Guinea-Bissau: Ninth and Tenth Reviews Under the Extended Credit Facility Arrangement, Requests for Rephasing of Access, Extension of the Arrangement, Waivers of Nonobservance of Performance Criteria and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Guinea-Bissau

This paper presents Guinea-Bissau’s Ninth and Tenth Reviews under the Extended Credit Facility Arrangement, Requests for Rephasing of Access, Extension of the Arrangement, Waivers of Nonobservance of Performance Criteria and Financing Assurances Review. The economy of Guinea-Bissau has shown continued resilience reflecting favorable terms of trade developments and continued strong investment spending. Program performance was negatively affected by policy slippages as well as the political disruptions at the end of 2025, but the authorities have since moved to address this through corrective measures. There are significant downside risks to the outlook and strong program ownership and engagement with the Fund remain paramount. Energy sector reforms are essential to both reduce fiscal risks and boost growth potential. Recent reforms in the public electricity generator have stemmed losses and ensured cost recovery whilst also driving increased consumer and industrial connectivity. The authorities are exploring options to boost capacity through the regional market or additional private suppliers. Progress in governance reforms is encouraging with increased transparency in public tender information and beneficial ownership data.