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Guinea’s Banking Regulations Compliance: A Complex Landscape

In Guinea, cash transactions still dominate the financial landscape, with even large businesses opting for this method. This trend extends to payments in both local currency, Guinean Francs, and foreign currencies. Checks and bank-to-bank transfers are relatively uncommon.

The Banking System in Guinea

Guinea’s banking system is small but significant, comprising:

  • 19 active banks
  • 19 insurance companies
  • 19 microfinance institutions
  • 6 e-money institutions

The Central Bank of Guinea (BCRG) oversees the sector, serving as both the government treasury and supervisor of banking and credit operations in Guinea and abroad.

Debt Management and Microfinance

Despite efforts to improve debt management, experts say Guinea’s treasury remains heavily involved in the process. However, progress was made between 2017-2018, offering a more promising outlook.

Microfinance has emerged as a viable option for small businesses and agricultural enterprises, with rapid growth and increased deposits and loans. However, product quality remains mediocre, with:

  • Bad debt accounting for five percent of loans
  • Approximately 17 percent of gross loans outstanding

Credit to the Private Sector

Credit to the private sector is limited, with a mere 13.6% of GDP in 2022, compared to an average of 45% across Sub-Saharan Africa. Loans are often available on expensive terms, with:

  • An average commercial lending interest rate of 15% in 2022
  • Compared to around four percent in West Africa Economic and Monetary Union countries

Banking Sector Concentration and Technology

The banking sector is concentrated in Conakry and lags behind in technology. Guinea’s banks tend to favor short-term lending at high interest rates.

Foreign Exchange Controls and Investment Climate

Foreign exchange controls are relaxed, with Guinea’s Investment Code guaranteeing the free transfer of capital. No U.S. banks have operations in Guinea, but Vista Bank, a U.S.-owned regional bank, has expanded its presence through acquisitions. In August 2023, Vista Group announced plans to acquire Oragroup S.A., the holding company of Orabank, pending regulatory approval.

For Further Information

For more information on banking regulations compliance and trade finance options in Guinea, please refer to the country’s Investment Climate Statement.