BISSAU, May 2, 2025 - The World Bank has approved the Guinea-Bissau Reform Advancement Development Policy Financing (DPF) operation, a $10 million grant aimed at strengthening fiscal governance and improving public service delivery in Guinea-Bissau.
The DPF supports the Government of Guinea-Bissau in strengthening public financial management, boosting domestic revenue mobilization, enhancing the viability of energy and water services, and promoting digital growth. The DPF facilitates reforms designed to strengthen transparency and accountability, implement the Value Added Tax (VAT) law and establish a Treasury Single Account. It also enables reforms to improve the digital infrastructure, improve the performance of the electricity and water utility, and prioritize the adoption of environmentally sustainable energy sources.
“This approval marks the return of the Development Policy Financing instrument to Guinea-Bissau after a 15-year hiatus, and represents a significant milestone for the country,” said Rosa Brito, World Bank Group Resident Representative in Guinea-Bissau. “The DPF was carefully prepared and aligned with ongoing World Bank engagements in Guinea-Bissau, and builds on existing projects in public sector strengthening, digital development, and energy, demonstrating the World Bank's continued commitment to supporting Guinea-Bissau's development goals.”
The DPF is expected to deliver transformative results in digital connectivity, public finance, and the delivery of essential services. It supports the government in effectively managing and deploying the national fiber optic backbone, thereby expanding network coverage and reducing internet costs.
The implementation of the VAT law is expected to significantly boost domestic revenue, thereby creating fiscal space for greater investment in priority sectors such as education, health, and social protection. In parallel, reforms in the energy sector aim to reduce electricity costs and increase the share of renewable energy. Improved access to reliable energy and digital services is expected to support private sector development, stimulate economic growth, and contribute to the country’s long-term sustainable development.
