The China-Africa Project posted on 15 September 2021 an article titled "Assessing the New Risks for Chinese Companies, Projects and Personnel in Post-coup Guinea" by Eric Olander.
The city of Shanghai's department of commerce recently posted a fascinating six-point analysis (in Chinese) of the risks confronting Chinese companies operating in Guinea following the recent overthrow of President Alpha Conde by a military junta.
The city identified the following six risks:
--The new military government may face international sanctions that could have a direct impact on Chinese investments in Guinea.
--The new regime could pressure Chinese mining companies in Guinea to pay more regardless of any existing contracts.
--The coup could exacerbate ethnic and religious tensions, which may provoke conflict.
--Ongoing instability is leading to higher aluminum prices, which will impact downstream sales.
--The coup and its aftermath may adversely impact companies' solvency and their ability to abide by existing contracts.
--For companies that engage in commodities futures trading, problems may arise due to market volatility brought on by the coup, which could lead to misjudgments and poor trading strategies.
