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GUINEA-BISSAU

STAFF REPORT FOR THE 2022 ARTICLE IV CONSULTATION AND THIRD REVIEW UNDER THE STAFF-MONITORED PROGRAM—INFORMATIONAL ANNEX

June 2, 2022

Prepared By

Contents

• FUND RELATIONS

• WORLD BANK GROUP RELATIONS

• AFRICAN DEVELOPMENT BANK GROUP RELATIONS

• STATISTICAL ISSUES

Fund Relations

(As of April 30, 2022)

Membership Status

Joined: March 24, 1977; Article VIII

General Resources Account:	SDR Million	Percent Quota
Quota	28.40	100.00
Fund Holdings of currency (Exchange Rate)	24.32	85.64
Reserve Tranche Position	4.11	14.46
SDR Department:	SDR Million	Percent Allocation
Net cumulative allocation	40.82	100.00
Holdings	59.60	145.99
Outstanding purchases and Loans:	SDR Million	Percent Quota
RCF Loans	16.33	57.50
ECF Arrangements	16.19	57.00

View Table

General Resources Account:	SDR Million	Percent Quota
Quota	28.40	100.00
Fund Holdings of currency (Exchange Rate)	24.32	85.64
Reserve Tranche Position	4.11	14.46
SDR Department:	SDR Million	Percent Allocation
Net cumulative allocation	40.82	100.00
Holdings	59.60	145.99
Outstanding purchases and Loans:	SDR Million	Percent Quota
RCF Loans	16.33	57.50
ECF Arrangements	16.19	57.00

Financial Commitments:

Arrangements:

Type	Date of Arrangement	Expiration Date	Amount Approved (SDR Million)	Amount Drawn (SDR Million)
ECF	Jul 10, 2015	Jul 09, 2019	22.72	17.04
ECF	May 07, 2010	May 06, 2013	22.37	15.12
ECF1/	Dec 15, 2000	Dec 14, 2003	14.20	5.08

View Table

Type	Date of Arrangement	Expiration Date	Amount Approved (SDR Million)	Amount Drawn (SDR Million)
ECF	Jul 10, 2015	Jul 09, 2019	22.72	17.04
ECF	May 07, 2010	May 06, 2013	22.37	15.12
ECF1/	Dec 15, 2000	Dec 14, 2003	14.20	5.08

Outright Loans:

Type	Date of Commitment	Date Drawn/Expired	Amount Approved (SDR Million)	Amount Drawn (SDR Million)
RCF	Jan 25, 2021	Jan 27, 2021	14.20	14.20
RCF	Nov 03, 2014	Nov 12,2014	3.55	3.55

View Table

Type	Date of Commitment	Date Drawn/Expired	Amount Approved (SDR Million)	Amount Drawn (SDR Million)
RCF	Jan 25, 2021	Jan 27, 2021	14.20	14.20
RCF	Nov 03, 2014	Nov 12,2014	3.55	3.55

Projected Payments to Fund ^2/

(SDR Million; based on existing use of resources and present holdings of SDRs):

^1/Formerly PRGF.

^2/When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.

		Forthcoming
	2022	2023	2024	2025	2026
Principal	2.02	3.82	4.12	3.41	4.26
Charges/Interest	0.00	0.00	0.00	0.00	0.00
Total	2.02	3.82	4.12	3.41	4.26

^1/Formerly PRGF.

^2/When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.

View Table

		Forthcoming
	2022	2023	2024	2025	2026
Principal	2.02	3.82	4.12	3.41	4.26
Charges/Interest	0.00	0.00	0.00	0.00	0.00
Total	2.02	3.82	4.12	3.41	4.26

^1/Formerly PRGF.

^2/When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.

Implementation of HIPC Initiative:

	Enhanced
Commitment of HIPC assistance	Framework
Decision point date	Dec 2000
Assistance committed by all creditors (US$ Million)3/	421.70
Of which: IMF assistance (US$ million)	11.91
(SDR equivalent in millions)	9.20
Completion point date	Dec 2010
Disbursement of IMF assistance (SDR Million)
Assistance disbursed to the member	9.20
Interim assistance	1.56
Completion point balance	7.64
Additional disbursement of interest income4/	0.23
Total disbursements	9.43
Implementation of Multilateral Debt Relief Initiative (MDRI):
MDRI-eligible debt (SDR Million)5/	0.51
Financed by: MDRI Trust	0.00
Remaining HIPC resources	0.51

View Table

	Enhanced
Commitment of HIPC assistance	Framework
Decision point date	Dec 2000
Assistance committed by all creditors (US$ Million)3/	421.70
Of which: IMF assistance (US$ million)	11.91
(SDR equivalent in millions)	9.20
Completion point date	Dec 2010
Disbursement of IMF assistance (SDR Million)
Assistance disbursed to the member	9.20
Interim assistance	1.56
Completion point balance	7.64
Additional disbursement of interest income4/	0.23
Total disbursements	9.43
Implementation of Multilateral Debt Relief Initiative (MDRI):
MDRI-eligible debt (SDR Million)5/	0.51
Financed by: MDRI Trust	0.00
Remaining HIPC resources	0.51

Debt Relief by Facility (SDR Million)

^3/Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts cannot be added.

^4/Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.

^5/The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.

	Eligible Debt
Delivery Date	GRA	PRGT	Total
December 2010	N/A	0.51	0.51

^3/Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts cannot be added.

^4/Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.

^5/The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.

View Table

	Eligible Debt
Delivery Date	GRA	PRGT	Total
December 2010	N/A	0.51	0.51

^3/Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts cannot be added.

^4/Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.

^5/The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.

Implementation of Catastrophe Containment and Relief (CCR) Trust^6/:

^6/As of February 4, 2015, the Post-Catastrophe Debt Relief Trust has been transformed to the Catastrophe Containment and Relief (CCR) Trust.

Decision point - point at which the IMF and the World Bank determine whether a country qualifies for assistance under the HIPC Initiative and decide on the amount of assistance to be committed.

Interim assistance - amount disbursed to a country during the period between decision and completion points, up to 20 percent annually and 60 percent in total of the assistance committed at the decision point (or 25 percent and 75 percent, respectively, in exceptional circumstances).

Completion point - point at which a country receives the remaining balance of its assistance committed at the decision point, together with an additional disbursement of interest income as defined in footnote 2 above. The timing of the completion point is linked to the implementation of pre-agreed key structural reforms (i.e., floating completion point).

Date of Catastrophe	Board Decision Date	Amount Committed (SDR million)	Amount Disbursed (SDR million)
N/A	Apr 13, 2020	1.08	1.08
N/A	Oct 02, 2020	1.36	1.36
N/A	Apr 01, 2021	1.12	1.12
N/A	Oct 06, 2021	0.60	0.60
N/A	Dec 15, 2021	0.28	0.28

^6/As of February 4, 2015, the Post-Catastrophe Debt Relief Trust has been transformed to the Catastrophe Containment and Relief (CCR) Trust.

Decision point - point at which the IMF and the World Bank determine whether a country qualifies for assistance under the HIPC Initiative and decide on the amount of assistance to be committed.

Interim assistance - amount disbursed to a country during the period between decision and completion points, up to 20 percent annually and 60 percent in total of the assistance committed at the decision point (or 25 percent and 75 percent, respectively, in exceptional circumstances).

Completion point - point at which a country receives the remaining balance of its assistance committed at the decision point, together with an additional disbursement of interest income as defined in footnote 2 above. The timing of the completion point is linked to the implementation of pre-agreed key structural reforms (i.e., floating completion point).

View Table

Date of Catastrophe	Board Decision Date	Amount Committed (SDR million)	Amount Disbursed (SDR million)
N/A	Apr 13, 2020	1.08	1.08
N/A	Oct 02, 2020	1.36	1.36
N/A	Apr 01, 2021	1.12	1.12
N/A	Oct 06, 2021	0.60	0.60
N/A	Dec 15, 2021	0.28	0.28

^6/As of February 4, 2015, the Post-Catastrophe Debt Relief Trust has been transformed to the Catastrophe Containment and Relief (CCR) Trust.

Decision point - point at which the IMF and the World Bank determine whether a country qualifies for assistance under the HIPC Initiative and decide on the amount of assistance to be committed.

Interim assistance - amount disbursed to a country during the period between decision and completion points, up to 20 percent annually and 60 percent in total of the assistance committed at the decision point (or 25 percent and 75 percent, respectively, in exceptional circumstances).

Completion point - point at which a country receives the remaining balance of its assistance committed at the decision point, together with an additional disbursement of interest income as defined in footnote 2 above. The timing of the completion point is linked to the implementation of pre-agreed key structural reforms (i.e., floating completion point).

Safeguards Assessments:

The Central Bank of West African States (BCEAO) has implemented all recommendations provided in the 2018 safeguards assessment. The assessment found that the BCEAO had broadly appropriate governance arrangements and a robust control environment. In line with the safeguards policy's four-year cycle for regional central banks, an update assessment of the BCEAO is due in 2022.

Exchange Rate Arrangement

The exchange rate arrangement of the West African Economic and Monetary Union (WAEMU) is a conventional peg. Guinea-Bissau participates in the WAEMU and has no separate legal tender. The common currency, the CFA franc, is pegged to the euro at the rate of €1 = CFAF 655.957. The Monetary Cooperation Agreement between the WAEMU member countries and France was concluded December 4, 1973. It was maintained after the French franc was replaced by the euro by the European Commission decision of November 23, 1998. The Monetary Cooperation Agreement is based on three pillars: (1) a common issuing institution, (2) fixed parity with the euro, and (3) a guarantee of unlimited convertibility. Guinea Bissau accepted the obligations of Article VIII, Sections 2, 3, and 4 with effect from January 1, 1997.. The exchange system is free from multiple currency practices and exchange restrictions on the making of payments and transfers for current international transactions.

Article IV Consultation

Guinea-Bissau is on the 12-month consultation cycle. The last Article IV consultation discussions with Guinea-Bissau were held in Bissau, September 20–October 3, 2017. The staff report was discussed by the Executive Board and the consultation was concluded on December 11, 2017.

Technical Assistance (2017-2022)

Technical Assistance (2017-2022)

Department	Type of Assistance	Time of Delivery	Purpose
West AFRITAC	Short-term expert	February 2017	Government finance statistics
FAD	Short-term expert	March 2017	Tax administration
FAD	Staff	March 2017	Tax administration
FAD	Staff	April 2017	Tax administration
FAD	Short-term expert	April 2017	Revenue administration
West AFRITAC	Short-term expert	May 2017	National Accounts
West AFRITAC	Short-term expert	August 2017	Balance of Payments Statistics
LEG	Short-term expert	September 2017	AML/CFT FIU
FAD	Short-term expert	November 2017	Revenue administration
West AFRITAC	Short-term expert	November 2017	Government finance statistics
FAD	Short-term expert	January 2018	Tax administration compliance risk
FAD	Staff	January 2018	Revenue administration
West AFRITAC	Short-term expert	February 2018	Government finance statistics
FAD	Short-term expert	February 2018	Tax administration, IT systems
FAD	Staff	March 2018	Tax Policy
FAD	Staff	March 2018	Budget Execution and control
LEG	Short-term expert	March 2018	AML/CFT FIU
West AFRITAC	Short-term expert	March 2018	Balance of Payments Statistics
MCM	Staff	March 2018	Bank Restructuring
West AFRITAC	Short-term expert	April 2018	Tax administration large payers' compliance
West AFRITAC	Short-term expert	June 2018	Debt management framework
West AFRITAC	Short-term expert	June 2018	Real sector statistics, National accounts
West AFRITAC	Short-term expert	July 2018	Tax Administration processes
LEG	Short-term expert	August 2018	AML/CFT FIU Supervision
FAD	Staff	Sep 2018	Customs administration diagnostic
West AFRITAC	Short-term expert	November 2018	Government finance statistics
West AFRITAC	Short-term expert	November 2018	Real sector statistics, National accounts
FAD	Staff	January 2019	Tax reform strategy, modernization of the DGCI and revenue mobilization
FAD	Staff	March 2019	Capital expenditure budgeting and SOEs oversight
West AFRITAC	Short-term expert	March 2019	Balance of Payments Statistics
West AFRITAC	Short-term expert	May 2019	Expenditure Control
West AFRITAC	Short-term expert	June 2019	Macro-Fiscal Modelling
FAD	Staff	July 2019	Surveillance SOEs
West AFRITAC	Short-term expert	August 2019	Real sector statistics, National accounts
West AFRITAC	Short-term expert	August 2019	Customs Administration
LEG	Short-term expert	August 2019	AML/CFT, Training
FAD	Staff	September 2019	Governance
FAD	Staff	September 2019	Tax Policy, VAT modernization
FAD	Staff	March 2020	Tax Administration
FAD	Staff	June 2020	Customs administration
FAD	Staff	September 2020	Tax Bills
FAD	Staff	November 2020	Customs Administration
West AFRITAC	Short-term expert	November 2020	Single Treasury Account
West AFRITAC	Short-term expert	November 2020	Real sector statistics, National Accounts
FAD	Staff	January 2021	Tax Administration, Kontaktu
West AFRITAC	Short-term expert	March 2021	Real sector statistics, National Accounts
West AFRITAC	Short-term expert	September 2021	Real sector statistics, National Accounts
West AFRITAC	Short-term expert	October 2021	Medium-Term Macro-Fiscal Framework
FAD	Staff	September 2014	Tax administration
West AFRITAC	Short-term expert	September 2021	Government finance statistics
West AFRITAC	Short-term expert	September 2021	Government finance statistics
West AFRITAC	Short-term expert	November 2021	Customs procedures
West AFRITAC	Short-term expert	November 2021	Single Treasury Account
West AFRITAC	Short-term expert	November 2021	Debt management
FAD	Staff	November 2021	Public Investment Management
FAD	Short-term expert	November 2021	Customs Code Review
LEG	Staff	January 2022	Procurement Framework Review
LEG	Staff	February 2022	Asset Declaration Regime Reform
FAD	Staff	February 2022	Customs exemptions
FAD	Staff	February 2022	Tax Bill Package
West AFRITAC	Staff	March 2022	Debt Management
FAD	Short-term expert	April 2022	Revenue Administration, Kontaktu and Telecom Tax

View Table

Technical Assistance (2017-2022)

Department	Type of Assistance	Time of Delivery	Purpose
West AFRITAC	Short-term expert	February 2017	Government finance statistics
FAD	Short-term expert	March 2017	Tax administration
FAD	Staff	March 2017	Tax administration
FAD	Staff	April 2017	Tax administration
FAD	Short-term expert	April 2017	Revenue administration
West AFRITAC	Short-term expert	May 2017	National Accounts
West AFRITAC	Short-term expert	August 2017	Balance of Payments Statistics
LEG	Short-term expert	September 2017	AML/CFT FIU
FAD	Short-term expert	November 2017	Revenue administration
West AFRITAC	Short-term expert	November 2017	Government finance statistics
FAD	Short-term expert	January 2018	Tax administration compliance risk
FAD	Staff	January 2018	Revenue administration
West AFRITAC	Short-term expert	February 2018	Government finance statistics
FAD	Short-term expert	February 2018	Tax administration, IT systems
FAD	Staff	March 2018	Tax Policy
FAD	Staff	March 2018	Budget Execution and control
LEG	Short-term expert	March 2018	AML/CFT FIU
West AFRITAC	Short-term expert	March 2018	Balance of Payments Statistics
MCM	Staff	March 2018	Bank Restructuring
West AFRITAC	Short-term expert	April 2018	Tax administration large payers' compliance
West AFRITAC	Short-term expert	June 2018	Debt management framework
West AFRITAC	Short-term expert	June 2018	Real sector statistics, National accounts
West AFRITAC	Short-term expert	July 2018	Tax Administration processes
LEG	Short-term expert	August 2018	AML/CFT FIU Supervision
FAD	Staff	Sep 2018	Customs administration diagnostic
West AFRITAC	Short-term expert	November 2018	Government finance statistics
West AFRITAC	Short-term expert	November 2018	Real sector statistics, National accounts
FAD	Staff	January 2019	Tax reform strategy, modernization of the DGCI and revenue mobilization
FAD	Staff	March 2019	Capital expenditure budgeting and SOEs oversight
West AFRITAC	Short-term expert	March 2019	Balance of Payments Statistics
West AFRITAC	Short-term expert	May 2019	Expenditure Control
West AFRITAC	Short-term expert	June 2019	Macro-Fiscal Modelling
FAD	Staff	July 2019	Surveillance SOEs
West AFRITAC	Short-term expert	August 2019	Real sector statistics, National accounts
West AFRITAC	Short-term expert	August 2019	Customs Administration
LEG	Short-term expert	August 2019	AML/CFT, Training
FAD	Staff	September 2019	Governance
FAD	Staff	September 2019	Tax Policy, VAT modernization
FAD	Staff	March 2020	Tax Administration
FAD	Staff	June 2020	Customs administration
FAD	Staff	September 2020	Tax Bills
FAD	Staff	November 2020	Customs Administration
West AFRITAC	Short-term expert	November 2020	Single Treasury Account
West AFRITAC	Short-term expert	November 2020	Real sector statistics, National Accounts
FAD	Staff	January 2021	Tax Administration, Kontaktu
West AFRITAC	Short-term expert	March 2021	Real sector statistics, National Accounts
West AFRITAC	Short-term expert	September 2021	Real sector statistics, National Accounts
West AFRITAC	Short-term expert	October 2021	Medium-Term Macro-Fiscal Framework
FAD	Staff	September 2014	Tax administration
West AFRITAC	Short-term expert	September 2021	Government finance statistics
West AFRITAC	Short-term expert	September 2021	Government finance statistics
West AFRITAC	Short-term expert	November 2021	Customs procedures
West AFRITAC	Short-term expert	November 2021	Single Treasury Account
West AFRITAC	Short-term expert	November 2021	Debt management
FAD	Staff	November 2021	Public Investment Management
FAD	Short-term expert	November 2021	Customs Code Review
LEG	Staff	January 2022	Procurement Framework Review
LEG	Staff	February 2022	Asset Declaration Regime Reform
FAD	Staff	February 2022	Customs exemptions
FAD	Staff	February 2022	Tax Bill Package
West AFRITAC	Staff	March 2022	Debt Management
FAD	Short-term expert	April 2022	Revenue Administration, Kontaktu and Telecom Tax

Resident Representative

The Resident Representative in Senegal also covered Guinea-Bissau from September 1997 through July 2007. Mr. Gitton has been the Resident Representative in Guinea-Bissau since August 2019.

Table 1.

Guinea-Bissau: Arrangements with the IMF, 1984–2022

Table 1.

Guinea-Bissau: Arrangements with the IMF, 1984–2022

Arrangement	Date Approved	Amount Approved	Remarks
First credit tranche purchase	August 27, 1984	SDR 1.875 million
Structural Adjustment Facility	October 14, 1987	SDR 5.25 million	2nd annual arrangement delayed; no 3rd annual arrangement.
Enhanced Structural Adjustment Facility	January 18, 1995	SDR 10.5 million	Arrangement increased by SDR 1.05 million (10 percent of quota) with 3rd annual arrangement.
Emergency post-conflict assistance	September 14, 1999	SDR 2.13 million
Emergency post-conflict assistance	January 7, 2000	SDR 1.42 million
Poverty Reduction and Growth Facility	December 15, 2000	SDR 14.2 million	PRGF elapsed without completion of a review.
Emergency post-conflict assistance	January 10, 2008	SDR 1.77 million
Emergency post-conflict assistance	May 20, 2009	SDR 1.77 million
Extended Credit Facility	May 7, 2010	SDR 22.365 million	The arrangement elapsed on May 6, 2013.
Rapid Credit Facility	November 3, 2014	SDR 3.55 million
Extended Credit Facility	July 10, 2015	SDR 17.04 million	The arrangement elapsed on July 10, 2019.
Rapid Credit Facility	Jan 25, 2021	SDR 14.20 million

View Table

Table 1.

Guinea-Bissau: Arrangements with the IMF, 1984–2022

Arrangement	Date Approved	Amount Approved	Remarks
First credit tranche purchase	August 27, 1984	SDR 1.875 million
Structural Adjustment Facility	October 14, 1987	SDR 5.25 million	2nd annual arrangement delayed; no 3rd annual arrangement.
Enhanced Structural Adjustment Facility	January 18, 1995	SDR 10.5 million	Arrangement increased by SDR 1.05 million (10 percent of quota) with 3rd annual arrangement.
Emergency post-conflict assistance	September 14, 1999	SDR 2.13 million
Emergency post-conflict assistance	January 7, 2000	SDR 1.42 million
Poverty Reduction and Growth Facility	December 15, 2000	SDR 14.2 million	PRGF elapsed without completion of a review.
Emergency post-conflict assistance	January 10, 2008	SDR 1.77 million
Emergency post-conflict assistance	May 20, 2009	SDR 1.77 million
Extended Credit Facility	May 7, 2010	SDR 22.365 million	The arrangement elapsed on May 6, 2013.
Rapid Credit Facility	November 3, 2014	SDR 3.55 million
Extended Credit Facility	July 10, 2015	SDR 17.04 million	The arrangement elapsed on July 10, 2019.
Rapid Credit Facility	Jan 25, 2021	SDR 14.20 million

World Bank Group Relations

1. Guinea-Bissau joined the World Bank in 1977, three years after independence. The first operation was approved in 1979 for a road construction and restoration project. Since then, the International Development Association (IDA) has approved 48 projects for Guinea-Bissau amounting to about US$750.6million.

2. The World Bank Group's Country Partnership Framework (CPF) for Guinea-Bissau, covering FY2018-21, is the first full country strategy since 1997. It was revised through the Program Learning Review (PLR) exercise in 2021. The PLR extends the CPF through June 2023 and adjusts the CPF framework to give more time for projects to manifest results. In addition, the extension allows to account for client-driven changes to programming, better align the CPF to the new National Development Plan (2020 -2023), the revised IDA19 (and advanced IDA20) cycle, and the country's political cycle. The focus areas of the revised CPF program are expand economic opportunities and enhance resilience and bolster human capital through improved education, health and social protection. Revisions to the CPF address key aspects of fragility, such as weak governance, social exclusion exacerbated by limited state presence and services in rural areas, and inadequate management of natural capital amid threats from disasters and climate change. Operationally, the PLR's adjustments respond to delays in the health and education projects, dropped regional projects, and COVID-19 portfolio impacts. Gender and governance continue permeating each objective as cross-cutting themes. The PLR approved by the WB Board on July 27, 2021 has six objectives (see table below).

Revised CPF Framework

Revised CPF Framework

CPF Focus Area 1. Expand economic opportunities and enhance resilience	CPF Focus Area 2. Bolster human capital through improved education, health, and social protection
Objective 1. Improve rural infrastructure and services for inclusive growth Objective 2. Improve management of coastal areas and natural capital Objective 3. Strengthen agriculture and agribusiness to improve livelihoods and food security	Objective 4. Increase access to and quality of primary education Objective 5. Increase access to quality health services for COVID-19 and maternal and child health Objective 6. Strengthen social safety nets

View Table

Revised CPF Framework

CPF Focus Area 1. Expand economic opportunities and enhance resilience	CPF Focus Area 2. Bolster human capital through improved education, health, and social protection
Objective 1. Improve rural infrastructure and services for inclusive growth Objective 2. Improve management of coastal areas and natural capital Objective 3. Strengthen agriculture and agribusiness to improve livelihoods and food security	Objective 4. Increase access to and quality of primary education Objective 5. Increase access to quality health services for COVID-19 and maternal and child health Objective 6. Strengthen social safety nets

3. The PLR was an opportunity to take stock of lessons on how the WBG can work more effectively in Guinea-Bissau's fragile and politically volatile climate, and where the WBG should direct resources to maximize poverty reduction and promote relief and recovery from the pandemic. Key lessons include a sustain regular high-level dialogue, a focus on simple designs and realistic targets, systematically integrate into projects client capacity-building components, and reinforce the FCV-sensitive approach across the CPF portfolio. This FCV-sensitive approach is expected to span a longer time horizon as the WBG works to prepare the next CPF. In the unique context of Guinea-Bissau, the WBG will consider the following over the short and longer term: adopting a conflict filter/peace lens to relevant projects; building capacities on environmental and social safeguards; exploring greater results-based financing; and considering the Geo-Enabling Initiative for Monitoring and Supervision (GEMS) or third-party monitoring as tools to strengthen monitoring of the portfolio, implement safeguard mechanisms, and/or integrate citizen engagement. Currently, GEMS tool is being deployed in Guinea-Bissau portfolio including technical support to Project Implementation Units.

4. Under IDA 19 (the 19th replenishment of International Development Association (IDA) resources for FY2019–21) the national allocation for Guinea-Bissau is US$ 91 Million. The PLR plans to use selective use of IDA19 facilities and will seek to mobilize funds through the various facilities under the IDA-IFC-MIGA Private Sector Window (PSW), namely the blended finance facility, the risk mitigation facility and/or the local currency finance facility. In addition to potential financing from IDA Regional Integration Window (RIW).

African Development Bank Group Relations

1. From the approval of the first project to the country in 1976, to April 2022, the African Development Bank (AfDB) had approved 58 operations for Guinea-Bissau, for a net commitment of UA 351.36 million (about CFAF 485.72 billion). 33 percent of these operations have been in the social sector, 25 percent in infrastructure, 23 percent in agriculture and 19 percent in the multi-sector. As of March 2022, the active portfolio comprises twelve ongoing projects (national and regional) representing a total net amount of UA 94.89 million, and a disbursement rate of 32 percent.

Statistical Issues

I. Assessment of Data Adequacy for Surveillance
General: Data have serious shortcomings that significantly hamper surveillance. Due to capacity constraints, shortcomings are most serious in the national accounts and balance of payments. The authorities are addressing the shortcomings, including with support of IMF technical assistances, and have made a commitment to allocate more resources to strengthen the National Institute of Statistics' capacity, such as staffing constraints and IT equipment.
National Accounts: The authorities compile and publish annual GDP series with base year 2015 and following the recommendations of the System of National Accounts 2008. National Accounts data are not timely as the latest estimate of GDP, as published by the National Statistical Office (NSO), is for the calendar year 2018. Definitive estimates for 2019 and provisional for 2020 are, however, expected to be published this year. Quarterly estimates of GDP are not compiled, but the authorities are working to develop quarterly estimates with the support of AFRITAC West, as well as start developing a project to rebase the GDP time series.
Price Statistics: The consumer price index (CPI) is compiled using the harmonized methodology of the West African Economic and Monetary Union (WAEMU) countries. Current CPI weights are outdated, and the WAEMU countries are in process of updating index weights using expenditure data collected from households in 2019. As part of this update, index compilation methods will be updated to better reflect standards and best practice described in the 2020 CPI Manual.
Government Finance Statistics (GFS): Under the West AFRITAC work program, GFS technical assistance missions usually visit Guinea-Bissau once a year. The last mission of October/November 2021 delivered a GFSM 2014 workshop to the Ministry of Economy and Finance and stressed the need to: expand coverage of GFS compiled and disseminated to include the social security unit and local governments; compile and disseminate high-frequency and timely GFS and public sector debt statistics (PSDS); and initiate regular reporting of annual GFS 2014 data to the IMF and PSDS data to the World-Bank/IMF PSDS database. A technical assistance diagnostic mission visited Guinea-Bissau during April/May 2022 to review the current status of PSDS compilation and strengthen capacity for improved and regular dissemination of PSDS data.
Monetary and Financial Statistics (MFS): Monthly MFS for Guinea-Bissau are compiled by the Guinea-Bissau national branch of the BCEAO and reported to the IMF Statistics Department (STA) by the BCEAO Headquarters. In August 2016, the BCEAO completed the migration of Guinea-Bissau's MFS to the standardized report forms for the central bank and other depository corporations. Through the BCEAO, Guinea-Bissau reports data on several indicators of the IMF Financial Access Survey, including the two indicators (commercial bank branches per 100,000 adults and ATMs per 100,000 adults) adopted by the UN to monitor Target 8.10 of the Sustainable Development Goal.
Financial Sector Surveillance: With technical assistance from STA, the BCEAO finalized the development of FSIs for deposit-takers for Guinea-Bissau in 2018. The BCEAO has used FSIs for its internal purpose, but has not granted approval to publish the data on the IMF's FSI website.
External Sector Statistics (ESS): Guinea-Bissau moved to BPM6 methodology for both balance of payments and international investment position (IIP) statistics in September 2013, reviewing back series from 2007. Balance of payments data are weak, mostly due to substantial unrecorded trade and inconsistencies between financial account transactions and the position data in the IIP. The large number of small-scale operators, a large informal sector, and institutional weaknesses hamper the data collection. In the second semester of each year, the WAEMU countries reconcile their regional cross-border transactions data to incorporate unrecorded transactions. While no external debt data are published by the MEF, stock and flow data are regularly produced and transmitted to the BCEAO. The implementation of the International Transactions Reporting System (ITRS) should improve balance-of-payments source data as well as their periodicity (from an annual to a quarterly periodicity). Guinea-Bissau participates in the Coordinated Direct Investment Survey (CDIS). Staff shortage remains a crucial risk for the implementation of the improvement agenda.
II. Data Standards and Quality
Guinea-Bissau has participated in the Enhanced General Data Dissemination System (e-GDDS, which superseded GDDS) since November 2001 but has yet to publish data under the e-GDDS through a National Summary Data Page. Metadata for all data categories and plans for improvement need to be updated.	No data ROSC is available.

View Table

I. Assessment of Data Adequacy for Surveillance
General: Data have serious shortcomings that significantly hamper surveillance. Due to capacity constraints, shortcomings are most serious in the national accounts and balance of payments. The authorities are addressing the shortcomings, including with support of IMF technical assistances, and have made a commitment to allocate more resources to strengthen the National Institute of Statistics' capacity, such as staffing constraints and IT equipment.
National Accounts: The authorities compile and publish annual GDP series with base year 2015 and following the recommendations of the System of National Accounts 2008. National Accounts data are not timely as the latest estimate of GDP, as published by the National Statistical Office (NSO), is for the calendar year 2018. Definitive estimates for 2019 and provisional for 2020 are, however, expected to be published this year. Quarterly estimates of GDP are not compiled, but the authorities are working to develop quarterly estimates with the support of AFRITAC West, as well as start developing a project to rebase the GDP time series.
Price Statistics: The consumer price index (CPI) is compiled using the harmonized methodology of the West African Economic and Monetary Union (WAEMU) countries. Current CPI weights are outdated, and the WAEMU countries are in process of updating index weights using expenditure data collected from households in 2019. As part of this update, index compilation methods will be updated to better reflect standards and best practice described in the 2020 CPI Manual.
Government Finance Statistics (GFS): Under the West AFRITAC work program, GFS technical assistance missions usually visit Guinea-Bissau once a year. The last mission of October/November 2021 delivered a GFSM 2014 workshop to the Ministry of Economy and Finance and stressed the need to: expand coverage of GFS compiled and disseminated to include the social security unit and local governments; compile and disseminate high-frequency and timely GFS and public sector debt statistics (PSDS); and initiate regular reporting of annual GFS 2014 data to the IMF and PSDS data to the World-Bank/IMF PSDS database. A technical assistance diagnostic mission visited Guinea-Bissau during April/May 2022 to review the current status of PSDS compilation and strengthen capacity for improved and regular dissemination of PSDS data.
Monetary and Financial Statistics (MFS): Monthly MFS for Guinea-Bissau are compiled by the Guinea-Bissau national branch of the BCEAO and reported to the IMF Statistics Department (STA) by the BCEAO Headquarters. In August 2016, the BCEAO completed the migration of Guinea-Bissau's MFS to the standardized report forms for the central bank and other depository corporations. Through the BCEAO, Guinea-Bissau reports data on several indicators of the IMF Financial Access Survey, including the two indicators (commercial bank branches per 100,000 adults and ATMs per 100,000 adults) adopted by the UN to monitor Target 8.10 of the Sustainable Development Goal.
Financial Sector Surveillance: With technical assistance from STA, the BCEAO finalized the development of FSIs for deposit-takers for Guinea-Bissau in 2018. The BCEAO has used FSIs for its internal purpose, but has not granted approval to publish the data on the IMF's FSI website.
External Sector Statistics (ESS): Guinea-Bissau moved to BPM6 methodology for both balance of payments and international investment position (IIP) statistics in September 2013, reviewing back series from 2007. Balance of payments data are weak, mostly due to substantial unrecorded trade and inconsistencies between financial account transactions and the position data in the IIP. The large number of small-scale operators, a large informal sector, and institutional weaknesses hamper the data collection. In the second semester of each year, the WAEMU countries reconcile their regional cross-border transactions data to incorporate unrecorded transactions. While no external debt data are published by the MEF, stock and flow data are regularly produced and transmitted to the BCEAO. The implementation of the International Transactions Reporting System (ITRS) should improve balance-of-payments source data as well as their periodicity (from an annual to a quarterly periodicity). Guinea-Bissau participates in the Coordinated Direct Investment Survey (CDIS). Staff shortage remains a crucial risk for the implementation of the improvement agenda.
II. Data Standards and Quality
Guinea-Bissau has participated in the Enhanced General Data Dissemination System (e-GDDS, which superseded GDDS) since November 2001 but has yet to publish data under the e-GDDS through a National Summary Data Page. Metadata for all data categories and plans for improvement need to be updated.	No data ROSC is available.

Guinea-Bissau: Table of Common Indicators Required for Surveillance

¹Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.

²Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

³Foreign, domestic bank, and domestic nonbank financing.

⁴The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

⁵Including currency and maturity composition currency and maturity composition.

⁶Includes external gross financial asset and liability positions vis-à-vis nonresidents.

⁷Daily (D), Monthly (M), Quarterly (Q), Annually (A), Irregular (I).

Guinea-Bissau: Table of Common Indicators Required for Surveillance

	Date of latest observation	Date Received	Frequency of Data7	Frequency of Reporting7	Frequency of Publication7
Exchange Rates	Feb 2022	Mar, 2022	D	D	D
International Reserve Assets and Reserve Liabilities of the Monetary Authorities1	Dec 2021	Feb, 2022	M	M	M
Reserve/Base Money	Dec 2021	Feb, 2022	M	M	M
Broad Money	Dec 2021	Feb, 2022	M	M	M
Central Bank Balance Sheet	Dec 2021	Feb, 2022	M	M	M
Consolidated Balance Sheet of the Banking System	Dec 2021	Feb, 2022	M	M	M
Interest Rates2	Dec 2021	Feb, 2022	M	M	M
Consumer Price Index	Jan 2022	Feb, 2022	M	M	M
Revenue, Expenditure, Balance and Composition of Financing3 – General Government4	Dec 2021	Feb, 2022	M	Q	Q
Revenue, Expenditure, Balance and Composition of Financing3 – Central Government	Dec 2021	Feb, 2022	M	Q	Q
Stocks of Central Government and Central Government-Guaranteed Debt5	Dec 2021	Feb, 2022	M	Q	Q
External Current Account Balance	2020	Nov, 2021	A	A	A
Exports and Imports of Goods and Services	2020	Nov, 2021	A	A	A
GDP	2018	April, 2019	A	A	A
Gross External Debt	Dec 2021	Feb, 2022	M	Q	Q
International Investment Position6	2020	Nov, 2021	A	I	I

¹Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.

²Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

³Foreign, domestic bank, and domestic nonbank financing.

⁴The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

⁵Including currency and maturity composition currency and maturity composition.

⁶Includes external gross financial asset and liability positions vis-à-vis nonresidents.

⁷Daily (D), Monthly (M), Quarterly (Q), Annually (A), Irregular (I).

View Table

Guinea-Bissau: Table of Common Indicators Required for Surveillance

	Date of latest observation	Date Received	Frequency of Data7	Frequency of Reporting7	Frequency of Publication7
Exchange Rates	Feb 2022	Mar, 2022	D	D	D
International Reserve Assets and Reserve Liabilities of the Monetary Authorities1	Dec 2021	Feb, 2022	M	M	M
Reserve/Base Money	Dec 2021	Feb, 2022	M	M	M
Broad Money	Dec 2021	Feb, 2022	M	M	M
Central Bank Balance Sheet	Dec 2021	Feb, 2022	M	M	M
Consolidated Balance Sheet of the Banking System	Dec 2021	Feb, 2022	M	M	M
Interest Rates2	Dec 2021	Feb, 2022	M	M	M
Consumer Price Index	Jan 2022	Feb, 2022	M	M	M
Revenue, Expenditure, Balance and Composition of Financing3 – General Government4	Dec 2021	Feb, 2022	M	Q	Q
Revenue, Expenditure, Balance and Composition of Financing3 – Central Government	Dec 2021	Feb, 2022	M	Q	Q
Stocks of Central Government and Central Government-Guaranteed Debt5	Dec 2021	Feb, 2022	M	Q	Q
External Current Account Balance	2020	Nov, 2021	A	A	A
Exports and Imports of Goods and Services	2020	Nov, 2021	A	A	A
GDP	2018	April, 2019	A	A	A
Gross External Debt	Dec 2021	Feb, 2022	M	Q	Q
International Investment Position6	2020	Nov, 2021	A	I	I

¹Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.

²Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

³Foreign, domestic bank, and domestic nonbank financing.

⁴The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

⁵Including currency and maturity composition currency and maturity composition.

⁶Includes external gross financial asset and liability positions vis-à-vis nonresidents.

⁷Daily (D), Monthly (M), Quarterly (Q), Annually (A), Irregular (I).