KEY RESULTS

• Fisheries capacity | An EIF-supported artisanal fisheries project implemented together with the UN Industrial Development Organization (UNIDO), has been building capacity and improving women's economic opportunities in Guinea-Bissau, especially in the Cacheu and Canchunga region, through public–private partnerships, improved equipment, and "learning by doing" trainings. 
• Embedded trade knowledge | National Implementation Unit (NIU) staff, integrated into the Ministry of Trade and Industry, have gained solid technical and professional knowledge on several aspects of international trade and the implementation of international agreements throughout the EIFs engagement in the country. 
• Improved trade frameworks | The legal and regulatory framework in Guinea-Bissau, designed to facilitate international trade, has improved following the review and updating of laws governing trade, especially with other countries. 
• Consultative planning | Following broad-based consultations, the Diagnostic Trade Integration Study (DTIS) and the National Development Plan 2015-2021 reflected the needs of the public, private and civil society sectors. 

Guinea-Bissau is a coastal West African country with a population of some 2.2 million people (2024) that is bordered by Senegal to the north and Guinea to the south and east. Fishing, tourism and agriculture are the main drivers of the economy, with a high level of dependence on the cashew sector. This single crop is grown by some 69% of the country’s subsistence farmers, with 5% of the country’s land dedicated to cashew production. Cashew accounts for more than 90% of the country’s export earnings and 10% of government tax revenue. Guinea-Bissau imports most of its basic food, including rice, wheat flour and sugar, which are staples in the country. 

The EIF has been supporting Guinea-Bissau since 2010 with a goal of achieving four key milestones: 1) establishing government policies that boost trade and economic development and ensuring that trade is integrated into national development and poverty reduction strategies; 2) improving coordination of development partners’ activities; 3) increasing Aid for Trade (AfT); and 4) strengthening the country’s productive sectors and export capacities.

Identifying challenges to economic development and mainstreaming trade priorities

The EIF has been working to help Guinea-Bissau better understand its trade challenges as a means to bolster its productive capacity and better integrate into the global economy. EIF support helped Guinea-Bissau undertake a DTIS, with “the ultimate objective to build the foundation for accelerated growth by enhancing the integration of its economy into regional and global markets.” The 2010 DTIS highlighted the need to improve the country’s business environment by, for example, simplifying business procedures and establishing a well-functioning financial sector. These efforts aimed to help bolster micro-, small- and medium-sized enterprises (MSMEs) and improve the visibility of investment opportunities. 

The DTIS identified a need for improved trade-related infrastructure, including roads and ports. Dredging in the Port of Bissau was identified as a priority, as silt build-up risked forcing the country to rely on ports in neighbouring countries. Investments were also deemed necessary to help improve energy capacity, support tourism and boost agricultural research to support the cashew, rice, fruit, vegetable and tubers sectors. The DTIS also recommended that data on the fisheries sector be improved to be represented more accurately in national data.

The findings of the DTIS were actively disseminated through a series of national events. Of particular importance was the message that: "Though there is much to be done, Guinea-Bissau does have the potential to become an attractive location for business, both domestic and international, thanks in particular to its natural resource base." While Guinea-Bissau has yet to achieve all of its DTIS recommendations, by highlighting key obstacles and providing a pathway toward economic growth and poverty alleviation, the study has been an invaluable tool for development.

With the support from Guinea-Bissau’s NIU, trade is being integrated into national development strategies as they emerge. For example, the Government’s Strategic and Operational Plan 2015-2020, entitled "Terra Ranka" (“new start”), placed a strong emphasis on trade as a pathway toward growth. The plan – which was drawn up in consultation with public, private and civil society stakeholders – focused on the expansion and integration of the cashew, rice, artisanal fisheries, fruit, vegetable and tuber sectors into regional commercial value chains.

This integration, however, was not always easy. "We had difficulty integrating trade into national development and poverty reduction strategies,” said Lassana Fati, the EIF’s NIU Focal Point in Guinea-Bissau. "But with a communication and awareness-raising campaign aimed at the authorities, trade is now well and truly integrated into the national strategy." This successful integration is now reflected in the country’s updated Trade Strategy 2017-2021.

Trade has now been mainstreamed in the development of infrastructure, telecommunications and customs procedures. Trade is also central to Guinea-Bissau’s strategies for the fisheries and tourism sectors, as well as the National Agricultural Investment Programme and Export Development and Diversification.

Overall, the projects implemented with EIF support reflect the priorities in the 2010 DTIS and 2016 DTIS Update. Government representatives consulted during a 2021 evaluation of EIF activities in Guinea-Bissau underlined the key role of these studies, which demonstrate the uniqueness of the EIF’s support to the LDCs. 

Building local capacity and strengthening institutions

Guinea-Bissau’s unstable political environment has presented challenges to the effective and timely implementation of EIF project activities. Nevertheless, the creation of the NIU in the Ministry of Trade and Industry, the establishment of a National Steering Committee, and the appointment of an EIF Focal Point and a Donor Facilitator are all strong indicators of the Government’s commitment to ownership and, ultimately, the sustainability of EIF-supported activities. The capacity of Guinea-Bissau’s NIU has benefitted from the knowledge and experience of key staff. For example, the former NIU Coordinator has served as the Minister of Trade, and the EIF Focal Point and NIU’s trade policy expert is currently the Director-General of External Trade and Competition. Additionally, the NIU Financial Officer serves as the Director of Administration and Finance in the Ministry of Trade and Industry. 

The management and operational capacity of the Government has also been strengthened with the training of more than 150 public servants across the country in different trade-related skills. The training has focused on integrating trade guidelines and implementing DTIS recommendations. Additionally, the EIF supported efforts to improve the business operating environment. In 2011, vital skills acquired by officials helped to remove blockages in government operations, allowing a new firm to open for business in 48 hours, thanks to the creation of the Center for Business Formalization.

Government staff also benefitted from exchange visits that allowed EIF partners in the LDCs to learn from each other and forge solid relationships. For example, in an effort to enhance synergies for the mango sector in ECOWAS countries—a commodity that is particularly important in Guinea-Bissau— the NIU worked with Senegal to implement trade facilitation measures and created the Guinea-Bissau Export Promotion Agency. The NIU was also involved in the creation of the West African Regional Mango Alliance together with other countries in the region, including Burkina Faso, Côte d'Ivoire, Guinea, Mali and Senegal.

Strengthening value chains in the artisanal fisheries sector

Fishing is one of the key sectors driving economic development in Guinea-Bissau. With well over 8,000 square kilometres of sea, the country has abundant fishing resources. Efforts to diversify exports away from its over-dependence on the cashew sector led to increased EIF support for artisanal fisheries. In doing so, specific focus was placed on women’s cooperatives. The EIF has helped communities acquire better post-harvest storage facilities and processing techniques to reduce losses in an effort to promote the sector’s economic viability. 

In 2021, the EIF partnered with UNIDO to help the country implement the artisanal fisheries project. The project aimed to strengthen the competitiveness of the national artisanal fishing value chain in order to improve the socioeconomic conditions of operators. Diagnostic visits to the Cacheu, Canchungo, and Buba regions identified the needs of fishing communities in these areas. Following these visits, the EIF supported an initiative to develop locally adapted public–private partnership models to manufacture and upgrade essential refrigeration infrastructure for fish preservation and marketing. Additionally, local management committees were created to support three cooperatives with a total of 36 members. These cooperatives have benefitted from training on improved fishing and drying techniques, as well as business skills.

By applying a "learning by doing" approach, the fisheries project developed new types of locally made dugout canoes fitted with storage containers made from insulating isothermal materials. As a result, cooperatives are producing more, and fish drying is being carried out more efficiently, which has resulted in increased incomes. To ensure the availability of ice at affordable prices, the project set up two ice-making plants in Cacheu and Canchungo. Both facilities are effectively managed by local committees and benefit more than 300 fish harvesters, the majority of whom being local women and youth. 

Regulating pricing in the cashew nut sector

Following the recommendations of the DTIS, the EIF helped build capacity in the Ministry of Trade and Industry. This resulted in effective support being provided by the NIU to small-scale producers to improve productivity across the cashew nut value chain. On 31 March 2023, the Government of Guinea-Bissau – through the Ministry of Trade and Industry – officially opened the marketing and export campaign for cashew nuts, with an export forecast of almost 230,000 tonnes. According to Lassana Fati, improvements in nut harvesting, processing, tree maintenance, and marketing logistics have helped reduce waste and increase incomes for farmers and producers.

With support from government officials and the NIU on setting prices and negotiating export deals, farmers and producers are earning more income from their produce.

The 2024 cashew marketing and export campaign saw Guinea-Bissau export 166,000 tonnes, while the price of cashew nuts, set at 300 FCFA per kg for producers, rose to 700 FCFA or 800 in some localities, surpassing the positive results of the previous two years.

Mobilizing resources for trade priorities

While the Government of Guinea-Bissau has made notable progress in addressing some of the challenges identified in the DTIS, much work remains to be done, and trade-related challenges are still present. Lack of resources is one of the major stumbling blocks hampering progress. However, as a result of support (e.g., EIF training), the Ministry of Trade and Industry now has staff with the necessary skills to mobilize resources from other development partners to finance some of its trade priority areas. 

The transformation that needs to take place for Guinea-Bissau to meaningfully integrate into regional and global trading systems will not happen overnight. However, the Government’s ownership and commitment to several activities supported by the EIF have already helped reap some of the benefits that come with participation in international trade. Significant progress is already being made in export growth, driven by newly operational trade coordination mechanisms, the creation of the Guinea-Bissau Agency Export Promotion Agency (through the Ministry of Trade and Industry), and support for MSMEs.