A coup in Guinea has toppled President Alpha Condé. Since early in the morning of 5 September, the Guinean presidential palace and its environs saw heavy gunfire. The putsch was carried out by the Special Forces Group, led by Mamady Doumbouya.
The new leaders will be “very keen to consolidate relationships with what are very significant contributors to fiscal income and foreign earnings in Guinea,” says Simon Hudson-Peacock, mining investment analyst at S2 Research in Cape Town. “It is possible that the tax regime may be revised but expropriation is unlikely.”
Financing large projects in the country will be harder in the short term as the country’s risk profile will be raised, Hudson-Peacock says. The country has few significant foreign currency earners outside of the mining sector, he adds. “The new leaders would be short-sighted not to take a financially pragmatic approach to the ‘golden goose’.”