U.S. Department of State
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Guinea constitutes a small, underdeveloped market that remains heavily reliant upon revenue from junta renovation trading options, mining companies and international aid. Upon seizing power, Camara made several attempts to alter the contracts of large international mining companies including Rio Tinto, Rusal, and AngloGold Ashanti. Political junta renovation trading options economic insecurity peaked in September when government forces fired upon pro-democracy protestors, killing over civilians, and raped dozens of women.
In December,junta leader Dadis Camara was the victim of an assassination attempt which forced him to leave the country. The first round of presidential elections - in junta renovation trading options no member of the Transition Government ran - occurred in June, The junta renovation trading options round of presidential elections, between opposition figure Alpha Conde and former Junta renovation trading options Minister Cellou Dalein Diallo, took place in November, The first year of the Conde administration has been marked by slow but significant progress towards democratization, public sector reform, and economic development.
With the exception of an unsuccessful attempt to assassinate President Conde in July, insecurity has decreased since the beginning of However, one crucial reform has not yet been carried out: Although an official date has not been set, the Conde administration is working towards holding free and fair legislative elections in However, some industries, such as radio, television, and print media, are legally restricted from having a majority foreign ownership.
Revised inthe Investment Code authorizes private junta renovation trading options of all types: The Guinean government provides a guarantee in the Investment Code that it will not, except for reasons of public interest, take any steps to expropriate or nationalize foreign or locally held assets or businesses.
The Conde administration has announced its intent to revise the Investment Code junta renovation trading options in The Petroleum Code of September 23, is currently under revision by a commission consisting of members from the Ministries of Commerce, Junta renovation trading options, Environment, the Office of the President, and other government cabinets. There junta renovation trading options currently only one oil company operating in Guinea: Since then, Hyperdynamics has conducted seismic studies within its remaining concession and began drilling exploratory wells in late The elimination of the public monopoly on petroleum product importation and commercialization allows private distributors to operate in Guinea.
The new code significantly increases the share of state ownership in the mining industry, extending a 15 percent share of future mining projects to the GOG, without financial compensation. The GOG also has the option to purchase up to an additional 20 percent of each project. New tax breaks and other financial incentives encourage projects to include a processing facility such as an alumina refinery, aluminum smelter, or steel mill.
The code also includes new measures designed to protect the environment, stimulate local development, fight corruption, and increase junta renovation trading options in the sector. Although much of the code outlines the conditions under which future mining projects will be established, it also contains provisions that apply to companies already operating in Guinea. Other discrepancies must be negotiated individually between mining companies and the GOG.
However, as of January the Government of Guinea had only announced that it would form a mining commission, which will include representatives from the Ministries of Mines, Justice, Economy, and Public Works, to review mining contracts. Inthe company started the early works phase of their project which junta renovation trading options infrastructure construction on the mining site, the refinery facility, and a transportation network.
Alcoa and Rio Tinto-Alcan are also in the early construction phase of junta renovation trading options smaller refinery in the area. Though production from the site was originally scheduled to commence in mid, it is not likely to reach the production stage until Rio Tinto signed an agreement with the Government of Guinea in to develop a sq.
Rio Tinto is expected to begin junta renovation trading options iron ore from Simandou in The Ministry of Communications regulates licensing and administration.
Inseveral new operators entered the market including the U. While this sector presents tremendous opportunity for growth, price competition from established providers is intense.
Established carriers have publicly attempted to thwart other companies from entering the market by utilizing non-price tools, such as refusing to connect existing networks with new entrants. During times of political upheaval, the GOG has exerted their influence on the telecommunications sector, including forcing several cellular companies to block text messaging capabilities.
The project was established in December and is scheduled to be completed by The judicial system, which has been historically underfunded, inefficient, and overtly corrupt, has consistently ruled in favor of government expropriation.
Government officials, notably the Minister of Mines, wield enormous influence in judicial matters and decision-making. Individuals or legal entities considering investment 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.
Guinea has experienced significantly weakened liquidity levels over the last several years due to government mismanagement, populist policies, corruption, a decrease in mining revenue due to political unrest, and dwindling foreign aid levels. It also promises fair compensation for expropriated property.
Inthe GOG claimed full ownership of several industrial facilities it had previously held partial shares in as part of joint ventures—including a canned food factory and processing plants for peanuts, tea, mangoes, and tobacco—with no compensation for the private sector partner. Each of these facilities had been founded as a state-owned enterprise and languished following privatization under corrupt circumstances in the late s and early s.
According to GOG representatives, a joint committee composed of representatives from the Ministry of Industry and the Ministry of the Economy and Finance is preparing dossiers on each facility in order to solicit bids by public auction; the GOG plans to maintain a 20 to 30 percent share in each business. Junta renovation trading options retaking these businesses from the present owners, whom the GOG considers to be corrupt and ineffective, and putting them to public auction the GOG hopes to correct past mistakes and put those assets in more productive hands.
The private partner in at least one of these joint ventures has protested the seizure of its assets and plans to fight it in court. GOG representatives have said that this expropriation applies only to former state-owned firms and that fully-owned private businesses and other joint ventures with the GOG will not be affected. The Investment Code states that competent Guinean judicial authorities shall settle disputes resulting from interpretation of the Code in the accordance with laws and regulations.
In practice, however, fair settlements may be difficult. 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 inindependent 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 junta renovation trading options from among lawyers or judges, and are supervised by the Chamber of Commerce. However, the Guinean judicial system is reported to be understaffed, corrupt, lacking in transparency, and accounting practices are frequently unreliable.
From tothe CNDD-led military junta reportedly sidelined the role of the formal judiciary in legal proceedings by transferring much of its power to a parallel military legal system. Though the Transition Government promised to address these issues and reform the judicial process, no major initiatives were taken. The Conde government has targeted judicial reform as a major junta renovation trading options in need of renovation. The organization also seeks to create harmonization of 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 inthough many of the substantive changes to Junta renovation trading options law have yet to be implemented. In many cases, the Guinean government does not meet payment obligations to private suppliers of goods and services, both foreign and Guinean, in a timely fashion. 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. Business executives, Guinean and foreign, have publicly expressed concern over the absence of rule of law in the country. InGuinean business leaders were targeted by the military for burglary and wide-scale harassment. Armed robbery of homes and businesses seems to be on the increase, though targets have mostly been pharmacies, currency traders, and other Guinean-owned businesses that keep large amounts of cash on junta renovation trading options premises.
The Investment Code, last revised inprovides tax junta renovation trading options for certain priority investments. 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 businesses; tourism facilities and hotel operations; real estate development with social benefit; and investment banks or any credit institutions settled outside junta renovation trading options population centers.
Under the Mining Code mining companies are required to hire Guinean citizens as a certain percentage junta renovation trading options their staff 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.
There is a right to private ownership of property in Guinea. The Land Tenure Code of provides a legal base for documentation of property ownership. As with ownership of business enterprises, both foreign and national individuals have the right to own property.
However, enforcement of these rights depends upon a corrupt and inefficient Guinean legal and administrative system. To date, although the proportion of land dispute cases is significant in relation to all cases filed, it is not clear that enforcement of such judgments is possible. Guinea modified its intellectual property right laws in to bring them into line with established international standards.
There have been no formal complaints filed on behalf of American companies concerning intellectual property rights infringements in Guinea. However, it is not certain that an intellectual property judgment would be enforceable, given the general lack of law enforcement capability.
The Property Rights office in Guinea is severely understaffed and underfunded. Business owners openly assert that application procedures are sufficiently opaque to junta renovation trading options for corruption, and regulatory activity is often applied based on personal interest.
Under the Transition Government, several large contracts were negotiated through the office of the Prime Minister and Interim President without any international bidding process. Many of these contracts were awarded to military or political party allies, and the terms of the agreements remain opaque. Expatriate companies have reported difficulty getting shipments of equipment and supplies through customs; in part this stems from congestion at the port of Conakry but also reflects the practice of government officials asking for payments in order to get shipments released.
As part junta renovation trading options the Mining Code the GOG has committed to increasing transparency in the mining sector. In the code the GOG commits to award mining contracts by competitive tender and to publish all past, current, and future mining contracts for public scrutiny, regardless of any confidentiality clauses in the contract itself.
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.
Commercial credit for private and public enterprise is difficult and expensive to obtain in Guinea. 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 transfers of income derived from investment in Guinea, the proceeds of liquidating this investment, and the compensation paid in the event of nationalization to any country in convertible currency.
The legal junta renovation trading options regulatory procedures, while based on French civil law in theory, 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.
Although the return of mining investment and foreign assistance following the elections has made some improvement in foreign exchange availability, the World Bank estimates that the current availability of foreign-exchange reserves is equivalent to less than one month of import cover. The Guinean Franc uses a managed floating junta renovation trading options rate.
Over the past year, the spread between the black market rate and the official rate has been as high as 26 percent, though it had decreased to 9 percent by the end of The average official exchange rate for junta renovation trading options around 6, to the dollar, though the rate has seen a considerable rise since late In addition, the previous junta government often printed money to pay off its spiraling debt, further increasing the exchange rate.
The few commercial banks in Guinea are dependent on the Central Bank for foreign exchange liquidity, making large transfers of foreign currency difficult. In addition, banking regulation, while technically possible, is in practice virtually non-existent. Banking regulations are part of the legal framework; however, lax enforcement is the rule rather than the exception. 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.