I.  COMMERCIAL OVERVIEW

GUINEA'S ECONOMY AND COMMERCIAL SECTOR ARE IN THE EARLY STAGES
OF DEVELOPMENT.  IN TEN YEARS OF REFORM SINCE THE TERMINATION
OF THE FIRST REPUBLIC'S SOCIALIST POLICIES IN 1984,
SIGNIFICANT LIBERALIZATION HAS BEEN ACHIEVED.  GROWTH IN
TRADE, AGRICULTURAL PRODUCTION, MANUFACTURING, AND THE
INFORMAL SECTOR HAVE RESPONDED ACCORDINGLY.  GUINEA BENEFITS
FROM PLENTIFUL LAND, WATER, AND MINERAL RESOURCES.  ALTHOUGH
GROWTH HAS BEEN POSITIVE, MANY ECONOMIC MANAGEMENT ISSUES
REMAIN TO BE RESOLVED IN ORDER TO CREATE A HEALTHY ENABLING
ENVIRONMENT FOR PRIVATE SECTOR GROWTH.

GUINEA'S 1993 GDP WAS COMPOSED AS FOLLOWS:  TRADE 25.2
PERCENT; MINING 20.5 PERCENT; AGRICULTURE 16.4 PERCENT;
CONSTRUCTION 6.7 PERCENT; TRANSPORT 5.1 PERCENT; MANUFACTURING
4.6 PERCENT.

HIGHEST GROWTH SECTORS INCLUDE MINING (9.5 PERCENT IN 1993),
CONSTRUCTION (6.5 PERCENT), TRADE (4.9 PERCENT), AGRICULTURE
(3.5 PERCENT), FISHERIES (15 PERCENT).  (NOTE: 1993'S HIGH
MINING GROWTH RATE REFLECTS LARGELY THE DISTORTIONS CREATED BY
THE RECOVERY OF THE GOG-OWNED BAUXITE MINING COMPANY, SBK,
FROM ABNORMALLY LOW LEVELS IN 1992.)

DONOR PROJECTS CONTINUE TO PROVIDE THE LARGEST SOURCE OF
BUSINESS OPPORTUNITY FOR EXPATRIATE FIRMS AND A CRITICAL
ENGINE OF GROWTH FOR GUINEA'S INFRASTRUCTURAL DEVELOPMENT.
OFFICIAL LOANS AND GRANTS TOTALLED 240 MILLION IN 1993.  DONOR
PROJECTS INCLUDE ROADS, SCHOOLS, AND WATER SYSTEMS
CONSTRUCTION, AND ONGOING IMPROVEMENTS IN ENERGY,
TELECOMMUNICATIONS, TRADE, TRANSPORT, AND OTHER SERVICES.
U.S. FIRMS SHOULD BE ADVISED, HOWEVER, THAT MANY NON-U.S.
DONOR PROCUREMENTS ARE OFTEN ONLY OPEN TO COMPANIES OF THE
DONOR GOVERNMENT'S NATIONALITY.

OVERVIEW OF IMPORT MARKET

GUINEA'S IMPORT MARKET, WORTH APPROXIMATELY 873.5 MILLION USD
IN 1993, REPRESENTS 26.6 PERCENT OF GROSS DOMESTIC PRODUCT.
IMPORTS ARE LED BY INTERMEDIATE GOODS (210.3 MILLION USD AND
24 PERCENT OF TOTAL IMPORTS), EQUIPMENT (169 MILLION USD AND

19.3 PERCENT OF TOTAL IMPORTS), FOOD PRODUCTS (166 MILLION, 19
PERCENT), AND OTHER CONSUMABLE GOODS (128.1 MILLION, 14.6
PERCENT).

ALTHOUGH U.S. INVESTORS AND EXPORTERS PROFIT FROM A STRONG
PUBLIC AND PRIVATE INTEREST IN U.S. GOODS, SERVICES, AND
TECHNOLOGY, U.S. BUSINESSPERSONS SHOULD BE AWARE THAT
THIRD COUNTRY COMPETITION FOR MARKETS IS STRONG.
THE FRENCH, TRADITIONALLY GUINEA'S MAJOR SUPPLIERS, ARE
HEAVILY REPRESENTED IN A VARIETY OF SECTORS. GUINEA'S LEADING
SUPPLIERS IN 1993 WERE FRANCE, SPAIN, BELGIUM, CHINA, AND THE
IVORY COAST.  IN INDUSTRY AND MANUFACTURING SECTORS, THE
FRENCH, FOLLOWED CLOSELY BY BELGIANS AND CANADIANS, HAVE
UTILIZED THEIR COUNTRIES' EXTENSIVE AID PROGRAMS TO
CONSOLIDATE BUSINESS POSITIONS IN CONSTRUCTION AND TECHNOLOGY.
CURRENTLY, THE MOST VISIBLE AND NUMEROUS FOREIGN BUSINESS
PRESENCE IS THAT OF THE INFORMAL SECTOR LEBANESE TRADERS.

GUINEA'S BUSINESS CLIMATE IS SEVERELY HAMPERED BY
INFRASTRUCTURAL AND LEGAL CONSTRAINTS.  GUINEA LACKS A WELL
TRAINED CADRE OF MANAGERIAL AND TECHNICAL PERSONNEL AND LABOR
PRODUCTIVITY IS LOW.  TRANSPORTATION, COMMUNICATIONS, AND
INDUSTRIAL INFRASTRUCTURE ARE IMPROVING BUT DO NOT YET MEET
DEMAND.  THE COMMERCIAL BANKING SECTOR PROVIDES LIMITED AND
EXPENSIVE SERVICES, WITH RESTRICTED FINANCING OPTIONS.
EXPATRIATE BUSINESS SOURCES INDICATE THAT GUINEA'S COURT
SYSTEM DOES NOT GUARANTEE FAIR AND TRANSPARENT ADMINISTRATION
OF THE LAW AND OFFERS LITTLE PROTECTION TO EXPATRIATE
BUSINESSPERSONS.  FINALLY, CORRUPTION IS RAMPANT AND HAS A
NEGATIVE IMPACT ON EVEN THE MOST STRAIGHTFORWARD BUSINESS
TRANSACTIONS.