• Guinea is considering a $500 million sukuk to finance major projects

• The move is part of efforts to diversify funding and attract private capital

• The Simandou 2040 plan could require over $200 billion in investments

Guinea plans to issue a $500 million sovereign sukuk to finance major development projects, the Ministry of Economy and Finance said on March 21.

As part of that effort, officials held preliminary talks with financial advisory firm NOMAD AFIIP to assess the structure and feasibility of the operation.

In a statement, the ministry said the initiative aligns with Guinea’s “B+” sovereign rating with a positive outlook and reflects a broader push to expand financing options. The goal is to bring in private-sector investors to support large-scale projects under the Simandou 2040 development program.

NOMAD AFIIP is expected to help design the legal and institutional framework needed to attract foreign investors, particularly those interested in infrastructure, energy, and transport projects tied to Guinea’s economic potential.

Finance Minister Mariama Ciré Sylla said the sukuk proposal comes at a time of renewed interest from international lenders and private investors looking to support Guinea’s long-term economic transformation.

She added that issuing Sharia-compliant bonds would help diversify the country’s funding sources and open the door to similar instruments on global markets, increasing Guinea’s visibility among specialized investors.

A $200 Billion Development Blueprint

The potential sukuk comes just weeks after Guinea adopted two key laws establishing the legal framework for its Simandou 2040 program, now positioned as the central pillar of public policy.

The plan aims to transform the economy by 2040, driven in large part by the development of the Simandou iron ore project—widely seen as the world’s largest untapped iron deposit. It includes 36 reforms and 122 major projects, centered on an integrated mining and infrastructure strategy.

The program is expected to require more than $200 billion in investment and will roll out in three phases. The first phase, running through 2030, calls for over $65 billion in spending across infrastructure, energy, agriculture, education, and tourism.

A second phase, from 2030 to 2035, will focus on economic diversification and building local processing industries. A final phase will aim to strengthen Guinea’s integration into regional and global markets.

Guinea’s economy has posted solid growth in recent years, largely driven by mining. Real GDP expanded by 7.1% in 2023 and about 5.7% in 2024, according to the World Bank. Growth is estimated at 6.5% in 2025 and could accelerate to around 10% on average between 2026 and 2027, supported by the ramp-up of the Simandou project.

Walid Kéfi