Lack of Human Resources Stalls Implementation of Financial Sector Recommendations

The implementation of technical assistance (TA) mission recommendations in Guinea’s financial sector has been hindered by a lack of available human resources. Despite the authorities’ commitment to implementing proposed reforms, delays have occurred due to inadequate staffing.

Major Obstacle

According to experts, the shortage of skilled professionals is a major obstacle to the effective implementation of TA recommendations. The situation is further exacerbated by the fact that many existing staff members require training and capacity-building programs to upgrade their skills.

Background

In recent years, the World Bank has provided significant technical assistance to Guinea’s financial sector, focusing on the development of a credit registry and national financial inclusion strategy. These efforts have led to the publication of a financial inclusion report and the introduction of mobile financial services. However, the lack of human resources has slowed down the implementation of these initiatives.

Financial Sector Overview

The financial sector in Guinea is dominated by commercial banks, which account for 94.6 percent of total financial sector assets. The banking sector consists of:

• 16 commercial banks
• 21 non-bank deposit-taking institutions
• 12 insurance companies

Despite the growth of the insurance and non-bank deposit-taking institution sectors, their share in the total assets of the financial sector has declined.

Impact on Financial Sector Development

The lack of human resources is not only a constraint on the implementation of TA recommendations but also hinders the development of Guinea’s financial sector as a whole. The country’s financial inclusion rate remains low, with approximately 8 percent of the population having access to an account in a bank or non-bank deposit-taking institution. Mobile financial services have been introduced, but their uptake has been limited due to lack of awareness and inadequate infrastructure.

Government Initiatives

The government is aware of the importance of addressing this issue and has begun taking steps to address it. It has launched initiatives aimed at developing the skills of existing staff members and attracting new talent into the sector.

Recommendations

1. Prioritize Staff Training: The government should prioritize the development of a comprehensive training program for existing staff members in the financial sector.
2. Attract New Talent: The authorities should explore ways to attract new talent into the sector, including offering competitive salaries and benefits.
3. International Support: International organizations should provide additional technical assistance to support the development of Guinea’s financial sector, including capacity-building programs for staff members.
4. Incentivize Career Choices: The government should consider introducing incentives to encourage individuals to pursue careers in the financial sector.

By addressing the shortage of human resources in Guinea’s financial sector, the country can overcome the current delays in implementing TA recommendations and take a significant step towards developing its financial sector.