Guinea has reinstated its collaboration with the Economic Community of West African States (ECOWAS). During the inaugural edition of its investment forum, the regional organization finalized a financing agreement aimed at bolstering development initiatives within the country.
Economic sanctions lifted
During an extraordinary session convened on February 24, 2024, in Abuja, Nigeria, the ECOWAS Conference of Heads of State and Government made a significant decision regarding the lifting of sanctions imposed on several countries in the region. As outlined in a communiqué issued on February 25, 2024, ECOWAS has decided to terminate financial sanctions against the Republic of Guinea.
This decision comes one year after a change in regime occurred in September 2021. Following the accession of Colonel Doumbouya to power, ECOWAS had previously suspended all financial assistance and transactions via its member institutions to Guinea. Additionally, the organization froze the assets of the country’s leaders and imposed travel bans. However, it’s worth noting that Guinea’s suspension from all ECOWAS decision-making bodies remains in effect despite the lifting of financial sanctions.
ECOWAS investment forum launched
ECOWAS member countries are confronting economic challenges exacerbated by global conflicts. In response, the ECOWAS Bank for Investment and Development (EBID) is spearheading the first edition of its Investment Forum (EIF). Held in collaboration with Togo and India Exim Bank, EIF 2024 is set to take place on April 4 and 5 in Lomé.
The primary objective of the forum is to showcase investment prospects in key sectors across member states. The event will center on themes highlighting the critical need for collective efforts and innovative approaches to address infrastructure deficiencies, energy poverty, and food insecurity within the region. With this in mind, EBID is drawing up three framework agreements:
- Agreement with Niger for a health infrastructure project worth 114 million USD
- Collaboration with Grands Trains of Senegal, including an amount of 80 million USD
- 307 million USD financing agreement for multi-sector initiatives in Guinea
Development financing agreements
On April 7, 2024, the Ministry of Planning and International Cooperation revealed the finalization of a significant framework agreement between Guinea and the ECOWAS Bank for Investment and Development (EBID), amounting to 307 million USD. The agreement was formalized through the signatures of Guinea’s Minister, Ismaël Nabi, and the President of the institution, George Agyekum Donkor. These funds are earmarked to support a diverse array of socio-economic projects across the country.
During EIF 2024, Guinean Minister Nabi also held discussions with the Francophonie representative for West Africa and an Indian delegation. The latter included senior officials from the Ministry of External Affairs and the Export-Import Bank. Discussions focused on revitalizing and strengthening collaborative initiatives with India, in particular:
- Water supply for Greater Conakry, valued at 170 million USD
- Electrification of 7 universities and 200 health centers, valued at 20 million USD
- Construction of regional hospitals, estimated at 55 million USD.
Future prospects for Guinea-ECOWAS cooperation
The framework agreement marks a significant milestone in bolstering economic relations between Guinea and ECOWAS. Agyekum Donkor emphasized Guinea’s longstanding status as a valued partner of the institution, reaffirming its continued access to support. During the discussions, attention was drawn to the project aimed at establishing a fund for the development of the transport and energy sectors (Fodete).
This initiative, funded by levies on the region’s primary export resources, has the potential to generate up to 450 million USD annually. Its objective is to address the annual infrastructure shortfall in the region, estimated at approximately 12 billion USD. Fodete thus emerges as a dependable and promising financing mechanism for future regional development endeavors.
Given Guinea’s abundant mineral resources, particularly in the West African region, the country stands poised to make a substantial contribution to Fodete, primarily through its exports. With the lifting of economic sanctions, Guinea is poised to reap the benefits of this fund, leveraging its resources to drive regional development initiatives.
