Bauxite and other mineral exports to put Guinea’s growth on the fast track, IMF predicts

After having recovered from the widespread health impact of the Ebola epidemic Guinea is now on a stable growth trajectory. The country is expected to grow at 6.7 per cent rate (real growth) in 2017 piggybacking bauxite export and other activities in the mining and construction sector, according to an International Monetary Fund report.

An IMF mission led by Georgia Albertin visited Guinean capital city Conakry from July 31 to August 15, 2017, to negotiate a new strategy programme for the country to be supported by an Extended Credit facility (ECF), an industry source reported.

“The Guinean authorities and the IMF staff made significant progress in the discussions of the economic policies and reforms that could be supported by a new IMF arrangement and would support the Guinea’s 2016–20 National Social and Economic Development Plan (PNDES) aimed at fostering higher and broad-based growth and significantly reducing poverty,” Albertin said.

A series of socio-economic and health problems have plagued the growth of the West African country for years. However, now that it is opening up to the international market, industry experts believe that it can grow following the export-oriented model. Bauxite export and export of other industrial commodities hold great prospects for Guinea in terms of revenue generation.

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Guinea bauxite is considered the best in the world. With a total reserve of 7.4 billion tonnes of the ore, the country accounts for 26.9 per cent of the global total bauxite reserve. It also possesses huge untapped reserves of iron ore, gold, diamonds and other minerals and natural resources.

Albertin observed, “Exports of bauxite and gold would increase further in 2017 and imports would continue to be sustained owing to the projects to increase production capacity in the mining sector and investment in infrastructure,”

“Efforts to mobilise revenues and contain current expenditures and strong mining revenues led to basic fiscal surplus of 0.9 per cent of GDP at the end of June 2017,” he added.