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Guinea-Bissau: Investing

FDI in Figures

Guinea-Bissau has been able to attract substantial foreign investments during the last few years. However, these FDI inflows were reduced under the effect of the bad international economic situation. They have begun to go upwards again.

Offshore oil exploration and the rise of the price of cashew nuts in the international market are offering investment opportunities to foreign investors. In addition, the country still has some untapped potentials: large mining resources, fertile soils, the possibility of developing fishing and tourism. Aware of these several advantages, especially in the timber sector, offshore oil and mines (phosphates, bauxite), China was, at the beginning of 2011, willing to increase its investments in the country. The tourism sector is also being developed and receives growing investments (notably in the Bijagos Islands).

The main weakness of the country consists on the large number of Latin American drug traffickers, who have installed their base in the territory to ship drugs into the European market and this constitutes a risk, not to be ignored, for the business environment. The poor condition of infrastructures, a weak legal system and the high cost of energy, as well as political instability, are also hindrances to investment.

The fishing sector attracts the maximum foreign investment. In 2012, the government wishes to increase FDI in the agricultural and energy sectors. The main investing countries are the United States, Portugal and India. 

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Last Updates: May 2012