Financial Crime World

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Economic Outlook in Guinea

Guinea’s economic outlook appears to be positive, driven by several key factors. Here are some key points to consider:

Strong Foreign Direct Investment

  • The country has seen strong foreign direct investment in the mining sector, which has contributed to a positive economic outlook.
  • This investment is expected to continue and stimulate growth in other sectors as well.

Infrastructure Projects

  • Future investments in infrastructure projects will continue to drive construction activity and support private sector development.
  • Improvements in business climate, governance, and electricity supply are also expected to support the growth of the private sector.

Financial System in Guinea

The Guinean financial system is characterized by a shallow and informal structure. Here are some key facts:

Limited Financial Inclusion

  • The economy is largely cash-based, with only 8% of the population having access to a bank or non-bank deposit-taking institution account in 2017.
  • Mobile financial services have been an important factor in financial inclusion, with approximately 13.8% of the population having access to a mobile wallet and associated payment services.

Financial Sector Structure

The financial sector is dominated by banks, while non-bank deposit-taking institutions and insurance companies play a relatively minor role. Here are some key statistics:

  • The financial sector is dominated by banks (94.6% of total financial sector assets).
  • Non-bank deposit-taking institutions represent just 2.5% of total financial sector assets.
  • Insurance companies represent 2.8% of total financial sector assets.
  • There are no stock markets in Guinea.
  • All commercial banks are subsidiaries of foreign groups.

Challenges Facing the Financial Sector

Despite its positive outlook, the Guinean financial sector faces several challenges:

Decline in Non-Bank Deposit-Taking Institutions

  • The real amount of total assets of non-bank deposit-taking institutions declined by almost 20% due to performance issues.
  • This decline has had a negative impact on the overall financial sector.

Slow Growth Rate for Insurance Companies

  • Insurance companies have a slow growth rate compared to the banking sector.
  • This may indicate that insurance is not yet a major player in the Guinean economy.