Guinea is considering issuing a US$500 million sovereign sukuk as it seeks to diversify funding sources and attract private investment for large-scale development projects linked to its long-term economic transformation plan.
The Ministry of Economy and Finance said it has held preliminary discussions with advisory firm NOMAD AFIIP to assess the structure and feasibility of the Sharia-compliant bond.
The proposed sukuk forms part of efforts to mobilise alternative financing for projects under the Simandou 2040 plan, a flagship programme aimed at reshaping the country’s economy by 2040.
In a statement, the ministry said the initiative aligns with Guinea’s “B+” sovereign rating with a positive outlook and reflects a broader strategy to expand financing options beyond traditional debt instruments.
Finance Minister Mariama Ciré Sylla said the move comes amid growing interest from international lenders and private investors in supporting Guinea’s development agenda.
She said a sukuk issuance would help attract new categories of investors, particularly those seeking Sharia-compliant instruments, while increasing the country’s visibility in global capital markets.
Authorities hope the instrument will channel funds into priority sectors including infrastructure, energy and transport, which are critical to unlocking Guinea’s economic potential.
The Simandou 2040 plan is anchored on the development of the Simandou iron ore deposit, widely regarded as the world’s largest untapped high-grade iron ore reserve.
The programme includes dozens of reforms and more than 100 major projects under an integrated mining and infrastructure strategy designed to accelerate industrialisation.
Officials estimate the plan will require more than $200 billion in investment over the next 15 years, with an initial phase running to 2030 expected to absorb over $65 billion.
Subsequent phases will focus on diversifying the economy, developing local processing industries and strengthening Guinea’s integration into regional and global markets.
Guinea’s economy has recorded steady growth in recent years, largely driven by mining activity. According to the World Bank, real GDP growth exceeded seven percent in 2023 and is expected to accelerate further as the Simandou project gathers pace.
The government has in recent months adopted new legislation aimed at strengthening the legal and institutional framework for the Simandou programme and improving the investment climate.
Analysts say tapping into Islamic finance could provide Guinea with access to a broader pool of capital, particularly from the Middle East and Asia, as it seeks to fund one of Africa’s most ambitious development blueprints.
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The ministry did not give a timeline for the potential issuance but said further consultations are ongoing.
Guinea is seeking to diversify its financing sources as it embarks on one of Africa’s most ambitious long-term development agendas, anchored on the Simandou 2040 plan.
The programme is centred on the development of the Simandou iron ore deposit, widely regarded as the world’s largest untapped high-grade iron ore reserve. Authorities see the project as a catalyst for transforming the economy through large-scale investments in infrastructure, energy and industrialisation.
To support this vision, Guinea is exploring alternative financing instruments, including Islamic finance. A sovereign sukuk — a Sharia-compliant bond — would mark a strategic shift from traditional borrowing and is aimed at attracting investors from the Middle East, Asia and other markets where such instruments are widely used.
The proposed issuance comes as Guinea maintains a “B+” sovereign rating with a positive outlook, signalling improving macroeconomic stability despite ongoing structural challenges.
Economic growth in the country has been largely driven by the mining sector, particularly bauxite and iron ore. According to the World Bank, Guinea’s economy expanded by over seven percent in 2023 and has maintained steady growth, with further acceleration expected as the Simandou project scales up.
However, the country continues to face infrastructure deficits, limited industrial capacity and high development financing needs. The Simandou 2040 plan alone is estimated to require more than $200 billion in investment over the next 15 years.
Authorities have recently adopted key legislation to strengthen the legal and institutional framework needed to attract private capital and support large-scale project financing.
By considering a sukuk issuance, Guinea is positioning itself to tap into a growing global pool of Islamic finance, while broadening its investor base and reducing reliance on conventional debt markets.
