www.state.gov
Open in
urlscan Pro
2600:9000:214f:5e00:1f:e8cc:9e00:93a1
Public Scan
URL:
https://www.state.gov/reports/2024-investment-climate-statements/cabo-verde/
Submission: On December 24 via api from US — Scanned from DE
Submission: On December 24 via api from US — Scanned from DE
Form analysis 2 forms found in the DOM
Name: gs — GET //findit.state.gov/search
<form id="nav__search-form" accept-charset="UTF-8" action="//findit.state.gov/search" method="get" class="nav__search-form" name="gs">
<div class="nav__search-input-wrapper">
<label id="nav__search-query-id" for="nav__search-query">Search:</label>
<input autocomplete="off" class="usagov-search-autocomplete nav__search-input ui-autocomplete-input" id="nav__search-query" name="query" type="search" placeholder="Enter your search term or phrase" aria-labelledby="nav__search-query-id">
<input id="affiliate" name="affiliate" type="hidden" value="dos_stategov">
</div>
<div class="nav__search-cta-wrapper">
<button class="icon-arrow-right link--arrow--right nav__search-cta" type="submit" form="nav__search-form">Search</button>
</div>
</form><form>
<h2 class="sz-feedback-question sz-feedback-text-align-center sz-feedback-word-wrap sz-feedback-main-font-style" id="sz-feedback-question-element">What is your overall satisfaction with this site?</h2>
<div class="sz-feedback-validation-presenter sz-feedback-hide-validation" role="alert" aria-atomic="true"></div>
<div class="sz-feedback-rating" aria-labelledby="sz-feedback-question-element" role="radiogroup"><input class="sz-feedback-rating-icon-input sz-feedback-visually-hidden" type="radio" id="sz-feedback-rating-element-0" name="sz-feedback-rating"
value="0" required=""><label class="sz-feedback-rating-icon-label" for="sz-feedback-rating-element-0"><svg focusable="false" aria-hidden="true" class="sz-feedback-rating-icon" viewBox="0 0 19.93 18.85">
<path
d="M10,4.23l1.25,2.91.41.91,1,.09,3.32.33-2.49,2.16-.75.66.25,1,.75,3.15-2.91-1.66L10,13.29l-.83.49L6.31,15.44l.75-3.23.25-1-.83-.58L4.07,8.55,7.22,8.3l1-.08.42-.91L10,4.23M10,0,7.14,6.64,0,7.22l5.4,4.65-1.58,7L10,15.2l6.23,3.65-1.66-7,5.4-4.65-7.14-.74L10,0Z">
</path>
</svg><span class="sz-feedback-rating-icon-label-text sz-feedback-visually-hidden">1 <img draggable="false" role="img" class="emoji" alt="⭐" src="https://s.w.org/images/core/emoji/15.0.3/svg/2b50.svg"></span></label><input
class="sz-feedback-rating-icon-input sz-feedback-visually-hidden" type="radio" id="sz-feedback-rating-element-1" name="sz-feedback-rating" value="1" required=""><label class="sz-feedback-rating-icon-label"
for="sz-feedback-rating-element-1"><svg focusable="false" aria-hidden="true" class="sz-feedback-rating-icon" viewBox="0 0 19.93 18.85">
<path
d="M10,4.23l1.25,2.91.41.91,1,.09,3.32.33-2.49,2.16-.75.66.25,1,.75,3.15-2.91-1.66L10,13.29l-.83.49L6.31,15.44l.75-3.23.25-1-.83-.58L4.07,8.55,7.22,8.3l1-.08.42-.91L10,4.23M10,0,7.14,6.64,0,7.22l5.4,4.65-1.58,7L10,15.2l6.23,3.65-1.66-7,5.4-4.65-7.14-.74L10,0Z">
</path>
</svg><span class="sz-feedback-rating-icon-label-text sz-feedback-visually-hidden">2 <img draggable="false" role="img" class="emoji" alt="⭐" src="https://s.w.org/images/core/emoji/15.0.3/svg/2b50.svg"></span></label><input
class="sz-feedback-rating-icon-input sz-feedback-visually-hidden" type="radio" id="sz-feedback-rating-element-2" name="sz-feedback-rating" value="2" required=""><label class="sz-feedback-rating-icon-label"
for="sz-feedback-rating-element-2"><svg focusable="false" aria-hidden="true" class="sz-feedback-rating-icon" viewBox="0 0 19.93 18.85">
<path
d="M10,4.23l1.25,2.91.41.91,1,.09,3.32.33-2.49,2.16-.75.66.25,1,.75,3.15-2.91-1.66L10,13.29l-.83.49L6.31,15.44l.75-3.23.25-1-.83-.58L4.07,8.55,7.22,8.3l1-.08.42-.91L10,4.23M10,0,7.14,6.64,0,7.22l5.4,4.65-1.58,7L10,15.2l6.23,3.65-1.66-7,5.4-4.65-7.14-.74L10,0Z">
</path>
</svg><span class="sz-feedback-rating-icon-label-text sz-feedback-visually-hidden">3 <img draggable="false" role="img" class="emoji" alt="⭐" src="https://s.w.org/images/core/emoji/15.0.3/svg/2b50.svg"></span></label><input
class="sz-feedback-rating-icon-input sz-feedback-visually-hidden" type="radio" id="sz-feedback-rating-element-3" name="sz-feedback-rating" value="3" required=""><label class="sz-feedback-rating-icon-label"
for="sz-feedback-rating-element-3"><svg focusable="false" aria-hidden="true" class="sz-feedback-rating-icon" viewBox="0 0 19.93 18.85">
<path
d="M10,4.23l1.25,2.91.41.91,1,.09,3.32.33-2.49,2.16-.75.66.25,1,.75,3.15-2.91-1.66L10,13.29l-.83.49L6.31,15.44l.75-3.23.25-1-.83-.58L4.07,8.55,7.22,8.3l1-.08.42-.91L10,4.23M10,0,7.14,6.64,0,7.22l5.4,4.65-1.58,7L10,15.2l6.23,3.65-1.66-7,5.4-4.65-7.14-.74L10,0Z">
</path>
</svg><span class="sz-feedback-rating-icon-label-text sz-feedback-visually-hidden">4 <img draggable="false" role="img" class="emoji" alt="⭐" src="https://s.w.org/images/core/emoji/15.0.3/svg/2b50.svg"></span></label><input
class="sz-feedback-rating-icon-input sz-feedback-visually-hidden" type="radio" id="sz-feedback-rating-element-4" name="sz-feedback-rating" value="4" required=""><label class="sz-feedback-rating-icon-label"
for="sz-feedback-rating-element-4"><svg focusable="false" aria-hidden="true" class="sz-feedback-rating-icon" viewBox="0 0 19.93 18.85">
<path
d="M10,4.23l1.25,2.91.41.91,1,.09,3.32.33-2.49,2.16-.75.66.25,1,.75,3.15-2.91-1.66L10,13.29l-.83.49L6.31,15.44l.75-3.23.25-1-.83-.58L4.07,8.55,7.22,8.3l1-.08.42-.91L10,4.23M10,0,7.14,6.64,0,7.22l5.4,4.65-1.58,7L10,15.2l6.23,3.65-1.66-7,5.4-4.65-7.14-.74L10,0Z">
</path>
</svg><span class="sz-feedback-rating-icon-label-text sz-feedback-visually-hidden">5 <img draggable="false" role="img" class="emoji" alt="⭐" src="https://s.w.org/images/core/emoji/15.0.3/svg/2b50.svg"></span></label></div>
<div class="sz-feedback-validation-presenter sz-feedback-hide-validation" id="sz-feedback-comment-validation" role="alert" aria-atomic="true"></div>
<div><label class="sz-feedback-label-note sz-feedback-visually-hidden" for="sz-feedback-textarea">Have feedback about our website? Note: we can’t address visa or passport issues through this box.</label></div><textarea
class="sz-feedback-textarea sz-feedback-main-font-style ignore" rows="5" placeholder="Have feedback about our website? Note: we can’t address visa or passport issues through this box." maxlength="1000" id="sz-feedback-textarea"></textarea>
<div class="sz-feedback-comment-character-counter sz-feedback-display-none"><span></span><span>/1000</span></div><button
class="sz-feedback-submit-button sz-feedback-text-align-center sz-feedback-word-wrap sz-feedback-main-font-style sz-feedback-border-radius">Submit</button>
</form>Text Content
Skip to content
An official website of the United States Government Here's how you know
Official websites use .gov
A .gov website belongs to an official government organization in the United
States.
Secure .gov websites use HTTPS
A lock ( ) or https:// means you’ve safely connected to the .gov website. Share
sensitive information only on official, secure websites.
* Newsroom
* Business
* Employees
* Job Seekers
* Students
* Travelers
* Visas
Facebook X Instagram YouTube Flickr GovDelivery
* State Department Home
* Policy Issues
* Back
* Policy Issues
Anti-Corruption and Transparency
Arms Control and Nonproliferation
Artificial Intelligence (AI)
Climate and Environment
Climate Crisis
Combating Drugs and Crime
Countering Terrorism
COVID-19 Response and Recovery
Cyber Issues
Economic Prosperity and Trade Policy
Energy
Global Health
Global Women’s Issues
Holding Russia and Belarus to Account
Human Rights and Democracy
Human Trafficking
The Ocean and Polar Affairs
Refugee and Humanitarian Assistance
Science, Technology, and Innovation
Treaties and International Agreements
United with Ukraine
* Countries & Areas
* Back
* Countries & Areas
Search for country or area
Select an Option
Search for country or area
AAfghanistanAlbaniaAlgeriaAndorraAngolaAntigua and
BarbudaArgentinaArmeniaAustraliaAustriaAzerbaijanBBahamas,
TheBahrainBangladeshBarbadosBelarusBelgiumBelizeBeninBhutanBoliviaBosnia
and HerzegovinaBotswanaBrazilBruneiBulgariaBurkina FasoBurmaBurundiCCabo
VerdeCambodiaCameroonCanadaCentral African
RepublicChadChileChinaColombiaComorosCook IslandsCosta
RicaCroatiaCubaCyprusCzechiaCôte d’IvoireDDemocratic Republic of the
CongoDenmarkDjiboutiDominicaDominican RepublicEEcuadorEgyptEl
SalvadorEquatorial
GuineaEritreaEstoniaEswatiniEthiopiaFFijiFinlandFranceGGabonGambia,
TheGeorgiaGermanyGhanaGreeceGrenadaGuatemalaGuineaGuinea-BissauGuyanaHHaitiHoly
SeeHondurasHungaryIIcelandIndiaIndonesiaIranIraqIrelandIsraelItalyJJamaicaJapanJordanKKazakhstanKenyaKiribatiKosovoKuwaitKyrgyzstanLLaosLatviaLebanonLesothoLiberiaLibyaLiechtensteinLithuaniaLuxembourgMMadagascarMalawiMalaysiaMaldivesMaliMaltaMarshall
IslandsMauritaniaMauritiusMexicoMicronesiaMoldovaMonacoMongoliaMontenegroMoroccoMozambiqueNNamibiaNauruNepalNetherlandsNew
ZealandNicaraguaNigerNigeriaNiueNorth KoreaNorth
MacedoniaNorwayOOmanPPakistanPalauPalestinian TerritoriesPanamaPapua New
GuineaParaguayPeruPhilippinesPolandPortugalQQatarRRepublic of the
CongoRomaniaRussiaRwandaSSaint Kitts and NevisSaint LuciaSaint Vincent and
the GrenadinesSamoaSan MarinoSao Tome and PrincipeSaudi
ArabiaSenegalSerbiaSeychellesSierra LeoneSingaporeSlovakiaSloveniaSolomon
IslandsSomaliaSouth AfricaSouth KoreaSouth SudanSpainSri
LankaSudanSurinameSwedenSwitzerlandSyriaTTaiwanTajikistanTanzaniaThailandTimor-LesteTogoTongaTrinidad
and TobagoTunisiaTurkey (Türkiye)TurkmenistanTuvaluUUgandaUkraineUnited
Arab EmiratesUnited
KingdomUruguayUzbekistanVVanuatuVenezuelaVietnamYYemenZZambiaZimbabwe
* Bureaus & Offices
* Back
* Bureaus & Offices
* The Secretary of State
* The Secretary of State
* The Secretary of State
* Bureau of Global Health Security and Diplomacy
* Bureau of Intelligence and Research
* Bureau of Legislative Affairs
* Counselor of the Department
* Executive Secretariat
* Office of the Chief of Protocol
* Office of Civil Rights
* Office of Diversity and Inclusion
* Office of Global Women’s Issues
* Office of the AUKUS Senior Advisor
* Office of the Legal Adviser
* Office of the Ombuds
* Office of the Special Envoy for Critical and Emerging Technology
* Office of the U.S. Special Coordinator for the Partnership for Global
Infrastructure and Investment
* Office of the U.S. Special Presidential Envoy for Climate
* Policy Planning Staff
* Special Envoy for Iran
* Special Presidential Envoy for Hostage Affairs
* Special Representative for Syria Engagement
* Special Representative for Venezuela
* U.S. Security Coordinator for Israel and the Palestinian Authority
* Deputy Secretaries of State
* Deputy Secretaries of State
* Deputy Secretary of State
* Bureau of Cyberspace and Digital Policy
* Office of the Ambassador-at-Large for Arctic Affairs
* Deputy Secretary of State for Management and Resources
* Office of Foreign Assistance
* Office of Small and Disadvantaged Business Utilization
* Arms Control and International Security
* Arms Control and International Security
* Under Secretary for Arms Control and International Security
* Bureau of Arms Control, Deterrence, and Stability
* Bureau of International Security and Nonproliferation
* Bureau of Political-Military Affairs
* Civilian Security, Democracy, and Human Rights
* Civilian Security, Democracy, and Human Rights
* Under Secretary for Civilian Security, Democracy, and Human Rights
* Bureau of Conflict and Stabilization Operations
* Bureau of Democracy, Human Rights, and Labor
* Bureau of International Narcotics and Law Enforcement Affairs
* Bureau of Population, Refugees, and Migration
* Office of Global Criminal Justice
* Office of International Religious Freedom
* Office of the Special Envoy To Monitor and Combat Antisemitism
* Office of the U.S. Special Coordinator for Tibetan Issues
* Office to Monitor and Combat Trafficking in Persons
* Economic Growth, Energy, and Environment
* Economic Growth, Energy, and Environment
* Under Secretary for Economic Growth, Energy, and the Environment
* Bureau of Economic and Business Affairs
* Bureau of Energy Resources
* Bureau of Oceans and International Environmental and Scientific
Affairs
* Office of Global Food Security
* Office of Global Partnerships
* Office of the Chief Economist
* Office of the Science and Technology Adviser
* Subnational Diplomacy Unit
* Management
* Management
* Under Secretary for Management
* Bureau of Administration
* Bureau of Budget and Planning
* Bureau of the Comptroller and Global Financial Services
* Bureau of Consular Affairs
* Bureau of Diplomatic Security
* Bureau of Diplomatic Technology
* Bureau of Global Talent Management
* Bureau of Medical Services
* Bureau of Overseas Buildings Operations
* Director of Diplomatic Reception Rooms
* Foreign Service Institute
* Office of Foreign Missions
* Office of Management Strategy and Solutions
* Political Affairs
* Political Affairs
* Under Secretary for Political Affairs
* Bureau of African Affairs
* Bureau of Counterterrorism
* Bureau of East Asian and Pacific Affairs
* Bureau of European and Eurasian Affairs
* Bureau of International Organization Affairs
* Bureau of Near Eastern Affairs
* Bureau of South and Central Asian Affairs
* Bureau of Western Hemisphere Affairs
* Public Diplomacy and Public Affairs
* Public Diplomacy and Public Affairs
* Under Secretary for Public Diplomacy
* Educational and Cultural Affairs
* Expo Unit
* Global Public Affairs
* Office of Global Youth Issues
* Policy, Planning, and Resources
* U.S. Advisory Commission on Public Diplomacy
* About
* Back
* About
Mission
About the U.S. Department of State
Joint Strategic Plan
Equity Action Plan
Foreign Affairs Manual and Handbook
Department of State by State Map
DipNote Blog
Domestic Impact
We Are the U.S. Department of State
History
Previous Administration Archives
Foreign Relations of the United States
National Museum of American Diplomacy
Art in Embassies
Administrative
Department Reports and Publications
Agency Financial Reports
Form Finder
Organization Chart
Plans, Performance, Budget
Evidence, Evaluation, and Learning
Information Quality Act
Open Government Initiative
Data Informed Diplomacy
Digital Government Strategy
Plain Writing Program
Partner with State
Leadership
The Secretary of State
Deputy Secretary of State
Deputy Secretary of State for Management and Resources
Biographies of Senior Officials
Directories
Contact Us
Telephone Directory
U.S. Ambassadors
U.S. Embassies and Other Posts
Country Offices Directory
Key Officers of Foreign Service Posts
Diplomats in Residence
* Menu
* State Department Home
* search
Search:
Search
Close
HomeReportsBureau of Economic and Business Affairs2024 Investment Climate
Statements…Cabo Verde
hide
2024 INVESTMENT CLIMATE STATEMENTS: CABO VERDE
In this section /
EXECUTIVE SUMMARY
1. EXECUTIVE SUMMARY
2. 1. Openness To, and Restrictions Upon, Foreign Investment
1. Policies Towards Foreign Direct Investment
2. Limits on Foreign Control and Right to Private Ownership and
Establishment
3. Other Investment Policy Reviews
4. Business Facilitation
5. Outward Investment
3. 2. Bilateral Investment and Taxation Treaties
4. 3. Legal Regime
1. Transparency of the Regulatory System
2. International Regulatory Considerations
3. Legal System and Judicial Independence
4. Laws and Regulations on Foreign Direct Investment
5. Competition and Antitrust Laws
6. Expropriation and Compensation
7. Dispute Settlement
1. ICSID Convention and New York Convention
2. Investor-State Dispute Settlement
3. International Commercial Arbitration and Foreign Courts
8. Bankruptcy Regulations
5. 4. Industrial Policies
1. Investment Incentives
2. Foreign Trade Zones/Free Ports/Trade Facilitation
3. Performance and Data Localization Requirements
6. 5. Protection of Property Rights
1. Real Property
2. Intellectual Property Rights
7. 6. Financial Sector
1. Capital Markets and Portfolio Investment
2. Money and Banking System
3. Foreign Exchange and Remittances
1. Foreign Exchange
2. Remittance Policies
4. Sovereign Wealth Funds
8. 7. State-Owned Enterprises
1. Privatization Program
9. 8. Responsible Business Conduct
1. Additional Resources
2. Climate
10. 9. Corruption
1. Resources to Report Corruption
11. 10. Political and Security Environment
12. 11. Labor Policies and Practices
13. 12. U.S. International Development Finance Corporation (DFC), and Other
Investment Insurance or Development Finance Programs
14. 13. Foreign Direct Investment Statistics
15. 14. Contact for More Information
EXECUTIVE SUMMARY
Cabo Verde’s investment climate remains favorable, reflecting the government’s
stance towards fostering a sound environment for foreign direct investment
(FDI), with policies that are generally conducive to international investment.
The government’s “one-stop shop” service, via Cabo Verde TradeInvest, offers
assistance to investors, alongside incentives and tax breaks in sectors such as
renewable energy, tourism and information and communication technology (ICT).
The nation’s political landscape, characterized by stability, democratic
governance, and a commitment to economic freedom, provides a solid foundation
for a predictable and appealing business environment, reinforcing Cabo Verde’s
position as an attractive destination for investment.
Cabo Verde’s investment climate is shaped by the country’s history of
transparent governance and equitable treatment of international investors, with
a regulatory framework that encourages business activity. The government
positions the country as a potential gateway to the West African market. While
the government emphasizes efforts to diversify the economy, tourism and related
industries remain the largest segments of the economy. Cabo Verde’s government
carries a public debt of 113 percent of its GDP as of 2023. The economy’s heavy
dependence on tourism, coupled with its vulnerability to external economic
fluctuations, presents a challenge for the country.
Recent developments have impacted Cabo Verde’s investment landscape. The
government’s push for privatization reflects a strategy to boost efficiency and
encourage private sector investment. The most recent privatizations were a
concession agreement with a private company to manage Cabo Verdean airports, the
sale of the government’s stake in a commercial bank, and a concession process to
manage port services. The Millenium Challenge Corporations, a U.S. government
agency, recently selected Cabo Verde as eligible for project funding focusing on
regional economic integration, and these projects may eventually contribute to
the country’s economic development and regional integration efforts. The Cabo
Verde Ambition 2030 plan and the Strategic Plan for Sustainable Development
(PEDS II) for 2022–2026 outline the nation’s focus on sustainable tourism,
renewable energy, and the growth of the blue and digital economies, along with
transportation improvements. With goals to achieve 50 percent of its electricity
from renewable sources by 2030 and aiming for 100 percent by 2040, Cabo Verde
has set ambitious targets for its energy sector.
Economic conditions in Cabo Verde are impacted by global forces such as supply
chain disruptions, inflationary pressures, war and conflict, and the lingering
effects of the COVID-19 pandemic. Despite these challenges, the country’s focus
on renewable energy and sustainable development open opportunities for
investment in the green and blue economy, water, and renewable energy sectors.
Cabo Verde’s geographic characteristics, such as its low proportion of arable
land, little rainfall, lack of natural resources, territorial discontinuity, and
small population, lead to high costs for water, materials, and other resources.
The country relies heavily on foreign investment, imports, development aid, and
remittances. Cabo Verde has been able to overcome these challenges, becoming the
second country ever to graduate from least developed country status in 2007 and
meeting most of its Millennium Development Goals by 2015.
Table 1: Key Metrics and Rankings Measure Year Index/Rank Website Address TI
Corruption Perceptions Index 2023 30 of 180
https://www.transparency.org/en/countries/cape-verde Global Innovation Index
2023 91 of 132 https://www.wipo.int/global_innovation_index/en/2023/ U.S. FDI
in partner country ($M USD, historical stock positions) 2022 2M USD
https://apps.bea.gov/international/factsheet/factsheet.html#450 World Bank GNI
per capita 2022 3 950 USD http://data.worldbank.org/indicator/NY.GNP.PCAP.CD
1. OPENNESS TO, AND RESTRICTIONS UPON, FOREIGN INVESTMENT
POLICIES TOWARDS FOREIGN DIRECT INVESTMENT
Cabo Verde continues to prioritize domestic and foreign investment as pivotal to
its economic recovery, diversification, and growth. Building on the foundation
laid by the government’s Ambition 2030 strategy and its development program for
2022–2026, the is on sustainable tourism, transforming the nation into a
transportation and logistics hub, advancing renewable energy, and expanding the
blue and digital economies. The promotion of export-oriented industries is seen
as crucial to achieving economic resilience and prosperity.
The government maintains its commitment to a market-oriented economic model,
ensuring equal rights and obligations for all investors, irrespective of
nationality. Efforts to enhance the business climate, attract more investment,
and minimize the state’s footprint in the economy are ongoing, with particular
emphasis on streamlining regulatory frameworks and enhancing the efficiency of
public services.
A comprehensive plan for the privatization of state-owned enterprises is
ongoing, with the goal to privatize nine entities by 2026. This move is part of
a broader strategy to invigorate the economy through increased private sector
participation and investment. The government’s push for privatization,
illustrated by the recent 40-year concession agreement, the sale of its stake in
a commercial bank, the anticipated privatization of the utilities and
pharmaceutical sectors, and the concessions to manage port services, reflects a
deliberate strategy to boost efficiency and encourage private sector control of
certain industries.
Cabo Verdean law offers tax benefits and grants permanent residence to foreign
citizens with an investment exceeding 180 million escudos (approximately $2
million USD). In December 2021, the government approved creation of a permanent
residence permit for foreigners who own second homes in Cabo Verde. The law also
allows for exemption from excise duties on assets. The legal framework
establishes conditions for investment in the country by Cabo Verdean emigrants,
including fiscal incentives.
According to provisional data from Cabo Verde TradeInvest, in 2023 that entity
approved 27 investment projects worth more than USD 300 million. Foreign direct
investment represented 96 percent of total investments, and continues to be
concentrated in tourism.
Investment promotion agency Cabo Verde TradeInvest (CVTI) is set up as a
one-stop shop for all investors. Through CVTI, the government maintains dialogue
with investors using personalized and virtual meetings, round tables,
conferences, and workshops. CVTI offers investors a “One-Stop Shop for
Investments” electronic platform and help in formalizing expressions of interest
and monitoring the investment process. It also provides investors and exporters
information about trade agreements and benefits (including those related to the
U.S. African Growth and Opportunity Act (AGOA) and Cabo Verde’s membership in
the Economic Community of West African States (ECOWAS)), market information,
details on trade fairs and events, and contacts with other state institutions
and potential partners. In addition, CVTI can assist with securing
authorizations and licensing, tax and customs incentives, work permits for
foreign workers, visas for company workers, social security registration for
workers, and introductions to service providers, such as banks, lawyers,
accountants, and real estate agents.
For investments of less than $500,000 USD, government entities Pro-Empresa and
the Casa do Cidadao (Commercial Registry Department) provide similar services.
The International Business Center (Centro Internacional de Negocios – CIN)
provides tax and customs benefits for companies that do international business,
with the aim of promoting, supporting, and strengthening the emergence of new
industrial, commercial, and service provision activities in Cabo Verde.
In November 2023, the government launched an International Trade Portal which
contains relevant documents, practices, and procedures. This is consistent with
WTO requirements regarding access to trade information and is another government
initiative to attract international trade and investment.
LIMITS ON FOREIGN CONTROL AND RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT
The Investment Law applies to both foreign and domestic investors, and it
enshrines the principle of freedom of investment regardless of nationality.
However, sector-specific legislation requires that foreign operators have at
least 51 percent participation from Cabo Verdean partners in the fisheries
sector and at least 25 percent in interisland maritime transport. The Investment
Law further protects against direct and indirect expropriation. Private property
is protected from unilateral requisition and nationalization, except for public
interest reasons, in accordance with the law and the principle of
non-discrimination, subject to prompt, full, and fair compensation.
An approval process serves as a screening mechanism for inbound foreign
investment. The process begins with submission of a formal expression of
interest to investment promotion agency Cabo Verde TradeInvest in accordance
with the Investment Law. Relevant government entities (depending on the sector
and of the nature of the investment) then conduct an integrated review of the
investment project and provide an opinion. If the opinion is favorable, Cabo
Verde TradeInvest, in coordination with relevant agencies, approves the project
and issues an investor certificate no later than 45 days from the submission of
interest. Tourism-related projects can obtain tourism utility status in addition
to the certificate. Investments considered special to the national interest
based on the volume of investment and number of jobs created, the government may
offer special fiscal or other incentives.
OTHER INVESTMENT POLICY REVIEWS
In January 2024, Cabo Verde formally accepted the WTO’s Agreement on Fisheries
Subsidies, signaling its dedication to sustainable fisheries management. This
acceptance made Cabo Verde one of 56 WTO members supporting the agreement, which
seeks to eliminate harmful subsidies that deplete fish stocks and includes
measures for illegal fishing and overfished stocks. The agreement is significant
for Cabo Verde, given its reliance on coastal fisheries for livelihoods and food
security.
During 2018, the United Nations Conference on Trade and Development (UNCTAD)
conducted an Investment Policy Review (IPR) at the request of the Government of
Cabo Verde. The report contains strategic analysis on how Cabo Verde can utilize
foreign direct investment (FDI) in the tourism sector to advance sustainable
development objectives.
https://unctad.org/en/pages/PublicationWebflyer.aspx?publicationid=2248
Civil society organizations have not conducted any other reviews of investment
policy concerns in the last five years. However, Cabo Verde has been actively
pursuing policies to attract investment across various sectors, indicating an
openness to both internal and external policy evaluations. The country has
implemented strategies to encourage investment and hosted international forums
to showcase its sustainable development ambitions. The government has taken
steps to enhance the business environment, including tax benefits and
streamlined processes for company registration.
BUSINESS FACILITATION
Cabo Verde’s government fosters a welcoming business climate, demonstrated
through facilitation initiatives, including adherence to the WTO Investment
Facilitation for Development Agreement. The nation extends a range of incentives
and has streamlined investment processes, ensuring fairness and
non-discrimination across all investment ventures, with particular focus on
sectors such as tourism, renewable energy, and the digital economy. Notably, the
government may offer specialized support for certain investment projects based
on their scope or significance.
In an effort to reduce approval time for investment projects, the government has
established a maximum period of 15 days for analysis and 30 days for approval of
investment and export projects. In addition, Cabo Verde has adopted measures to
facilitate and stimulate business activity, including lowering the maximum
personal income tax (IRPS) one percentage point to 24 percent, eliminating
double taxation, and waiving tax installment payments for taxpayers who had
negative results or began their business activity in the previous year.
Investments of at least 500 million escudos (approximately $5 million USD)
qualify for contractual benefits such as reduction of, or exemption from,
customs and stamp duties, property taxes, and some other fiscal duties.
Investments that create a minimum number of jobs or expand into new strategic
sectors qualify for a 50 percent investment credit, which can be deducted over
15 years.
The law commits the government to paying its bills within 45 days and interest
on late payments to ensure predictability in the payment of the state’s
obligations to companies.
Registering a company is straightforward. The Commercial Registry Department
(Casa do Cidadao) is a one-stop shop where a company can be created and
registered in less than a day. Information on business registration procedures
is available at https://portondinosilhas.gov.cv/ and
http://caboverde.eregulations.org/show-list.asp?l=pt&mid=1 . Step-by-step
information on procedures, time, and cost involved in starting a company can be
found at
http://www.doingbusiness.org/data/exploreeconomies/cabo-verde/starting-a-business/ .
The Cabo Verde TradeInvest (CVTI) agency provides a one-stop-shop service for
investors, ensuring efficient navigation through administrative procedures . The
CVTI website also offers information on investing in Cabo Verde, including Cabo
Verde’s Investment Law, the Code of Fiscal Benefits, and the Contractual Tax
Benefits-Incentives: https://cvtradeinvest.cv .
Companies typically need to register with various agencies, including the
business registry, tax administration, and social security. The exact duration
of the business registration process can vary, depending on the specifics of
each case.
OUTWARD INVESTMENT
Cabo Verde does not restrict domestic investors from investing abroad. The
government, through agencies like Cabo Verde TradeInvest, assists businesses in
exploring expansion opportunities outside the country. This approach indirectly
promotes outward investment by facilitating the global engagement of Cabo
Verdean companies. However, there isn’t specific data readily available on the
scale or destinations of these outward investments .
2. BILATERAL INVESTMENT AND TAXATION TREATIES
Cabo Verde has neither a bilateral investment treaty nor a taxation treaty with
the United States.
Cabo Verde has bilateral investment promotion and protection agreements with
Angola, China, Cuba, Germany, Italy, Mauritius, the Netherlands, Portugal,
Switzerland, Hungary, Guinea Bissau, Equatorial Guinea, and Morrocco. It enjoys
a special partnership with the European Union as a Peripheral Region Nation and
is a member of ECOWAS. In June 2023, Cabo Verde and Portugal signed a memorandum
of understanding to convert a portion of Cabo Verde’s external debt into a
Climate and Environmental Fund for investments in climate and energy transition.
Cabo Verde has tax treaties in force with Portugal, Macau, Spain, Guinea-Bissau,
Senegal, and Luxembourg. In addition, Cabo Verde has a multilateral agreement on
the elimination of double taxation with member countries of the ECOWAS.
Cabo Verde is a member of the Organization for Economic Cooperation and
Development (OECD) Inclusive Framework on Base Erosion and Profit Shifting
(BEPS) and joined the October 2021 Statement on a Two-Pillar Solution to Address
the Tax Challenges Arising from the Digitalization of the Economy.
3. LEGAL REGIME
TRANSPARENCY OF THE REGULATORY SYSTEM
Within the region, Cabo Verde receives high marks on indicators of transparency
and good governance. The government has taken steps intended to improve
conditions for foreign investment and encourage a more competitive economic
environment. The tax regime provides incentives for entrepreneurial activity,
and government policies support free trade and open markets.
Environmental issues are a priority in Cabo Verde’s sustainable development
strategic planning. Legislation requires promotion of an ecologically balanced
environment by private companies. Local companies and foreign investment
projects must complete environmental-impact studies for assessment of potential
impacts by relevant government authorities.
The government encourages disclosures from companies on the social and corporate
governance aspects of their businesses. Many companies, including those
operating in telecommunications, banking, pharmaceuticals, and laboratories,
disclose such information in reports available online.
There is free online access to all laws through the government’s official
register website, https://kiosk.incv.cv/ .
Regulations pertaining to economic activity can also be viewed on the Cabo Verde
TradeInvest website, https://cvtradeinvest.cv/ .
Cabo Verde’s regulatory agencies do not solicit comments on proposed regulations
from the general public, according to the World Bank .
Public finance and debt obligations are in line with international norms and
standards on budget credibility, thoroughness, and fiscal transparency. The
Ministry of Finance uses a digital platform to publish public accounts. With
this web portal, any institution or citizen can observe the execution of the
budget in real time. A Public Finance Council independently assesses the
sustainability of the budget and policies. Cabo Verde has an independent Supreme
Audit Institution (SAI), which operates in accordance with International
Standards of Supreme Audit Institutions and the Mexico Declaration and is
responsible for verifying and publishing the government’s annual financial
statements.
In 2023, the Government launched the “SOE Manager” platform, which allows the
public to see the financial data of State-Owned Enterprises.
INTERNATIONAL REGULATORY CONSIDERATIONS
In February 2022, Cabo Verde submitted its instrument of ratification of the
Agreement Establishing the African Continental Free Trade Area (AfCFTA).
Regionally, Cabo Verde is committed to integration into ECOWAS but has announced
postponement of implementation of the ECOWAS Common External Tariffs to a later
time and does not foresee adoption of an ECOWAS single currency.
Under the special partnership with the European Union, exports from Cabo Verde
are facilitated by the Generalized System of Preferences (GSP+), a special
incentive for EU partner countries to promote sustainable development and good
governance. Under this system, Cabo Verde can export products to the European
Union without tariffs or with reduced tariffs.
Cabo Verde formally acceded to the World Trade Organization (WTO) in 2008. Cabo
Verde has not notified the WTO of any measures that are inconsistent with its
Agreement on Trade-Related Investment Measures (TRIM)s obligations.
LEGAL SYSTEM AND JUDICIAL INDEPENDENCE
Cabo Verde’s legal system is based on the civil law system of Portugal. The 1992
constitution provides for a judiciary independent from the executive branch. The
judicial system is composed of the Supreme Court, the Constitutional Court, and
regional courts. Judges cannot be affiliated with political parties.
The Ministry of Justice appoints local judges. The judiciary generally provides
due process rights. However, an overburdened and understaffed judicial system
constrains the right to an expeditious trial, and judicial decisions are often
delayed, sometimes for years. Cabo Verde has modern commercial and contractual
laws. The judicial system in Cabo Verde is transparent and independent. There is
no government interference in the court system.
The right to private ownership is guaranteed under the constitution. Property
rights are also recognized and guaranteed by several laws. There is a legal
entity that records secured interests in property, both chattel and real estate.
The legal system also protects and facilitates acquisition and disposition of
all property rights.
State owned companies are subject to rules similar to those of private
companies. They operate under the commercial code, corporate tax code,
legislation on public contracts, as well as supervision by the Economic
Multisectoral Regulatory Agency. In practice, there are some limitations to the
application of these rules which could represent risks to the competitive
environment. According to a March 2024 World Bank Private Sector Assessment, to
minimize those risks, the government should implement measures such as the
separation of commercial and non-commercial activities, strengthening
competition and regulation and reducing financial support for public operators.
LAWS AND REGULATIONS ON FOREIGN DIRECT INVESTMENT
Cabo Verdean laws concerning FDI include the Investment Law of 2012, which
applies to both foreign and domestic investors and preserves the principle of
freedom of investment. The Industrial Development Statute regulates incentives
and the investment approval process. Law 41/2016 defines the mandate of Cabo
Verde TradeInvest (https://cvtradeinvest.cv) as a one-stop shop for external
investors.
COMPETITION AND ANTITRUST LAWS
In Cabo Verde, the law protects competition in all economic activities. The
Government created the Competition Authority in June 2022, and its board members
took office in September 2022. The Authority’s mission is to ensure the
application of rules for the promotion and defense of competition and the
protection of the rights and interests of consumers. It has regulatory,
supervisory, and sanctioning powers applicable to public and private companies
in all sectors of trade, industry, and services. It is also responsible for
investigating and deciding on sanctions against practices that restrict
competition (such as cartel-type agreements or abuses of dominant positions) as
well as approving or prohibiting merger operations between companies. Dispute
resolution decisions may be challenged before the judicial or arbitration
courts, depending on the case. According to the law, the Authority should make
available in a web page all data and information related to its activities,
including but not limited to regulations, statistics, cooperation agreements
signed with other parties, budget, and annual reports. There were no significant
competition cases in 2023. The Authority is not yet fully operational due to
lack of adequate human and financial resources.
EXPROPRIATION AND COMPENSATION
The Investment Law protects against direct and indirect expropriation. Private
property is protected against requisition and nationalization, except for public
interest reasons (Investment Law, article 6.1). Under the law, in the event of
expropriation, the government is to compensate the owner on the basis of
prevailing market prices or the actual market value of the property. To date
there have been no cases of unlawful expropriation or claims of discriminatory
behavior by the government against foreigners.
In case of noncompliance of investment projects, the law states that land can be
recovered by the state and made available to new investment projects.
DISPUTE SETTLEMENT
ICSID CONVENTION AND NEW YORK CONVENTION
In 2011, Cabo Verde became a contracting state to the ICSID convention. In 2018
Cabo Verde became a state party to the 1958 Convention on the Recognition and
Enforcement of Foreign Arbitral Awards (the New York Convention).
INVESTOR-STATE DISPUTE SETTLEMENT
Disputes between the government and investors concerning the interpretation and
application of the law that cannot be resolved amicably or via negotiation are
submitted for resolution by judicial authorities in accordance with Cabo Verdean
law. Disputes between the government and foreign investors on investments
authorized and made in the country are settled by arbitration if no other
process has been agreed upon.
The government has resolved known cases of dispute in a timely and adequate
manner.
INTERNATIONAL COMMERCIAL ARBITRATION AND FOREIGN COURTS
The law favors arbitration as a mechanism for settling investment disputes
between the Government of Cabo Verde and foreign investors, under national and
international dispute resolution rules. Courts recognize and enforce foreign
arbitral awards. Generally, arbitration is conducted in Cabo Verde and in
Portuguese unless the parties agree on another location and language. The
decision of the single referee or the arbitration committee is final and not
subject to appeal. In 2018, the Tax Arbitration Center was created to resolve
disputes regarding tax matters.
BANKRUPTCY REGULATIONS
Cabo Verdean law provides for a reorganization procedure and a framework that
allows creditors involvement in insolvency proceedings.
4. INDUSTRIAL POLICIES
INVESTMENT INCENTIVES
Cabo Verde offers a variety of investment incentives to both domestic and
foreign investors, aimed at fostering a dynamic business environment across
multiple sectors, particularly in tourism, renewable energy and information and
communication technology. These incentives include tax breaks and assistance
through the investment promotion agency, Cabo Verde TradeInvest, which provides
a “one-stop shop” service for investors .
The investment incentives are regulated by Cabo Verde’s Investment Law and the
Law of Industrial Development, ensuring equal treatment for all investors
regardless of nationality. The incentives focus on tax benefits related to
Corporate Income Tax (CIT), Property Tax, Stamp Duty, and Customs Duties,
applicable under certain conditions set by the Investment Law and the Code of
Fiscal Benefits. There are also additional tax incentives available not specific
to the industry sector, including benefits for job creation, donations,
internationalization, and participation in the International Business Center .
In 2019, Cabo Verde lowered its corporate income tax (CIT) rate from 25 percent
to 22 percent. The investment incentives, such as tax benefits and fiscal
incentives, are designed to attract both domestic and foreign investors. For
industrial activity, these incentives include corporate tax credits of up to 50
percent of eligible investments, with the possibility of carrying forward unused
credits for up to 10 years. Additionally, there are property tax exemptions on
immovable property used exclusively for industrial purposes, as well as customs
duty exemptions on machinery and raw materials.
Renewable energy projects in Cabo Verde can benefit from various incentives,
such as corporate income tax credits of up to 30 percent of eligible investments
and property tax benefits. There are also customs tax benefits for renewable
energy projects and the acquisition of new electric vehicles (EVs) for
collective passenger transport.
The government estimates the need to invest $563 million to achieve energy
transition targets by 2030, of which 65 percent would be funded by the State or
public-private partnerships. The penetration rate of renewable energies in
electricity production has fluctuated between 18 and 20 percent in recent years,
and the government’s target is 30 percent of electricity production from
renewable sources by 2025, 50 percent by 2030, and 100 percent by 2040. Cabo
Verde’s forward-looking approach extends to electric mobility, with over 280 EVs
already in use and a national public charging network underway.
FOREIGN TRADE ZONES/FREE PORTS/TRADE FACILITATION
Cabo Verde’s approach to Free Trade Zones (FTZs), Duty-Free Zones, Special
Economic Zones (SEZs), and areas with special tax treatment is designed to
promote international trade and attract foreign investment. Cabo Verde has
established laws to promote international trade and industrial centers,
providing a range of incentives, including tax benefits for companies operating
within these zones. These incentives cover tax benefits, exemptions from stamp
duty, VAT exemption, and customs incentives designed to attract investment with
export potential . Foreign-owned firms are offered the same investment
opportunities as domestic entities within these zones, underlining Cabo Verde’s
inclusive approach to economic development. The incentives aim to level the
playing field, ensuring equal treatment for all investors irrespective of their
nationality.
Companies must obtain authorization and define areas of economic activity in
industrial, commercial, or financial services to be eligible to take part in
special economic zones. Fiscal benefits and incentives will be available on a
case-by-case basis for participation in the government’s Maritime Special
Economic Zone in Sao Vicente (ZEEEM-SV). The International Business Center,
responsible for oversight of new industrial, commercial, and export-oriented
activity, will assess investments and incentives that apply.
In May 2022, the Cabo Verdean government approved a decree-law to create a
Special Economic Zone for Technology (ZEET), with a hub in Praia and an
extension on the island of São Vicente. The ZEET is intended to attract major
technology companies to produce services in Cabo Verde and sell them to the rest
of the world. The ZEET offers tax benefits and other facilities for investors in
the Information and Communication Technologies (ICT) sector. The TechparkCV, a
project financed by the African Development Bank, marks a major investment in
the nation’s digital future and economic expansion. Though not officially
opened, the park, located within the ZEET, is already functional, hosting 14
companies. With a $38.7 million budget, this initiative seeks to foster
innovation, encourage economic diversification, and support inclusive,
sustainable growth. Located in Praia and covering eight hectares near the Praia
International Airport, the TechPark also features a branch in Mindelo, São
Vicente, aimed at nurturing a variety of tech startups and firms by providing a
collaborative space for digital economy research and development. The park
offers a comprehensive ecosystem with components like a Data Centre, Business
Centre, Incubation Centre, and Training and Qualification Centre, catering to
ICT businesses. Expected outcomes include stimulating the ICT economic cluster,
empowering youth, creating new job opportunities, and positioning Cabo Verde as
an international tech hub.
In June 2022, a law created the Special Economic Zone for the Island of Maio
(ZEEIM). The law establishes the legal regime for the zone’s organization,
development, and operations, as well as the applicable tax and customs benefits.
The Cabo Verdean government has announced the creation of the Special Economic
Zone of Volcanism to boost development in the Fogo/Brava region. The decision
was made in 2022 during a meeting of the government’s Council of Ministers,
which approved the resolution to create an inter-ministerial committee involving
the municipalities of Fogo and Brava to propose legislation for the creation of
this zone.
PERFORMANCE AND DATA LOCALIZATION REQUIREMENTS
Cabo Verde’s investment environment is designed to attract both local and
international investments, consciously avoiding “forced localization” to
maintain a competitive and equitable market. Key to this approach is the
straightforward process defined by the country’s Labor Code and Law 80/VIII/2014
for securing work and residence permits, which enhances foreign workers,
managers, and investors’ access to the local economy. These permits are divided
into categories, including investors, employees, independent professionals, and
highly qualified employees, allowing for a nuanced approach to integrating
foreign talents and contributions into the economy.
The government’s approach to investment is characterized by its commitment to
providing equal opportunities and transparent regulations, which apply uniformly
across the board. Whether for domestic or international investors, Cabo Verde
strives to apply its policies systematically, fostering an environment where
business operations are predictable and fair.
The government’s strategy is rooted in equal treatment and transparent policies
for all investors, ensuring a stable and predictable business setting. Cabo
Verde’s commitment extends to fostering a modern, digital economy, encouraging
business internationalization without imposing restrictive measures on data
mobility or IT operations. This includes a non-restrictive stance on foreign IT
companies regarding source code turnover or encryption access, reflecting the
country’s respect for intellectual property and confidentiality. This structure
supports Cabo Verde’s vision of a modern, inclusive, and digital-friendly
economy, encouraging the internationalization of businesses while respecting
intellectual property rights and promoting data mobility.
5. PROTECTION OF PROPERTY RIGHTS
REAL PROPERTY
Access, use, and transfer of land and real estate are recognized under the
constitution, Civil Code, and Legislative Decree 2/2007 (Land Law). Anyone,
regardless of nationality, may acquire ownership rights or obtain special
permits to occupy and use land.
A legal entity records secured interests in property. Ownership documents
(Certidao de Registo Predial) are obtained through the land registry department,
including an official map with the property’s exact location (Planta de
Localizaçao). A tax information certificate (Certidao Matricial) is requested
from the municipality.
If property is unregistered, it is possible to register it with a certificate
confirming it is not registered in anyone else’s name (Certidao Negativa) and a
tax certificate confirming status of the property tax payment. Under its second
Millennium Challenge Corporation compact, Cabo Verde finalized a land
information management system for the country and clarified parcel rights and
boundaries for the islands of Sal, Boa Vista, and Maio and rural and
high-potential tourism zone parcels on the island of Sao Vicente. Clarification
work is ongoing on the remaining parcels on the island of Sao Vicente, funded by
the government. With World Bank funding, the government is preparing the
clarification of rights and boundaries on the island of Santiago.
Cabo Verde is one of the contracting parties to the 2001 Cape Town Convention on
Mobile Equipment (CTC) and the Protocol on Matters Specific to Aircraft
Equipment (Aircraft Protocol). Post has not been approached about disputes under
the CTC.
INTELLECTUAL PROPERTY RIGHTS
The body responsible for the administration of intellectual property rights in
Cabo Verde is the Institute of Quality and Intellectual Property (IGQPI),
https://igqpi.cv/ . The primary intellectual property laws in Cabo Verde are the
Industrial Property Code, Legislative Decree No. 4/2007 of August 20, 2007 and
Law on Copyright and Related Rights (LDADC), Legislative Decree No. 1/2009, of
April 27, 2009.
Cabo Verde a member of the African Regional Intellectual Property Organization
(ARIPO), and in 2023 signed on to the Banjul Protocol on Marks, Arusha Protocol
for the Protection of New Varieties of Plants, and Harare Protocol on Patents
and Industrial Designs. Cabo Verde is also a party to the Berne Convention,
Madrid Protocol, Marrakesh VIP Treaty, Paris Convention, Patent Cooperation
Treaty, WIPO Copyright Treaty, and WIPO Performances and Phonograms Treaty, and.
Agencies responsible for intellectual property enforcement include the General
Inspection of Economic Activities (IGAE), Independent Health Regulatory Entity
(ERIS), Alfândegas (Customs), the National Police, and the Judiciary Police.
For additional information about national laws and points of contact at local IP
offices, please see WIPO’s country profiles at
http://www.wipo.int/directory/en/ .
6. FINANCIAL SECTOR
CAPITAL MARKETS AND PORTFOLIO INVESTMENT
Limited capital market and portfolio investment opportunities exist in Cabo
Verde. The Cabo Verdean stock market, Bolsa de Valores de Cabo Verde (BVC), is
fully operational. It has been most active recently in the issuance of bonds,
and in February provided the platform for the sale of government shares in the
commercial bank Caixa Economica de Cabo Verde and the airport service provider
CV Handling. Foreign investors must open an account with a bank in Cabo Verde
before buying stocks or bonds listed on the BVC.
Foreign interests may access credit under the same market conditions as Cabo
Verdeans.
The IMF’s January 2024 country report on Cabo Verde noted “non-imposition or
intensification of import restrictions for balance of payments reasons “and
“non-conclusion of bilateral payments agreements that are inconsistent with
Article VIII.”
MONEY AND BANKING SYSTEM
Cabo Verde has a small financial sector supervised and regulated by the Central
Bank of Cabo Verde (BCV). According to the latest data from BCV, 79.2 percent of
Cabo Verde’s population has a bank account. Internet-based tools and services in
the banking sector continue to grow in Cabo Verde driven by technological
advances and by consumers changing habits. New information and communications
technology products, particularly internet and mobile banking, allow customers
online alternatives to in-person support and are giving a new dynamic to the
economy.
Seven commercial banks operate in Cabo Verde. Two banks – Banco Comercial do
Atlantico (BCA) and Caixa Economica de Cabo Verde (CECV) – together held 57.1
percent of market share in 2022, according to BCV data last released in 2023.
Three of the banks have branches on the nine inhabited islands.
Legislation approved in January 2020 terminated the issuance of restricted
licenses for offshore banking operations for non-residents, calling for generic
licenses and operations with resident clients. Existing offshore banks were
compelled to adjust to the new requirements or face revocation of their license
and enforced administrative liquidation. As a result, there are currently no
offshore banks operating in Cabo Verde.
In May 2023, the parliament approved legislation that allows digital banks in
Cabo Verde and provision of online financial services under the supervision of
the BCV. The government published the relevant law in June 2023.
To establish a bank account, clients must provide proper identification and
obtain a taxpayer number from the Commercial Registry Department (Casa do
Cidadao), a process that takes approximately 10 minutes. Bank credit is
available to foreign investors under the same conditions as for domestic
investors. The private sector has access to credit instruments such as loans,
letters of credit, and lines of credit.
Recent developments in the first quarter of 2024 will affect the ownership
structure of the two main banks. The government sold its 27.44 stake in CECV. As
a result, the bank has now 929 new shareholders, mostly individuals. The
Portuguese government announced approval of the sale of 59.81 percent of the
Caixa Geral de Depositos’s stake in BCA to Coris Holding, based in Burkina Faso.
The completion of the sale is currently subject to a verification process by the
BCV.
FOREIGN EXCHANGE AND REMITTANCES
FOREIGN EXCHANGE
Foreign investors have the right to convert their investments to any other
freely convertible currency and transfer them. The government provides foreign
investors guarantees, such as privately managed foreign currency accounts, which
can be credited from abroad or from other foreign accounts in Cabo Verde. In
addition, it allows repatriation of undisputed dividends, profits, and capital
from foreign investment operations. To receive these benefits, an investor must
qualify for foreign investor status through the government’s investment
promotion agency, CVTI.
Regulatory legislation specifies that for a company’s first five years of
operation, its dividends may be freely transferred overseas without tax and that
for the next 15 years dividends may be expatriated with a flat tax rate of 10
percent. Incentives for outward investment in developing countries are not
included in the legislation, but they have been provided on an ad hoc basis.
Cabo Verde’s exchange-rate fluctuation risk is low as the country’s currency,
the escudo, is pegged at the rate of 110.27 to the euro. This fixed exchange
rate arrangement is under the Credit Facility Contract, granted to Cabo Verde by
Portugal and managed by a joint Cabo Verdean and Portuguese body called the
Commission on the Agreement for Exchange Cooperation (Comissao do Acordo de
Cooperaçao Cambial – COMACC). In 2018, the government liberalized foreign
exchange operations in Cabo Verde, allowing the free movement of money overseas.
REMITTANCE POLICIES
The investment law regulates investment remittances, according to the principles
of non-discrimination, security, and protection.
The law permits a foreign investor to request transfer of loan repayments,
revenues and profits, and capital gains overseas from the BCV within 30, 60, and
90 days, respectively.
SOVEREIGN WEALTH FUNDS
The government created a Sovereign Private Investment Guarantee Fund in 2019.
The fund aims to guarantee the issuance of securities, in particular debt
securities, by private commercial companies to fund large private investments.
The General Auditor of the Securities Market (AGMVM) oversees the fund and aims
to maintain a rating of at least “A” from financial rating agencies. Initial
share capital of approximately $120 USD million is guaranteed by the state. The
fund began operations in January 2023.
7. STATE-OWNED ENTERPRISES
Following a strategic shift towards a market-oriented economy started in the
mid-1990s, Cabo Verde has significantly reduced the number of major
state-majority-owned enterprises from 40 to six. These SOEs are in large,
strategic sectors such as utilities, transportation, and telecommunications.
Governed by boards of directors, typically consisting of three to five members
nominated by the respective sector’s minister, these entities play a pivotal
role in the national economy. Each SOE is mandated to produce annual reports and
undergo independent audits of their accounting records.
SOEs are expected to follow commercial considerations and provide
non-discriminatory treatment in their transactions. While Cabo Verde has taken
steps to improve SOE transparency and governance, adherence to these principles
may vary. SOEs from Cabo Verde have limited international presence and are
unlikely to make significant direct investments in the United States due to the
country’s small economy and limited resources.
A list of SOEs and all related information are available on the Ministry of
Finance website
https://www.mf.gov.cv/web/mf/empresas-p%C3%BAblicas-e-participadas-do-estado
and
https://www.mf.gov.cv/web/mf/empresas-p%C3%BAblicas-em-processo-de-reestrutura%C3%A7%C3%A3o-privatiza%C3%A7%C3%A3o-ppp
Cabo Verde has shown an inclination to align with international governance
standards, including the OECD Guidelines on Corporate Governance for SOEs. While
not a participant in the WTO’s Government Procurement Agreement (GPA), Cabo
Verde endeavors to uphold principles that foster transparency and effective
governance in its SOE sector.
PRIVATIZATION PROGRAM
After pausing privatization initiatives during the COVID-19 pandemic, the
government successfully transferred airport management through a concession in
2022 and sold its stake in a commercial bank in 2024. It has launched the pubic
consultation for the sub concessions of the ports’ management operations, and a
tender for privatization of airport handling services. There are plans for the
privatization of pharmaceutical operations (EMPROFAC), and ELECTRA’s electric
utility before the 2026 elections. The privatization agenda also targets Cabo
Verde Airlines, CABNAVE, CV Telecom, and Boa Vista’s water and power utility
(AEB) for privatization, divestment, concession, or partnerships also by 2026.
The public bidding process is generally open to both foreign and domestic
investors, ensuring transparency and fairness, but often delayed.
8. RESPONSIBLE BUSINESS CONDUCT
The private sector, government, and regulators increasingly value environmental
and corporate social responsibility in Cabo Verde. The government encourages
companies to engage in responsible business conduct. Many companies conduct
campaigns to promote social awareness in areas such as health, environmental
protection, and cultural preservation. During tough economic times, such as the
height of the COVID-19 pandemic, private companies support vulnerable
populations with essential goods.
Women represent 37.5 percent of elected parliamentarians, 33 percent of the
government, and more than 30 percent of leadership in businesses.
ADDITIONAL RESOURCES
Department of State
* Country Reports on Human Rights Practices (
https://www.state.gov/reports-bureau-of-democracy-human-rights-and-labor/country-reports-on-human-rights-practices/)
* Trafficking in Persons Report (
https://www.state.gov/trafficking-in-persons-report/)
* Guidance on Implementing the “UN Guiding Principles” for Transactions Linked
to Foreign Government End-Users for Products or Services with Surveillance
Capabilities (
https://www.state.gov/key-topics-bureau-of-democracy-human-rights-and-labor/due-diligence-guidance/)
* U.S. National Contact Point for the OECD Guidelines for Multinational
Enterprises (
https://www.state.gov/u-s-national-contact-point-for-the-oecd-guidelines-for-multinational-enterprises/)
* Xinjiang Supply Chain Business Advisory (
https://www.state.gov/xinjiang-supply-chain-business-advisory/)
Department of the Treasury
* OFAC Recent Actions (
https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions )
Department of Labor
* Findings on the Worst Forms of Child Labor Report (
https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings )
* List of Goods Produced by Child Labor or Forced Labor (
https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods )
* Sweat & Toil: Child Labor, Forced Labor, and Human Trafficking Around the
World ( https://www.dol.gov/general/apps/ilab )
* Comply Chain ( https://www.dol.gov/ilab/complychain/ )
CLIMATE
Cabo Verde has a national climate strategy, several related plans, and
government-declared protected areas to preserve the country’s natural resources
and ecosystems. The National Environmental Action Plan offers strategic guidance
to address key environmental challenges such as loss of marine biodiversity and
water scarcity. Adaptation to climate change is a key priority for Cabo Verde,
and there are several policies and strategies to increase the country’s adaptive
capacity, including the National Environmental Action Plan, Strategic Water and
Sanitation Plan, National Basic Sanitation Plan, National Adaptation Program of
Action, Strategic Plan (and action plans) for Agriculture Development, and the
Growth and Poverty Reduction Strategy. Priorities in these strategic documents
include improvement of water security, waste treatment, and land and
marine-based food security; enhancement of marine protected areas, defense of
marine resources and coastal zones, and use of spatial planning for mitigation
of, and adaptation to, climate impacts; and mitigation of climate-related
disaster vulnerabilities and climate-related health risks.
Cabo Verde updated its Nationally Determined Contributions to climate action and
its implementation roadmap in 2020. The updated contributions include reduction
of greenhouse gas emissions by 20 percent below the business-as-usual scenario
by 2030, or by 30 percent with international support, and realization of a
decarbonized net-zero emissions economy by 2050. Beyond private investment to
achieve these goals, other areas for private sector engagement include control
and reduction of waste production, involvement in waste implementation policies,
introduction of innovative financial products (blue bonds, desalination bonds,
debt-for-climate swaps, blue funds, loan/credit products for energy saving or
energy efficient investments), participation in annual conferences with donors
and development banks to explore climate-related investments, and involvement in
technology development transfer and capacity building.
As of October 2023, Cabo Verde has a National Investment System (SNI) platform
that includes climate and disaster risks in the pre-selection of projects. The
platform establishes a standardized system for pre-screening, prioritizing, and
pre-selecting new project proposals that includes considerations of climate and
disaster risks.
The government’s new strategic plan, PEDS II, aims to institutionalize climate
governance at national and local levels, integrate climate change into policies
and plans, reduce emissions by 10 percent, and strengthen adaptation measures.
It includes policies to improve climate governance, increase local resilience,
mitigate emissions, provide education, and raise awareness. The plan also aims
to have at least five municipalities implement gender-sensitive climate
adaptation plans and to provide at least 70 percent of the population access to
climate information and alerts, prioritizing vulnerable groups.
In January 2024, the government launched a Climate Portal,
https://portaldoclima.gov.cv/en/home/ , with information related to climate
change educate the general public and share Cabo Verde’s actions.
Renewable energy projects may benefit from a corporate income tax credit for up
to 30 percent of the eligible investment and property tax incentives. There are
additional customs benefits for renewable energy projects and acquisition of new
electric vehicles for collective transport of passengers.
The country’s Public Procurement Code includes a preference for goods, services,
and practices that promote environmental protection and ecological solutions.
9. CORRUPTION
Cabo Verde has shown a commitment to international anti-corruption standards by
signing and ratifying the UN Convention against Corruption, demonstrating the
country’s willingness to align with global efforts to combat corruption. The
consistent performance and improvement in Cabo Verde’s ranking in Transparency
International’s Corruption Perceptions Index, moving up four places to rank 30th
out of 180 countries in 2023, second in Africa, and first among
Portuguese-speaking countries, reflects positively on the country’s efforts and
progress in combating corruption. This advancement underscores the effectiveness
of Cabo Verde’s measures and its standing in the international community
regarding transparency and anti-corruption initiatives.
The legal framework in Cabo Verde criminalizes the act of giving or accepting
bribes, with penalties extending up to eight years in prison. This is
articulated in the Penal Code, which specifies punishments for corrupt
activities by officials in the course of their duties. Furthermore, the Penal
Code and Electoral Code address corruption within the electoral process,
targeting the offering of advantages to voters by political parties or entities
involved in elections.
The Public Procurement Code mandates that public officials disclose any personal
interest that could influence their impartiality in the procurement process.
This requirement aims to mitigate conflicts of interest and ensure the integrity
of public procurement processes.
The creation of the Corruption Prevention Council in 2020, along with the active
involvement of institutions such as the Court of Auditors, the Public
Prosecutor’s Office, the Judicial Police, the General Inspection of Economic
Activities, the Financial Intelligence Unit, the Bar Association, and civil
society organizations, signifies a comprehensive approach to tackling
corruption. These bodies play critical roles in prevention, investigation, and
prosecution of corrupt activities.
Cabo Verde moved up four places in Transparency International’s 2023 Corruption
Perceptions Index, ranking 31st out of 180 countries, second in Africa, and
first among Portuguese-speaking countries.
RESOURCES TO REPORT CORRUPTION
Contact at the government agency or agencies that are responsible for combating
corruption:
Luis Jose Tavares Landim
Attorney General (Procuradoria Geral da Republica)
CP 268 Praia – Cabo Verde
Phone +238 261 1665
Luis.Landim@pgr.gov.cv
Joao da Cruz
President of the Court of Auditors (Tribunal de Contas)
CP 126 Praia – Cabo Verde
Phone +238 262 3552
tcontascaboverde@tcontas.gov.cv
Contact at international organization:
Cristina Andrade
Head of the United Nations Office on Drugs and Crime (UNODC) Program Office
Guinea Bissau and Officer in Charge in Cabo Verde
UN Building Penha – Bairro Penha – Bissau – Guinea Bissau
Phone +245 957 493 783
cristina.andrade@un.org
10. POLITICAL AND SECURITY ENVIRONMENT
Cabo Verde stands out as a beacon of political stability and peaceful power
transitions, never experiencing violent political, social, or religious
conflicts. It leads the African region in civil and political freedoms and
e-governance maturity, according to the 2023 Freedom Index. Economically, it’s
ranked second for both economic freedom and transparency/corruption control in
the same year. The country also places third in democracy and citizenship and
fourth in good governance, highlighting its commitment to democratic principles
and effective governance. Despite its achievements, challenges remain, including
an overburdened judicial system and concerns over crime, though civil liberties
are well protected.
11. LABOR POLICIES AND PRACTICES
Labor is widely available in Cabo Verde. Unskilled labor represents 30 to 40
percent of the total labor force. Technical, managerial, and professional talent
with English and French language skills is more difficult to find. Unemployment,
particularly youth unemployment, is a significant challenge. Significant
emigration of young workers to Portugal in the last two years is causing labor
shortages in some economic sectors.
According to a report released by the National Statistics Institute in December
2023, there is an employment rate of approximately 80 percent within the
immigrant community. However, migrants from China, Guinea-Bissau, Senegal,
Nigeria, and Guinea may receive wages below minimum wage and work without
contracts, creating vulnerabilities. The government continues efforts to reduce
vulnerability to exploitation of migrants from West Africa employed in the
construction and hospitality sectors and increase their integration into
society. According to a 2020 International Labor Organization (ILO) study,
women, who represented more than 50 percent of qualified workers, earned on
average 7 percent less than men. According to the latest data from the National
Statistics Institute, the unemployment rate in 2022 was 12.1 percent, 14 percent
for women and 10.3 percent for men. The underemployment rate for women was 14.6
percent compared to an overall underemployment rate in 2022 of 12.6 percent.
Activity in the informal economy – mostly in urban areas in sectors such as
small industry, commerce, informal sales, and other services – accounted for 12
percent of GDP. Women constitute a majority of informal economy workers. The
government continues assessing mechanisms to promote transition from the
informal to formal economy and raise employer compliance with tax and social
security obligations.
Cabo Verde has ratified all of the ILO’s eight fundamental conventions.
Minimum wage is currently 13,000 escudos (approximately $130 USD) per month. In
February 2024, the government, union representatives, and representatives of the
private sector signed a Strategic Agreement for an increase of the minimum wage
up to 20,000 escudos (approximately $200 USD) in 2027. In 2025, the government
foresees an increase of the minimum wage to CVE 17,000 (approximately $170 USD).
The National Social Security Institute (INPS) manages unemployment benefits. The
legal workweek is limited to 44 hours for adults, with 12 consecutive hours per
week for rest and premium rates of pay for overtime mandatory. Larger employers
generally respect this restriction, but agricultural and domestic laborers often
work longer hours.
Labor strikes are generally peaceful. All workers except those in restricted
sectors are free to form and join unions without interference from the
government. The government respects workers’ right to strike, but the law allows
the government to act in emergency situations or when essential services might
be affected. Few companies have adopted collective bargaining, but the ILO has
worked with local unions and government bodies to provide guidance on conducting
dialogue between parties. The Directorate General for Labor (DGT) has a
conciliation mechanism to promote dialogue. There have been no instances in
which labor laws were waived in order to attract or retain investment.
The World Bank, International Monetary Fund (IMF), and African Development Bank
(AfDB) consider the rigidity of labor laws and severance pay requirements to be
an obstacle to industrial investment and development.
March 2023 legislation established a legal regime for public employment. The law
mandated an increase in maternity leave from 60 to 90 days, the introduction of
10-day parental leave, the introduction of teleworking or hybrid work, and the
possibility of remaining in public service up to the age of 70 when the employee
agrees and if it is in the interest of the Public Administration.
12. U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION (DFC), AND OTHER
INVESTMENT INSURANCE OR DEVELOPMENT FINANCE PROGRAMS
DFC does not currently support any investment projects in Cabo Verde. DFC’s
predecessor agency, the Overseas Private Investment Corporation (OPIC), signed
an insurance agreement with Cabo Verde in 1985.
13. FOREIGN DIRECT INVESTMENT STATISTICS
Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy Host Country
Statistical source* USG or international statistical source USG or International
Source of Data: BEA; IMF; Eurostat; UNCTAD, Other Economic Data Year Amount
Year Amount Host Country Gross Domestic Product (GDP) ($M USD) 2022 $2 101 2022
$2 230 https://data.worldbank.org/country/cabo-verde Foreign Direct Investment
Host Country Statistical source* USG or international statistical source USG or
international Source of data: BEA; IMF; Eurostat; UNCTAD, Other U.S. FDI in
host country ($M USD, stock positions) 2023 $77 2022 $ 2 BEA data available at
https://apps.bea.gov/international/factsheet/ Host country’s FDI in the United
States ($M USD, stock positions) N/A N/A 2022 $ 0 BEA data available at
https://apps.bea.gov/international/factsheet/ Total inbound stock of FDI as %
host GDP 2022 $6.3% (GDP $2,101 million and FDI in 2022 is $133.6 million) 2022
6.1% UNCTAD data available at
https://unctad.org/topic/investment/world-investment-report
*Source for Host Country Data: National Statistics Institute
(https://ine.cv/quadros/contas-nacionais-trimestrais-4o-trimestre-2022/)and the
Central Bank of Cabo Verde (BCV). Year-end data is normally published in the
following year, as provisional data. Exchange rate used for the Host Country
Gross Domestic Product was 102 Cabo Verdean escudos to the U.S. dollar.
Table 3: Sources and Destination of FDI Direct Investment from/in Counterpart
Economy Data From Top Five Sources/To Top Five Destinations (U.S. Dollars,
Millions) Inward Direct Investment Outward Direct Investment N/A Total Inward
$121.61 100% Portugal $34.63 28% France $16.91 14% United
States $11.51 9% Belgium $9.48 8% Monaco $7.05 6% “0” reflects
amounts rounded to +/- USD 500,000.
14. CONTACT FOR MORE INFORMATION
Economic and Commercial Section
U.S. Embassy Praia – Cabo Verde
Rua Abilio Macedo no. 6
Tel: +238 260 8900
praia_polecon@state.gov
VIEW REPORT BY:
Albania Algeria Andorra Angola Antigua and Barbuda Argentina Armenia Australia
Austria Bahamas, The Bahrain Bangladesh Barbados Belarus Azerbaijan Belgium
Belize Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Bulgaria Burkina
Faso Burma Burundi Cabo Verde Cambodia Cameroon Canada Chile China Colombia
Costa Rica Côte d’Ivoire Croatia Cyprus Czechia Democratic Republic of the Congo
Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador
Equatorial Guinea Eritrea Estonia Eswatini Ethiopia Fiji Finland France Gabon
Gambia, The Georgia Germany Ghana Greece Grenada Guatemala Guinea Guyana Haiti
Honduras Hong Kong Hungary Iceland India Indonesia Iraq Ireland Israel Italy
Jamaica Japan Jordan Kazakhstan Kenya Kosovo Kuwait Kyrgyz Republic Laos Latvia
Lebanon Lesotho Liberia Libya Lithuania Luxembourg Macau Madagascar Malawi
Malaysia Maldives Mali Malta Marshall Islands Mauritania Mauritius Mexico
Micronesia Moldova Mongolia Montenegro Morocco Mozambique Namibia Nepal
Netherlands New Zealand Nicaragua Nigeria North Macedonia Norway Oman Pakistan
Palau Panama Papua New Guinea Paraguay Peru Philippines Poland Portugal Qatar
Republic of the Congo Romania Rwanda Saint Kitts and Nevis Saint Lucia Saint
Vincent and the Grenadines Samoa Sao Tome and Principe Saudi Arabia Senegal
Serbia Seychelles Singapore Slovakia Slovenia Somalia South Africa South Korea
Spain Sri Lanka Suriname Sweden Switzerland Taiwan Tajikistan Tanzania Thailand
Timor-Leste Togo Trinidad and Tobago Tunisia Turkey Turkmenistan Uganda Ukraine
United Arab Emirates United Kingdom Uruguay Uzbekistan Vietnam West Bank and
Gaza Zimbabwe
Cabo Verde
ON THIS PAGE
search
>
<
1. EXECUTIVE SUMMARY
2. 1. Openness To, and Restrictions Upon, Foreign Investment
1. Policies Towards Foreign Direct Investment
2. Limits on Foreign Control and Right to Private Ownership and
Establishment
3. Other Investment Policy Reviews
4. Business Facilitation
5. Outward Investment
3. 2. Bilateral Investment and Taxation Treaties
4. 3. Legal Regime
1. Transparency of the Regulatory System
2. International Regulatory Considerations
3. Legal System and Judicial Independence
4. Laws and Regulations on Foreign Direct Investment
5. Competition and Antitrust Laws
6. Expropriation and Compensation
7. Dispute Settlement
1. ICSID Convention and New York Convention
2. Investor-State Dispute Settlement
3. International Commercial Arbitration and Foreign Courts
8. Bankruptcy Regulations
5. 4. Industrial Policies
1. Investment Incentives
2. Foreign Trade Zones/Free Ports/Trade Facilitation
3. Performance and Data Localization Requirements
6. 5. Protection of Property Rights
1. Real Property
2. Intellectual Property Rights
7. 6. Financial Sector
1. Capital Markets and Portfolio Investment
2. Money and Banking System
3. Foreign Exchange and Remittances
1. Foreign Exchange
2. Remittance Policies
4. Sovereign Wealth Funds
8. 7. State-Owned Enterprises
1. Privatization Program
9. 8. Responsible Business Conduct
1. Additional Resources
2. Climate
10. 9. Corruption
1. Resources to Report Corruption
11. 10. Political and Security Environment
12. 11. Labor Policies and Practices
13. 12. U.S. International Development Finance Corporation (DFC), and Other
Investment Insurance or Development Finance Programs
14. 13. Foreign Direct Investment Statistics
15. 14. Contact for More Information
Tags
Bureau of African Affairs Bureau of Economic and Business Affairs Cabo Verde
Investment Climate Investment Climate Statements
Back to Top
* White House
* USA.gov
* Office of the Inspector General
* Archives
* Contact Us
follow us
Facebook X Instagram YouTube Flickr GovDelivery
* Privacy Policy
* Accessibility Statement
* Copyright Information
* FOIA
* No FEAR Act
U.S. DEPARTMENT OF STATE
THE LESSONS OF 1989: FREEDOM AND OUR FUTURE
Give feedback
Close
WHAT IS YOUR OVERALL SATISFACTION WITH THIS SITE?
1 2 3 4 5
Have feedback about our website? Note: we can’t address visa or passport issues
through this box.
/1000
Submit
Don't show this again
Cookie Icon
We use cookies to make our website work better and improve your experience. By
continuing to use the site, you agree to our Privacy Policy
Allow Decline
Close
Cookie Preferences
This website uses the following types of services. Learn more from our Cookie
Policy.
Accordion Toggle Close
Strictly Necessary
Always Active
Strictly Necessary services are absolutely necessary for core functions such as
navigating the page or accessing secure areas. The website cannot function
properly without these cookies.
Accordion Toggle Close
Analytics
analytics Toggle
Analytics services serve to improve the performance and functionality of this
website by collecting and reporting information anonymously.
Accordion Toggle Close
Marketing
marketing Toggle
Marketing services are used to track visitors across websites. The intention is
to display ads that are relevant and engaging for the individual user and
thereby more valuable for publishers and third party advertisers.
Allow All Decline
Accept Selected