Research and consulting in Guinea-Bissau

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Research and consulting in Guinea-Bissau

Country overview:

IOA has developed a data-based understanding of Guinea-Bissau through years of research into the country and by offering consulting services into a variety of its sectors. The country remains among the world’s 10 poorest nations largely due to its history of military coups and corrupt leadership, which has seen the state become a key hub for drug trafficking between South America and the EU. In late 2024, President Umaro Sissoco Embaló suspended planned legislative elections indefinitely, which could prove a source of political instability in the near future.

The political situation has created a similarly challenging investment environment. Though natural resources are abundant too few efforts have been made to invest into local industrialisation efforts. Privatisation is limited with most key sectors dominated by state owned companies. Cashew nuts are a key export crop but are hampered by a lack of local value addition. Local and international stakeholders have made some headway in agricultural diversification by stimulating the growth of local rice production, similarly there exists much potential in timber export and offshore oil exploration.

Key opportunities in Guinea-Bissau:

  • Commercial fishing can provide a lucrative export product
  • IOA analysts note that agriculture has great potential for industrial farming and export-driven crops, foremost with cashew nuts
  • The country’s vast forests are being wasted for firewood but can be the basis of a profitable timber export with wood value-added industries

Key concerns/risks in Guinea-Bissau:

  • Political instability characterises governance, with conflict founded in tension between civilian and military authorities
  • Wide-spread poverty is one result of an underdeveloped infrastructure and a poor education system
  • The mining industry is underdeveloped, and the exact extent of mineral deposits awaits investment in exploration
Guinea-Bissau

Tips on doing business in Guinea-Bissau:

Starting a business:

  • A popular type of legal entity is the Guinea-Bissau Limited Liability Company (SARL). This type of entity requires just one shareholder, who can be any nationality and does not need to be resident in Guinea-Bissau

Doing business:

  • Up until the 2020’s, the World Bank ranked Guinea-Bissau as one of the more challenging business environments in the world. Guinea Bissau is presently financially sanctioned by the UK and some of its partner countries, additionally various members of the government and security forces are under individual sanctions, including travel bans
  • Due diligence should be performed to avoid becoming embroiled with politically exposed individuals in the country
    (Read more at: https://mne.gw/2023/11/20/lancamento-do-guia-de-investimento-na-guine-bissau/)

Culture and society:

  • Portuguese is the official language of business and administration, though Upper Guinea Creole, a derivative dialect, is much more commonly spoken. Some individuals in the business world will be able to converse in French or English as these are taught in some local schools
  • The northern areas of the country are predominantly Muslim, and as such foreign visitors should take steps to cause offense in these areas. Similarly, foreign visitors may encounter certain areas or objects that are considered sacred by animist believers in the country’s southern rural areas. These should not be photographed to avoid causing offense

A sample IOA research report on Guinea-Bissau: