Guinea-Bissau Industry Sectors
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A major sector of Guinea-Bissau’s economy is its agriculture industry. Despite possessing fertile, arable land and an ideal climate suitable for growing a large variety of crops, cashew nut production dominates Guinea-Bissau’s agriculture sector. Cashew nuts are easy to grow compared to other crops, and the low capital cost and processing requirements make it a popular choice among uneducated farmers – many of whom may not have the resources to purchase or grow more valuable crops.
A major sector of Guinea-Bissau’s economy is its agriculture industry. Despite possessing fertile, arable land and an ideal climate suitable for growing a large variety of crops, cashew nut production dominates Guinea-Bissau’s agriculture sector. Cashew nuts are easy to grow compared to other crops, and the low capital cost and processing requirements make it a popular choice among uneducated farmers – many of whom may not have the resources to purchase or grow more valuable crops.
The increasing success of the cashew nut industry has lead existing farmers to abandon potentially high value crops, in favour of lower profits but relatively simpler and quicker harvests. Unfortunately this has led to a lack of development and diversification in the agriculture industry.
According to the African Economic Outlook, the production of cashew nuts alone could easily be tripled or quadrupled with implementation of modern technology and infrastructure. The lack of cashew nut processing facilities in the country has also caused cashew nuts to be sold well below international market prices. Finally, Guinea-Bissau has failed to create an efficient marketing system needed to ensure the competitiveness of other valuable crops.
A major problem facing Guinea-Bissau’s cashew nut industry, and to a certain extent the agriculture industry and its economy, is the lack of formal institutions present to enforce and regulate the industry. Despite producing an estimated 140,000 tonnes of cashew nuts in 2009, its believed significant quantities of cashew nuts are smuggled and re-exported by its neighbouring countries.
A large portion of Guinea-Bissau’s economy also remains unaccounted for. Presently, much of the trade involved in Guinea-Bissau is completely informal with only 75 firms registered in the entire country. Illegal drug trafficking is also rampant in Guinea-Bissau with an estimate of nearly one tonne of cocaine passing through the country every day enroute to Europe. Its believed that a month’s cocaine shipments through Guinea-Bissau is approximately equal to ten times Guinea-Bissau’s gross annual national earnings.
Guinea-Bissau Industry Sectors
The agriculture industry made up 62 percent Guinea-Bissau’s GDP composition in 2008; services and industrial sectors contributing 23 percent and 15 percent respectively.
In an effort to diversify its agriculture industry and the economy, a major agricultural project, PRESAR (Rural and Agricultural Sector Rehabilitation Project), was implemented in five of the eight regions in Guinea-Bissau. Financed by the African Development Bank (AfDB), PRESAR aims to improve horticulture and livestock through the sharing of technology as well as providing financial and agricultural assistance to farmers.
Guinea-Bissau has large bauxite, phosphates and oil reserves that remain untapped. Social and political instability has prevented these industries from developing – its estimated these industries may potentially double or even triple Guinea-Bissau’s foreign exchange and fiscal revenues.
Read more on Guinea-Bissau’s economy, including forecasts and trade statistics on EconomyWatch below.
