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African Development Fund Grants Guinea $14.04M for Industrial and SME Development

The African Development Fund, part of the African Development Bank Group, has approved a $14.04 million grant for Guinea. This supports the Industrial Development and SME Resilience Support Project.

The funding comes from the Transition Support Facility’s Pillar 1. This AfDB instrument aids fragile and transition countries. Guinea will use the grant to boost its ability to promote industrial growth and SME resilience.

The project aims to enhance Guinea’s capacity to plan, coordinate, and promote industrial development. It will also support small enterprises and strengthen public service delivery to private businesses.

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Enhancing Institutional Capacity

The main challenge is Guinea’s weak ability to implement industrial policy at macro and microeconomic levels. Ousmane Fall, Director of the Bank’s Industrial Development and Trade Department, highlighted Guinea’s untapped industrial potential. 

“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 to achieve sustainable and inclusive industrialisation in Guinea, promoting private sector development and the consolidation of a peaceful and resilient society.”

The project has three main components. First, it will strengthen planning capacity and development policy implementation. Second, it will support the growth of green industries and SMEs. Lastly, it will focus on project management and coordination.

The project will also benefit private-sector participants in Guinea. Women and young people will have increased opportunities. The support ecosystem will help them leverage new industrial policies and local content laws.

Improving institutional capacity for industrial policies will have long-term benefits. The project aims to stimulate SMEs, industrial modernisation, and exports. It will also focus on improving human resources, especially for young people and reducing gender inequalities.

This project aligns with AfDB Group’s ongoing efforts in Guinea. These include developing agro-industry, supporting private sector growth, and promoting youth and women entrepreneurship.