Human Resources a Major Obstacle to Financial Sector Reforms in Guinea

LACK OF TRAINED STAFF DELAYS IMPLEMENTATION OF TA RECOMMENDATIONS

The implementation of financial sector reforms in Guinea has been hindered by the lack of available human resources, according to experts. Despite commitments from authorities to implement recommendations proposed during Technical Assistance (TA) missions, delays are expected due to the shortage of skilled staff.

World Bank Provides Technical Assistance for Financial Sector Development

The World Bank is also providing TA for the financial sector in Guinea, with recent focus on developing a credit registry and national financial inclusion strategy. While progress has been made in some areas, the establishment of a credit registry has slowed due to ongoing TA efforts.

Key Statistics from IMF’s Financial Sector Stability Review

• The financial sector in Guinea is dominated by commercial banks, which account for 94.6% of total financial sector assets.
• Nonbank deposit-taking institutions and insurance companies represent only 2.5% and 2.8%, respectively.
• Foreign ownership of commercial banks in Guinea highlights the need for cross-border cooperation.

Limited Financial Inclusion in Guinea

Despite efforts to increase financial inclusion, Guinea’s economy remains largely cash-based:

• Only 13.8% of the population has access to a mobile wallet and associated payment services as of end-2017.
• There is only one bank that provides Islamic banking services, while two others have Islamic banking services windows.

Human Resources Constraints Hindering Progress

The government has been working to improve the financial sector, but human resources constraints are expected to continue delaying implementation of TA recommendations. The lack of skilled staff is likely to hinder progress in achieving Guinea’s financial inclusion goals.