Financial Crime World

Guinea’s Risk Management Efforts in Finance

Guinea has been making significant strides in reforming its financial sector, with a focus on risk management and institutional strengthening. In recent years, the government has implemented several initiatives aimed at improving the country’s macroeconomic stability, public finance management, and investment climate.

Tax Risk Management

One of the key areas of focus has been tax risk management. The government has:

  • Clarified conditions and limits under which public companies can contract debts
  • Strengthened budgetary transparency by specifying reporting obligations to the Ministry of Economy and Finance (MEF) and publishing financial statements online

Public Finance Management

Guinea has made progress in implementing its Treasury Single Account (CUT), which aims to improve public finance management and reduce corruption. The CUT is:

  • Operationalized
  • Supported by a general regulation on budget management and community accounting
  • Computerized state accounting

Debt Clearance and Public Procurement Reform

The government has also taken steps to clear domestic debt arrears, with clearance efforts ongoing in partnership with international organizations such as the France Development Agency (AFD), United Nations Conference on Trade and Development (UNCTAD), and World Bank.

Additionally, Guinea has:

  • Reviewed and implemented a new Public Procurement Code
  • Reduced non-tendered contracts from 60% in 2018 to 40% in 2020

PPP Development and Business Development

Guinea has made progress in establishing its PPP Cell, with decrees implementing the Public Private Partnership (PPP) law signed in early 2022. The government has also:

  • Promoted SMEs and women’s entrepreneurship through an industrial policy strategy
  • Created a One-Stop Shop for business creation, making it possible to set up a business in less than 72 hours

Anti-Corruption Framework

Guinea has established an effective anti-corruption framework, including the adoption of implementing decrees on the organization and functioning of the National Agency for the Fight against Corruption (ANFC).

Financial Framework

Guinea has also:

  • Signed a Memorandum of Understanding between the Banque Centrale de la République de Guinée (BCRG) and the Ministry of Economy, Finance and Planning on the conditions and timing of the recapitalization of the BCRG
  • Developed a weekly forecast of foreign currency liquidity to improve the predictability of market supply and demand conditions

Financial Inclusion

Lastly, Guinea has established frameworks for:

  • Financial inclusion through credit companies and partial credit guarantees
  • Resolution of bank defaults

Conclusion

Overall, Guinea’s risk management efforts in finance have been aimed at improving the country’s macroeconomic stability, public finance management, and investment climate. The government’s initiatives have focused on areas such as tax risk management, public procurement reform, PPP development, business development, anti-corruption efforts, and financial framework strengthening.