Contacts In Washington: Herbert Boh 1-202-473-3548 hboh@worldbank.org In Dakar: Mademba Ndiaye (221) 338495000 mademba@worldbank.org BISSAU, July 21, 2008 – World Bank Managing Director Ngozi N. Okonjo-Iweala delivered a message of hope to the people of Guinea-Bissau on Sunday, during a press conference closing her two-day visit to this West African country. “I heard a lot about challenges in this fragile state, including a debt equivalent to 400% of the GDP, a high wage bill, conflict, …However we also have to open our eyes to the opportunities Guinea-Bissau has in several sectors”, she said. In a meeting with Bissau-Guinean President João Bernardo Vieira, she emphasized the need for the government to define a vision for the country. Ms. Okonjo-Iweala, urged Guinea-Bissau political authorities and key actors in the country to look beyond parliamentary elections planned for 16 November 2008, so that, she added, “the country and the Government will be able to select limited and high impacting priorities to be achieved during the two-to-five coming years”. She repeated the same message to members of the cabinet during a special Council of Ministers meeting chaired by Prime Minister Martinho N’Dafa Cabi, and attended by donors, and private sector and civil society representatives. Fiscal consolidation, reforming the energy sector, improving production and productivity in agriculture, especially rice production for this former rice exporter, deregulating the telecommunications sector and securing peace and stability are the key elements of any program, underlined Ms. Okonjo-Iweala. After a field visit to Cupredo Mangrove Rice Fields in the region of Biombo, the Managing Director said, “Guinea-Bissau is able to stop the current importation of 90,000 tons of rice per year and your country must become the rice exporter it was before.” Guinea-Bissau is to receive a grant of US$5 millions from the Global Food Crisis Response Trust Funds - US$1,5 million of which are to help mitigate the losses to the country’s budget from tax exemptions granted for rice and fuel imports since March 2008, and US$3.5 millions programmed for a contribution to the Governments Emergency Plan for the Agricultural Campaign 2008/09 through community-driven activities. Flanked during the press conference by Mr. Issufo Sanhá, Minister of Finance and Mr. Daniel Suleimane Embaló, Minister of Agriculture and Rural Development, Ms. Okonjo-Iweala told a room full of reporters that if Guinea-Bissau succeeds in implementing the fiscal consolidation program outlined by the government and supported by the World Bank and the International Monetary Fund, the country will surely reach HIPC Completion Point [when debt relief becomes irrevocable] next year. Ms. Okonjo-Iweala pointed out that “the country will get over 60% of its budget as additional financial resources to be invested in social sectors such as health and education and other infrastructure”. The World Bank, she pledged, will continue to support Guinea-Bissau in its efforts to become eligible to the Fast Track Initiative for Education and to implement ongoing projects to enhance private sector development; to mitigate the lack of energy in Bissau-city; and to reinforce the security of the country, including working alongside other partners to help the country fight international illicit drug trafficking with a better control of its islands and air space. However, she added “it is the responsibility of the people of Guinea- Bissau to set up a credible development agenda and partners will follow”. She urged officials to ensure that the country takes full advantage of its geographical position to enhance integration with neighboring countries. The World Bank traveling with the Managing Director which included Mr. Iradj Alikhani, the Bank’s Sector Manager for Financial and Private Sector Development in the Africa Region; Ms.Vera Songwe, Advisor to the Managing Director; and Mr. Stephan Garnier, Senior Energy Specialist at the Bank; also visited the Bissau Port, the national Power Plant, hinterland roads under rehabilitation, and an HIV/AIDS test center. ### For more information about Guinea-Bissau, please visit http://wwww.worldbank.org/afr/guineabissau |
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