GUINEA

The current Guinean Constitution was adopted on 22 May 2020, with the previous one dating from 2010. This new constitution declares the country a Republic with a presidential system. The president of the Republic, who is the head of State, appoints a prime minister who is the head of the government. The government holds executive power and legislative power is shared between the National Assembly and the government. Article 136 of the Constitution recognises that “local authorities are administered autonomously by elected councils under the control of a delegate of the State, who represents the national interest and ensures that the law is respected”.

After the first Republic of Sékou Touré (1958-1984), the decentralisation process in Guinea began with the keynote speech of Head of State General Lansana Conté on 22 December 1985, which established decentralisation as the means chosen by the government to involve the population in the management of public affairs. The reforms undertaken at that time were aimed at improving governance to make policy choices and their implementation more effective. The ambition was to design and implement policies and strategies that would better respond to the needs freely expressed by the population. Decentralisation is understood as a means to empower people to take responsibility and participate in the development process through elected bodies and effective subnational governance.

The Code of Local and Regional Authorities, adopted in 2006 and revised in 2017, was a significant step forward in the structuring of decentralisation in Guinea. It recognises that local authorities have broad financial autonomy and prerogatives, with 33 transferred responsibilities grouped into 22 areas of responsibility (14 for rural and urban municipalities and eight for the regions). The last local elections were held in February 2018, more than a decade after the 2005 local elections.

Another very important step was taken in March 2012 when the National Decentralisation and Local Development Policy Letter (LPNDDL or Lettre de politique nationale de décentralisation et de développement local) and its action plan were approved by decree. This national policy letter is a practical instrument for strategic guidance to strengthen decentralisation and local development. The inter-ministerial steering committee (CIP or Comité de pilotage interministériel) of the LPNDDL, set up in 2013 and composed of 10 people representing different ministries and the National Association of Guinean Communes (ANCG or Association Nationale des Communes de Guinée), is responsible for monitoring the implementation of the action plan.

In 2016, a national local development fund (FNDL or Fonds national de développement local) was created in accordance with the provisions of Article 165 of the Mining Code. The management of the Fund is entrusted to a public administrative establishment (EPA or Etablissement public administratif), a body with decision-making and management autonomy. This EPA is the National Agency for the Financing of Local and Regional Authorities (ANAFIC or Agence Nationale Financement des Collectivités). The FNDL is intended to finance investment in all local authorities in the country according to distribution rules and an equalisation system.

In application of the provisions of Article 130 of the Mining Code, a “local economic development fund”, (FODEL or Fonds de développement économique local) was created in 2017. It aims to promote the development of local and regional authorities in the prefectures of Boké, Boffa, Fria, Siguiri, Kindia, Gaoual and Dinguiraye where the mining sites are located, and neighbouring local and regional authorities impacted. FODEL is expected to be financed in part by the Contribution to Local Development, set at 0.5% of a company’s turnover from the mining title in the area for category 1 minerals (bauxite, iron) and at 1% for other minerals.

TERRITORIAL ORGANISATION
MUNICIPAL LEVEL	INTERMEDIATE LEVEL	REGIONAL LEVEL	TOTAL NUMBER OF SNGs (2021)
362 communes (323 rural communes and 39 urban communes, including 6 communes in the special region of Conakry)
Average municipal size: 36 278 inhabitants
362			362

Name and number of sub-communal entities:

4 142 Districts/Neighbourhoods; 15 741 Sectors

OVERALL DESCRIPTION: According to the 2020 Constitution, the territorial organisation of the Republic of Guinea consists of deconcentrated administrative constituencies, namely regions, prefectures and sub-prefectures, and decentralised local and regional authorities composed of regions, urban and rural communes. Rural communes are subdivided into districts and urban communes into neighbourhoods. With the demographic and economic evolution of certain districts and neighbourhoods, in 2020 and 2021, the State has upgraded the status of 19 districts to rural communes and a sub-prefecture to urban commune status, bringing the number of local authorities to 362 communes (323 rural communes and 39 urban communes, including 6 communes in the special region of Conakry).

The special status of Conakry originates from Ordinance 002/PRG/SGG/83 on the special status of the city of Conakry. Article 2 of this ordinance stipulates that the city of Conakry is both an administrative constituency of the State and a decentralised authority with legal personality and financial autonomy. The city of Conakry is divided into six communes (Kaloum, Dixinn, Ratoma, Matam, Matoto and Kassa Islands). The city council, as the deliberative body of the city, and the president of the council, as the executive body, are responsible for the administration and management of the city. The city council is composed of members elected from among the members of the communal councils and of representatives of the city’s economic and social bodies appointed under the conditions defined by decree of the president of the Republic.

STATE TERRITORIAL ADMINISTRATION: The country has eight administrative regions (including the special region of Conakry), 33 prefectures and 324 sub-prefectures (deconcentrated level). Several studies have been carried out with different scenarios to identify the number of regions - decentralised authorities to be set up, but none has yet been created. The Code of Local and Regional Authorities of 2017 nevertheless specifies the powers and operation of these regions.

The eight administrative regions, including the special zone of Conakry, are each headed by a governor, appointed by the president of the Republic, who coordinates the regional inspectorates of the different ministries. The governor relies on the deconcentrated services of the Ministry in charge of Decentralisation, the SERACCOs, to work with local authorities. This level is now dedicated more to controlling local public policies than to implementing them.

Alongside the services of the prefecture, the prefectural directorates each represent technical ministries and should enable the State to support local authorities through the prefectural development services (SPD or Services préfectoraux de développement). The sub-prefectures, whose territory corresponds to that of a local authority, have no revenues. Outside the urban communes, the local deconcentrated services are the responsibility of the sub-prefect.

MUNICIPAL LEVEL: Rural communes and sub-prefectures share the same geographical area, which results in low visibility of rural communes in favour of sub-prefectures. The urban communes correspond to the chief towns of the 33 prefectures (excluding the six communes of Conakry). The communes have a deliberative body, the communal council, and an executive, the mayor and his deputies. The executive is elected by the communal council from among its members. The session to elect the executive of the communal council is convened by order of the supervisory authority. The election is held by secret ballot and decided by an absolute majority.

The communal level is where basic services are provided to the population through the revenue they collect and invest in implementing their local development plan (LDP or plan de développement local), including the construction of health centres, schools, water points and others.

HORIZONTAL COOPERATION: In Guinea, there are several examples of inter-communal and decentralised cooperation.

In the Boffa region, a public interest group, GRENPAH, has been organising the maintenance of rural tracks since 1995. It is a unique structure in the Republic of Guinea (the country’s first inter-communal cooperation scheme). Reorganised in 2003, it has 10 paying members (legal entities) and supports 44 village rural road maintenance committees (CVEP or Comités villageois d'entretien des pistes rurales) and two urban road maintenance committees (CEVU or Comités d'entretien des routes urbaines). GRENPAH builds an average of six crossing structures per year and serves the interests of the populations of the Boffa prefecture in maintaining rural tracks and urban roads. GRENPAH is structured around a General Assembly, a Management Board and a technical team.

The Guinea 44 association is developing its activities on the subjects of water and sanitation, rural development and local development in general. This decentralised cooperation structure from the Kindia region, which was previously financed almost exclusively by the Loire-Atlantique General Council (France), has now decided to diversify its sources of funding and is extending its support to implementing expertise to support local development over a wider area. Many other decentralised co-operation actions also exist, for example between the urban commune of Boffa and the French department of Charente Maritime (water, rural tracks, etc.), communes in the Mamou region and the French department of Nord (community health), the urban commune of Labé and communes in the French region of Occitanie, etc.

Decree A/2021/240/MATD/CAB/DND/SGG on the establishment of inter-communal cooperation signed by the minister of regional government and decentralisation sets out the rules for establishing, organising and operating inter-communal partnerships.

According to Articles 29 and 30 of Law L/2017/040/AN of 24 February 2017, on the revised Code of Local and Regional Authorities of the Republic of Guinea, rural and urban communes have 14 areas of responsibility and the regions have eight. In practice, the communes assume very little of their responsibilities due to a lack of human and financial resources. A certain number of responsibilities are assumed by the local authorities, namely: civil status, administrative, financial and accounting management and procurement. In order to strengthen local authorities in their implementation of the transferred responsibilities, two decrees implementing the Code of Local and Regional Authorities were signed in 2020, namely Joint Decree A/2020/3166/MUA/MATD/SGG/ on the allocation of responsibilities to communes in the area of household and similar waste management and Joint Decree A/2020/3053/MATD/MS/SGG/, which sets out the details of the responsibilities transferred from the central government to local authorities in the area of health and allows for the implementation of the local health development plan with the support of the prefectural health department.

Main responsibility sectors and sub-sectors
SECTORS AND SUB-SECTORS	Regional level	Municipal level
1. General public services (administration)		Creating, organising, managing, modifying and abolishing the administrative and public services of the local authority; capacity building of elected officials and staff of decentralised services; civil status
2. Public order and safety		Security (local authority policing)
3. Economic affairs/transport	Support for regional economic sectors; support for economic and technological innovation	Market facilities and economic infrastructure; transport
4. Environmental protection	Environmental protection	Environment and living environment (hygiene and sanitation); animal and vermin control
5. Housing and community amenities	Maintaining road infrastructure between regions	Social and administrative infrastructure; roads and maintaining public lighting; maintaining community facilities; managing the community’s assets and property
6. Health	Managing prefectural and regional hospitals	Primary health (health centres, health outposts)
7. Culture and leisure	Promoting cultural and sporting activities	Building cultural infrastructure (youth centres and cultural centres)
8. Education	General secondary education through the management of secondary schools; vocational training	Pre-school, elementary and secondary education; literacy and civic education
9. Social welfare		Social action (promotion of women and children)

Scope of fiscal data: 342 rural and urban communes out of the 362 local governments. In 2020, 20 newly created communes had no budget.

Ministry of Local and Regional Government and Decentralisation; Ministry of Finance; Ministry of the Budget.

Availability of fiscal data: Medium

Quality/reliability of fiscal data: Medium

GENERAL INTRODUCTION: In its Title V - Chapter 1, the Code of Local and Regional Authorities revised in 2017 defines the general provisions concerning the finances of subnational governments. These provisions are managed in accordance with the provisions of Organic Law L/2012/012/CNT on Finance. Chapter 3 deals with the revenues of subnational governments and has the status of a tax law. The finances of subnational governments and their financially autonomous public services are managed according to the general principles of public finance. Rural and urban communes have a budgetary and accounting framework composed of revenues (tax revenues, non-tax revenues, state subsidies and grants, miscellaneous and accidental income and income from the mining sector) and spending. Local and regional authorities must prepare, adopt and have the provisional statement of revenue and spending approved annually by the State representative. To this end, they have a manual of budgetary and accounting procedures and a manual of internal control and audit procedures.

Subnational government expenditure by economic classification
2020	Dollars PPP / inhabitant	% GDP	% general government	% subnational government
Total spending	0.8	0.03%	0.3%	100.0%
Current spending	0.7	0.02%	0.3%	83.9%
Staff spending	0.3	0.01%	0.3%	32.4%
Intermediate consumption	-	-	-	-
Current social spending	0.4	0.01%	-	46.3%
Subsidies and current transfers	-	-	-	-
Financial charges (including interest)	0.04	0.01%	0.2%	5.3%
Other current spending	-	-	-	-
Capital spending	0.1	0.01%	0.3%	16.1%
Capital transfers	0.1	0.01%	-	16.1%
Direct investment (or GFCF)	-	-	-	-

EXPENDITURE: The spending of Guinean subnational governments is composed of operating expenses (debts, salaries and wages, current expenses, economic and social interventions, exceptional expenses - past and miscellaneous, financial expenses) and capital investment expenses (endowments, subsidies granted, funds allocated to subnational governments, loans, portfolio and patrimonial values, study and research expenses, tangible fixed assets, fixed assets in progress, miscellaneous expenses, results). Spending by economic category is 83.9% current spending. These include staff costs which account for 32.4% of local spending, current social spending at 46.3%, financial charges (5.3%) and grants and other current transfers (2.4%).

DIRECT INVESTMENT: Direct investment in the communes is 16.1% of spending, if we understand that the majority of “grants awarded” are for capital investment. Most direct capital investment spending is financed by the National Local Development Fund through the National Agency for the Financing of Local and Regional Authorities (ANAFIC).

Local authorities incur operating and capital expenses in accordance with the annual capital investment plan (AIP or plan annuel d'investissement), which is derived from the local development plan (LDP or plan de développement local) of each commune. Capital investment spending is used to achieve the development priorities of the communes through: (i) the economic development programme covering the following sectors: agriculture, livestock, fisheries, handicrafts, aquaculture, tourism, industry and SMEs, energy, trade, transport infrastructure; (ii) the land-use planning programme covering urban planning and housing; (iii) the socio-communal development programme covering sectors such as education, health, water, culture and worship, youth, women's and children’s development, communication, hygiene and sanitation (iv) the impact mitigation programme covering environment and sanitation-waste management; (v) the institutional development programme, including good governance, capacity building, conflict management and security.

Over the past 10 years, the socio-communal development programme has been implemented to a greater extent by local and regional authorities, prioritising the construction of health, educational and cultural infrastructure, boreholes and rural roads.

ⓘ No detailed data available for this country

The categorisation of ANAFIC transfers used to finance the development actions of the 337 communes reveals that 44.4% of the capital spending of the subnational governments is allocated to infrastructure and equipment and 31.9% to education. According to the data on the situation in the 337 communes with ANAFIC funding for the year 2020, 12.6% of capital investment spending is allocated to cultural and sports infrastructure and 10.8% to health. The last and much less significant portion of ANAFIC transfers is for security (0.2%).

Subnational government revenue by category
2020	Dollars PPP / inhabitant	% GDP	% general government	% subnational government
Total revenue	1	0.04%	0.3%	100.0%
Tax revenue	0.3	0.01%	0.1%	28.9%
Grants and subsidies	0.4	0.01%	-	31.1%
Tariffs and fees	0.4	0.02%	-	36.3%
Income from assets	-	-	-	-
Other revenue	0.04	0.002%	-	3.8%

OVERALL DESCRIPTION: The provisions of Chapter 3 of the Guinean Code of Local and Regional Authorities have the status of a fiscal law relating to the revenue of subnational governments. These provisions may only be amended by a new tax law applying to subnational governments or, in the case of revenues shared between the central government and subnational governments, by a provision in the finance act for the year. The elements that make up the revenues of local authorities are operating revenue and capital investment revenue, according to a budgetary classification.

Following the identification by local actors of new own-source revenues for local authorities, the Ministry in charge of Local Authorities, with the support of the Ministry of the Budget, proceeded to revise the budget and accounting classification in 2020. This revision involved the integration of new own-source revenues (the 0.5% quota on public works and civil engineering contracts; the withholding on the purchase of local products; the withholding on the income of non-resident service providers; the tax on motorboats; the fee on the authorisation to use property or to carry out professional activities; the registration fees for examinations; the sale at public auction of elements of the local authority’s assets) and the alignment of the budgetary and accounting nomenclature with the recommendations of the Organisation for the Harmonisation of Business Law in Africa (OHADA or Organisation pour l’harmonisation en Afrique du droit des affaires).

In 2020, fees and charges accounted for 36.3% of total communal revenue, grants and subsidies 31.1%, tax revenue 28.9% and other revenue 3.8%.

TAX REVENUE: According to Article 484 of the Code of Local and Regional Authorities, tax revenues are the taxes, contributions and direct taxes on the roll (list of taxpayers) which result from the product of the tax bases fixed by the law. Some tax revenues are shared between the State and local authorities, including: business tax (patentes), licences, the single land tax (CFU or contribution foncière unique), the single business tax (TPU or taxe professionnelle unique), the tax on firearms and the single vehicle tax (TUV or taxe unique sur les véhicules). The rates, tariffs and methods of determining the basis of assessment of these shared revenues are determined by the finance act of each year and the General Tax Code, which also establish the distribution keys of their proceeds between the State and the local authorities.

The CFU (land tax) is payable by natural persons or legal entities owning real estate, developed or undeveloped. It was established for the national budget and the budget of the local authorities of the Republic of Guinea and its proceeds are distributed according to a distribution key. This tax revenue is collected following a census of taxpayers. The difficulties encountered by local authorities in the context of the CFU lie in the processes of identification, payment and collection.

In 2020, tax revenues represent 0.01% of GDP and 0.1% of public revenues.

Local authorities are assisted in the collection of taxes by the prefectural tax services under the control of the national tax authorities. The prefectural tax office is in charge of editing the tax rolls. Compliance with tax allocation rules is enforced by the Prefectural Tax Directorate.

GRANTS AND SUBSIDIES: The revised Code of Local and Regional Authorities provides for two types of grants from the State: an operating grant and a capital grant. These allocations from the State to local authorities (urban and rural communes) vary between communes and from year to year on the basis of a distribution key defined by the State.

On the basis of the distribution key for the year 2020, GNF 224 618 million (~ USD 55 million PPP) were allocated to investments and micro-projects planned by local authorities through the National Agency for the Financing of Local and Regional Authorities (ANAFIC). This amount represents an increase of 17% from the GNF 191 360 million (~ USD 47 million PPP) transferred by ANAFIC to the 337 local authorities in 2019. This assistance and capital investment aid fund is complementary to the subnational governments’ spending as reported in their administrative accounts. Each year, the planned amount is distributed among all communes, except those of Conakry, according to the equalisation formula adopted by the government, i.e.: one part “structural allocations” made up of a fixed basic amount of GNF 1 000 million (~ USD 250 000 PPP) for each of the communes, and the second part “allocations per capita” indexed on the population with a fixed amount per inhabitant for all subnational governments.

For the 6 remaining local authorities in the Conakry special area, a development fund for the communes of Conakry was set up but has not been implemented for the 2020 financial year. This fund is an earmarked budget derived from customs revenues extracted from oil port and airport revenues, which are to be paid directly into the accounts of the 6 communes to finance their local development plans.

With regard to the economic and local development fund (FODEL), an amount of GNF 39 270 (~ USD 9.7 million PPP) was distributed in 2020 among 10 local authorities in the prefecture of Boké to finance the development actions of the communes. A FODEL Management Support Committee (CAGF or Comité d’appui à la gestion du FODEL) has been set up jointly by the Ministry of Local and Regional Government and Decentralisation and the Ministry of Mines and Geology. The CAGF is the main entity for the implementation and monitoring of FODEL-funded projects at the level of each mining prefecture, through their local development plan. The resources that feed the FODEL are provided via a specific bank account by each mining company operating in the local authorities directly impacted and bordering the mining title. These resources are intended to enable the population to benefit from the profits of mining activity in their local areas. Like ANAFIC, FODEL is a fund for assistance and support to local authorities used for investment in mining prefectures.

OTHER REVENUE: More than a third of the local authorities’ revenue comes from the collection of fees and charges (36.3%). This category of revenue is made up of market stall fees, kiosk and stall rental fees, livestock storage fees, motor vehicle parking fees, impound fees and proceeds, tourist site exploitation fees, quarrying fees, artisanal mining fees, forestry fees, fees for the private occupation of the public domain, topographical fees, burial fees and the withholding tax for housing. Generally, mayors entrust the collection of most of these non-tax revenues to individuals or persons called “collectors” or to transport unions (bus stations) or market administrators (kiosks and stalls in markets) and sometimes to the finance commissions of communal councils.

ⓘ No detailed data available for this country

FISCAL RULES: The budget of a subnational government is drawn up according to budgetary principles, namely: unity, annuality, universality, specificity of credits and balance. According to the Law on the Code of Local and Regional Authorities (Section II, Article 441), a 60% deduction is made from operating revenue to be used for capital spending. This levy is a condition for preparing, adopting and approving the communal budget. This is real capital investment revenue from the revenues collected from subnational government taxes and levies. It also allows communes to invest more in infrastructure development.

DEBT: According to Article 490 of the Code of Local and Regional Authorities, subnational governments, after deliberation by the council, may take out loans (capital investment revenue) to cover the capital spending of the budget. The limits and conditions under which local authorities may resort to borrowing are set by the current finance law. Resorting to borrowing is the responsibility of the deliberative body (communal council), however, this responsibility may be delegated to the mayor or to a commission.

There is a borrowing scheme for local authorities at the level of the Central Bank. This is not operational and local authorities are currently unable to borrow through this system. Nevertheless, some communes borrow informally from individuals to finance some of their activities.

TERRITORIAL MANAGEMENT OF THE CRISIS: In his address to the nation on 26 March 2020, in response to the first case of COVID-19 infection in a commune of Conakry, the president of the Republic declared a state of emergency which was extended until 15 August 2020.

Guinea’s strategy for dealing with the COVID-19 crisis aims to prevent the disease and break its chain of transmission. The following actions undertaken by the government are part of this framework: (i) implementing the national preparedness and response plan against COVID-19; (ii) establishing a state of health emergency; and (iii) creating the scientific council in Guinea. The national preparedness and response plan for COVID-19 was developed by the Ministry of Health in February 2020, prior to the occurrence of the pandemic in Guinea. The overall objective of the six-month plan was to strengthen the country's capacity to prepare for and respond to a possible COVID-19 outbreak. The development of this plan involved the local actors through consultations.

The government’s institutional response on the health front was the creation of the scientific council for the response to COVID-19. This body brings together several national experts from various fields under the authority of the prime minister. The aim of the scientific council is to make recommendations to strengthen the effectiveness of the national response to the pandemic. The council is responsible for monitoring, analysing and advising the government in the epidemiological, biological, clinical, therapeutic, socio-economic and environmental fields.

The regional, prefectural and communal authorities were involved in managing this health crisis by closing all borders (except for the transport of goods with reduced staffing levels), reducing the number of passengers on public transport (urban and interurban), closing educational establishments and places of worship, and requiring that barrier measures be applied to all access to public places, markets and restaurants

Across the country, after the State announced the need to implement the crisis management plan, all subnational governments held an extraordinary session on the application of health measures. The local elected representatives held awareness-raising sessions for the population in the neighbourhoods and districts on health measures.

EMERGENCY MEASURES TO COPE WITH THE CRISIS AT THE DIFFERENT LEVELS OF GOVERNMENT: To cope with the crisis, mitigating measures were taken for the benefit of households in local authorities, through the National Agency for Economic and Social Inclusion (ANIES or Agence nationale d'inclusion économique et sociale) with targeted budgetary aid. The aim is to provide social protection to households and to protect them from a sharp decline in their purchasing power, preventing them from falling into insecurity and poverty. As part of the measures to mitigate the impact of the crisis, the local authorities, through the communal councils, set up communal health crisis management committees. These committees worked closely with the National Agency for Health Security (ANSS or Agence nationale de sécurirté sanitaire) ANIES teams to observe barrier measures and distribute cash and food in the neighbourhoods and districts. In addition, mitigation measures for the benefit of vulnerable populations were put in place by the national authorities using (i) the National Social Protection Policy; (ii) the National Gender Policy; and (iii) the National Health Development Plan to guide their interventions. To ensure these interventions are effective, the national authorities are co-ordinating them with: (i) the NAFA emergency response and support project (the objectives of the NAFA programme for Guinea are to develop the building blocks of a shock-responsive national social protection system and increase access to shock-responsive safety nets for poor and vulnerable households); and (ii) the second phase of the Sahel Women's Empowerment and Demographic Dividend Project.

IMPACTS OF THE CRISIS ON SUBNATIONAL GOVERNMENT FINANCE: With financial support from UNICEF, a delegation from the Ministry of Local and Regional Government and Decentralisation, through the National Development Directorate, visited five rural communes in the country from 27 to 29 December 2021. The objective of this was to assess the results achieved and the changes in revenues from 2019 to 2021. Following the analysis of tax collections in the operating section, the general observation is that the level of local revenue collection in 2020 is lower than in the other two years in some communes. Other effects of the COVID-19 crisis in some local authorities include laxity in the taxpayer census process and in the collection of taxes by local actors.

In general, the most significant impact on local government finances is related to the slowdown or even cessation of certain economic activities and the impossibility of collecting the corresponding own or shared taxes.

ECONOMIC AND SOCIAL STIMULUS PLANS: On 2 April 2020, the Republic of Guinea launched an economic response plan to the COVID-19 health crisis, effective until 2021. The aim of the plan was to contain the spread of the pandemic, protect the health of the population, help the private sector absorb the shocks caused by the economic downturn and support economically weak households. During the development of this response plan, the Ministry of Planning and Economic Development organised several information meetings during which local elected officials were invited to share information and conduct awareness campaigns among the population. The plan has three parts: a health component, which aims to strengthen the health infrastructure and system; a social component, which aims to mitigate the consequences of the health crisis for poor households; and a private sector support component. In the matter of private sector support, the central government developed two financial tools to implement its support to the private sector: (i) a support fund for economic interest groups (EIGs) and enterprises, and (ii) a loan guarantee fund for enterprises (FGPE SA or Fonds de garantie des prêts aux entreprises).

Established by decree D/2020/097/PRG/SGG of 29 May 2020, the purpose of the EIGs and enterprise support fund is to provide refundable financial assistance. The beneficiaries of this fund are companies (VSEs, SMEs or large companies) and EIGs providing air, sea and land transport services or operating in the following sectors: tourism, trade, catering, agriculture, livestock, fisheries, education, culture, youth and any other sector recognised as eligible.

The FGPE SA was created by Decree D/2020/098/PRG/SGG/ of 29 May 2020 with the aim of “sharing risk with financial sector actors to facilitate SMEs’ access to financing, promote economic development and work towards poverty reduction, by providing financial institutions with guarantees and other similar or related financial products, and maximising the use of other guarantees that do not consume public funds”. The beneficiaries of this fund are banks, financial institutions, microfinance institutions and public procurement authorities. Through the communal health crisis management committees, subnational governments spread information about the fund and raised awareness among the population to encourage potential beneficiaries to approach microfinance institutions. Finally, central government measures to get private companies and the informal sector back on track, particularly those operating in the hotel, craft and small trade sectors, have focused on the reduction of social, financial and fiscal charges to preserve employment and guarantee the viability of the companies; reducing and easing tax obligations for all companies in order to limit the slowdown in activity; and easing the mechanisms for financing the economy through a mechanism for guaranteeing bank loans to SMEs in difficulty and prudent intervention by the Central Bank of the Republic of Guinea.