Guinea - Agricultural Sector Guinea - Agricultural Sector
Overview
Historically, Guinea was the major agricultural producer among the colonies of French West Africa. The sector subsequently collapsed, making Guinea a net food importer, despite its immense agricultural potential. Agricultural production is, with few exceptions, at the smallholder/subsistence level. However, foreign firms are looking to invest in agricultural projects in Guinea, such as rice production in the northern region of Boké. The government is currently self-funding the construction of a rice irrigation project on the Koundian plain outside of Kankan. The government hopes to be self-sufficient in the production of rice by 2020.
President Conde’s government is eager to reinvigorate the agricultural sector, but will still remain heavily reliant upon processed food imports. The poor condition of transportation routes in the interior of the country means that much of the population depends upon processed and easily transported food products. There is no cold chain transportation network and Guinea does not export much of its agricultural output due to the poor state of the roads.
Guinean producers have little or no access to short-term loans or guaranteed markets, so it is difficult for them to make capital improvements to their farms. Poor or nonexistent infrastructure compounds the problem, as producers have little access to cold storage or good roads. As a result, it is hard to get produce to local markets before it starts to spoil, let alone transport it overseas. Some producers are making the transition to dried foodstuffs, which are easier to transport, but they lack the necessary machinery to make this a large-scale operation.
While sophisticated producers are aware of U.S. sanitary and phytosanitary regulations, it is difficult for them to comply with these regulations. There is potential for Guinea to export bananas, pineapples, potatoes, mangoes, and other plants/fruits/vegetables if these problems are overcome. This could lead to significant investment opportunities for U.S. businesses.
Rice is the largest imported food item in Guinea, making up almost 40% of all food imports and accounting for over USD 200 million annually. The second largest item is wheat flour. Both of these items are staples of the Guinean diet, and domestic production is currently unable to meet demand. While there is some domestic production of rice and wheat, imported products are generally much cheaper, and therefore more popular. Guinea’s largest suppliers of rice are Thailand, India, Bangladesh, Vietnam, Pakistan, China, and Taiwan. Flour imports originate largely in France and Morocco. Principal sugar suppliers include Belgium, France, Brazil, and Senegal. Periodically, the government takes measures to protect domestic agricultural production. For example, in 2011 the government banned many agricultural exports, most notably rice, believing that this would hold down domestic prices. In 2016, the government banned the export of many high value agricultural products overland in an attempt to shift more shipping to sea- and airports.
Leading Sub-Sectors
Areas that may offer potential for U.S. exporters are rice and wheat, along with livestock feed. For interested U.S. exporters, Guinea is eligible for two USDA export programs: the Dairy Export Incentive Program (DEIP, which is not operational at this time), and the GSM-102 Export Credit Guarantee Program. For further information, please contact the U.S. Department of Agriculture, Foreign Agricultural Service, Credit Programs Division, 1400 Independence Avenue, SW, Mail Stop 1025, Washington, D.C. 20250-1025 (gsm.registrations@fas.usda.gov).
Opportunities
There are opportunities in rice, pineapples, fonio, potatoes, vegetables, mangos, dried fruits, and juices. American processed food brands are well-respected and preferred over Asian imports as being higher-quality and safer to consume. However, they are generally sold as premium products at prices higher than the average Guinean can afford.