Guinea’s Bauxite Riches Plundered by Corruption
A new report has exposed the widespread corruption and bribery that pervades Guinea’s lucrative bauxite mining industry, which is critical for the production of aluminum and other technologies necessary for the energy transition.
The Industry in Crisis
The International Aluminium Institute forecasts a 40% increase in global aluminum demand by 2030, making Guinea’s vast reserves a prized asset. Yet, despite its massive wealth, the country struggles to benefit from its natural resources. The mining sector has long been plagued by corruption, with revenues failing to trickle down to the people of Guinea.
The Need for Change
In 2020, the industry’s contribution to the national budget was a paltry $500 million, deemed “insulting” by Prime Minister of the military junta. The Natural Resource Governance Institute (NRGI) has developed a research and action tool to combat corruption in the sector, which has been deployed in Guinea, among other countries.
The Way Forward
The report highlights the need for concerted efforts from all stakeholders to address corruption risks and implement an action plan. Three conditions must be met for success:
- Strengthening civil society’s role in monitoring governance
- Promoting government transparency through collaboration with the media and civil society
- Systematically empowering civil society actors
Implementation Strategy
Guinea’s National Agency for the Fight Against Corruption (ANLC) and the executive secretariat of the EITI-Guinea multi-stakeholder group have been consulted throughout the project. The ANLC must:
- Raise awareness among public and private actors tempted by corrupt practices
- Implement the action plan
The executive secretariat should ensure active engagement from the multi-stakeholder group in the concrete implementation of actions.
The Role of Stakeholders
The media play a crucial role in promoting transparency and accountability, facilitating public access to information, and reducing the administrative burden on government agencies. Civil society organizations must be empowered to monitor governance and assume an even more decisive role in fighting corruption.
Conclusion
Guinea’s success in addressing corruption risks in its bauxite sector is critical for unlocking the full potential of its mineral resources, promoting economic growth, and fostering a shift toward transparent and responsible governance. By maintaining the commitment of all stakeholders, Guinea can bolster its position as a global leader in the bauxite industry and contribute to its sustainable development.