Guinea Secures Funds from AfDB Group to Boost SME Resilience

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Business Grants

The African Development Fund, the concessional window of the African Development Bank Group, has approved a loan of $14.04 million to support Guinea’s Industrial Development and SME Resilience Support Project. This funding, sourced from Pillar 1 of the Transition Support Facility, aims to enhance Guinea’s institutional capacity for promoting industrial development and bolstering small and medium-sized enterprises (SMEs).

The project’s primary focus is to improve Guinea’s ability to plan, coordinate, monitor, and promote industrial growth. It also seeks to support the resilience and growth of small enterprises and industries, thereby enhancing public service delivery to the private sector.

One of the main challenges the project addresses is the existing lack of institutional capacity to implement industrial policy at both macroeconomic and sectoral levels. This capacity gap also extends to the microeconomic level, affecting individual firms.

Ousmane Fall, Director of the Bank’s Industrial Development and Trade Department, emphasised Guinea’s significant potential for industrial development, which has largely remained untapped. “Support from the African Development Fund will enable Guinea to address the root causes of fragility and consolidate sources of long-term resilience through institutional development. This will promote sustainable and inclusive industrialization in Guinea, fostering private sector growth and a resilient society,” Fall stated.

The financial support will enable Guinea to develop new productive assets, diversify the economy, and create jobs, stimulating structural transformation and generating productivity gains to improve the quality of life for its citizens. The project comprises three main components: enhancing planning capacity and policy implementation, integrated support for resilient green industry and SME growth, and effective project management and coordination.

The project is expected to benefit the private-sector industry in Guinea, directly and indirectly, with a special focus on women and young entrepreneurs. By strengthening the support ecosystem, the project aims to provide increased opportunities for these groups, enabling them to leverage the benefits of a new industrial policy and local content laws.

In the long term, the enhancement of institutional capacity for industrial policies is anticipated to accelerate economic transformation, stimulate SME growth, modernise industries, and promote exports. This will make Guinea’s economy more competitive and attract private investment. Human resource development, particularly focusing on youth and reducing gender inequalities, will also be a key priority.

This initiative complements the ongoing efforts of the AfDB Group in Guinea, which include developing agro-industrial processing zones, formalising the private sector, and promoting entrepreneurship among young people and women.