5 Reasons to Invest in Guinea-Bissau

Unexploited mineral reserves

Guinea-Bissau is thought to be known by about one-third of the world Bauxite deposits7.4 billion tonnes of reserves have been identified. The bauxite market is expected to grow from 273.97 million tonnes in 2023 to 330.29 million tonnes by 2028 due to increasing demand for this important mineral globally. So far, there has been no commercial extraction, opening the door for investors interested in the country’s mining sector.

Unexploited oil deposits

A major discovery in Senegal in 2014 led to increased interest in offshore oil exploration in Guinea-Bissau. Three offshore blocks in Guinea-Bissau under the Sinapa and Esperanca permits have geological similarities to oil fields in Senegal. These reserves have attracted Spanish oil and gas companies Petronor, which is prospecting and exploring Sinapa (Block 2) and Esperanca (Blocks 4A and 5A) in partnership with national oil company Petroguin. The deal is expected to strengthen Petronor’s balance sheet and enable the drilling of an exploratory well in H1 2024. The government recognizes the promising potential for commercially valuable oil in its deep waters but calls for increased investment in exploration.

Potential of solar energy

Solar projects, such as a 20 MW solar PV plant near the capital, as well as two 1 MW hybrid mini-grid systems in Gabu and Kahungo, are being driven by government regulations and foreign funding aimed at increasing access to electricity. 80% by 2030. Solar energy has the potential to meet local demand and also contributes to the West African power pool. Through hybrid solutions, solar investments can alleviate energy poverty, diversify economies and stimulate industrialization.

A fast growing economy

Real Gross Domestic Product (GDP) growth It is forecast to reach 4.5% in 2023 This growth is linked to the revival of global cashew demand and exports, a major industry in the country The budget deficit is expected to come down to 4.2% through strong local cashew production, better wage bill control and smart financial management. Furthermore, the debt-to-GDP ratio is expected to decline to 78.1% and inflation to fall to 5%, further improving the investment climate.

Ambitious regulatory reform

The government is pursuing an ambitious reform agenda to boost long-term growth. Challenges include a high wage bill, interest payments, and relatively low revenue generation, limiting investment in infrastructure and social services. Key reforms include achieving macroeconomic stability, reducing corruption and improving governance. Digitization is being used to manage wage bills and increase revenue. These reforms are geared towards strengthening the enabling environment for investment in the country, thereby encouraging the commitment of foreign capital.

All this and more will be unpacked more in time MSGBC Oil, Gas and Power The conference and exhibition, taking place November 21-22 in Nouakchott, Mauritania. Augusto Pokena, Guinea-Bissau’s Minister of Energy and Industry, will engage with financiers and project developers interested in joining Guinea-Bissau’s promising energy market to present the country’s investment opportunities.

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