The International Monetary Fund has approved a US$3.2 million disbursement to Guinea-Bissau under its ongoing Extended Credit Facility (ECF) programme, while extending the arrangement through the end of 2026.
The decision, announced on March 20, follows the completion of the ninth and tenth programme reviews by the IMF’s Executive Board. The latest tranche brings total disbursements under the programme to US$50.8 million, close to the approved envelope of US$53.14 million.
The funds are intended to support the country’s balance-of-payments needs and help finance government spending, at a time when authorities are navigating fiscal pressures and structural reform challenges.
Despite the disbursement, the IMF flagged weaker-than-expected programme performance since the previous review in June 2025.
According to the Fund, several key targets were missed. Only three out of ten quantitative performance criteria set for mid-2025 were met, while five out of ten end-2025 targets were also missed. Progress on structural reforms has been uneven, with just five out of 15 benchmarks achieved on time, while others faced delays. Continuous reform benchmarks were not met.
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The IMF said the extension of the programme to December 29, 2026, along with a rephasing of access to resources, would give authorities more time to implement corrective measures and consolidate reforms.
Despite these setbacks, Guinea-Bissau’s economy has shown resilience.
Economic growth is estimated at 5.5 percent in 2025, driven largely by strong cashew nut production—one of the country’s main exports—and favourable external conditions. Inflation remained subdued at an average of 0.9 percent, while the current account deficit stood at an estimated 6.2% of gross domestic product.
The IMF emphasised the need for stronger fiscal discipline and improved governance to sustain growth and macroeconomic stability.
Key reform priorities include strengthening public financial management, enhancing transparency, and improving oversight of the financial sector. The Fund also highlighted the importance of addressing vulnerabilities in the banking system and implementing reforms in the energy sector.
Authorities in Guinea-Bissau have committed to corrective actions aimed at getting the programme back on track, including measures to reduce fiscal risks and support private sector development.
Analysts say continued engagement with the IMF will be critical for maintaining investor confidence and ensuring access to concessional financing.
The ECF arrangement is designed to support low-income countries in achieving macroeconomic stability and sustainable growth, particularly in the face of external shocks and structural constraints.
While the latest disbursement provides short-term financial relief, the IMF cautioned that sustained reform efforts will be essential to unlocking the full benefits of the programme and strengthening the country’s economic outlook.
