Country Overview
Guinea’s financial markets performed impressively compared with its regional and income group peers. This has been driven by improvements in liquidity conditions in the banking sector and strong deposit growth. Guinean banks are largely domestically funded and independent of their respective foreign-owned parent companies. To efficiently utilise these solid foundations and increase the productive capacity of Guinean infrastructure markets, the Guinean government could seek to increase the strength of regulatory frameworks through stronger legal protections for shareholders. In addition, conducting market soundings would help allocate private capital more effectively.
See Full Overview Data
GDP per capita
981.0 USD
Population
13.6 million persons
Infrastructure quality
41.7 (0-100 best)
Infrastructure investment
7.0% of GDP
Private infrastructure investment
32.0 5-year average, USD millions
Infrastructure gap
5.2% of GDP

Driver Overview

This section shows a country’s rank, ranking change and score for each of the eight drivers. It also categorises each country’s driver performance on a scale from “Emerging” (score from 0-20) to “Global Leader” (score from 80-100).

Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
66
1
38.5
66
2
42.7
42
3
72.7
58
16
62.0
22
2
44.9
- No ranking change Ranking increase Ranking decrease

Rank

Score /100

Best practice

66
1
38.5
Emerging
57
11
52.6
Aspiring
66
2
42.7
Emerging
42
3
72.7
Contender
58
16
62.0
Aspiring
22
2
44.9
Top performer
57
-
23.1
Aspiring
60
12
24.5
Aspiring

Metric Overview

Strengths

Financial stability

Guinea’s financial stability score is the third highest among African Countries. A stable financial market smooths the flow of funds between infrastructure assets and investors, although the long-term impacts of the COVID-19 pandemic could affect Guinea’s financial stability.

Prevalence of foreign ownership

Among Low Income Countries, Guinea has the highest prevalence of foreign ownership. Policies that promote foreign investment can increase the supply of capital, promote competition and, in theory, reduce the costs of financing and delivering infrastructure.

Time required to start a business

According to the World Bank, the time required to start a business in Guinea is 15 days, faster than the Low Income Countries’ average of 18 days. Shorter times to set up businesses can persuade businesses to set up in a country, including new infrastructure entities.

Financial stability

Guinea’s financial stability score is the third highest among African Countries. A stable financial market smooths the flow of funds between infrastructure assets and investors, although the long-term impacts of the COVID-19 pandemic could affect Guinea’s financial stability.

Prevalence of foreign ownership

Among Low Income Countries, Guinea has the highest prevalence of foreign ownership. Policies that promote foreign investment can increase the supply of capital, promote competition and, in theory, reduce the costs of financing and delivering infrastructure.

Time required to start a business

According to the World Bank, the time required to start a business in Guinea is 15 days, faster than the Low Income Countries’ average of 18 days. Shorter times to set up businesses can persuade businesses to set up in a country, including new infrastructure entities.

Top Performing Metrics

Top Performing Metrics

This is defined by the metrics with the highest unweighted score out of 100. 

Low income country average

Financial markets:
Financial stability

Regulatory frameworks:
Prevalence of foreign ownership

Opportunities to Grow

Market sounding and/or assessment

According to the World Bank, there is an absence of a market sounding process in Guinea. Adding one could allow the government to determine if there is an interest from investors and lenders to provide commercial financing for projects.

Shareholder governance

Guinea is not considered to have strong legal protections for shareholders. A failure to adequately enforce disclosure and transparency standards lowers the confidence of investors, hurting entities that fund or deliver infrastructure.

GDP per capita

Despite a 20 year average long-term growth figure of over 6%, Guinea still has one of the lowest levels of GDP per capita of all InfraCompass 2020 countries, at only USD 981 in 2019. Despite this, GDP per capita has more than doubled in the past 20 years, with this trend expected to continue.

Market sounding and/or assessment

According to the World Bank, there is an absence of a market sounding process in Guinea. Adding one could allow the government to determine if there is an interest from investors and lenders to provide commercial financing for projects.

Shareholder governance

Guinea is not considered to have strong legal protections for shareholders. A failure to adequately enforce disclosure and transparency standards lowers the confidence of investors, hurting entities that fund or deliver infrastructure.

GDP per capita

Despite a 20 year average long-term growth figure of over 6%, Guinea still has one of the lowest levels of GDP per capita of all InfraCompass 2020 countries, at only USD 981 in 2019. Despite this, GDP per capita has more than doubled in the past 20 years, with this trend expected to continue.

Metrics to Improve

Metrics to Improve

This is defined by the metrics with the lowest weighted score out of 100, such that these metrics would have the greatest impact on the overall score.

For metrics that have binary outcomes (yes=100/no=0), no comparative income group average is reported.

Low income country average

Funding capacity:
GDP per capita

Detailed Data

This section shows country data for each of the 41 metrics. Note that all data has been normalised on a scale of 1-100. For raw metric data, please download the complete InfraCompass 2020 dataset. 

Where relevant, some metric scores have been inverted, such that all metrics have positive relationships with good infrastructure outcomes. For example, since lower compliance costs make it easier to invest in infrastructure, the normalised value of ‘number of procedures to start a business’ has been reversed such that lower number of procedures are scored closer to 100, and higher numbers closer to 0. In other words, a score of 0 indicates a poor performance, rather than 0 number of procedures.

Governance Regulatory Permits Planning Procurement Activity Funding Financial
Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
66
1
38.5
- No ranking change Ranking increase Ranking decrease

Metric

Guinea

Low Income Countries Average

Source Link

28.2%

Recovery rate

The recovery rate is recorded as cents on the dollar recovered by secured creditors through reorganisation, liquidation or debt enforcement (foreclosure or receivership) proceedings.

19.4 (+0.4)
21.8

20.7%

Rule of law

World Governance Composite Indicator reflecting perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence. The rule of law reflects whether the law imposes limits of power on the state, private sector and individuals.

25.8
37.1

18.1%

Post-completion reviews

Whether the country conducts post-completion reviews on infrastructure projects to ensure the forecast outcomes are being achieved.

Yes
-

15.1%

Shareholder governance

Measures the governance practices that protect shareholders through three dimensions: the extent of shareholder rights index (shareholders’ rights and role in major corporate decisions), the extent of ownership and control index (governance safeguards protecting shareholders from undue board control and entrenchment), and the extent of corporate transparency index (corporate transparency on ownership stakes).

0.0
16.3

12.8%

Political stability and absence of violence score

Measures perceptions of the likelihood of political instability and/or politically-motivated violence, including terrorism. Estimate gives the country's score on the aggregate indicator, in units of a standard normal distribution i.e. ranging from approximately -2.5 to 2.5.

35.4 (-8.0)
34.0

5%

Infrastructure or PPP agency

Whether an infrastructure agency exists to coordinate an integrated approach to infrastructure delivery and policy.

Yes
-

Guinea

Low Income Countries Average

19.4 (+0.4)
21.8
25.8
37.1
Yes
-
0.0
16.3
35.4 (-8.0)
34.0
Yes
-

Country Overview Data

Guinea’s financial markets performed impressively compared with its regional and income group peers. This has been driven by improvements in liquidity conditions in the banking sector and strong deposit growth. Guinean banks are largely domestically funded and independent of their respective foreign-owned parent companies. To efficiently utilise these solid foundations and increase the productive capacity of Guinean infrastructure markets, the Guinean government could seek to increase the strength of regulatory frameworks through stronger legal protections for shareholders. In addition, conducting market soundings would help allocate private capital more effectively.
GDP per capita

981.0 USD

Population

13.6 million persons

Infrastructure quality

41.7 (0-100 best)

Infrastructure investment

7.0% of GDP

Private infrastructure investment

32.0 5-year average, USD millions

Infrastructure gap

5.2% of GDP

GDP

13.4 USD billion

GDP growth rate

5.9%

GDP per capita growth rate

7.8%

Gini coefficient

33.7 (0-100 worst)

Gross Government Debt

45.0% of GDP

Inflation rate

8.9%

Unemployment rate

3.6%

Urbanisation ratio

36.0% of total population

Road connectivity

59.2 (0-100 best)

Quality of road infrastructure

3.7 (1-7 best)

Efficiency of air transport services

5.1 (1-7 best)

Efficiency of seaport services

5.0 (1-7 best)

Electricity access

17.2% of population

Exposure to unsafe drinking water

78.7% of population

Reliability of water supply

3.5 (1-7 best)

Digital Adoption Index

0.2 (0-1 best)

Mobile-broadband subscriptions

30.4 per 100 population

Fixed-broadband Internet subscriptions

0.0 per 100 population