The Guinean economist Santos Fernandes said on Monday that the pandemic of the new coronavirus has caused chaos in Guinea-Bissau’s economy and support will be needed because the private sector is struggling.
“The pandemic has caused some chaos at the economic level,” Santos Fernandes told Lusa.
Guinea-Bissau has 1,256 cases of Covid-19 infection and eight deaths.
With the arrival of Covid-19 in the country, the authorities have applied a series of restrictions that have had an impact on the private sector and there are many businessmen admitting to closing their doors.
“The environment is not favorable for small and medium-sized businesses, and some are closing their doors due to lack of funds. These are signs. All indications are that it will be very damaging. If there wasn’t already a robust private sector with the pandemic, the sector is in a lot of trouble,” Santos Fernandes said.
The economist also said that the country is in the midst of cashew marketing and that there are no economic operators on the ground.
“More than 80 companies should be selling and buying cashew nuts, but the restrictions have made it difficult for them to enter,” he said.
Cashew nuts are the main export product of Guinea Bissau and the driving force of the country’s economy, on which about 80 percent of the population, mainly farmers, depend directly or indirectly.
“It means that we will have difficulties, especially the farmers, who have the product, but do not have anyone to sell it to and this will be reflected at the level of our populations, who already have difficulties,” he said.
For Santos Fernandes, the first half of 2020 in Guinea-Bissau is a recession and everything indicates that the economy will have “serious problems, need support and is not a priority for political debate”.
