The Road to the SDGs

– The preliminary selected value chains are seafood/aquaculture (fresh, dry and smoked fish), horticulture (fresh and chilled fruits and vegetables) and cash crops (cocoa, groundnuts, coffee and rubber) – Cash crops have significant export potential and could present profitable business opportunities for the private sector. X Preliminary findings for the mining industry are as follows: – Value chains are focused on aluminium, aluminium compounds (corundum) and gold. Other significant minerals include massive iron ore reserves as well as significant resources of cement, salt, diamonds, graphite, limestone, manganese, nickel and uranium – The mining sector, which contributed to 80% of the country’s economic growth in 2017, has immense transformative potential if harnessed appropriately. The two main products identified in this sector are: Bauxite — Guinea has the world's largest bauxite reserves, estimated at 7.4 billion tons and representing 30% of global reserves. Bauxite is a key source of export revenue, accounting for 90% of exports and contributing 20% of the country’s tax revenues Gold — Guinea’s gold reserves are predominantly found in the northeast of the country. The country produces an annual average of 9 tons of gold, although the potential reserves are estimated at 700,000 tons. X Guinea is home to the world’s largest untapped iron ore deposits, which could transform the country’s economic landscape. X The high level of vertical integration in mining GVCs means that the large mining companies possess their own refineries and smelters all over the world. This means that parts of the value chain shift to the cheapest areas of production. POTENTIAL IMPACTS X The Government of Guinea has identified key areas for action that are aligned with the bottlenecks specified by the IsDB GVC team. The complete GVC analysis for Guinea will further address the identified gaps and constraints at a more granular level to ensure: – The development of agriculture value chains with a view to encouraging value addition, diversifying Guinea’s economy and reducing reliance on food imports – Structural transformation of the economy through investment in infrastructure (energy and transport) – Participation of Guineans in skilled jobs in the mining sector through skills development programmes – Participation of local SMEs in the mining sector – Access to finance for local SMEs in both mining and agriculture – Human capital improvement for better outcomes in both mining and agriculture – Sustainable use of natural resources through environment- friendly production and processing. INVESTMENT X IsDB’s GVC analysis found that investment in the food crops segment will contribute directly to rural poverty reduction for smallholders and food security for the country. X Increased investments in mining have already contributed to Guinea’s economic growth, with the sector currently accounting for 90% of exported goods and one fifth of tax revenues. However, IsDB’s analysis concludes that the mining sector is still far from reaching its true potential. X The recommended measures for both sectors should enable the country to access gains from market-oriented agriculture and mining practices. M I N I N G Bauxite accounts for 90% of exports and contributes 20% of Guinea’s tax revenues Potential gold reserves are estimated at 700,000 tons [ 239 ] T H E R O A D T O T H E S D G s | P R O G R E S S A N D A C H I E V E M E N T S