Guinea-Bissau Country Climate and Development Report

Investment Rating - The report does not explicitly provide an investment rating for the industry. Core Insights - Guinea-Bissau possesses the highest natural capital per capita in West Africa, estimated at US$3,874, which can be leveraged for sustainable growth despite facing significant development challenges such as high poverty rates and political instability [15][32] - Climate change poses a severe threat to agriculture, fisheries, and infrastructure, potentially leading to a 7.3% reduction in real GDP per capita by 2050 and increasing poverty levels [16][21] - The country has high mitigation ambitions, targeting a 30% reduction in greenhouse gas emissions by 2030, but faces challenges due to political instability and limited financial resources [17][18] Summary by Sections Chapter 1: Climate and Development - Guinea-Bissau's development context highlights its wealth in natural resources but also its underdevelopment, with a GDP per capita of US$775 and high poverty rates [31][32] - Political instability has significantly hampered economic progress, with the country experiencing numerous coups since independence [33][34] Chapter 2: Enabling Environment for Managing Climate Change - The financial sector is underdeveloped, limiting its ability to support green investments, although reforms could enhance resilience [17][18] Chapter 3: Development and Climate Priorities - Immediate actions are needed in agriculture to implement climate-smart practices and diversify crops, particularly focusing on cashew nut production, which dominates the economy [21][22] - Forest conservation is crucial for sustainable development, with mangroves playing a significant role in climate adaptation and mitigation [23][24] Chapter 4: Aggregate and Distributional Effects of Climate Change - The report discusses the macroeconomic impacts of climate change, indicating that without adaptation, GDP could decrease by up to 4.1% by 2050 [21][22] Chapter 5: Climate Financing - Concessional climate financing is essential due to the underdeveloped financial sector, and initiatives like the BioGuinea Foundation offer opportunities for biodiversity preservation [18][19] Chapter 6: Conclusions and Priorities - The report emphasizes the need for a cohesive approach that integrates development and climate strategies, focusing on governance, economic diversification, and investment in sustainable agriculture [19][27]