The African Development Bank Group has launched the Cabo Verde Country Focus Report 2025, highlighting how the island country can optimize its capital to accelerate national development.
The hybrid launch event, held in Praia and online, on 30 July, brought together senior government officials, including Cabo Verde's Vice Prime Minister and Finance Minister Olavo Correia, development partners, academia, and private sector representatives.
The report provides an in-depth analysis of Cabo Verde's economic trajectory, recording 7.3 percent real GDP growth in 2024, driven by a rebound in tourism and services. Growth is projected at 5.3 percent in 2025 and 4.9 percent in 2026. Macroeconomic indicators show positive trend: inflation declined from 3.7percent in 2023 to 1.0 percent in 2024, public debt dropped from 144 percent of GDP in 2021 to 107.7 percent in 2024, and the current account deficit narrowed to 0.9 percent of GDP in 2024.
The launch event featured a panel discussion including Cabo Verde University Rector José Barreto, Cabo Verde Investment Agency President Jailson Oliveira, Central Bank Vice-Governor Teresa Henriques, and Procapital Fund representative Eugênio Moeda.
In a video message, African Development Bank Chief Economist and Vice President for Economic Governance and Knowledge Management, Prof. Kevin Chika Urama, underscored the significance of the report. "The reports make bold recommendations for Making Africa's Capital Work Better for its Development at country level," he stated.
The report highlights that Carbo Verde's foreign reserves reached $815.9 million, equivalent to 7.1 months of import cover, while foreign direct investment stood at $430.4 million in 2023. Remittances totaled $305.4 million, offering stable foreign exchange support.
To meet its structural transformation needs through 2030, Carbo Verde requires an estimated $163 million annually, or 7.3 percent of 2024 GDP. The report identifies infrastructure ($95 million annually) and energy (33 millionyearly) as key investment areas.
African Development Bank Country Economist Felisberto Mateus presented the report findings, followed by an interactive discussion with stakeholders, reflecting the collaborative approach to development planning.
"We need to fast-track project cycles of multilateral agencies, including the African Development Bank, to achieve faster results and impact on people's lives," said Vice-Prime Minister Olavo Correia.
African Development Bank Deputy Regional Director Joseph Ribeiro emphasized digitalization as a crucial lever for enhancing both public administration and private sector efficiency. The report notes Cabo Verde's progress with digital tools such as e-procurement systems and digital case management platforms. The country ranks 3rd out 54 African nations on the Mo Ibrahim Governance Index.
The report also addresses broader capital mobilization, highlighting string human capital indicators such as 91percent adult literacy, over 6 percent of GDP invested in education, and 96.4 percent primary school enrolment. In the financial sector, private sector credit accounts for 66.3 percent of GDP. The country also aims to secure $2.3 billion in climate finance by 2030, including a $160.2 million debt-for-climate swaps with Portugal.
Cabo Verde's private sector landscape includes over 51,000 enterprises, with a new National Strategy for Private Sector Development under preparation. The sector accounts for 47.2 percent of total employment, although youth unemployment remains high at 23.9 percent.
Policy recommendations include strengthening tax compliance, developing value-added industries in fisheries and agriculture, enhancing access to finance for small and medium enterprises, and investing in technical and vocational education and training.
The Country Focus Report mirrors the analytical framework of the African Development Bank's flagship African Economic Outlook report, offering country-specific insights to inform evidence-based policymaking.
