World Bank upbeat on Guinea as growth projected to hit 4.8% in 2024

Guinea's economic growth is set to accelerate to 4.8 percent in 2024, according to the World Bank. However, the institution notes that this growth could have been even more rapid if not for the brief violence and looting experienced in January 2024, which took a toll on the economy. Despite this setback, medium-term growth projections for the country are still positive, with an expected settlement at three percent. CNBC Africa recently interviewed Marie-Chantal Uwanyiligira, the World Bank Country Director for Benin, Cote D'Ivore, Guinea & Togo, to gain more insight into the World Bank's perspective on Guinea's economic development prospects. Marie-Chantal emphasized the World Bank's commitment to fostering prosperity for all Guineans through transformative projects. One key area of focus highlighted in the interview was the importance of value addition and value capture within Guinea's economy. By partnering with industrial stakeholders, Marie-Chantal discussed the potential for significant development impact, particularly if policies are aligned with Simando, a major project in Guinea's mining sector. According to the World Bank's analysis, the successful implementation of Simando, coupled with strategic policy decisions and economic diversification, could potentially double Guinea's GDP. This would have a direct, positive impact on the country's citizens, significantly increasing domestic revenue by up to 44%. The key to unlocking this potential lies in investments in human capital, infrastructure development, and the transformation of transport corridors into economic hubs that link to the agricultural sector. Marie-Chantal emphasized the need to view projects like Simando not merely as mining ventures but as catalysts for holistic economic transformation. Drawing parallels with successful models in countries like Australia, Botswana, and Namibia, she encouraged Guinea to aspire to become Guinea 2.0 or 3.0, envisioning a future where the nation's economic prowess extends beyond mining to various sectors, positioning Guinea as an economic hub in West Africa. In terms of development priorities for Guinea, the World Bank outlined four key areas for strategic focus. The first priority is the establishment of a stable macroeconomic environment, crucial for attracting investments and facilitating sustainable growth. Additionally, the emphasis is placed on enhancing domestic resource mobilization to fund development initiatives effectively. The second priority centers on economic diversification, particularly in the agriculture sector, which holds significant potential for employment and food security in Guinea. Despite having vast arable land, Africa continues to face food insecurity, highlighting the importance of transforming agricultural practices and increasing productivity. Infrastructure development emerged as the third priority, with a shift towards creating infrastructure that not only facilitates growth but also nurtures private sector participation. By enabling conducive conditions for private sector engagement, Guinea can harness opportunities for collaborative value creation and economic expansion. Lastly, the World Bank stressed the need to empower the private sector through collaborative initiatives like Simando, where diverse stakeholders come together to unlock untapped value and drive inclusive growth. By fostering a conducive environment for public-private partnerships, Guinea can pave the way for scalable development programs that cater to the needs of its populace, ultimately realizing the vision of a prosperous and thriving economy.