In Guinea, the ultimatum set by the authorities for mining companies expired at midnight on Thursday. Since September 1st, companies that exploit Guinea’s subsoil resources must repatriate at least 50% of their export revenue.
It is an old measure never applied that the Guinean authorities have decided to implement. Since this Friday, the country’s mining companies have been obliged to repatriate at least 50% of their export revenues.
This provision appears in the Mining Code, but millions of euros have escaped the central bank for years.
“Unfortunately, the management or governance of the mining sector has not allowed Guinea to apply this law”, explains Alhassane Makanéra Kaké, consultant and public finance specialist.
Bauxite, gold, iron, diamonds… The land of Guinea is full of wealth which does not benefit the country’s economy enough, the authorities believe today. Storing the currencies resulting from their exports at the central bank offers advantages because “this will help strengthen the value of the currency,” adds the consultant. The State could thus have leverage to act on inflation.
Meetings took place between authorities and mining companies throughout August. The State wants to be conciliatory, initially demanding the repatriation of 50% of import revenues, before eventually asking for 100%. Mining products represent 90% of Guinea’s total exports.