Research and consulting in Cabo Verde
IOA has acquired extensive understanding of Cabo Verde by conducting research and providing consulting services into the often-overlooked Atlantic island nation. IOA’s economic analysts have concluded that the people of the rocky island that has few freshwater resources survive financially in part from relatives sending money from abroad, where they fled during times of drought. Despite a lack of natural resources, the country has learned to conserve what resources it does have. This has led to Cabo Verde achieving an economic stability equalled by the political stability of its governance, even though a single party has dominated government since Independence in 1975.
Due to the country’s liberal trade and investment policies, the Cabo Verde is ranked the second-most economically free in Sub-Saharan Africa, clearly illustrated through findings of various past IOA research. Their services-oriented economy is geared towards tourism – a primary revenue earner. Cabo Verde was making good strides reducing poverty, but lost ground during the Covid-19 pandemic that cut tourist arrivals and raised costs of imports. The economic situation has stabilised, but the tourism industry remains vulnerable to external shocks and conditions.
Key opportunities in Cabo Verde:
- IOA analysts have found that, in an age when climate change challenges natural resources, Cabo Verde has lessons to teach on survival through conservation
- Taking advantage of ample fisheries, fishing is a viable industry, as is tourism, and foreign investment is facilitated by liberal business regulations
- To achieve energy sufficiency, government is targeting renewables, hoping these will generate 50% of electricity needs by 2030
Key concerns/risks in Cabo Verde:
- Geographic distance from the African mainland is a perpetual source of logistical, transportation and shipping challenges and costs, which worsen inflation
- A skilled labour shortage remains a challenge that inhibits investment that would, in turn, generate skilled labour
- Only 10% of the rocky terrain is arable