Economic Diplomacy, Foreign Direct Investment, and the Path to Sustainable Development: Evidence, Barriers, and Strategic Opportunities for Guinea

Abstract

Guinea occupies a paradoxical position in global investment discourse: a nation endowed with extraordinary mineral wealth, including the world’s largest bauxite reserves, substantial gold deposits, diamonds, and one of the richest iron ore deposits on earth, yet one that has historically failed to translate these endowments into broad-based economic development through foreign direct investment (FDI). Despite sustained government efforts to deploy economic diplomacy as a strategic lever for attracting capital, FDI inflows declined sharply over the past decade, undermining state revenues, employment, and development trajectories.

This study critically examines the effectiveness of Guinea’s economic diplomacy in attracting FDI, identifies the principal structural and institutional barriers impeding investment, and proposes evidence- based strategies for improvement. Employing a descriptive mixed-methods design, the research draws on structured interviews with 25 key stakeholders, including diplomats at the Guinean Embassy in Pretoria, government officials, and business representatives, supplemented by questionnaire surveys and documentary analysis. Thematic analysis revealed six critical impediments: corruption (identified by 75% of participants), inadequate infrastructure (80%), political violence and insecurity (70%), bureaucratic bottlenecks (60%), language barriers (40%), and limited institutional capacity.