent years. In March 2019, the Common Court of Justice and Arbitration of the OHADA included an Equatoguinean lawyer on the list of arbitrators in its Arbitration Center of the Common Court of Justice and Arbitration. He is the first Equatoguinean added to the OHADA list.

Law No. 7/1992 states that disputes that cannot be resolved through direct negotiation by the involved parties shall be referred to Equatoguinean courts. Either party can also submit the dispute for international arbitration. In their initial application to invest in the country, foreigners must declare their desired international arbitration venue. Arbitration must take place in a neutral location with Spanish as the official language.

Firms have alleged that court actions are sometimes discriminatory, not transparent, tending to favor local parties rather than foreigners or foreign companies.

In 2015, the government closed a microfinance institution founded by a member of an opposition party. He reportedly appealed to the CEMAC court, which recommended arbitration. We have no information on the outcome.

Bankruptcy Regulations

The Government of the Republic of Equatorial Guinea adopted the business laws of the Organization for the Harmonization of Business Laws of Africa (OHADA), including that pertaining to bankruptcy.

The Republic of Equatorial Guinea ranks 168 on the World Banks’s 2020 Doing Business Report for “Resolving Insolvency.” The Republic of Equatorial Guinea received the World Bank’s “no practice mark” due to the lack of cases over the past five years involving judicial reorganization, judicial liquidation, or debt enforcement. This suggests that creditors are unlikely to recover their money through a formal legal process.

Investment Incentives

Law No. 2/1994 of June 6, 1994, offers investment incentives in the form of deductions from taxable income: 50 percent of the amount paid to Equatoguinean staff in wages and 200 percent of the cost of training Equatoguinean staff. It also extends/maintains previous license exemptions for imports and exports, allows conversion of sales into foreign currency, and permits transfers abroad of company profits. Decree No. 67/2017 of September 2017 created the “Single Window” business portal to promote investment and economic activity by significantly reducing the time needed to register a new company. According to the government, registering a company through the Single Window – launched in January 2019 — takes approximately seven days. Decree no. 72/2018 of April 2018 revised decree 127/2014 of September 2014 to foster foreign direct investments. The revised investment law eliminated the need to have a local business partner in foreign companies, except for the hydrocarbons sector. The government sometimes jointly finances foreign direct investment projects, such as construction of social housing.

Other laws provide financial incentives, such as for the promotion of non-traditional exports, and maintain or broaden the exemptions allowed under the previous licenses for imports and exports and for regional or local development. Companies involved with rural projects are exempt from some tax payments.

Official Equatoguinean investment incentives through Law No. 7/1992 on the Investment Regime are mostly tax-related, although Decree No. 71/2014 from May 2014 created the Holding Guinea Equatorial 2020 (State Investment Company) to invest in profitable projects chosen among proposals to national authorities.

The government subsidizes electricity, partly to encourage investment, as well as fuel by selling to enterprises at a fixed price. This may have motivated Cameroon’s Tradex to invest in EG; Tradex launched a three-year initiative in 2019 to invest approximately $25 million in Equatorial Guinea, building a network of 10 service stations over the same period. Tradex’s first service station opened in February 2021.

Foreign Trade Zones/Free Ports/Trade Facilitation

There are currently no known laws, policies, or practices for any areas designated as Free Trade or Duty-Free Zones. Three entities have tax-free status: Luba Free Port, the Port of Bata, and the K5 Free Port Oil Centre.

Equatorial Guinea belongs to the African Continental Free Trade Area (AfCFTA).

In January 2021, the government promulgated Decree 002/2021 introducing new regulations on cross-border trade with neighboring Cameroon and Gabon, including establishment of an import-export office. Goods imported from third countries will not be taxed if properly cleared through a CEMAC member country.

Performance and Data Localization Requirements

Equatorial Guinea does not require visas for U.S. citizens. Visas for third-country nationals can be difficult to obtain, requiring a letter of invitation, although the government created new visa categories in 2019 in an effort to speed the process. Residency and work permits can be similarly difficult to obtain and renew. In March 2018, as part of an overall effort to improve transparency and ease the conditions of entry and residence in the country, the cost of a residency permits from USD 700 to USD 343 per year. In December 2019, the government agreed to lower the cost of residency permits to conform with the cost of a business visa (H1B) to the United States (USD 160). Some companies have reported delays in the residency permit process. Work permits, often a pre-requisite for a residency permit, are also difficult and time consuming to obtain. Some businesses report that they have been unable to obtain the annual permits for over five years. There are some reports that certain officials have asked for “expediting” fees that are beyond established government fees and occasionally ask for bribes directly. This is especially problematic at the airport and at customs, according to various accounts and the experiences of Embassy staff. Residency and work permits were not issued regularly between 2017 and 2021, requiring expatriates to leave the country every 90 days or risk fines/deportation.

The Government of the Republic of Equatorial Guinea used to require a minimum percentage of employees and subcontractors to be Equatoguinean, ranging from 70 to 90 percent. Presidential Decree 72/2018 of April 18, 2018, revised Presidential Decree 127/2014 of September 14, 2014, eliminating this requirement, except for the hydrocarbons sector, for which certain management positions must be held by Equatoguineans. Foreign investors in the hydrocarbons sector are required to have a significant percentage of domestic content in goods and technology. Companies are supposed to send a list of vacancies to the Ministry of Labor, Employment Promotion, and Social Security. If the Ministry is unable to find a qualified candidate within 30 days, the company may hire an expatriate worker.

The Ministries of Mines and Hydrocarbons and of Labor, Employment Promotion, and Social Security, among others, make regular inspections of companies and may apply fines. The Ministry of Mines and Hydrocarbons has fined, suspended, and expelled companies perceived to not comply with regulations or laws, especially regarding “local content” (staffing with Equatoguinean nations).

The Government of the Republic of Equatorial Guinea requires internet service providers, whether local or foreign, to turn over source code or provide access to surveillance. According to article 15 of the Telecommunication Law 7, dated November 7, 2015, Equatoguinean government offices are supposed to report any information concerning official communication lines and networks to the Regulating Organ of Telecommunications (ORTEL). The Government of the Republic of Equatorial Guinea has no requirements regarding locating data storage within the country. The Ministry of Transports, Telecommunications, and Mail reduced the cost of internet in 2019 and 2020 as part of a strategy towards openness and increased access, and both the Telecommunications Regulator (ORTEL) and the Telecommunications Infrastructure Administrator (GITGE) promoted implementation of the new strategy. While the government had announced that internet would be available in all public places, such as airports, banks, and cultural centers, by 2020, this was delayed by the COVID-19 pandemic. Internet is already available in some locations, such as the Paseo Maritimo in Malabo. Although the government claims that 95% of municipalities have access to a fiber optic network, only 26.2 percent of the population used the internet in 2017 according to the International Telecommunication Union.

Real Property

The Government of the Republic of Equatorial Guinea selectively enforces property rights. While the government has laws on the books regarding the rights of property owners, the government can use the judicial system to seize land in the interest of the country with little to no due process. Mortgages exist under a “Social Housing Program” in which payments are made to the government via the commercial CCEI Bank. The mortgage length varies and can be more than 20 years. Interest rates are high, ranging from 12 to 18 percent. Non-payment for six months results in the foreclosure of the property. According to the World Bank’s Doing Business Report for 2020, registering property in Equatorial Guinea required six procedures and usually took 23 days, ranking the country 163 of 190.

Intellectual Property Rights

Equatorial Guinea is a member of the African Intellectual Property Organization (AIPO) and joined the World Intellectual Property Organization (WIPO) in 1997. Intellectual property rights (IPR) protections fall under the Council of Scientific and Technological Research of Equatorial Guinea. Equatorial Guinea does not report on seizures of counterfeit goods. Legal structures are weak, and IPR protection and enforcement are rare to non-existent. The government does not maintain publicly available statistics on law enforcement or judicial actions. Equatorial Guinea is not included in the United States Trade Representative (USTR) Special 301 Report or the Notorious Markets List.

For additional information about national laws and points of contact at local IP offices, please see WIPO’s country profiles at http://www.wipo.int/directory/en/ . Equatorial Guinea is a party to the Bangui Agreement on Intellectual Property. There is a national office that is the link between CICTE and the African Intellectual Property Organization (AIPO). The application to register a product is sent to the central office in Yaoundé, Cameroon, which in turn shares it with other offices to verify the product’s originality. If confirmed, AIPO grants the patent. (AIPO’s office in Equatorial Guinea can also handle case rather than processing through Yaoundé.) An internal copyright law was promulgated after the signing of the Bangui Agreement. The Ministry of Cultural, Tourism and Artisanal Promotion sporadically applies IPR regulations, for which clear information is unavailable. In cases of alleged IPR violations, the injured party must file a complaint with the Ministry of Justice, which refers the complaint to CICTE.

Capital Markets and Portfolio Investment

The banking sector provides limited financing to businesses. The government claims two microfinance institutions operating in country, with a government-backed microcredit program for small- and medium-sized enterprises (SMEs). The country does not have its own stock market. According to investors, capital markets are non-existent. Credit is available but interest rates are high, ranging from 12 to 18 percent for mortgages and about 15 percent for personal loans. Business loans generally require significant collateral, limiting opportunities for entrepreneurs, and may have rates of 20 percent or greater. It is unclear if foreigners could obtain credit on the local market. The Single Window office assumes investors have already secured all financing.

Equatorial Guinea is a member of CEMAC, which has a stock market common to all member states. The Central Africa Banking Commission (COBAC) regulates the region’s banking system. The BEAC and the COBAC regulate transfer limits. Commercial banks follow BEAC requirements. To attract investment and promote economic diversification, the government offers facilities for granting loans, including through the National Institute of Promotion and Development (INPYDE), which has an investment fund for entrepreneurs.

The National Bank of EG (BANGE), in which the government has a 51% stake, plans to launch the country’s first brokerage business to facilitate foreign investment, negotiating equity and even debt for major companies operating in Equatorial Guinea. BANGE falls under the Central African Financial Market Surveilling Committee and includes such customers as supermarket chains Martinez Hermanos and EGTC. Additionally, BANGE inaugurated the BANGE Business School in 2020 to train students to work in the banking sector and facilitate underwriting, syndication, and funding. In November 2020, BANGE announced it first capital increase through an initial public officering directly through its offices. In April 2021, the institution announced the second capital increase of $75 million, which was open to individual investor (nationals and foreigners).

Money and Banking System

BANGE has the most branches of any bank in EG and estimated that 60% of the population used formal financial services. BANGE estimates that its clients are 26% of the population.

Banking revenues have been deteriorating over the last five years as the government gradually reduced or stopped infrastructure projects due to the economic recession. The government established the Partial Guarantee Fund to insure non-performing loans through the National Institute for Businesses Promotion (INPYDE). Demand for loans was supported by specific budget allocations each fiscal year, mostly from BANGE. In 2020, INPYDE negotiated an agreement to include other banks and to enlarge the Guarantee Fund.

While banks have branches throughout the country, they are concentrated in urban centers. There is little information available about the assets and health of the banking system. BANGE leads with 29 branches throughout the country. CCEI/CCIW Bank de Guinea Ecuatorial, a subsidiary of First Bank Afriland (Cameroon), has four branches in the largest cities. BGFI Bank Guinée Equatoriale operates as a subsidiary of BGFI Holding Corporation (Gabon). Pan-African EcoBank (Togo) and Societe Générale (France) also operate in Equatorial Guinea. If a bank does not have a branch in the location where an individual wants to do business, they would not have access to their funds there. ATMs are in limited locations.

The Government of the Republic of Equatorial Guinea is a member of the Economic and Monetary Community of Central African States (CEMAC) and shares a regional Central Bank with other CEMAC members. Members have ceded regulatory authority over their banks to CEMAC, but also are entitled to national BEAC branches. Ebibeyin, Bata and Malabo each have a branch. The government of the Republic of Equatorial Guinea is also a member of the Banking Commission of Central African States (COBAC) within CEMAC.

Foreigners must provide proof of residency to establish a bank account.

The country’s economy is an almost entirely cash based, with credit cards available but not widely used by the general population, confined to foreigner or wealthy citizens using at international hotels, international airlines, and major supermarkets. In April 2020, partly in response to the COVID-19 pandemic’s social distancing measures, the government encouraged banks to increase electronic payment mechanisms. The Ministry of Finance, the Economy, and Planning also continued to expand electronic payments for government employees. In May 2020, the Government of the Republic of Equatorial Guinea endorsed the guiding principles of the United Nations’ “Better than Cash” Alliance, a partnership of governments, companies, and international organizations to accelerate the transition from cash to digital payments as part of the United Nation’s Sustainable Development Goals. The Alliance has 75 member countries committed to digitizing payments to boost efficiency, transparency, and women’s economic participation and financial inclusion.

The banking sector is affected by relatively lengthy bureaucratic procedures and a lack of computerized record keeping. Customers have reported that currency is not always available on demand, and delays for transfers or exchanges of local currency into foreign denominations have increased since the BEAC instituted new banking and foreign currency regulations in 2019.

The National Economic and Financial Committee publishes a semi-annual report on the evolution of banks in the country. The CEMAC establishes the requirements for any bank that wants to operate in a member country, which COBAC can grant. COBAC also publishes information on the banking system of each member country. There are no restrictions, but there are requirements that applicants must meet to open an account, whether or not they are a resident. The country is currently starting the use of mobile banking; financial services are mainly limited to banking and microfinance.

The government’s failure to repay loans has increased interest rates and reduced access to credit for the private sector, especially households. Banks in EG have the lowest ratio of loans to savings within the subregion. During the economic expansion (2009-2014), the government developed a line of credit with CCEI Bank to finance infrastructure development projects with construction companies. Loan defaults rose rapidly as the government failed to meet its legal obligations with CCEI Bank, prompting the government to nationalize the bank in January 2021 by acquiring Afriland First Group’s shares.

Foreign Exchange and Remittances

Foreign Exchange

Decree No. 54/1994 provides the right to freely transfer convertible currency abroad at the end of each fiscal year, but in practice many businesses report that limited financial services create barriers to successfully executing international transfers. On April 1, 2019, the Bank of Central African States (BEAC) published a regulation to enforce an existing requirement to maintain bank accounts in Central African francs (CFA) rather than foreign currency, with a six-month grace period until October 1, 2019. Account holders are theoretically able to convert funds to foreign exchange through an administrative process, but it is unclear if this applies to all accounts in the region. Following pushback from the extractive industry, which accounts for over 80% of EG government revenues, CEMAC exempted gas and oil companies from the regulation through December 31, 2021. Many other businesses and individuals have reported lengthy delays to convert currency and make international bank transfers under the new rules. The BEAC announced that regulations were intended to usher in reforms that redefine BEAC’s role, and the role of the Bank’s control bodies, to ensure compliance with IMF guidance and currency stabilization, including a 30-day waiting period to withdraw foreign currency. Other reforms included: reinforcement of the regulatory framework for manual exchanges; assuring the flexibility of certain operational arrangements as instructed by the BEAC governor; adapting foreign exchange regulations to new methods of payment and transfer institutions; and simplifying procedures to increase compliance. In September 2020, the BEAC instituted an online “e-transfer” application to ensure credit establishments comply with the new regulation. The online application automates the entire process of transfer requests and monitors in real time the progress of each request through an e-tracking site. Foreign currency is not widely available in the Central African Franc zone but can be obtained in the Republic of Equatorial Guinea in small quantities.

Equatorial Guinea does not engage in currency manipulation as the CFA franc currently has a fixed exchange rate to the euro: 100 CFA francs = 1 former French (nouveau) franc = 0.152449 euro or 1 euro = 655.957 CFA francs exactly. The exchange rate fluctuates with the value of the euro.

Remittance Policies

On April 1, 2019, the CEMAC Central Bank published a regulation to enforce an existing requirement to maintain bank accounts in CFA rather than foreign exchange, with a six-month moratorium until October 1, 2019. Account holders are theoretically able to convert funds to foreign exchange through an administrative process. It is unclear if this applies to all accounts in the region. Companies in the hydrocarbons and mining sectors received an exemption on implementation through 2021.

Sovereign Wealth Funds

The Government of the Republic of Equatorial Guinea established a sovereign wealth fund, the Fund for Future Generations, in 2002. The fund receives 0.5% of all oil revenues and is governed and managed by the Bank of Central African States (BEAC). The Sovereign Wealth Fund Institute (SWFI) estimates assets under management of USD 165.5 million ( https://www.swfinstitute.org/profile/598cdaa50124e9fd2d05b002 ). There is no publicly available information on its allocations.

The Republic of Guinea Equatorial has at least eight state-owned enterprises (SOEs) in the energy, housing, fishing, aerospace and defense, and information and communication sectors. Sonagas is the national natural gas company and GEPetrol is the national oil company. The energy SOEs report to the Ministry of Mines and Hydrocarbons and hold monopolies in their respective sectors. SEGESA is the national electricity company. GECOMSA and GETESA are the national telecommunication service providers. SONAPESCA focusses on the promotion of fishing and reports to the Minister of Fisheries and Water Resources. ENPIGE is the SOE that oversees the government’s affordable housing program. Ceiba Intercontinental is the main airline and is currently near bankruptcy, facing internal structural crisis, after the termination of a joint venture with Ethiopian Airlines in 2020. The budget includes allocations to and earnings from SOEs. Large SOEs lacked publicly available audits. According to some companies, there is little evidence of oversight of SOEs. A requirement of the IMF’s 2018 staff monitored program, however, is that the government contract an internationally reputable firm to audit the accounts of the state-owned oil (GEPetrol) and gas (Sonagas) companies, which the government hired at the start of 2019. (The audits were still ongoing in mid-2020, with no report of completion.) All oil and gas projects must include a partnership with state-owned companies GEPetrol or Sonagas.

Equatorial Guinea’s oil and gas sector scored 22 of 100 points in the 2017 Resource Governance Index (RGI), ranking 85th among 89 assessments. Its overall failing performance can be attributed to the enabling environment component, which scores 17 of 100 points and ranks 79th among 89 assessments, along with an equally low score for revenue management. For more information, see https://resourcegovernance.org/ .

Privatization Program

The Ministry of Finance, the Economy, and Planning discussed plans to involve the private sector in the management of state-owned assets, including through privatization. The initiative was a recommendation from the Third National Economic Conference (April-May 2019), which included discussion of options to improve management of state assets. The government envisages three paths: (i) restructuring autonomous agencies and state-owned enterprises; (ii) concession of assets to the private sector; and (iii) sale of public assets to private operators (privatization). The authorities also plan to open to competition sectors where public enterprises operate, with the aim of limiting monopolistic practices and passing on efficiency gains to the rest of the economy. The Ministry will present a substantive list of state assets to be privatized, as well as a list of entities that will be restructured or placed under a concession regime with the private sector for the approval of the Council of Ministers (structural benchmark, end of June 2020). Once the Council of Ministers approves this plan, the authorities will present an action program for privatization (planned for the second half of 2020). To generate revenue, they plan to prioritize privatization, with the proceeds going to pay down validated domestic arrears and rebuild EG’s foreign currency reserves at the BEAC. Sales and concessions will be carried out through open, international tenders. The sale of the listed assets may be delayed so that their prices are not negatively affected by the current global slowdown. Information is likely to be announced on the Ministry’s website:    https://minhacienda-gob.com/.

Many U.S. firms operating in Equatorial Guinea have well-developed corporate social responsibility (CSR) programs. The Ministry of Mines and Hydrocarbons has established industry-specific regulations that mandate minimum rates of CSR contributions. The Government of the Republic of Equatorial Guinea is considering a regulation that would increase those rates. U.S. and UK oil and gas companies tend to exceed those rates. Most firms from other countries have limited CSR programs. The government has expressed their appreciation for the U.S. companies’ efforts and recognized the positive role of U.S. firms. CSR projects have included support for various initiatives, including conservation, education, health, and awareness campaigns on sensitive subjects like trafficking in persons. The government has final approval of all CSR programs, offering explicit support, and occasionally also provides additional in kind or financial support. There are several non-governmental organizations operating in the country that work in fields supported by CSR projects, often as partners with the companies, but they do not fulfill a monitoring role.

In November 2019, the Ministry of Mines and Hydrocarbons published the first informative booklet on CSR in the oil sector. The pamphlet compiles key achievements in corporate social responsibility — like the Bioko Island Malaria Control Project (BIMCP) and Bioko Biodiversity Protection Program (BBPP) — and was distributed during GECF 5TH as summit 2019 in Malabo.

Equatorial Guinea applied in 2019 to join the Extractive Industries Transparency Initiative (EITI), after being delisted during its first attempt to join in 2010 for missing its validation deadline. The application was withdrawn in fall 2020 for being incomplete. Application to join EITI was a condition of the IMF staff monitored program.

In 2020, EG was upgraded from Tier 3 to Tier 2 Watchlist on the State Department’s annual report on trafficking in persons in recognition of increased efforts to identify and assist victims. Concerns remain regarding forced labor, sex trafficking, and ineffective enforcement of laws to prevent trafficking.

EG is not a signatory of the Montreux Document on Private Military and Security Companies. EG is not a participant in the International Code of Conduct for Private Security Service Providers’ Association (ICoCA), although several companies in the country are members.

Additional Resources 

Department of State

• Country Reports on Human Rights Practices;
• Trafficking in Persons Report;
• Guidance on Implementing the “UN Guiding Principles” for Transactions Linked to Foreign Government End-Users for Products or Services with Surveillance Capabilities and;
• North Korea Sanctions & Enforcement Actions Advisory

Department of Labor

• Findings on the Worst Forms of Child Labor Report;
• List of Goods Produced by Child Labor or Forced Labor.
• Sweat & Toil: Child Labor, Forced Labor, and Human Trafficking Around the World and;
• Comply Chain.

There is no publicly designated contact at a government agency responsible for combating corruption. Various ministries, including the office of the Prime Minister, nominally have responsibility for combatting corruption either within their own ministry or in the government at large. A commission to combat corruption was formed in 2019 and worked with the legislature to pass a new law on corruption in April 2021. There are no “watchdog” organizations operating in country.The Government of the Republic of Equatorial Guinea has laws and regulations against corruption, but many businesses have complained that they are not often enforced, and as a result, corruption is very common. There are no specific laws about conflict of interest or nepotism. Numerous foreign investigations continued into high-level official corruption.

In December 2020, the International Court of Justice ruled that a Paris mansion at the center of a dispute between France and Equatorial Guinea could not be unilaterally designated a diplomatic outpost. French authorities seized the building on Paris’ Avenue Foch in 2012 as they investigated Teodoro Nguema Obiang Mangue, the Vice President of Equatorial Guinea, for misuse of public funds and money laundering. In 2017 Vice President Mangue was tried in absentia in a French court for allegedly embezzling public funds. He was given a three-year suspended sentence and fined $32 million. The International Court of Justice found that France did not violate the Vienna Convention on Diplomatic Relations when it raided the building because the Parisian mansion was not a diplomatic residence for Equatorial Guinea and thus France had a right to seize it.

Obiang Mangue has publicly committed to eradicate corruption and promote fiscal transparency. In September 2020, the government established an anti-corruption audit commission, for which the port administrations of Bata and Malabo became the primary focus. The commission seized significant amounts of money allegedly siphoned off through those ports. As a result, the Director General for Customs was dismissed after more than twenty years on the job, though he was not charged. During 2020 and 2021, executives of state-owned enterprises have faced prosecution on embezzlement charges following surprise government audits as part of the anticorruption strategy. Those under investigation included the deputy director of the national power company (SEGESA) and the regional director of the National Institute of Social Security (INSESO).

U.S. companies operating in Equatorial Guinea are required to adhere to the U.S. Foreign Corrupt Practices Act. Some U.S. firms report concern about corruption in government procurement, the award of licenses and concessions, the customs process, and dispute settlement. Major U.S. firms have internal controls, ethics, and compliance programs to detect and prevent bribery of foreign officials. It is unclear what controls exist at smaller companies and other foreign and domestic firms.

The country’s greatest concerns in terms of money laundering and terrorism financing are cross-border currency transactions and the illegal international transfer of money by companies or corrupt individuals. Some report that widespread corruption, at times involving members of the government, is a primary catalyst for money laundering and other financial crimes. Certain businesses have noted that diversion of public funds and corruption are widespread in both commerce and government, particularly as regards the use of proceeds from the extractive industries, including oil, gas, and timber, and infrastructure projects.

Equatorial Guinea became a signatory to the United Nations Convention against Corruption on May 30, 2018. Equatorial Guinea is a member of the Task Force against Money Laundering in Central Africa, an entity in the process of becoming a Financial Action Task Force-style regional body. The country is not a party to the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.

On July 13, 2020, President Obiang Nguema Mbasogo approved Decree-Law No. 1/2020 on the prevention and fight against corruption in Equatorial Guinea as an interim measure pending approval of anti-corruption legislation in Parliament. The legislation passed in April 2021.

Resources to Report Corruption

Decree-Law No. 1/2020 stablished the National Commission for Prevention and Fight against Corruption as the primary source to report corruption. However, this Legal Entity of Public Law is not yet operational.

There is not a history of civil unrest in Equatorial Guinea. Some report this is due to a severe limitation of political opposition and civil society, including freedom of assembly and expression. There have been, however, examples of politically motivated violence. An opposition party member and civil society activist was arrested at his home in February 2019 following his advocacy of labor rights at the national university. He was then charged of plotting to kill the president and tried for defamation and threats against the President on November 21, 2019. His sentence was never announced, and he was released on February 14, 2020, after almost a year in prison – longer than the maximum penalty for the charge against him.

President Teodoro Obiang Nguema Mbasogo has been in office since taking power in a 1979 coup. Equatorial Guinea does not have an established record of democratic transfer of power. In the week leading up to President Obiang’s re-election on April 24, 2016, there were reports that government security forces forcibly entered the headquarters of political opposition party Citizens for Innovation (CI) and seriously injured several opposition party members. Opposition activists arrested before the election were subsequently released, although some remained in jail for over a year. Opposition members continue to report arrest, torture, and harassment, despite President Obiang securing another seven years in office.

In 2017, Equatoguinean authorities detained a large group of over one hundred CI opposition party members in the cities of Bata, Akonibe, and Malabo during the campaign period for municipal and legislative elections; thirty-one of them were sentenced to 41 years in prison in February 2018. They were subsequently released by a Presidential pardon in October 2018. A well-known Equatoguinean cartoonist and political activist was also detained in Malabo for six months after being falsely accused by the police of counterfeiting and money laundering. He was released from prison on March 8, 2018, after being acquitted. A foiled coup plot led to massive arrests throughout the country from December 2017 to March 2018. The ruling Democratic Party of Equatorial Guinea (PDGE) announced on November 3, 2018, that it had expelled 42 of its members for alleged involvement in the coup. A total of 132 individuals were tried in the mainland city of Bata between March and May 2019, of which 112 were convicted.

Government officials and members of the private sector have noted an increase in crime, including drug use and violent robberies, as the country’s recession continues. Piracy in the Gulf of Guinea also increased from 2018 to 2021, including within Equatorial Guinea’s territorial waters. Security forces often used excessive force when implementing government restrictions designed to combat COVID-19 in 2020.

Equatorial Guinea has a consistent shortage of skilled labor. Unskilled labor is readily available. Youth unemployment is considered widespread, but statistics are scarce. According to the government’s 2015 census, released in 2018, about 40% of the population were not formally working and about 16% were unemployed. Officials estimate that close to 50% of the country’s workforce participates in the informal economy. Foreign laborers make up an important segment of all sectors of the economy, but generally dominate skilled labor positions, including engineers, pilots, and doctors. Labor laws apply to both foreign and domestic laborers, though in practice rulings tend to favor locals over foreigners when resolving disputes.

The gas and oil industry reports a shortage of trained individuals. Companies in the oil and gas sector sponsor training programs, and the government sponsors a limited number of students for short- and long-term international training and academic programs. The industry and the government also run a National Technological Institute of Hydrocarbons, which has 50 students per cohort in a three-year program. The government and companies inaugurated a new building in Mongomo in 2019, after alternating study in previous years between Malabo and Bata.

The agriculture and fishing sectors have shrunk in past decades as the rural population declined 42% from 2001 to 2015, according to the government census, and some businesses claim to have a shortage of laborers. Cattle ranchers have brought in migrant workers from the Sahel region of Africa to work with imported cattle.

Despite challenges in finding skilled labor, various laws require hiring nationals. The National Content Law of Equatorial Guinea requires that 70% of oil company employees are Equatoguinean. Companies must go through the Ministry of Mines and Hydrocarbons to fill a position, demonstrating an effort to find a suitable domestic applicant within 30 days before hiring a foreigner. Employers must make extensive severance payments to separated employees, even when employment demands fluctuate due to market conditions. Currently there is neither unemployment insurance nor other social safety net programs to assist laid-off workers, though the EG government has stated that this has been its goal for several years.

Compared to the United States, labor laws in the Republic of Equatorial Guinea are generally favorable toward the employee. Labor disputes may be heard by the Legislature or in the courts, and the decisions typically favor the employee. Aside from a union of small farmers and the taxi association, the Government of the Republic of Equatorial Guinea has not recognized any labor unions. Small collectives and associations are allowed to register with the government but do not carry out labor advocacy efforts. Collective bargaining is not common. There have not been any strikes during the last year that posed an investment risk; the government typically restricts strikes or protests.

Labor laws include provisions such as regulating industries in which minors may work, as well as requiring written contracts. Short-term contracts are limited to 24 months. Local government enforcement of labor laws is mostly focused on preventing companies from employing and exploiting unauthorized migrants. The Government of the Republic of Equatorial Guinea has regulations to monitor health and safety standards and an inspection force, but some have criticized the effectiveness of their enforcement.

Labor laws differentiate between layoffs and firing (with severance). In Equatorial Guinea, it is imperative for the company to understand all the legal obligations a decision to dismiss entails before deciding to do so. The law favors employees. Dismissals can take a broad range of forms from justified dismissals, dismissals for economic reasons and null dismissals. Dismissal is considered void when the legal process for dismissal has not been followed. Cases hereof would be when the employee has not received proper notice in the form of a dismissal letter or has been dismissed in specific circumstances that the law prohibits, for example, when a woman is on maternity leave. Unemployment insurance or other social safety net programs do not exist for workers laid off for economic reasons.

There are gaps in compliance in both law and practice with international labor standards. Although the Republic of Equatorial Guinea does not actively enforce internationally recognized labor rights, employees are generally not subjected to abusive work conditions. The government has been ranked Tier 2 watchlist in the 2020 Trafficking in Persons (TIP) Report. The government made key achievements during 2021 TIP reporting period. These achievements included investigating and—for the first time since 2010–prosecuting a possible trafficking case; developing and implementing formal screening procedures to identify victims within vulnerable populations; proactively identifying a potential trafficking victim; funding and partnering with an international organization to deliver training for more than 700 officials and civil society actors; expanding its awareness campaign to reach all seven of the country’s districts; and providing funding for its 2019-2021 national action plan. Despite these achievements, the government has never convicted a trafficker under its 2004 anti-trafficking law. Additionally, the government’s victim services remained inadequate. Official awareness of trafficking remained low and the government’s anti-trafficking law did not criminalize all forms of trafficking.

In 2020, a new labor law was drafted but it remained under review by the legislature in 2021.

Economic-Commercial Section
+240 333 095 741
MalaboPol-Econ@state.gov 

Policies Towards Foreign Direct Investment

The Government of Guinea has increasingly adopted a strong, positive attitude toward foreign direct investment (FDI). Facing budget shortfalls and low commodity prices, the GoG hopes FDI will help diversify its economy, spur GDP growth, and provide reliable employment. To that end, the government has reduced land transfer fees, and improved procedures for import and construction permits. Guinea does not discriminate against foreign investors, with the exception of a prohibition on foreign ownership of media. One area of concern is that mining companies have negotiated different taxation rates despite mining code requirements. According to the 2020 World Investment Report, FDI in Guinea fell from USD 577 million in 2017 to USD 45 million in 2019. In late 2015, the U.S. Embassy facilitated the establishment of an informal international investors group to liaise with the government. The group has not been very active since. There is the Chambre des Mines (Chamber of Mines), a government-sanctioned advisory organization that includes Guinea’s major mining firms. Guinea’s Agency for the Promotion of Private Investment (APIP) provides support in the following areas:

1. Create and register businesses
2. Facilitate access to incentives offered under the investment code
3. Provide information and resources to potential investors
4. Publish targeted sector studies and statistics
5. Provide training and technical assistance
6. Facilitate solutions for investors in Guinea’s interior

On March 13, a presidential decree changed the responsibilities of APIP into a public agency under the technical supervision of the Ministry of Investments and Public Private Partnerships, and under the financial supervision of the Ministry of Economy and Finance.

More information about APIP can be found at: http://apip.gov.gn/ 

Limits on Foreign Control and Right to Private Ownership and Establishment

Investors can register under one of four categories of business in Guinea. More information on the four types of business registration is available at http://invest.gov.gn/page/create-your-company. There are no general limits on foreign ownership or control, and 100 percent ownership by foreign firms is legal in most sectors. Foreign-ownership of print media, radio, and television stations is not permitted. The 2013 Mining Code gives the government the right to a 15 percent interest in any major mining operation in Guinea (the government decides when an operation has become large enough to qualify). Mining and media notwithstanding, there are no sector-specific restrictions that discriminate against market access for foreign investment. Despite this lack of official discrimination, many enterprises have discovered the licensing process to be laden with bureaucratic delays that are usually dealt with by paying consultant fees to help expedite matters. The U.S. Embassy may be able to advocate on behalf of American companies when it is aware of excessive delays.

According to the Investment Code, the National Investment Commission has a role in reviewing requests for approval of foreign investment and for monitoring companies’ efforts to comply with investment obligations. The Ministry of Planning and Economic Development hosts the secretariat for this commission, which grants investment approvals. The government gives approved companies, especially industrial firms, the use of the land necessary for their plant, with the duration and conditions of use set out in the terms of the approval. The land and associated buildings belong to the State, but can also be rented by or transferred to another firm with government approval.

Other Investment Policy Reviews

There has been no investment policy review conducted by the UN Conference on Trade and Development or the Organization for Economic Cooperation and Development within the past several years. The World Trade Organization (WTO) last conducted a review of Guinea in 2018. The 2018 report can be viewed here: https://www.wto.org/english/tratop_e/tpr_e/tp470_e.htm .

Business Facilitation

APIP is the Guinean agency that promotes investment, helps register businesses, assists with the expansion of local companies, and works to improve the local business climate. APIP maintains an online guide for potential investors in Guinea (http://invest.gov.gn). Business registration can be completed in person at APIP’s office in Conakry or through their online platform: https://synergui.apipguinee.com/fr/utilisateurs/register/. The only internationally-accredited business facilitation organization that assesses Guinea is GER.co, which gives Guinea’s business creation/investment website a 4/10 rating. It takes roughly seventy-two hours to register a business. APIP’s services are available to both Guinean and foreign investors. The “One Stop Shop” at APIP’s Conakry office can provide small and medium sized enterprises (SMEs) with requisite registration numbers, including tax administration numbers and social security numbers. Notaries are required for the creation of any other type of enterprise.

An SME in Guinea is defined as a business with less than 50 employees and revenue less than 500 million Guinean francs (GNF) (around USD 50,000). SMEs are taxed at a yearly fixed rate of GNF 15 million (USD 1,500). Administrative modalities are simplified and funneled through the “One Stop Shop”. In December 2019, the Prime Minister inaugurated the “Maison des PME” (“The SME House”) a public-private partnership between the Societe Generale bank and APIP to help local SMEs expand and develop.

Outward Investment

Guinea does not formally promote outward investment and the government does not restrict domestic investors from investing abroad.

Guinea has bilateral investment agreements with Benin, Burkina Faso, Cameroon, Canada, Chad, China, Egypt, France, The Gambia, Germany, Ghana, Italy, Lebanon, Malaysia, Mali, Mauritania, Mauritius, Morocco, Serbia, South Africa, Switzerland, Tunisia, Turkey, and the United Arab Emirates. Although Guinea does not have a Bilateral Investment Treaty or Free Trade Agreement with the United States, the Economic Community of West African States (ECOWAS) and the United States signed a Trade and Investment Framework Agreement (TIFA) in May 2014. There is no Bilateral Tax Treaty between Guinea and the United States. The TIFA created a Council on Trade and Investment responsible for identifying and removing trade impediments between the United States and ECOWAS countries.

Transparency of the Regulatory System

In the past eight years, Guinea has made its laws and regulations more transparent, but draft bills are not always made available for public comment. Ministries do not develop forward-looking regulatory plans and publish neither summaries nor proposed legislation. Laws in Guinea are proposed by either the President or members of the National Assembly and are also not always presented for public comment. Once ratified, laws are not enforceable until they are published in the government’s official gazette. All laws relevant to international investors are posted (in French) on invest.gov.gn. When investing, it is important to engage with all levels of government to ensure each authority is aware of expectations and responsibilities on both sides. Guinea has had an independent Supreme Audit Institution since 2016. The institution is charged with making available information on public finances. The institution presented its first activities report in January 2018.

had an independent Supreme Audit Institution since 2016. The institution is charged with making available information on public finances. The institution presented its first activities report in January 2018.

Guinea’s 2013 amended Mining Code commits the country to increasing transparency in the mining sector. In the code, the government commits to awarding mining contracts by competitive tender and to publish all past, current, and future mining contracts for public scrutiny. Members of mining sector governing bodies and employees of the Ministry of Mines are prohibited from owning shares in mining companies active in Guinea or their subcontractors. Each mining company must sign a code of good conduct and develop and implement a corruption-monitoring plan. There is a public database of mining contracts designed by the Natural Resource Governance Institute ( http://www.contratsminiersguinee.org/ ).

The Extractive Industries Transparency Initiative (EITI) ensures greater transparency in the governance of Guinea’s natural resources and full disclosure of government revenues from its extractives sector. The EITI standard aims to provide a global set of conditions that ensures greater transparency of the management of a country’s oil, gas, and mineral resources. EITI reiterates the need to augment support for countries and governments that are making genuine efforts to address corruption but lack the capacity and systems necessary to manage effectively the businesses, revenues, and royalties derived from extractive industries.

Guinea was accepted as EITI compliant for the first time by the international EITI Board at its meeting in Mexico City on July 2, 2014. As an EITI country, Guinea must disclose the government’s revenues from natural resources. Guinea completed its most recent report in December 2020for the 2018 reporting period. The report is located at: https://www.itie-guinee.org/rapport-itie-guinee-2018/

While Guinea’s laws promote free enterprise and competition, there is often a lack of transparency in the government’s application of the law. Business owners openly assert that application procedures are sufficiently opaque to allow for corruption, and regulatory activity is often instigated due to personal interests.

Every year Guinea publishes budget documents and debt obligations. The yearly enacted budgets are published online LOIS DE FINANCES | Ministère du Budget Guinée (mbudget.gov.gn)  https://mbudget.gov.gn/ .

International Regulatory Considerations

Guinea is a member of ECOWAS, but not a member of the West African Economic and Monetary Union (UEMOA) and as such has its own currency. At the beginning of 2017, Guinea adopted ECOWAS’s Common Exterior Tariff (TEC), which harmonizes Guinea’s import taxes with other West African states and eliminates the need for assessing import duties at Guinea’s land border crossings, however, sometimes it is difficult to get the required certificates to export under these ECOWAS exemptions. Guinea is a member of the WTO and is not party to any trade disputes.

Legal System and Judicial Independence

Guinea’s legal system is codified and largely based upon French civil law. However, the judicial system is reported to be generally understaffed, corrupt, and opaque. Accounting practices and bookkeeping in Guinean courts are frequently unreliable. U.S. businesspersons should exercise extreme caution when negotiating contract arrangements, and do so with proper local legal representation. Although the constitution and law provide for an independent judiciary, in practice the judicial system lacks independence, is underfunded, inefficient, and is portrayed in the press as corrupt. Budget shortfalls, a shortage of qualified lawyers and magistrates, nepotism, and ethnic bias contribute to the judiciary’s challenges. President Conde’s administration has successfully implemented some judicial reforms and has increased the salaries of judges by 400 percent in order to discourage corruption. There are few international investment lawyers accredited in Guinea and it is a best practice to include international arbitration clauses in all major contracts. U.S. companies have identified the absence of a dependable legal system as a major barrier to investment.

Despite dispute settlement procedures set forth in Guinean law, business executives complain of the glacial pace of the adjudication of business disputes. Most legal cases take years and significant legal fees to resolve. In speaking with local business leaders, the general sentiment is that any resolution occurring within three to five years might be considered quick.

In many cases, the government does not meet payment obligations to private suppliers of goods and services, either foreign or Guinean, in a timely fashion. Arrears to the private sector are a major issue that is often ignored. Guinea is currently looking for ways to finance past arrears to the private sector — possibly through issuing a public debt instrument. There is no independent enforcement mechanism for collecting debts from the government, although some contracts have international arbitration clauses. The government, while bound by law to honor judgments made by the arbitration court, often actively influences the decision itself.

Although the situation has improved recently, Guinean and foreign business executives have publicly expressed concern over the rule of law in the country. In 2014, high-ranking members of the military harassed foreign managers of a telecommunications company because they did not renew a contract. American businesses experience long delays in getting required signatures and approvals from government ministries, and in some cases the presidency. Some businesses have been subject to sporadic harassment from tax authorities, and demands for donations from military and police personnel.

Laws and Regulations on Foreign Direct Investment

The National Assembly ratified an Investment Code regulating FDI in May 2015. Developed in cooperation with the Work Bank and IMF, the code harmonizes Guinea’s FDI regulations with other countries in the region and broadens the definition of FDI. The code also allows for direct agreements between investors and the State. Other important legislation related to FDI includes the Procurement Code, the BOT (Build Operate Transfer, now Public Private Partnership or PPP) Law and the Customs Code.

The government of Guinea states it will let the legal system deal with domestic cases involving foreign investors. However, the legal system is weak, in the process of implementing much needed reforms, and is subject to interference. Although the constitution provides for an independent judiciary, in practice the judicial system lacks independence and is underfunded, inefficient, and is perceived by many to be corrupt. APIP launched a website in 2016 that lists information related to laws, rules, procedures, and registration requirements for foreign investors, as well as strategy documents for specific sectors. ( http://invest.gov.gn ). Further information on APIP’s services is available at http:// https://apip.gov.gn/ . APIP has a largely bilingual (English and French) staff and is designed to be a clearinghouse of information for investors.

Competition and Anti-Trust Laws

There are no agencies that review transactions for competition-related concerns.

Expropriation and Compensation

Guinea’s Investment Code states that the Guinean government will not take any steps to expropriate or nationalize investments made by individuals and companies, except for reasons of public interest. It also promises fair compensation for expropriated property.

In 2011, the government claimed full ownership of several languishing industrial facilities in which it had previously held partial shares as part of several joint ventures—including a canned food factory and processing plants for peanuts, tea, mangoes, and tobacco—with no compensation to the private sector partner. Each of these facilities was privatized under opaque circumstances in the late 1980s and early 1990s. By expropriating these businesses, which the government deemed to be corrupt and/or ineffective, and putting them to public auction, Guinea hoped to correct past mistakes and put the assets in more productive hands. During the 1990s, a U.S. investor acquired a 67 percent stake in an explosives and munitions factory from a Canadian entity. The Guinean government owned the remaining 33 percent. From 2000 to 2008, the government halted manufacturing at the factory. In 2010, the Guinean government nationalized the factory.

While there have not been recent large-scale expropriation cases, some mining concession contracts have had their initial award revoked and were sold to another bidder. In 2008, the previous regime of Lansana Conde stripped Rio Tinto of 50 percent of its concession of the Simandou mine and sold it to another company.

Dispute Settlement

ICSID Convention and New York Convention

Guinea is a member of the International Center for the Settlement of Investment Disputes (ICSID), an autonomous institution established under the Convention on the Settlement of Investment Disputes between States and Nationals of other States ( https://icsid.worldbank.org/en/Pages/about/default.aspx ). Guinea is also a member of the New York Convention, which applies to the recognition and enforcement of foreign arbitral awards and the referral by a court to arbitration. Guinea has no specific domestic legislation providing for enforcement of awards under the 1958 New York Convention and/or under the ICSID Convention. ( http://www.newyorkconvention.org ).

Investor-State Dispute Settlement

The Investment Code states that the competent Guinean judicial authorities shall settle disputes arising from interpretation of the Code in accordance with the law and regulations, and provides several avenues by which to seek arbitration. In practice, however, fair settlements may be difficult to obtain. The current Guinean constitution mandates an independent judiciary, although many business owners and high-level government officials frequently claim that poorly trained magistrates, high levels of corruption, and nepotism plague the administration of justice. Guinea established an arbitration court in 1999, independent of the Ministry of Justice, to settle business disputes in a less costly and more expedient manner. The Arbitration Court is based upon the French system, in which arbitrators are selected from among the Guinean business sector, rather than from among lawyers or judges, and are supervised by the Chamber of Commerce. All parties must agree in order for their case to be settled in the arbitration court. In general, Guinea’s arbitration court has a better reputation than the judicial court system for settling business disputes.

International Commercial Arbitration and Foreign Courts

Guinea is a member of the Organisation pour l’Harmonisation du Droit des Affaires en Afrique (Organization for the Harmonization of Commercial Law in Africa), known by its French initials, OHADA, which allows investors to appeal legal decisions on commercial and financial matters to a regional body based in Abidjan. The organization also seeks to harmonize commercial law, debt collection, bankruptcy, and secured transactions throughout the OHADA region. The treaty superseded the Code of Economic Activities and other national commercial laws when it was ratified in 2000, though many of the substantive changes to Guinean law have yet to be implemented. U.S. companies seeking to do business in Guinea should be aware that under OHADA, managers may be held personally liable for corporate wrongdoing. See the OHADA website for specific OHADA rules and regulations ( http://www.ohada.com ).

Bankruptcy Regulations

Guinea, as a member of OHADA, has the same bankruptcy laws as most West African francophone countries. OHADA’s Uniform Act on the Organization of Securities enforces collective proceedings for writing off debts and defines bankruptcy in articles 227 to 233. The Uniform Act also distinguishes fraudulent from non-fraudulent bankruptcies. There is no distinction between foreign and domestic investors. The only distinction made is a privilege ranking that defines which claims must be paid first from the bankrupt company’s assets. Articles 180 to 190 of OHADA’s Uniform Act define which creditors are entitled to priority compensation. Bankruptcy is only criminalized when it occurs due to fraudulent actions, and leaves criminal penalties to national authorities. Non-fraudulent bankruptcy is adjudicated though the Uniform Act.

In the World Bank’s 2020 Ease of Doing Business Report on Resolving Insolvency, Guinea placed 118 out of 190 countries ranked. According to the report, resolving insolvency takes an average of 3.8 years and costs 10.0 percent of the debtor’s estate, with the most likely outcome being that the company will be sold piecemeal. The average recovery rate is 19.4 cents on the dollar.

Investment Incentives

The Investment Code provides preferential tax treatment for investments meeting certain criteria (See Screening of FDI). Some mining companies currently benefit from preferential tax treatment. Other exemptions can be agreed to during contract negotiations with the government. The government’s priority investments categories are: promotion of small- and medium-sized Guinean businesses, development of non-traditional exports, processing of local natural resources and local raw materials, and establishment of activities in economically less developed regions. Priority activities include agricultural promotion, especially of food, and rural development; commercial farming involving processing and packaging; livestock, especially when coupled with veterinary services; fisheries; fertilizer production, chemical or mechanical preparation and processing industries for vegetable, animal, or mineral products; health and education-related businesses; tourism facilities and hotel operations; socially beneficial real estate development; and investment banks or any credit institutions settled outside specified population centers. Detailed information on each of these opportunities is available at http://invest.gov.gn 

Foreign Trade Zones/Free Ports/Trade Facilitation

Guinea currently has no foreign trade zones or free ports. In 2017, a presidential decree created a special economic zone in the Boke corridor of western Guinea.

Performance and Data Localization Requirements

Under the revised 2013 Mining Code, mining companies are required to employ Guinean citizens as a certain percentage of their staff, to eventually transition to a Guinean country director, and to award a certain percentage of contracts to Guinean-owned firms. The percentage varies based on employment category and the chronological phase of the project. The Mining Code requires that 20 percent of senior managers be Guinean; however, the Code does not define what constitutes senior management. The Code also aims to liberalize mining development and promote investment. In 2013, the Code called for the creation of a Mining Promotion and Development Center, a One Stop Shop for mining administrative processes for investors. The Development Center opened in May 2016. Guinea has no forced localization policy related to the use of domestic content in goods or technology, and there are no requirements for foreign IT providers to turn over source code or provide access to surveillance or to store data within Guinea.

In 2019, the government launched an e-visa platform allowing for online visa applications at http:// www.paf.gov.gn . Fees vary depending on citizenship.

Real Property

The Land Tenure Code of 1996 provides a legal base for documentation of property ownership. Mortgages are non-existent in Guinea. As with ownership of business enterprises, both foreign and Guinean individuals have the right to own property. However, enforcement of these rights depends upon an inefficient Guinean legal and administrative system. It is not uncommon for the same piece of land to have several overlapping deeds. Furthermore, land sales and business contracts generally lack transparency. Only about 2.5 percent of the population has title to real property. The Ministry of Urban Affairs is developing an online platform that will facilitate the registration of land titles and reduce waiting times to about five days. According to the 2020 World Bank’s Doing Business Report, Guinea ranks 122 out of 190 countries for the ease of registering property. ( http://www.doingbusiness.org/data/exploreeconomies/guinea/ ).

Intellectual Property Rights

Guinea is a member of the African Intellectual Property Organization (OAPI) and the World Intellectual Property Organization (WIPO). OAPI is a signatory to the Paris Convention for the Protection of Industrial Property, the Berne Convention for the Protection of Literary and Artistic Works, the Patent Cooperation Treaty, the World Trade Organization (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), and several other intellectual property treaties. Guinea modified its intellectual property rights (IPR) laws in 2000 to bring them into line with established international standards. There have been no formal complaints filed on behalf of American companies concerning IPR infringement in Guinea. However, it is not certain that an affirmative IPR judgment would be enforceable, given the general lack of law enforcement capability. The Property Rights office in Guinea is severely understaffed and underfunded. Guinea is not included in the United States Trade Representative (USTR) Special 301 Report or the Notorious Markets List. For additional information about national laws and points of contact at local IP offices, please see WIPO’s country profiles at https://www.wipo.int/directory/en/contact.jsp?country_id=67&type=ADMIN .

Capital Markets and Portfolio Investment

Commercial credit for private and public enterprises is difficult and expensive to obtain in Guinea. The FY 2021 Millennium Challenge Corporation score for Access to Credit in Guinea remained at 21 percent, and was at 50 percent in FY 2017.

The legislature passed a Build, Operate, and Transfer (BOT) convention law in 1998 (changed to the Public-Private Partnership, or PPP, in 2018), which provides rules and guidelines for PPP and related infrastructure development projects. The law lays out the obligations and responsibilities of the government and investors and stipulates the guarantees provided by the government for such projects. The Investment Code allows income derived from investment in Guinea, the proceeds of liquidating that investment, and the compensation paid in the event of nationalization, to be transferred to any country in convertible currency. The legal and regulatory procedures, based on French civil law, are not always applied uniformly or transparently.

Individuals or legal entities making foreign investments in Guinea are guaranteed the freedom to transfer the original foreign capital, profits resulting from investment, capital gains on disposal of investment, and fair compensation paid in the case of nationalization or expropriation of the investment to any country of their choice. The Guinean franc is subject to a managed floating exchange rate. The few commercial banks in Guinea are dependent on the BCRG for foreign exchange liquidity, making large transfers of foreign currency difficult.

Laws governing takeovers, mergers, acquisitions, and cross-shareholding are limited to rules for documenting financial transactions and filing any change of status documents with the economic register. There are no laws or regulations that specifically authorize private firms to adopt articles of incorporation that limit or prohibit investment.

Money and Banking System

Guinea’s financial system is small and dominated by the banking sector. It comprises 16 active banks, 13 insurance companies and 26 microfinance institutions. Guinea’s banking sector is overseen by the BCRG, which also serves as the agent of the government treasury for overseeing banking and credit operations in Guinea and abroad. The BCRG manages foreign exchange reserves on behalf of the State. The Office of Technical Assistance of the Department of the Treasury assesses that Guinea does not properly manage debt and that its treasury is too involved in the process, although improvements made in 2017-2018 point to a better future. Further information on the BCRG can be found in French at http://www.bcrg-guinee.org .

Due to the difficulty of accessing funding from commercial banks, small commercial and agricultural enterprises have increasingly turned to microfinance, which has been growing rapidly with a net increase in deposits and loans. The quality of products in the microfinance sector remains mediocre, with bad debt accounting for five percent of loans with approximately 17 percent of gross loans outstanding.

Guinea plans to broaden the country’s SME base through investment climate reform, improved access to finance, and the establishment of SME growth corridors. Severely limited access to finance (especially for SMEs), inadequate infrastructure, deficiencies in logistics and trade facilitation, corruption and the diminished capacity of the government, inflation, and poor education of the workforce has seriously undermined investor confidence in Guinean institutions. Guinea’s weak enabling environment for business, its history of poor governance, erratic policy, and inconsistent regulatory enforcement exacerbate the country’s poor reputation as an investment destination. As a result, private participation in the economy remains low and firms’ productivity measured by value added is one of the lowest in Africa. Firms’ links with the financial sector are weak: only 3.9 percent of firms surveyed in the 2016 World Bank Enterprise survey had a bank loan. http://www.enterprisesurveys.org/data/exploreeconomies/2016/guinea#finance 

Credit to the private sector is low, at around 9.3 percent of GDP in 2018. Commercial banks are reluctant to extend loans due to the lack of credit history reporting for potential borrowers. The government, through the central bank, is in the process of establishing a credit information bureau to overcome this asymmetry of credit information. Despite the pandemic, the banking sector remains liquid and solvent with ample credit to the private sector. Excess reserves in local currency increased by 51 percent by the end of September 2019, which was fueled by a strong deposit growth (21 percent). Despite the COVID-19 slowdown, private sector credit grew by 17 percent by the end of September 2020.

Guinea is a cash-based society driven by trade, agriculture, and the informal sector, which all function outside the banking sector. The banking sector is highly concentrated in Conakry, and is technologically behind. Banks in Guinea tend to favor short-term lending at high interest rates. In collaboration with the U.S. Treasury’s Office of Technical Assistance, the central bank is implementing a bank deposit insurance scheme. The deposit coverage limit has not been set yet, but the central bank began to collect premiums from commercial banks in 2019.

While the microfinance sector grew strongly from a small base, it was hit hard during the 2014-2016 Ebola crisis. Currently it is not generally profitable and needs capacity and technology upgrades. Furthermore, many microfinance institutions struggle to meet higher minimum capital requirements imposed by the central bank since 2019. This heightened financial hurdle will likely lead to a consolidation of the microfinance sector. The efficiency and use of payment services by all potential users needs to be improved, with an emphasis on greater financial inclusion.

The penetration of digital cellphone fund transfers is increasing. Two foreign e-money (or mobile banking) institutions lead the effort to digitize payments and improve access to financial services in underserved and rural segments of the population. However, the vast majority of operations processed by these e-money institutions remains cash-in cash-out transactions within a single network. In an effort to modernize payment methods, the government is implementing a national switch, a nationwide platform that will interface all electronic payment systems and facilitate payment processing between service providers. As of 2020 this service was still under development.

Generally, there are no restrictions on foreigners’ ability to establish bank accounts in Guinea. EcoBank is the preferred bank for most U.S. dealings with Foreign Account Tax Compliant Act (FACTA) reporting requirements. In October 2020, Vista Bank Group announced that it acquired a majority stake in BICIGUI (Banque Internationale pour le Commerce et l’Industrie de la Guinee) and BICIAB (Banque Internationale pour le Commerce et l’Agriculture du Burkina Faso). After this acquisition the Vista Bank Group, a U.S. owned financial institution, has over 87 agencies and 320 employees across Guinea.

In collaboration with the U.S. Treasury’s Office of Technical Assistance, the central bank is implementing a bank deposit insurance scheme. The deposit coverage limit has not been set yet, but the central bank began to collect premiums from commercial banks in 2019.

Foreign Exchange and Remittances

Foreign Exchange

There are no restrictions or limitations placed on foreign investors for converting, transferring, or repatriating funds associated with an investment. Although there have been no recent changes to remittance policies, it is difficult to obtain foreign exchange in Guinea. Guinea has experienced significantly weakened liquidity levels over the last several years due to government mismanagement, populist policies, corruption, and a decrease in mining revenue due to lower global commodity prices. Commercial banks’ liquidity levels are affected by tight reserve requirements (22 percent of deposits) that are in line with IMF performance criteria.

Until December 2015, the exchange rate was managed by the BCRG and held to a four percent variance from the unofficial rate. The exchange rate has remained relatively stable since 2013 and has only recently depreciated versus the U.S. dollar. Between 2013 and 2015, the Guinean franc maintained a value of between 7,000 and 7,500 GNF/USD. In late 2015, the unofficial rate reached a value ten percent higher than the official rate, during which time Guinea nearly exhausted its foreign currency reserves. The IMF recommended the BCRG float the GNF and the official rate jumped to over 9,000 GNF/USD by March 2016. In 2020, The central bank continued to limit its intervention in the foreign exchange market and implement a rules-based intervention strategy. This monetary policy has targeted preserving liquidity in the banking sector while containing inflation.

Remittance Policies

Guinea has no limitations on the conversion and transfer of money or the repatriation of capital and earnings, including branch profits, dividends, interest, royalties, or management or technical service fees. The BCRG needs to be informed of any major transfers, and the wait time to remit investment returns is less than 60 days. Guinea is a member of the Inter-Governmental Action Group against Money Laundering in West Africa, but is not included on the Financial Action Task Force. Guinea does not have a country report in the 2020 International Narcotics Control Strategy Report.

There are no limits on the conversion of U.S. dollars to Guinean francs. The official exchange rate retains the capacity for volatility, but is currently holding at approximately 10,007 GNF/USD (as of March 2021). A weakened economy largely resulting from low commodity prices caused the GNF to depreciate from an average of 7,000 GNF/USD in early 2015. Since mid-2016, the official exchange rate has been keeping pace with the rate in the parallel black market.

Sovereign Wealth Funds

Guinea does not have a sovereign wealth fund.

While all Guinea’s public utilities (water and electricity) are state-owned enterprises (SOEs), the Conde administration has proposed permitting private enterprises to operate in this sphere. In 2015, the French firm Veolia was contracted to manage the state-owned electric utility Electricité de Guinée (EDG) – a contract which ended in October 2019. Several private projects aimed at harnessing Guinea’s solar energy potential and gas-powered thermal plants are being implemented with the goal of producing and selling energy throughout Guinea and possibly to neighboring countries. Other SOEs are found in the telecommunications, road construction, lottery, and transportation sectors. There are several other mixed companies where the state owns a significant or majority share, that are typically related to the extractives industry.

The hydroelectricity sector could support Guinea’s modernization, and possibly even supply regional markets. Guinea’s hydropower potential is estimated at over 6,000MW, making it a potential exporter of power to neighboring countries. In 2015, Guinea built the 240MW Kaleta Dam, doubling the country’s electricity generating capacity and providing Conakry with a more reliable source of power for most of the year. The government is now pushing forward with the more ambitious 450MW Souapiti Dam and other power generation plans, for which EDG would be the primary off-taker. The country currently uses and produces about 450MW, so the Souapiti project could create reserves for export. Plans for improving the distribution network to enable electricity export are in process with the development of the Gambia River Basin Development (OMVG) (Organization pour la Mise en Oeuvre de Fleuve Gambie, in French) transmission project connecting Guinea, Senegal, Guinea Bissau, and The Gambia. The OMVG project involves the construction of 1,677 kilometers of 225-volt transmission network capable of handling 800MW to provide electricity for over two million people. At the same time, Guinea is moving forward with the Côte d’Ivoire, Liberia, and Sierra Leone, (CLSG) transmission interconnector project, which will integrate Guinea into the West African Power Pool (WAPP) and allow for energy import-export across the region. While the government does not publish significant information concerning the financial stability of its SOEs, EDG’s balance sheet is understood to be in the red. The IMF reported that as recently as 2017, up to 28 percent of Guinea’s budget went towards subsidizing electricity, and the IMF demanded that EDG improve tariff collection since large numbers of its users do not pay. The Prime Minister announced in mid-March that EDG subsidies cost USD 350 million annually.

The amount of research and development (R&D) expenditures is not known, but it would be highly unlikely that any of Guinea’s SOEs would devote significant funding to R&D. Guinean SOEs are entitled to subsidized fuel, which EDG uses to run thermal generator stations in Conakry. Guinea is not party to the Government Procurement Agreement.

Corporate governance of SOEs is determined by the government. Guinean SOEs do not adhere to the OECD guidelines. SOEs are supposed to report to the Office of the President, however, typically they report to a ministry. Seats on the board of governance for SOEs are usually allocated by presidential decree.

Privatization Program

The Guinean government is actively working on privatization in the energy sector. In April 2015, the government tendered a management contract to run the state-owned electrical utility EDG. French company Veolia won the tender and attempted to manage and rehabilitate the insolvent utility until the end of 2019. As of February 2020, EDG became a public limited company with its own board of directors. The new directors were appointed by the President through decree. Bidding processes are clearly spelled out for potential bidders; however, Guinea gives weight to competence in the French language and experience working on similar projects in West Africa. In spring 2015, a U.S. company lost a fiber optics tender largely due to its lack of native French speakers on the project and lack of regional experience.

The 2013 Mining Code includes Guinea’s first legal framework outlining corporate social responsibility. Under the provisions of the code, mining companies must submit social and environmental impact plans for approval before operations can begin and sign a code of good conduct, agreeing to refrain from corrupt activities and to follow the precepts of the Extractive Industry Transparency Initiative (EITI). However, lack of capacity in the various ministries involved makes government monitoring and enforcement of corporate social responsibility requirements difficult, a gap that some non-governmental organizations (NGOs) are filling. In February 2019, Guinea was found to have achieved meaningful progress in implementing EITI standards. The EITI Board outlined eight corrective actions, including disclosing more information on infrastructure agreements, direct subnational payments, and quasi-fiscal expenditures. The Board noted that the EITI should play a role in overseeing the new Local Economic Development Fund (FODEL). Mining companies continue to note a lack of transparency in the expenditure of revenues by the National Agency for Mining Infrastructure (ANAIM).

The 2019 Environmental Code also has specific provisions regarding environmental and social due diligence on any development projects. The Code requires each development project conduct an environmental impact study which includes a list of mitigation measures for any negative impact.

The Guinean government has put in place laws that protect the population from adverse business impacts however, these laws are not effectively enforced. In the last few years, there were several cases of private enterprise having an adverse impact on human rights, especially in the mining and energy sectors. The government is often reluctant to fully enforce legislation regarding responsible conduct and the mitigation of these impacts. There are several local and international organizations that are promoting and monitoring the implementation of RBCs.

Guinea is not signatory of the Montreux document on Private Military and Security Companies.

Additional Resources 

Department of State

• Country Reports on Human Rights Practices;
• Trafficking in Persons Report;
• Guidance on Implementing the “UN Guiding Principles” for Transactions Linked to Foreign Government End-Users for Products or Services with Surveillance Capabilities and;
• North Korea Sanctions & Enforcement Actions Advisory

Department of Labor

• Findings on the Worst Forms of Child Labor Report;
• List of Goods Produced by Child Labor or Forced Labor.
• Sweat & Toil: Child Labor, Forced Labor, and Human Trafficking Around the World and;
• Comply Chain.

In its 2020 Ease of Doing Business index, the World Bank ranked Guinea 156th of 190 countries worldwide, down four places from 2019. According to Transparency International’s 2020 Corruption Perception Index, Guinea lost seven points and was ranked 137 out of 180 countries listed.

Guinea passed an Anti-Corruption Law in 2017, and in April 2019, a former director of the Guinean Office of Advertising was sentenced to five years in prison for embezzling GNF 39 billion (approximately USD four million); however, in June 2019 he was acquitted by the Appeals Court and was elected a member of the National Assembly in March 2020. It is not clear whether the Anti-Corruption Law was used to prosecute the case. According to a 2019 Afrobarometer survey, at least 40 percent of Guineans reported having given a government official a bribe, while a 2016 World Bank Enterprise Survey reported that of 150 firms surveyed, 48.7 percent reported that they were expected to give “gifts” to public officials to get things done, but only 7.9 percent reported having paid a bribe. http://www.enterprisesurveys.org/data/exploreeconomies/2016/guinea#corruption 

http://www.enterprisesurveys.org/data/exploreeconomies/2016/guinea#corruption 

The business and political culture, coupled with low salaries, have historically combined to promote and encourage corruption. Requests for bribes are a common occurrence. Though it is illegal to pay bribes in Guinea, there is little enforcement of these laws. In practice, it is difficult and time-consuming to conduct business without giving “gifts” in Guinea, leaving U.S. companies, who must comply with the Foreign Corrupt Practices Act, at a disadvantage.

Although the law provides criminal penalties for corruption by officials, the law does not extend to family members. It does include provisions for political parties. According to the World Bank’s 2018 Worldwide Governance Indicators, corruption continues to remain a severe problem, and Guinea is in the 13th percentile, down from being in the 15th percentile in 2012. Public funds have been diverted for private use or for illegitimate public uses, such as buying vehicles for government workers. Land sales and business contracts generally lack transparency. http://info.worldbank.org/governance/wgi/#reports 

Guinea’s Anti-Corruption Agency (ANLC) is an autonomous agency established by presidential decree in 2004. The ANLC reports directly to the President and is currently the only state agency focused solely on fighting corruption. However, it has been largely ineffective in its role, with no successful convictions. The ANLC’s Bureau of Complaint Reception fields anonymous tips forwarded to the ANLC. Investigations and cases must then be prosecuted through criminal courts. According to the ANLC, during the past year there were no prosecutions as a result of tips. The agency is underfunded, understaffed, and lacks computers and vehicles. The ANLC is comprised of 52 employees in seven field offices, with a budget of USD 1.1 million in 2018.

The Conde administration has named corruption in both the governmental and commercial spheres as one of its top agenda items. In November 2019, Ibrahim Magu, the acting Chairman of the Economic and Financial Crimes Commission of Nigeria, and President Alpha Conde reached an agreement through which the Commission will assist Guinea to establish a anti-corruption agency, however, it is not clear if that means reforming the existing anti-corruption agency or establishing a new anti-corruption agency.

In January 2021, Beny Steinmetz, an Israeli businessman and billionaire was sentenced to five years in jail in Geneva for bribing the wife of Guinea’s late President Lansana Conté in order to gain the rights to one of the world’s richest iron-ore deposits. He was also ordered to pay a 50 million Swiss franc (USD 56 million) fine. Steinmetz has long claimed to be a victim of a vast international conspiracy to deprive him of the rights to the Simandou project. He plans to appeal his case.

A 2016 survey by the ANLC, the Open Society Initiative-West Africa (OSIWA), and Transparency International found that among private households, 61 percent of the respondents stated they were asked to pay a bribe for national services and 24 percent for local services. Furthermore, 24 percent claimed to have paid traffic-related bribes to police, 24 percent for better medical treatment, 19 percent for better water or electricity services, and 8 percent for better judicial treatment.

Guinea is a party to the UN Anticorruption Convention. http://www.unodc.org/unodc/en/treaties/CAC/signatories.html 

Guinea is not a party to the OECD Convention on Combatting Bribery. http://www.oecd.org/daf/anti-bribery/countryreportsontheimplementationoftheoecdanti-briberyconvention.htm 

Since 2012, Guinea has had a Code for Public Procurement (Code de Marches Publics et Delegations de Service Public) that provides regulations for countering conflicts of interest in awarding contracts or in government procurements. In 2016, the government issued a Transparency and Ethics chart for public procurement that provides the main do’s and don’ts in public procurement, highlighting avoidance of conflict of interest as a priority. The chart also includes a template letter that companies have to sign when bidding for public contracts stating that they will comply with local legislation and public procurement provisions, including practices to prevent corruption.

Starting from April 2020, Government of Guinea officials and family must complete the asset declaration form which is available on the Court of Audit website.

Resources to Report Corruption

Contact at government agency or agencies are responsible for combating corruption:

Sekou Mohamed Sylla
Deputy Executive Director
Agence Nationale de Lutte Contre la Corruption et la Promotion de la Bonne Gouvernance (ANLC – National Agency Against Corruption)
Cite des Nations, Conakry, Guinea
+224- 669 22 82 51
EMAIL ADDRESS: tourealnc@gmail.com

Transparency International
Dakar, Senegal
+221-33-842-40-44
forumcivil@orange.sn

Guinea has had a long history of political violence. The country suffered under authoritarian rule from independence in 1958 until its first democratic presidential election in 2010. It has seen continued political violence associated with national and local elections since 2010.

In March 2020, the Government of Guinea amended the constitution through a referendum resulting in changes to presidential term limits that allowed President Conde to seek a third term in office. Observers noted that the process for constitutional reform was not transparent, inclusive, or consultative. Major opposition parties boycotted the referendum and the accompanying legislative elections. The result was a resetting of presidential term limits and the ruling party, the Rally for the Guinean People, gaining a super majority in the National Assembly. Domestic and international observers raised concerns regarding widespread violence and voting irregularities in the legislative elections, including closed and ransacked polling stations. In October 2020 President Alpha Conde ran for reelection under the new constitution. International and domestic observers raised concerns about widespread electoral violence, restrictions on freedom of assembly, the lack of transparency in vote tabulation, and inconsistencies between the announced results and tally sheet results from polling stations. Violent protests during both elections closed businesses in major population centers, resulted in about 150 deaths, and the arbitrary detention of hundreds of people including several prominent opposition figures.

The state had persecuted political dissidents and opposition parties for decades. The Sekou Toure regime (1958-1984) and the Lansana Conte regime (1984-2008) were marked by political violence and human rights abuses.

Following the death of President Lansana Conte on December 22, 2008, a military junta calling themselves the National Council for Democracy and Development (CNDD) took power in a bloodless coup. Immediately following the coup, the U.S. government suspended all but humanitarian and election assistance to Guinea. The African Union (AU) and ECOWAS suspended Guinea’s membership pending democratic elections and a relinquishment of power by the military junta. In September 2009, junta security forces attacked a political rally in a stadium in Conakry, killing 150 people, and raping over a hundred women.

Guinea experienced violent incidents in 2011 and thereafter. On July 19, 2011, the President’s personal residence was attacked with small arms fire and rocket propelled grenades. Following the attack, the government arrested and charged 33 people, mostly military personnel, with attempted murder and treason.

The small mining town of Zogota, located in Guinea’s Forest Region, saw the deaths of five villagers, including the village chief, during August 2012 clashes with security forces over claims that the Brazilian iron-mining company Vale was not hiring enough local employees and was instead bringing workers from other regions of Guinea. The ensuing instability led to Vale evacuating all expatriate personnel from the town.

Other instances of violence occurred in 2014 and 2015 during the Ebola epidemic when local citizens attacked the vehicles and facilities of aid workers. The Red Cross, MSF (Doctors Without Borders) and the World Health Organization (WHO) also reported cases of property damage (destroyed vehicles, ransacked warehouses, etc.). On September 16, 2014, in the Forest Region village of Womei, eight people were killed by a mob when they visited the village as part of an Ebola education campaign. The casualties included radio journalists, local officials, and Guinean health care workers.

Presidential elections in 2015 sparked violent protests in Conakry, but clashes between police and demonstrators were largely contained. In addition to political violence, sporadic and generally peaceful protests over fuel prices, lack of electricity, labor disputes, and other issues have occurred in the capital and sometimes beyond since 2013. In February 2017, seven civilians died in confrontations with security services during large protests against education reforms. After two days of violent protests in March 2018, teachers’ unions and the government agreed to a raise of 40 percent. These protests over teacher union pay became intermingled with political protests over voting irregularities in the February 4 local elections. The political opposition claims the government is responsible for the deaths of over 90 people during political protests over the past eight years.

The local populace in Boke, Bel-Air, and Sangaredi disrupted road and/or railroad traffic on at least three occasions in 2017 and at least twice in 2018, in response to grievances over employment, lack of services, and other issues. Although none of these events targeted American or foreign investors, they were disruptive to business in general and eroded confidence in the security situation under which investors must operate in Guinea. Street violence is difficult to predict or avoid, but generally does not target westerners.

Guinea has a young population and a high unemployment rate. Potential employees often lack specialized skills. The country has a poor educational system and lacks professionals in all sectors of the economy. Guinea generally lacks the specialized skills needed for large-scale projects of any kind.

According to a 2019 World Bank report on “Employment, productivity and inclusion of youth”, in 2017 Guinea’s economy was based on services (49 percent of GDP), mining and industry (37 percent) and agriculture (10 percent). The tendencies show that employment in Guinea is similar to other countries in the region, with a high level of employment in the informal sector. According to the 2018 World Bank Development Indicators, approximately 65 percent of Guineans above 15 years old, (56 percent males and 44 percent females) were employed in the formal or informal sectors. Of those employed, 52 percent were working in agricultural sector, 34 percent in commerce, and 14 percent in industry and manufacturing.

Guinea’s National Assembly adopted a new labor code in February 2014 which protects the rights of employees and is enforced by the Ministry of Technical Education, Vocational Training, Employment and Labor. The Labor Code sets forth guidelines in various sectors, the most stringent being the mining sector. Guidelines cover wages, holidays, work schedules, overtime pay, vacation, and sick leave. The Labor Code also outlaws all discrimination in hiring, including on the basis of sex, disability, and ethnicity. It also prohibits all forms of workplace harassment, including sexual harassment. However, the law does not provide antidiscrimination protections for persons based on sexual orientation and/or gender identity.

Although the law provides for the rights of workers to organize and join independent unions, engage in strikes, and bargain collectively, the law also places restrictions on the free exercise of these rights. The Labor Code requires unions to obtain the support of 20 percent of the workers in a company, region, or trade that the union claims to represent. The code mandates that unions provide ten days’ notice to the labor ministry before striking, but the code does allow work slowdowns. Strikes are only permitted for professional claims. The Labor Code does not apply to government workers or members of the armed forces. While the Labor Code protects union officials from anti-union discrimination, it does not extend that same protection to other workers.

The law prohibits child labor in the formal sector and sets forth penalties of three to ten years imprisonment and confiscation of resulting profits. The law does not protect children in the informal sector. The minimum age for employment is 16. Exceptions allow children to work at age twelve as apprentices for light work in such sectors as domestic service and agriculture, and at 14 for other work. A new child code was adopted at the National Assembly in December 2019 and is waiting enactment by the President. The new child code provides more severe sentences for violations related to child labor.

The Labor Code allows the government to set a minimum monthly wage through the Consultative Commission for Labor and Social Laws. The minimum wage for all sectors was established in 2013 at 440,000 GNF (approximately USD50). There is no known official poverty income level established by the government.

The law mandates that regular work should not exceed ten-hour days or 48-hour weeks, and it mandates a period of at least 24 consecutive hours of rest each week, usually on Sunday. Every salaried worker has the legal right to an annual paid vacation, accumulated at the rate of at least two workdays per month of work. There also are provisions in the law for overtime and night wages, which are a fixed percentage of the regular wage. The law stipulates a maximum of 100 hours of compulsory overtime a year.

The law contains general provisions regarding occupational safety and health, but the government has not established a set of practical workplace health and safety standards. Moreover, it has not issued any orders laying out the specific safety requirements for certain occupations or for certain methods of work called for in the Labor Code. All workers, foreign and migrant included, have the right to refuse to work in unsafe conditions without penalty.

Authorities rarely monitored work practices or enforced the workweek standards and the overtime rules. Teachers’ wages are low, and teachers sometimes went for months without pay. Salary arrears were not paid, and some teachers lived in abject poverty. From 2016-2018, teachers conducted regular strikes and as a result, and were promised a 40 percent increase in pay. Initially they received only ten percent, but in March 2018, the government began to pay the remaining 30 percent. In February 2019, the teachers union accepted the government proposal at the time and returned to work. In January 2020, the teachers started an indefinite strike demanding higher wages and the re-running of a census of currently employed teachers. As of end of March 2020, the teachers’ strike was put on hold due to the COVID-19 pandemic.

Despite legal protection against working in unsafe conditions, many workers feared retaliation and did not exercise their right to refuse to work under unsafe conditions. Accidents in unsafe working conditions remain common. The government banned artisanal mining during the rainy season to prevent deaths from mudslides, but the practice continues.

Pursuant to the Labor Code, any person is considered a worker, regardless of gender or nationality, who is engaged in any occupational activity in return for remuneration, under the direction and authority of another individual or entity, whether public or private, secular or religious. In accordance with this code, forced or compulsory labor means any work or services extracted from an individual under threat of a penalty and for which the individual concerned has not offered himself willingly.

A contract of employment is a contract under which a person agrees to be at the disposal and under the direction of another person in return for remuneration. The contract may be agreed upon for an indefinite or a fixed term and may only be agreed upon by individuals of at least 16 years of age, although minors under the age of 16 may be contracted only with the authorization of the minor’s parent or guardian. An unjustified dismissal provides the employee the right to receive compensation from the employer in an amount equal to at least six months’ salary with the last gross wage paid to the employee being used as the basis for calculating the compensation due.

The Investment Code obliges new companies to prioritize hiring local employees and provide capacity training and promotion opportunities for Guineans.

Caroline Corcoran
Economic and Commercial Officer
U.S. Embassy Conakry
+224 655 104 132; corcorance@state.gov 

Camara Mahawa
Economic and commercial Assistant
US Embassy Conakry
629 000 413/655 10 42 26
Camaram1@state.gov