africa

Africa at a Fork in the Road: Taking Off or Disappointment Once Again?
GDP), jobs, and exports (75 percent of the country’s total exports in 2012). It could
also have important spillover effects, including in the services sector. Rio Tinto’s
Simandou project 6 in Guinea alone is estimated to yield a total output of US$7.6
billion a year, adding US$5.6 billion added to the Guinean GDP and more than US$1
billion to government revenue. The project would create 4,500 jobs directly, plus
3,500 jobs for contractors, and 45,000 jobs indirectly (Rio Tinto, 2013).
The operational phase of the Simandou project will require the improvement of the
Guinean infrastructure (Figure 16.16), and the investment framework with Rio Tinto
for the project provides for the financing of infrastructure. Though their main objective
is to facilitate access to the exploitation site, its operation, and the transport of the
products of the mine, the company’s proposed investments could also help improve
the access of Guinean citizens, in particular in remote regions, to essential services.
Among other things, the project provides for the rehabilitation of 1,600 kilometers
of road and 126 bridges. Not only does this work create demand for construction
and engineering services (beneficiaries have included two Guinean companies and
local branches of a French and a Brazilian company), but it also facilitates access
to roads for Guineans living along the corridor. Similarly, the construction of the
670 kilometer Trans-Guinean railway to transport the mining products could benefit
other users, including passengers. The construction of a port in Forécariah could
also benefit third parties and open a new door to the rest of the world. Along the
corridor, a fiber optic cable will be installed that could contribute to the objective of
universal access to telecoms once connection is made available to third parties. Rio
Tinto has also invested in the Beyla hospital and a public training center. In sum,
the possible spillover effects of the project include an improvement of Guineans’
access to essential services that include transport, telecommunications, health,
and education.
The challenge for the government is to maximize these spillover effects to best
serve the Guinean people’s interest. The capacity of the port and railway will not,
for example, allow significant use by third parties of the infrastructure unless the
government or third parties invest further. A growth corridor could be developed
along the road and railway, potentially reaching out to 1.8 million Guinean people
in poor areas (Rio Tinto, 2013).
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