Guinea—Assessing Sector Capacity for Foreign Direct Investment Linkages

Client: World Bank

Duration: 2017-2018

Region: Sub-Saharan Africa

Country: Guinea

Solutions: Sustainable Business

The opening of new bauxite, gold, and iron ore mines in Guinea brings with it the potential to accelerate the country’s economic development and positively impact local livelihoods. New investments in the burgeoning mining industry can create jobs, raise incomes, and promote the development of local small and medium enterprises (SMEs), but only if critical market constraints can be identified and addressed by the country’s policymakers. To help ensure that new mining projects in Guinea maximize benefits to the domestic economy, the Ministry of Mines, with support from the World Bank, is working with DAI’s Sustainable Business Group (SBG) to develop its Domestic Value Addition policy (DVA). As a key guiding document, the DVA will assess current local value chains and provide a pathway to improve the competitiveness and capacity of Guinean SMEs.

Using DAI’s Local Content Optimization Model (LCOM), the SBG team is assessing 10 commercial sectors in Guinea, including construction services, equipment manufacturing, logistics, machine maintenance and repair, and food catering. The LCOM analysis will help to determine which industries have the highest potential to provide local content to new mining investors, and identify job skills needed for local workers to find employment in these value chains. The DVA will provide policy suggestions and a strategic action plan to address market constraints and skills gaps, with specific recommendations for women-owned business, as well as offer an effective evaluation framework to measure inclusive domestic growth.

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