The International Monetary Fund and Guinea-Bissau have reached a staff-level agreement on economic policies that could support the approval of the Eleventh Review of the Extended Credit Facility arrangement, unlocking access to approximately US$1.6 million upon completion of the review by the IMF Executive Board.
The agreement follows discussions held in Bissau from April 21 to 29, 2026, by an IMF team led by Niko Hobdari, mission chief for Guinea-Bissau, on macroeconomic policies under the ECF arrangement. The staff-level agreement is contingent on the implementation of agreed prior actions and remains subject to IMF Management approval and Executive Board consideration.
The ECF arrangement was originally approved by the IMF Executive Board for a total amount of SDR 28.4 million about US$37.3 million on January 30, 2023, and was subsequently augmented to 140 percent of quota or SDR 39.76 million on November 29, 2023. Completion of the Eleventh Review would bring total disbursements under the arrangement to SDR 38.58 million about US$52.8 million.
At the conclusion of the mission, Mr. Hobdari noted that all end-March 2026 programme targets were met, with the authorities satisfying all quantitative performance criteria, indicative targets, structural benchmarks and continuous performance criteria, reflecting sustained commitment to the ECF-supported reform agenda.
“I am pleased to announce that we have reached a staff-level agreement with the Guinea-Bissau authorities on economic and financial policies that could support the approval of the Eleventh Review of the ECF program,” Mr. Hobdari said.
Economic growth in 2025 is estimated to have remained strong at 5.8 percent, supported by robust agricultural production particularly cashew exports and solid private investment.
The IMF however cautioned that growth is projected to moderate in 2026 amid a more challenging external environment, including higher global fuel prices linked to the conflict in the Middle East and potential disruptions to the cashew marketing campaign due to production and logistical constraints.
Mr. Hobdari noted that the authorities remain committed to achieving the 2026 domestic primary surplus target through strengthened revenue mobilisation and strict expenditure prioritisation, with prior actions focused on reinforcing tax administration, tightening expenditure controls, strengthening debt management and preserving investor confidence.
Looking ahead the IMF flagged significant downside risks to Guinea-Bissau’s economic outlook including adverse weather conditions, negative terms-of-trade developments and tighter financing conditions. Against the backdrop of a tight fiscal space the Fund noted that the authorities’ commitment to curtail non-priority spending until cashew-related revenues materialise, alongside proactive cash management practices, would help ease financing pressures.
The IMF also called for continued efforts to promote economic diversification into fisheries and extractive sectors including oil, phosphate and bauxite as key to strengthening the country’s resilience over the medium term.
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