The COVID-19 pandemic and the measures taken to control its spread in Guinea-Bissau caused a profound socio-economic impact in the country, especially on the informal sector and on micro, small and medium-sized enterprises, according to a new study by the United Nations Development Programme (UNDP), which provides an overview of the state of formal enterprises before and during the pandemic.

According to the report, the adverse impact of the pandemic has highlighted the need for a structural transformation of Guinea-Bissau into a more diversified, interconnected, and resilient economy.

We are going through a period during which the COVID-19 pandemic has caused disruption in many countries, and Guinea-Bissau is no exception. The crisis has highlighted the country's socio-economic fragility and has had adverse effects especially on micro, small, and medium enterprises, which are the backbone of Guinea-Bissau's economy,” said José Levy, UNDP Deputy Resident Representative, at the report launch in Bissau, on 4 August.

“The pandemic has demonstrated the need to return to a more sustainable, resilient, and inclusive economic recovery, with special attention being paid to the most vulnerable”, he said.

In the 401 formal companies randomly sampled across the country, there is a high proportion of casual employees (69.9 percent) as well as a high number of unpaid trainees and apprentices, prevalent informality, and a low proportion of female employees. 

An analysis of gender diversity within the companies reveals a contradiction: most managers consider that women are on average better managers. However, more than 90 percent of the managers interviewed are men, and 75.8 percent of the companies in the sample have only male managers. 

The report argues that this contradiction may reflect cultural and social barriers that prevent women with above-average management skills from advancing their careers.

Introducing reforms to eliminate discrimination to women’s participation in the economy should be a first step to strengthen gender equality in the national business environment (e.g.: same opportunities as men to register a business, open a bank account and access credit). 

Fili Baró, Secretary of the Women's Cooperative of the Port of Alto de Bandim and fish seller, gave her cry for help to the UNDP, when she was given the floor during the report launch.

“We know that artisanal fishing is actually sustaining many Bissau-Guinean families, but it is also experiencing great difficulties. I would like to ask UNDP to support the women vendors more, because we are facing great difficulties financially and even materially - to conserve the fish - and to get the fish, because the professionals pay a lot of taxes this then reflects in the hands of the women vendors”, she said.

The report indicates that agriculture, transport, and tourism sectors were also negatively impacted by the measures taken by national authorities to contain the pandemic: supply chains were disrupted, the movement of people restricted, and maritime and air transport routes blocked.

“Women are helping their children so that they can have a good education, but today very few people can do this in the Port of Alto de Bandim,” told Fili Baro.

When asked about age, the dominant opinion among the managers interviewed is that older people make better managers. The average age of the managers interviewed is 45, substantially higher than the average age among the population (18.8).

The promotion of entrepreneurship among the youth, the report argues, can be a promising path for providing professional opportunities for this large - and growing - population group. 

Find some visualization of the report from the SURGE data hub here.