Guinea’s bauxite corruption diagnosis, one year later: progress, challenges and outlook

Guinea’s bauxite corruption diagnosis, one year later: progress, challenges and outlook

Bauxite is a crucial sector in Guinea, yet the industry faces numerous challenges. Guinea holds the world’s largest reserves of this strategic mineral, essential for producing aluminum needed for the energy transition. In 2022, bauxite exports reached historic highs, with nearly 103 million tons produced annually. According to a 2021 Extractive Industries Transparency Initiative (EITI) report, bauxite accounted for nearly 60 percent of the USD 630 million in revenues generated from the country’s mining sector that year.

But behind these figures, questions persist about governance practices and issues surrounding the extraction of this mineral, regularly raised by the media and Guinean civil society. Despite substantial revenues generated, these have yet to translate into tangible improvements in citizens’ living conditions. Moreover, the sector’s vulnerability to corruption poses heightened risks, particularly given the likely surge in demand in the coming years.

Need for diagnosis and anticorruption efforts

In this context, a group of civil society actors initiated a diagnosis of corruption risks in Guinea’s bauxite sector and an action plan to strengthen transparency and accountability mechanisms. The group finalized the diagnostic report in mid-2023, with support from stakeholders of EITI-Guinea and the Agence Nationale de Lutte contre la Corruption (in English, the National Agency for Combating Corruption (ANLC)).

At NRGI we supported this work using our corruption diagnosis tool. The diagnosis identified critical corruption issues and their underlying causes. These related to mining licensing, tax practices, transparency in mining agreements and the impact of undervaluation of bauxite quality and transfer pricing on revenues. The exercise led to the development of the action plan aimed at preventing these practices. Civil society actors played a pivotal role in mobilizing all stakeholders to secure their commitment and support, convening discussions on identified risks and to collectively define interventions. This inclusive approach was underscored by the publication of the final action plan on the website of EITI-Guinea, which committed to its implementation.

Nearly a year later, participants at the ongoing 21st International Anti-Corruption Conference (IACC) in Vilnius are discussing global efforts to combat corruption. This is an opportune moment to review the implementation of the Guinean action plan: the progress achieved, the challenges faced and the expected further steps.

Civil society actors hoped that this intervention plan, based on extensive consultations, facts and robust documentation, would provide an ideal framework to strengthen efforts to combat corruption in Guinea’s mining sector. However, as with all anticorruption actions, effective implementation of reforms is complex and fraught with challenges, particularly due to resistance to change among political and economic actors.

From diagnosis to action

The publication of the corruption diagnosis reignited the debate on corruption within Guinea’s mining sector, receivingextensivemedia coverage. Numerous press articles and television programs highlighted the identified corruption risks, rallying various anticorruption actors in the sector. This increased pressure on authorities to pursue comprehensive reforms and review mining policies. The civil society coalition has yet to present a memorandum to the country’s new prime minister for consideration of the diagnosis results.

The dissemination of the diagnosis and intervention plan contributed significantly to the ANLC’s efforts to revive the process of revising the anticorruption law enacted in 2017. Previously, the ANLC had approached the National Transitional Council (CNT) to initiate this revision, a task which had remained pending. A key goal of the effort to amend the current anticorruption law is to address a key issue underscored in the diagnosis: enhancing ANLC’s capacity to function effectively and independently.

In the mining sector specifically, on International Anti-Corruption Day, the ANLC conducted an awarenesscampaign in Boké—center of bauxite mining in the country—on corruption risks identified in the intervention plan.

Furthermore, some activities outlined in EITI-Guinea’s 2024 workplan and budget clearly align with the action plan’s recommendations. Key priorities include modernizing the mining cadastre, improving transparency in license issuance, evaluating legal obligations, administrative monitoring, training community representatives, analyzing revenue management, strengthening the capacities of mining employees, and efficient use of extractives revenues.

Remaining challenges

Despite promising initial steps toward implementation of the action plan, several challenges persist:

• Limited civil society monitoring capacity. The coalition of civil society organizations lacks the necessary financial and technical resources to effectively support, monitor and evaluate the identified actions.
• Media space restrictions. Recent political and regulatory pressures have curtailed freedom of expression and dissemination of information. This constrains public debate and the spread of critical information, thereby reducing pressure to implement recommended interventions.
• Sensitivities of anticorruption work. In the current political climate, anticorruption actors, particularly those from civil society organizations, face significant risks to their safety, which greatly hinder their engagement. The absence of protective measures for these actors further exacerbates these risks.

“Civil society organizations demonstrate determination in preventing, detecting and combating corruption in all its forms. However, they lack adequate technical and financial support to better explore and navigate the intricacies of corruption that tends to be institutionalized in Guinea.”—Moussa Iboun Conté (coalition of civil society organizations)

Beyond these challenges, political will and institutional actors’ capacity to implement identified reforms remain fundamental. In this regard, the Guinean government should recognize and support notable efforts by the ANLC and EITI-Guinea ahead of the upcoming EITI validation in 2025, and should prioritize the revision of the anticorruption law. To ensure that the promises of bauxite benefit Guinean citizens, in the current context of the “race for transition minerals”, the Ministry of Mines and Geology should issue new licenses according to best practices, mining companies should operate new sites operate responsibly, and that the state financial agencies collect revenue efficiently. On all these three issues, fighting corruption is key.