China cancels US$11 million in debt owed by Guinea-Bissau

Beijing has agreed to forgive approximately US$11 million in debt owed by Guinea-Bissau, a move intended to strengthen strategic cooperation and provide relief to the West African nation’s public finances. The decision aims to increase the government’s fiscal capacity to fund development policies in priority sectors such as health, education, infrastructure, agriculture, and youth initiatives, Forbes says.

The agreement was signed in Bissau by the Prime Minister Ilídio Vieira Té, and the Chinese ambassador. Yang Renhuo. Prime Minister Té described the accord as a significant milestone in a long-standing relationship of friendship and cooperation that has spanned several decades.

This cancellation of the debt owed by Guinea-Bissau is expected to support the country’s macroeconomic stability at a time when fiscal consolidation remains one of the primary challenges for Africa’s more vulnerable economies, Forbes reports.

Partnership reflected in forgiveness of debt owed by Guinea-Bissau

Beyond cancelling the debt owed by Guinea-Bissau, China has played a significant role in the development of the country. In its struggle for independence, Beijing was an active supporter of the African Party for the Independence of Guinea and Cabo Verde. Diplomatic relations were formally established in March 1974 and, despite a temporary suspension in the 1990s, were fully restored in 1998.

Over the decades, Chinese cooperation has included the construction of key infrastructure, including the national stadium, a hospital, the parliamentary complex, and telecommunications projects. Beyond infrastructure, China’s engagement is framed within the Forum on China-Africa Cooperation, providing structured channels for technical training, trade expansion, and concessional financing.

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The partnership also extends to medical diplomacy, with the dispatch of health professionals to support public health emergencies in West Africa. Beijing has also supplied equipment to the Armed Forces of Guinea-Bissau, including agricultural and construction machinery, to support local engineering and self-sufficiency, Forbes says. 

Given the country’s Atlantic coastline and maritime resources, this engagement carries strategic weight, aligning with China’s broader objective of securing access to natural resources and consolidating diplomatic partnerships across the continent.