Doing Business 2018 Guinea
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Doing Business 2018 Guinea
Economy Profile of Guinea
Doing Business 2018 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-
filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2018 Guinea
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present
the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance
observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is
reflected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business
ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to
two decimals.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2018 Guinea
Ease of Doing Business in DB 2018 Rank
Region Sub-Saharan Africa
190 1
Guinea
Income Category Low income 153
DB 2018 Distance to Frontier (DTF)
Population 12,395,924
0 100
City Covered Conakry 49.80
DB 2018 Distance to Frontier (DTF)
0 100
52.92: Mali (Rank: 143)
51.92: Gambia, The (Rank: 146)
51.54: Burkina Faso (Rank: 148)
50.43: Regional Average (Sub-Saharan Africa)
49.80: Guinea (Rank: 153)
41.45: Guinea-Bissau (Rank: 176)
Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the
indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is reflected on a scale from 0 to 100, where 0 represents the
lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Guinea
1
28
55
75
82
Rank
111
109 117
125
136 143 142 146
158
165
163
182
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Distance to Frontier (DTF) on Doing Business topics - Guinea
100
81.77
80
69.92
60
DTF
53.87
47.88 50.07
46.24
40.00 38.93 39.27
40
30.00
20
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2018 Guinea
Starting a Business
This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited
liability company to start up and formally operate in economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and
50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of
local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5
married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators.
The most recent round of data collection for the project was completed in June 2017. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
â—
Submitting all relevant documents and obtaining
all necessary clearances, licenses, permits and
The business:
certificates
â—
Submitting all required notifications and receiving - Is a limited liability company (or its legal equivalent). If there is more than one type
all necessary inspections of limited liability company in the economy, the most common among domestic firms
is chosen. Information on the most common form is obtained from incorporation
â—
Obtaining utility connections for water and
lawyers or the statistical office.
sewerage
- Operates in the economy’s largest business city and the entire office space is
â—
Registering and selling the warehouse after its approximately 929 square meters (10,000 square feet). For 11 economies the data
completion are also collected for the second largest business city.
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
Time required to complete each procedure
and has a start-up capital of 10 times income per capita and has a turnover of at
(calendar days)
least 100 times income per capita.
â—
Does not include time spent gathering information - Performs general industrial or commercial activities, such as the production or sale
â—
Each procedure starts on a separate day (2 of goods or services to the public. The business does not perform foreign trade
procedures cannot start on the same day) activities and does not handle products subject to a special tax regime, for example,
liquor or tobacco. It does not use heavily polluting production processes.
â—
Procedures fully completed online are recorded
- Leases the commercial plant or offices and is not a proprietor of real estate and the
as ½ day
amount of the annual lease for the office space is equivalent to 1 times income per
â—
Procedure is considered completed once final capita.
document is received - Does not qualify for investment incentives or any special benefits.
â—
No prior contact with officials - Has at least 10 and up to 50 employees one month after the commencement of
operations, all of whom are domestic nationals.
Cost required to complete each procedure (% of - Has a company deed 10 pages long.
income per capita)
The owners:
â—
Official costs only, no bribes
â—
No professional fees unless services required by - Have reached the legal age of majority. If there is no legal age of majority, they are
law or commonly used in practice assumed to be 30 years old.
- Are sane, competent, in good health and have no criminal record.
Paid-in minimum capital (% of income per capita - Are married and the marriage is monogamous and registered with the authorities.
â—
Funds deposited in a bank or with third party - Where the answer differs according to the legal system applicable to the woman or
before registration or up to 3 months after man in question (as may be the case in economies where there is legal plurality), the
incorporation answer used will be the one that applies to the majority of the population.
Page 5Doing Business 2018 Guinea
Starting a Business - Guinea
Standardized Company
Legal form Société à Responsabilité Limitée (SARL) - Limited Liability
Company
Paid-in minimum capital requirement GNF 381,854.8
City Covered Conakry
Indicator Guinea Sub-Saharan OECD high Overall Best
Africa income Performer
Procedure – Men (number) 6 7.6 4.9 1.00 (New Zealand)
Time – Men (days) 8 24.0 8.5 0.50 (New Zealand)
Cost – Men (% of income per capita) 67.5 49.9 3.1 0.00 (United Kingdom)
Procedure – Women (number) 6 7.7 4.9 1.00 (New Zealand)
Time – Women (days) 8 24.1 8.5 0.50 (New Zealand)
Cost – Women (% of income per capita) 67.5 49.9 3.1 0.00 (United Kingdom)
Paid-in min. capital (% of income per capita) 8.9 25.6 8.7 0.00 (113 Economies)
Figure – Starting a Business in Guinea and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
88.17: Burkina Faso (Rank: 74)
84.46: Mali (Rank: 104)
81.77: Guinea (Rank: 125)
76.82: Regional Average (Sub-Saharan Africa)
69.00: Gambia, The (Rank: 171)
63.76: Guinea-Bissau (Rank: 178)
Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a
business. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Page 6Doing Business 2018 Guinea
Figure – Starting a Business in Guinea – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
8 45
7 40
Cost (% of income per capita)
35
6
30
Time (days)
5
25
4
20
3
15
2
10
1 5
0 0
1 2 3 4 *5 *6
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2018 Guinea
Details – Starting a Business in Guinea – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Deposit the initial capital in a bank 1 day no charge
Agency : Bank
The lawyer or notary public needs to deposit the capital into a blocked bank account and
obtain a proof of deposit.
2 Check the uniqueness of the company name 1 day no charge
Agency : Commercial Registry
Business founders can check the availability of the proposed company name at no cost.
3 Prepare the company's Articles of Association 2 days GNF 1.8 million for
Agency : Notary limited liability
Business founders must prepare the company's articles of association. According to companies
articles 10,11,311,313,314 and 73 of the “Acte uniforme relatif au droit des societes
commerciales revises” (OHADA) and Decret D/2014/124/PRG/SGGG of May 30st,
2014, the use of notaries is optional, although notary services are still used by most
entrepreneurs.
4 Register the company at the One-Stop Shop (APIP) to obtain registration 4 days (registration see comments
with the Commercial Registry, the Tax Authorities and Social Security and publication)
Agency : One-Stop Shop (Agence de Promotion des Investissements Privés -
APIP-Guinée)
Business founders must apply for incorporation at the One-Stop Shop (APIP-Guinée).
Upon receipt of a incorporation request and payment of the relevant fees, APIP proceeds
to obtain registration with the Commercial Registry, the Tax Authorities, and Social
Security. The Tax ID (Numéro d'Identification Fiscale -
NIF) and the online publication of a notice of company incorporation are also provided
by APIP. Employees can be registered with Social Security through the One-Stop Shop or
at the offices of the Social Security Institute (CNSS - Caisse nationale de Sécurité
sociale).
The registration fees for a new limited liability company (SARL) are the following: 1%
of capital (registration tax) + 100,000 GNF (registration at RCCM) + 100,000 GNF (NIF)
+ 150,000 GNF (publication) + 1,000 GNF/page (stamp duty) + 100,000 GNF (verbal
process).
5 Notify the Labor Promotion Agency (Agence Guinéenne pour la Promotion 3 days no charge
de l’ Emploi - AGUIPE) of the hiring of employees (simultaneous with
Agency : Labor Promotion Agency (Agence Guinéenne pour la Promotion de l’ previous procedure)
Emploi - AGUIPE)
Business founders must notify the Labor Promotion Agency (AGUIPE - Agence
Guinéenne pour la Promotion de l’ Emploi) about their company's formation and about
the hiring of employees.
6 Make a company seal 1 day (simultaneous GNF 20,000
Agency : Seal maker with previous
Companies normally obtain a company seal so that the company's representatives can procedure)
sign documents in the company's name during their various interactions with different
Authorities.
Takes place simultaneously with previous procedure.
Page 8Doing Business 2018 Guinea
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in June 2017. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
â—
Submitting all relevant documents and obtaining
The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
â—
Submitting all required notifications and receiving largest business city. For 11 economies the data are also collected for the second
all necessary inspections largest business city.
- Is 100% domestically and privately owned; has five owners, none of whom is a
â—
Obtaining utility connections for water and
legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage
the local association of architects or engineers. BuildCo is not assumed to have any
â—
Registering and selling the warehouse after its other employees who are technical or licensed experts, such as geological or
completion topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure
upon its completion.
(calendar days)
â—
Does not include time spent gathering information The warehouse:
â—
Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or stationery.
though procedures that can be fully completed - Will have two stories, both above ground, with a total constructed area of
online are an exception to this rule approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
â—
Procedure is considered completed once final meters (9 feet, 10 inches) high and will be located on a land plot of approximately
document is received 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
warehouse is valued at 50 times income per capita.
â—
No prior contact with officials
- Will have complete architectural and technical plans prepared by a licensed
Cost required to complete each procedure (% of architect. If preparation of the plans requires such steps as obtaining further
income per capita) documentation or getting prior approvals from external agencies, these are counted
as procedures.
â—
Official costs only, no bribes
- Will take 30 weeks to construct (excluding all delays due to administrative and
regulatory requirements).
Building quality control index (0-15)
â—
Sum of the scores of six component indices: The water and sewerage connections:
â—
Quality of building regulations (0-2) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
â—
Quality control before construction (0-1) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
no sewerage infrastructure, a septic tank in the smallest size available will be
â—
Quality control during construction (0-3)
installed or built.
â—
Quality control after construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
â—
Liability and insurance regimes (0-2) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
â—
Professional certifications (0-4) 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 9Doing Business 2018 Guinea
Dealing with Construction Permits - Guinea
Standardized Company
Estimated value of warehouse GNF 215,617,519.40
City Covered Conakry
Indicator Guinea Sub-Saharan OECD high Overall Best
Africa income Performer
Procedures (number) 15 14.8 12.5 7.00 (Denmark)
Time (days) 161 147.5 154.6 27.5 (Korea, Rep.)
Cost (% of warehouse value) 4.3 9.9 1.6 0.10 (5 Economies)
Building quality control index (0-15) 12.0 8.0 11.4 15.00 (3 Economies)
Figure – Dealing with Construction Permits in Guinea and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
73.20: Burkina Faso (Rank: 53)
69.92: Guinea (Rank: 75)
64.31: Gambia, The (Rank: 118)
61.36: Mali (Rank: 134)
56.91: Regional Average (Sub-Saharan Africa)
44.40: Guinea-Bissau (Rank: 176)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for
dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component
indicators.
Figure – Dealing with Construction Permits in Guinea – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
160 3.5
140 3
Cost (% of income per capita)
120
2.5
Time (days)
100
2
80
1.5
60
1
40
20 0.5
0 0
1 2 3 4 5 6 7 8 9 10 11 12 * 13 14 15
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 10Doing Business 2018 Guinea
Figure – Dealing with Construction Permits in Guinea and comparator economies – Measure of Quality
15
12.0 12.0
Index score
10
8.0
6.5
5.5
5 4.5
0
Guinea Burkina Faso Gambia, The Guinea-Bissau Mali Sub-Saharan Africa
Details – Dealing with Construction Permits in Guinea – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain cadastre extract 7 days GNF 150,000
Agency : Cadastre
2 Obtain a copy of the property title 2 days GNF 50,000
Agency : Legal Clerk, Notary, or Huissier de Justice
3 Obtain geological and geotechnical survey 10 days GNF 650,000
Agency : BGGA
4 Obtain building permit 90 days GNF 7,131,960
Agency : Direction Nationale de l’Architecture et de la Construction
The application is addressed to the Ministry of Urban Planning and Housing. The dossier
contains the following documents:
• Request to the Minister, Ministre de l'Urbanisme, the Governor of the city, or to the
Mayor- Maire de la Commune according to the building use and the location
• Property title (Titre foncier, décrêt, arrêté ou bail)
• Architectural and technical plans (structure, installations électriques and
hydrosanitaires); the descriptive document of the project prepared by an architect office,
and the soil analysis.
If BuildCo does not follow up on the application, the building permit will not be granted.
A person within BuildCo needs to be assigned to follow up on the application daily.
5 Receive on-site inspection from the Direction Nationale de l’Aménagement 1 day no charge
du Territoire et de l’Urbanisme upon commencement of construction
Agency : Direction Nationale de l’Aménagement du Territoire et de l’Urbanisme
6 Receive on-site inspection from the Direction Nationale de l'Architecture et 1 day no charge
de la Construction upon commencement of construction
Agency : Direction Nationale de l’Architecture et de la Construction
7 Receive on-site inspection from the Municipal Tax Authority (Service des 1 day no charge
Impots de la Commune)
Agency : Service des Impots de la Commune
The Municipal Tax Authority (Service des Impots de la Commune) inspects the site to
ensure that BuildCo is paying the withholding taxes on its workers' salaries.
8 Receive on-site inspection from the Local Health Service (Service de 1 day no charge
Salubrité) - I
Agency : Local Health Service (Service de Salubrité)
The Local Health Service (Service de Salubrité) inspects the site every 2 weeks. The
agency may visit as often as every week depending on the project.
9 Receive on-site inspection from the Local Health Service (Service de 1 day no charge
Salubrité) - II
Agency : Local Health Service (Service de Salubrité)
The Local Health Service (Service de Salubrité) inspects the site every 2 weeks. The
agency may visit as often as every week depending on the project.
10 Notify National Directorate of Architecture and Construction of the 1 day no charge
completion of construction works
Agency : Direction Nationale de l’Architecture et de la Construction
The head supervisor of construction must notify the National Directorate of Architecture
and Construction when construction works are complete and request a final inspection.
11 Receive final inspection and certificate of conformity (certificat d'habilité) 7 days GNF 700,000
Agency : Direction Nationale de l’Architecture et de la Construction
Page 11Doing Business 2018 Guinea
12 Register warehouse with the Ministère de la Construction, de l'Urbanisme 1 day GNF 300,000
et Habitat
Agency : Ministère de la Construction, de l'Urbanisme et Habitat
Real estate taxes and the occupancy tax (tax à l' occupation) of GNF 300,000.00 (paid
only once) must be paid after construction is finished.
Request water connection 1 day no charge
13 Agency : Guinea Water Company (SEG)
14 Receive inspection by water company 1 day no charge
Agency : Guinea Water Company (SEG)
15 Obtain water connection 36 days GNF 250,000
Agency : Guinea Water Company (SEG)
Takes place simultaneously with previous procedure.
Page 12Doing Business 2018 Guinea
Details – Dealing with Construction Permits in Guinea – Measure of Quality
Answer Score
Building quality control index (0-15) 12.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge.
Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect.
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during construction? Inspections by in- 1.0
(0-2) house engineer;
Unscheduled
inspections.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 2.0
Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0
with the approved plans and regulations? (0-2) inspection is
done by
government
agency.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 0.0
does not always
occur in practice.
Liability and insurance regimes index (0-2) 1.0
Which parties (if any) are held liable by law for structural flaws or problems in the building Professional in 1.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) charge of the
supervision;
Construction
company; Owner
or investor.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certifications index (0-4) 4.0
What are the qualification requirements for the professional responsible for verifying that the Minimum number 2.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) of years of
experience;
University degree
in architecture or
engineering;
Being a
registered
architect or
engineer.
Page 13Doing Business 2018 Guinea
What are the qualification requirements for the professional who supervises the construction Minimum number 2.0
on the ground? (0-2) of years of
experience;
University degree
in engineering,
construction or
construction
management;
Being a
registered
architect or
engineer.
Page 14Doing Business 2018 Guinea
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
â—
Submitting all relevant documents and obtaining
The construction company (BuildCo):
all necessary clearances and permits
â—
Completing all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the economy’s
receiving all necessary inspections largest business city. For 11 economies the data are also collected for the second
largest business city.
â—
Obtaining external installation works and possibly
- Is 100% domestically and privately owned; has five owners, none of whom is a
purchasing material for these works
legal entity. Has a licensed architect and a licensed engineer, both registered with
â—
Concluding any necessary supply contract and the local association of architects or engineers. BuildCo is not assumed to have any
obtaining final supply other employees who are technical or licensed experts, such as geological or
topographical experts.
Time required to complete each procedure
- Owns the land on which the warehouse will be built and will sell the warehouse
(calendar days)
upon its completion.
â—
Is at least 1 calendar day
The warehouse:
â—
Each procedure starts on a separate day
â—
Does not include time spent gathering information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
â—
Reflects the time spent in practice, with little
approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
follow-up and no prior contact with officials
meters (9 feet, 10 inches) high and will be located on a land plot of approximately
Cost required to complete each procedure (% of 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
warehouse is valued at 50 times income per capita.
income per capita)
- Will have complete architectural and technical plans prepared by a licensed
â—
Official costs only, no bribes architect. If preparation of the plans requires such steps as obtaining further
â—
Value added tax excluded documentation or getting prior approvals from external agencies, these are counted
as procedures.
The reliability of supply and transparency of - Will take 30 weeks to construct (excluding all delays due to administrative and
tariffs index (0-8) regulatory requirements).
â—
Duration and frequency of power outages (0–3)
The water and sewerage connections:
â—
Tools to monitor power outages (0–1)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
â—
Tools to restore power supply (0–1)
is no water delivery infrastructure in the economy, a borehole will be dug. If there is
â—
Regulatory monitoring of utilities’ performance no sewerage infrastructure, a septic tank in the smallest size available will be
(0–1) installed or built.
â—
Financial deterrents limiting outages (0–1) - Will have an average water use of 662 liters (175 gallons) a day and an average
wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
â—
Transparency and accessibility of tariffs (0–1)
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
Price of electricity (cents per kilowatt-hour)* gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the
â—
Price based on monthly bill for commercial
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
warehouse in case study
the sewerage connection.
*Note: Doing Business measures the price of
electricity, but it is not included in the distance to
frontier score nor the ranking on the ease of getting
electricity.
Page 15Doing Business 2018 Guinea
Getting Electricity - Guinea
Standardized Company
Price of electricity (US cents per kWh) 20.9
Name of utility Electricite de Guinee (EDG)
City Covered Conakry
Indicator Guinea Sub-Saharan OECD high Overall Best
Africa income Performer
Procedures (number) 4 5.3 4.7 2 (United Arab
Emirates)
Time (days) 69 115.3 79.1 10 (United Arab
Emirates)
Cost (% of income per capita) 5639.8 3737.0 63.0 0.00 (Japan)
Reliability of supply and transparency of tariff 0 0.9 7.4 8.00 (28 Economies)
index (0-8)
Figure – Getting Electricity in Guinea and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
51.12: Mali (Rank: 154)
49.29: Gambia, The (Rank: 156)
47.88: Guinea (Rank: 158)
45.91: Regional Average (Sub-Saharan Africa)
29.42: Burkina Faso (Rank: 179)
29.01: Guinea-Bissau (Rank: 180)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting
electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Page 16Doing Business 2018 Guinea
Figure – Getting Electricity in Guinea – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
6000
60
Cost (% of income per capita)
5000
50
4000
Time (days)
40
3000
30
2000
20
1000
10
0 0
1 *2 3 4
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in Guinea and comparator economies – Measure of Quality
8
7
6
Index score
5
4
3
2
0.9
1
0 0 0 0 0
0
Guinea Burkina Faso Gambia, The Guinea-Bissau Mali Sub-Saharan Africa
Page 17Doing Business 2018 Guinea
Details – Getting Electricity in Guinea – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Hire private firm to design and carry out external works 58 calendar days GNF 225,000,000
Agency : Private firm
External works consist of installing a private substation. The MV network is
underground; the LV service is overhead.
The client can pick any approved private firm. Another option is for the utility to issue a
tendering process to pick the firm that will carry out the works.
Because a client's picking of a private firm reduces the wait time, this is usually a
preferred option. The private firm will then prepare a design of the works and submit it to
the utility for approval.
The client's contractor will also need to provide the material for the works. This (namely
the transformer) is usually not available in stock, and most firms will need to import it,
mostly from Morocco. This causes short delays to the process.
2 Submit connection application to EDG 4 calendar days GNF 0
Agency : Electricité de Guinée (EDG)
The client mails an application for a connection to Electricité de Guinée (EDG). In the
case where the client relies on Electricité de Guinée (EDG) also for the external works,
the utility will need to inspect the site first to carry out a technical study and prepare an
estimate of the connection fees.
Alternatively, the client can hire a private firm for the external works. This same firm can
submit the application for a connection on their behalf. It will also carry out the technical
study to prepare a design of the external connection works and an estimate of the costs.
3 Receive site inspection by EDG 1 calendar day GNF 18,205,918
Agency : Electricité de Guinée (EDG)
The utility will inspect at the end of the external works to check that they have been
carried out according to the original plans.
4 Sign subscriber agreement with EDG and obtain meter installation and final 10 calendar days GNF 0
supply
Agency : Electricité de Guinée (EDG)
A subscription deposit is issued by the electricity company to the customer's address.
This security deposit takes into account the client’s subscribed power and their
consumption (tariff). This deposit is also considered as a supply contract. After the client
has paid the deposit, they become subscribed with the utility that then installs the meter
and turns on final supply.
The deposit is returned at the end of the contract.
Takes place simultaneously with previous procedure.
Page 18Doing Business 2018 Guinea
Details – Getting Electricity in Guinea – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 0
Total duration and frequency of outages per customer a year (0-3) 0
System average interruption duration index (SAIDI) ..
System average interruption frequency index (SAIFI) ..
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI N/A
Mechanisms for monitoring outages (0-1) 0
Does the distribution utility use automated tools to monitor outages? No
Mechanisms for restoring service (0-1) 0
Does the distribution utility use automated tools to restore service? No
Regulatory monitoring (0-1) 0
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of No
supply?
Financial deterrents aimed at limiting outages (0-1) 0
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages No
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online https://www.edg-
guinee.com/ma-
facture-edg-
comment-ca-marche
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 19Doing Business 2018 Guinea
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in June 2017.See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
â—
Preregistration procedures (for example,
The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
â—
Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. For 11
business citya. economies the data are also collected for the second largest business city.
- Are 100% domestically and privately owned.
â—
Postregistration procedures (for example, filling
- Have 50 employees each, all of whom are nationals.
title with municipality)
- Perform general commercial activities.
Time required to complete each procedure
The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
â—
Does not include time spent gathering information
- Is fully owned by the seller.
â—
Each procedure starts on a separate day - though - Has no mortgages attached and has been under the same ownership for the past
procedures that can be fully completed online are
10 years.
an exception to this rule
- Is registered in the land registry or cadastre, or both, and is free of title disputes.
â—
Procedure is considered completed once final - Is located in a periurban commercial zone, and no rezoning is required.
document is received - Consists of land and a building. The land area is 557.4 square meters (6,000
â—
No prior contact with officials square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
located on the land. The warehouse is 10 years old, is in good condition, has no
Cost required to complete each procedure (% of heating system and complies with all safety standards, building codes and legal
property value) requirements. The property, consisting of land and building, will be transferred in its
â—
Official costs only (such as administrative fees, entirety.
duties and taxes). - Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of
â—
Value Added Tax, Capital Gains Tax and illicit
any kind.
payments are excluded
- Will not be used for special purposes, and no special permits, such as for
residential use, industrial plants, waste storage or certain types of agricultural
Quality of land administration index (0-30)
activities, are required.
â—
Reliability of infrastructure index (0-8) - Has no occupants, and no other party holds a legal interest in it.
â—
Transparency of information index (0–6)
â—
Geographic coverage index (0–8)
â—
Land dispute resolution index (0–8)
â—
Equal access to property rights index (-2–0)
Page 20Doing Business 2018 Guinea
Registering Property - Guinea
Standardized Company
Property value GNF 215,617,519.40
City Covered Conakry
Indicator Guinea Sub-Saharan OECD high Overall Best
Africa income Performer
Procedures (number) 6 6.2 4.6 1.00 (4 Economies)
Time (days) 44 59.3 22.3 1.00 (3 Economies)
Cost (% of property value) 8.9 7.8 4.2 0.00 (5 Economies)
Quality of the land administration index (0-30) 6.5 8.6 22.7 29.00 (Singapore)
Figure – Registering Property in Guinea and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
54.41: Guinea-Bissau (Rank: 126)
53.28: Gambia, The (Rank: 129)
51.71: Regional Average (Sub-Saharan Africa)
51.43: Mali (Rank: 137)
50.44: Burkina Faso (Rank: 140)
50.07: Guinea (Rank: 143)
Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering
property. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Figure – Registering Property in Guinea – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
6
40
5 Cost (% of income per capita)
35
30 4
Time (days)
25
3
20
15 2
10
1
5
0 0
1 2 3 4 5 6
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 21Doing Business 2018 Guinea
Figure – Registering Property in Guinea and comparator economies – Measure of Quality
30
25
Index score
20
15
11.5
10 8.5 8.0 8.6
6.5
5 3.0
0
Guinea Burkina Faso Gambia, The Guinea-Bissau Mali Sub-Saharan Africa
Details – Registering Property in Guinea – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain a map indicating the extent and boundaries of the property 14 days GNF 309,495
Agency : Service Topographique
The seller must obtain and provide the buyer with the map indicating the extent and
boundaries of the property.
2 Confirm identity of land owner and a clear title at the Land Registry 7 days GNF 20,000
(“Bureau de la Conservation Foncière”)
Agency : Land Registry (Bureau de la Conservation Foncière)
The buyer writes to the director of the land registry to confirm that the seller of the
property is indeed the true owner and that the title is clear and free of encumbrances. The
director’s duty is to answer back and always comply with this requirement.
3 Obtain tax clearance from tax authorities 10 days GNF 100,000
Agency : Tax authorities (Direction National des Impots)
The notary will request a tax clearance to check that there are no outstanding taxes.
4 Sign the sale contract as written and witnessed by the notary 1 day From 1 to 10,000,000
Agency : Notary of FG : 4.5%
According to article 201 of the Ordonnance O/92/019 of March 30, 1992 regarding the
Land Code every act subject to land registration must be authentified. However, if it is From 10,000,000 to
not presented in this form it must be filed in the minutes of a Notary.
50,000,000 of FG:
2.5%
From 50,000,001 to
150,000,000 of FG
:1.5%
From 150,000,001 to
300,000,000 of FG:
1%
Above 300,000,000:
0.75%
5 Register the sale contract with the National Tax Authorities “Service des 5 days 5% of the property
Impôts” value
Agency : National Tax Authorities (Service des Impôts)
The parties should register the sale contract with the National Tax Authorities and pay
their due tax (5% of the value of the property). Article 559 of the General Tax Code
stipulates that when the National Directorate of Taxes considers that the sale price is
insufficient it may be exercised within six months from the date of registration, a right of
first refusal in favor of the public treasury.
The National Directorate of Taxes is thus empowered to substitute by the State the
purchaser of the property whose values were considered insufficient.
The National Directorate of Taxes will increase by a tenth the price reported.
6 Transfer the final ownership with the Land Registry (“Bureau de la 7 days 2% of the property
Conservation Foncière”) value
Agency : Land Registry (Bureau de la Conservation Foncière)
The Director of the Land Registry will only ask to see the notarized sale agreement and
the map stating the boundaries of the property. It is a requirement by law that the director
effectively transfers the property to the seller after a 10 days maximum since the demand
was presented.
Takes place simultaneously with previous procedure.
Page 22Doing Business 2018 Guinea
Details – Registering Property in Guinea – Measure of Quality
Answer Score
Quality of the land administration index (0-30) 6.5
Reliability of infrastructure index (0-8) 0.0
What is the institution in charge of immovable property registration? Land Registry of
Conakry (Bureau
de la
Conservation
Foncière de
Conakry)
In what format are the majority of title or deed records kept in the largest business city—in a Paper 0.0
paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions No 0.0
and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Le Service des
Domaines et du
Cadastre
In what format are the majority of maps of land plots kept in the largest business city—in a Paper 0.0
paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for recording boundaries, checking plans and providing No 0.0
cadastral information (geographic information system)?
Is the information recorded by the immovable property registration agency and the cadastral Separate 0.0
or mapping agency kept in a single database, in different but linked databases or in separate databases
databases?
Do the immovable property registration agency and cadastral or mapping agency use the No 0.0
same identification number for properties?
Transparency of information index (0–6) 2.0
Who is able to obtain information on land ownership at the agency in charge of immovable Only 0.0
property registration in the largest business city? intermediaries
and interested
parties
Is the list of documents that are required to complete any type of property transaction made Yes, online 0.5
publicly available–and if so, how?
Link for online access: http://www.bcf-
gn.com/index.ph
p/component/con
tent/article/2-non-
categorise/64-mu
Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5
immovable property registration in the largest business city made publicly available–and if
so, how?
Link for online access: http://www.bcf-
gn.com/files/ARR
ETE_CONJOINT
_MEPCATBP_-
_MPCEF_-
_SGG.PDF
Does the agency in charge of immovable property registration commit to delivering a legally No 0.0
binding document that proves property ownership within a specific time frame–and if so, how
does it communicate the service standard?
Link for online access:
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the agency in charge of immovable property registration?
Contact information:
Are there publicly available official statistics tracking the number of transactions at the Yes 0.5
immovable property registration agency?
Page 23Doing Business 2018 Guinea
Number of property transfers in the largest business city in 2016: 167.0
Who is able to consult maps of land plots in the largest business city? Only 0.0
intermediaries
and interested
parties
Is the applicable fee schedule for accessing maps of land plots made publicly available— Yes, online 0.5
and if so, how?
Link for online access: http://www.bcf-
gn.com/files/ARR
ETE_CONJOINT
_n1695_du_29_j
uillet_2009_-
_BAREME_DES
_REDEVANCES
_GLOBALES.pdf
Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0
specific time frame—and if so, how does it communicate the service standard?
Link for online access:
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the cadastral or mapping agency?
Contact information:
Geographic coverage index (0–8) 0.0
Are all privately held land plots in the economy formally registered at the immovable property No 0.0
registry?
Are all privately held land plots in the largest business city formally registered at the No 0.0
immovable property registry?
Are all privately held land plots in the economy mapped? No 0.0
Are all privately held land plots in the largest business city mapped? No 0.0
Land dispute resolution index (0–8) 4.5
Does the law require that all property sale transactions be registered at the immovable Yes 1.5
property registry to make them opposable to third parties?
Is the system of immovable property registration subject to a state or private guarantee? No 0.0
Is there a specific compensation mechanism to cover for losses incurred by parties who No 0.0
engaged in good faith in a property transaction based on erroneous information certified by
the immovable property registry?
Does the legal system require a control of legality of the documents necessary for a property Yes 0.5
transaction (e.g., checking the compliance of contracts with requirements of the law)?
If yes, who is responsible for checking the legality of the documents? Registrar; Notary.
Does the legal system require verification of the identity of the parties to a property Yes 0.5
transaction?
If yes, who is responsible for verifying the identity of the parties? Registrar; Notary.
Is there a national database to verify the accuracy of identity documents? No 0.0
For a standard land dispute between two local businesses over tenure rights of a property Tribunal de
worth 50 times gross national income (GNI) per capita and located in the largest business Première
city, what court would be in charge of the case in the first instance? Instance de
Kaloum, lieu de
situation de
l'immeuble
How long does it take on average to obtain a decision from the first-instance court for such a Between 1 and 2 2.0
case (without appeal)? years
Are there any statistics on the number of land disputes in the first instance? No 0.0
Number of land disputes in the largest business city in 2016:
Page 24Doing Business 2018 Guinea
Equal access to property rights index (-2–0) 0.0
Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
Do married men and married women have equal ownership rights to property? Yes 0.0
Page 25Doing Business 2018 Guinea
Getting Credit
This topic explores two sets of issues—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in
facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more
information.
What the indicators measure Case study assumptions
Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of
borrowers and lenders with respect to secured transactions through 2 sets of
â—
Rights of borrowers and lenders through
indicators. The depth of credit information index measures rules and practices
collateral laws (0-10)
affecting the coverage, scope and accessibility of credit information available
â—
Protection of secured creditors’ rights through through a credit registry or a credit bureau. The strength of legal rights index
bankruptcy laws (0-2)
measures the degree to which collateral and bankruptcy laws protect the rights of
borrowers and lenders and thus facilitate lending. For each economy it is ?rst
Depth of credit information index (0–8)
determined whether a unitary secured transactions system exists. Then two case
â—
Scope and accessibility of credit information scenarios, case A and case B, are used to determine how a nonpossessory security
distributed by credit bureaus and credit registries interest is created, publicized and enforced according to the law. Special emphasis
(0-8) is given to how the collateral registry operates (if registration of security interests is
possible). The case scenarios involve a secured borrower, company ABC, and a
Credit bureau coverage (% of adults)
secured lender, BizBank.
â—
Number of individuals and firms listed in largest
credit bureau as a percentage of adult population In some economies the legal framework for secured transactions will allow only case
A or case B (not both) to apply. Both cases examine the same set of legal provisions
Credit registry coverage (% of adults) relating to the use of movable collateral.
â—
Number of individuals and firms listed in credit
registry as a percentage of adult population Several assumptions about the secured borrower (ABC) and lender (BizBank)
are used:
- ABC is a domestic limited liability company (or its legal equivalent).
- ABC has up to 50 employees.
- ABC has its headquarters and only base of operations in the economy’s largest
business city. For 11 economies the data are also collected for the second largest
business city.
- Both ABC and BizBank are 100% domestically owned.
The case scenarios also involve assumptions. In case A, as collateral for the loan,
ABC grants BizBank a nonpossessory security interest in one category of movable
assets, for example, its machinery or its inventory. ABC wants to keep both
possession and ownership of the collateral. In economies where the law does not
allow nonpossessory security interests in movable property, ABC and BizBank use a
?duciary transfer-of-title arrangement (or a similar substitute for nonpossessory
security interests).
In case B, ABC grants BizBank a business charge, enterprise charge, ?oating
charge or any charge that gives BizBank a security interest over ABC’s combined
movable assets (or as much of ABC’s movable assets as possible). ABC keeps
ownership and possession of the assets.
Page 26You can also read