IMF reaches staff-level deal with Guinea on $400 million financing program

WASHINGTON (XOL Africa) — The International Monetary Fund said Tuesday it has reached a staff-level agreement with Guinea on a 41-month financing program worth 310.59 million Special Drawing Rights, or 145% of the country’s IMF quota, as the West African nation seeks to turn expanding mining activity into broader economic growth.

The agreement, reached after IMF staff discussions with Guinean authorities, remains subject to approval by IMF management and the IMF Executive Board. The board is expected to consider the program in September alongside the conclusion of Guinea’s 2026 Article IV consultation.

At current IMF valuation rates, the SDR 310.59 million facility is worth roughly $400 million, although the dollar value can fluctuate with exchange rates.

The program is intended to help Guinea strengthen public finances, build foreign-exchange reserves and improve economic governance as mining production expands, particularly with the start of production at the Simandou iron ore project.

“Guinea is at an important economic juncture as the Simandou iron ore project enters production and mining activity expands, creating significant opportunities to support higher growth and revenue mobilization,” said Izabela Karpowicz, who led the IMF mission.

“The proposed program would help the authorities channel these opportunities into lasting development gains by supporting sound resource management, investment in people and infrastructure, economic diversification, and prudent macroeconomic policies,” she said.

The IMF said Guinea’s economy has remained resilient despite repeated shocks and that growth is expected to accelerate over the medium term as mining production increases. However, inflationary pressures have recently risen, while fiscal and external buffers remain weaker than desired.

The proposed program calls for increased revenue mobilization, particularly from the mining sector, while maintaining debt sustainability and protecting priority spending. It also seeks stronger liquidity management, greater exchange-rate flexibility and rebuilding of foreign-exchange reserves.

Governance and transparency reforms are another central component of the proposed program. The IMF said these would include changes to central bank governance, the framework governing gold operations and measures addressing integrity and corruption risks.

“Inflationary pressures have increased recently, while fiscal and external buffers remain below desired levels, underscoring the need for continued policy discipline and timely reform implementation,” Karpowicz said.

The IMF warned that risks to Guinea’s economic outlook remain tilted to the downside. Those risks include commodity-price and financing shocks, spillovers from the war in the Middle East, prolonged cash shortages and slower-than-expected implementation of reforms.

At the same time, faster-than-expected growth in mining production and stronger activity outside the mining sector could improve the outlook, the IMF said.

The 2026 Article IV discussions also examined ways to manage Guinea’s resource wealth, including a possible sovereign wealth fund, while increasing investment in human capital, creating jobs outside mining and promoting economic diversification.

The IMF mission, led by Karpowicz, held talks in Conakry from June 16 to June 29 with Prime Minister Amadou Oury Bah, Economy, Finance and Budget Minister Mariama Ciré Sylla, central bank Gov. Karamo Kaba and other senior officials, as well as private-sector representatives, civil society groups and development partners.

The IMF said the proposed program is aligned with Guinea’s national development strategy and its Simandou 2040 vision.

“Guinea’s economy has remained resilient despite repeated shocks, and growth is expected to gain momentum over the medium term,” Karpowicz said. “With sustained implementation, the medium-term outlook is favorable.”