Guiné-Bissau: Investir

FDI in Figures

In recent years, Guinea-Bissau had been able to attract relatively large amounts of foreign investment; but unfortunately FDI inflows to the country declined considerably following 2020 due to the crisis induced by the COVID-19 pandemic. According to UNCTAD's World Investment Report 2023, FDI inflows totaled USD 22 million in 2022, up by 18.4% year-on-year but still below the level recorded before the pandemic (USD 72 million). The total stock of FDI stood at USD 315 million as of 2022, representing around 18.5% of the country’s GDP. Offshore oil exploration attracts most foreign investors. The tourism sector is also developing and receiving increasing investment (particularly in the Bijagos Islands). The main investing countries are China, the United States, Portugal and India.

Foreign direct investment in Guinea Bissau has been historically low due to its small market size, underdeveloped infrastructure, and political instability. In recent years, the government of Guinea Bissau has taken steps to attract foreign investment by enacting investment-friendly laws and establishing a "one-stop shop" to streamline the process of setting up a business in the country. In addition, the government has signed several bilateral investment treaties with other countries, including China and Portugal, to provide greater protection for foreign investors. The national government implemented policies to diversify the economy, prioritizing the attraction of foreign investment in the agriculture and energy sectors, which are two key drivers of the economy. The country’s natural resources are other positive factors. Chinese investment in Guinea-Bissau has been increasing in the last decade. As such, a canning factory, as well as a fish distribution network, were developed with the support of the China International Fisheries Corporation (CONAPEMAC). Additionally, the Kaleba hydroelectric dam, funded by the China International Water & Electric Corp. for USD 536 million, entered into service in 2015. Chinese companies are also investing in real estate as well as in bauxite. The main weakness of the country consists of the large number of Latin American drug traffickers who have set up their bases to ship drugs into the European market. The poor condition of infrastructure, a weak legal system, political instability and the high cost of energy are also hindrances to investment. Formally, the law treats foreign and domestic investment equally. Nevertheless, the judicial system remains vulnerable to political interference, and corruption is widespread. The overall regulatory framework is not conducive to starting businesses and discourages broad-based employment growth. The Guinea-Bissau National Investment Agency is the government body in charge of encouraging and facilitating investment. The country ranks 158th among the 180 economies on the 2023 Corruption Perception Index and 166th out of 184 countries on the latest Index of Economic Freedom.

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Latest Update: May 2024