According to official World Bank estimates, Guinea’s Gross Domestic Product (GDP) was valued at $15.68 billion in 2020. Guinea’s GDP accounts for about 0.01 percent of the global economy. Guinea’s economy is mostly based on agriculture and other rural activities. Guinea is mineral-rich, with an estimated quarter of the world’s confirmed bauxite reserves, more than 1.8 billion tonnes of high-grade iron ore, considerable diamond and gold deposits, and uranium reserves. Guinea’s agriculture and fishery sectors both have significant growth potential. Large-scale irrigated farming and agroindustry are possible due to land, water, and climatic conditions. The rest of Guinea’s foreign exchange industry is made up of remittances from Guineans living and working abroad, as well as coffee exports.
Economic Community of West African States (ECOWAS)
Guinea, with Benin, Burkina Faso, Cape Verde, Cote d’Ivoire, Ghana, Guinea-Bissau, Guinea, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo, is a member of the Economic Community of West African States (ECOWAS). The Economic Community of West African States (ECOWAS) is working to establish a customs union among its members, allowing for the free flow of products and services between member countries.
African Continental Free Trade Area (AfCFTA)
The African Continental Free Trade Area has Guinea as a signatory (AfCFTA). The African Continental Free Trade Area (AfCFTA) went into effect on May 30, 2019, to create a single market for products and services with free movement of people and money, expanding intra-African trade, and improving Africa’s global competitiveness. The AfCFTA will establish a continental customs union and eliminate tariffs on 90% of traded commodities. Under the AfCFTA agreement, African countries opened their markets to duty-free goods and services trade on January 1, 2021.
World Trade Organization (WTO)
Guinea has been a member of the World Trade Organization (WTO) since October 25, 1995, and the General Agreement on Tariffs and Trade (GATT) since December 8, 1994.
Mano River Union
Guinea is a member of the Mano River Union, which sets tariffs for Guinea, Sierra Leone, and Liberia that are all harmonized.
ECOWAS and the United States
On the 5th of June, 2014, the United States signed a Trade and Investment Framework Agreement with the West African Nations, to which the Republic of Guinea is a party. In 2019, the United States exported $22 million worth of agricultural products to Guinea, Rice, poultry meat and products, condiments & sauces, prepared meals, and beef & beef products are among the top domestic export categories. Ores, slag, ash, gold, metal tools, equipment, cutlery, and fish and shellfish are among the major imports from Guinea to the United States.
ECOWAS and the European Union
Guinea is a party to the discussions for an Economic Partnership Agreement between West Africa and the European Union (EU), which was completed in February 2014. (EPA). The agreement affirms the two areas’ special relationship and intends to boost trade and investment for long-term growth. It’s a technique for boosting competitiveness, promoting industrialization, boosting exports, and improving the investment climate. West African exports to the EU are expected to reach €22.4 billion in 2020. Exports from the EU to West Africa totaled €25.8 billion. The EU is the largest export market for West African agricultural and fishery products and supplies a large portion of the equipment that contributes to the region’s economic growth and development.
