Cape Verde's economy has shown significant growth in recent years, driven by strategic sectors such as tourism, renewable energy and information technology. This article aims to explore emerging market trends and identify investment opportunities for 2025, in a context of post-pandemic economic recovery and growing regional integration.
Cape Verde has benefited from a stable political environment and economic policies favourable to foreign investment. According to World BankThe country has implemented structural reforms aimed at improving the business environment, making it more attractive to international investors.
The tourism sector continues to be one of the main drivers of the Cape Verdean economy, representing a substantial part of the Gross Domestic Product (GDP). With increasing demand for sustainable tourist destinations, Cape Verde has the opportunity to position itself as a benchmark destination in the Atlantic, capitalising on its natural beauty and rich culture. A World Tourism Organisation emphasises the growth potential of sustainable tourism as a global trend that Cape Verde can exploit.
In addition, the renewable energy sector is a promising area, with the government setting ambitious targets to increase energy production from renewable sources. O Africa Renewable Energy Report emphasises the importance of investing in green infrastructure to guarantee energy security and promote sustainable development.
Finally, the information and communication technology (ICT) sector is emerging as a crucial pillar for economic diversification. With a young population and growing access to the internet, Cape Verde has the potential to become a technological hub in the region, attracting startups and technology companies. Initiatives such as Digital Cape Verde are fostering digital entrepreneurship and technological innovation.
With this article S&D Consultancy will delve deeper into these trends, analysing economic data, government policies and the competitive environment to provide a comprehensive view of market opportunities in Cape Verde up to 2025.
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Tourism is one of Cape Verde's economic pillars, accounting for a significant part of the country's GDP. In recent years, the government has invested in tourist infrastructure and promoted the archipelago as a sustainable tourism destination. In 2023, Cape Verde received around 800,000 tourists, an increase of 20% on the previous year. This growth is driven by new air routes and the promotion of authentic experiences that highlight local culture and biodiversity.
To support the increase in tourism, Cape Verde has been investing in infrastructure, including the expansion of airports and the improvement of roads. These investments are essential to facilitate access to the islands and improve the visitor experience. The expansion of Amílcar Cabral International Airport on Sal Island is an example of how the country is preparing for a future with a greater influx of tourists.
Cape Verde is positioning itself as a sustainable tourism destination, with initiatives aimed at protecting the environment and promoting responsible tourism practices. The government has implemented policies to reduce the tourism sector's carbon footprint and promote the use of renewable energies in hotels and resorts. In addition, there is a growing focus on ecotourism, with projects that encourage biodiversity conservation and the participation of local communities in tourism development (UNWTO).
Cape Verde aims to achieve 50% of renewable energy by 2030, with a focus on wind and solar power. The country is already a regional leader in renewable energy, with around 20% of its electricity coming from renewable sources by 2024. This commitment not only reduces dependence on imported fossil fuels, but also attracts foreign investment in the energy sector.
The Cape Verdean government has been promoting various wind and solar energy projects. In addition, solar projects are being developed to increase clean energy generation capacity and reduce electricity costs for consumers.
Cape Verde has established partnerships with international organisations to finance and implement renewable energy projects. These partnerships are crucial for infrastructure development and technology transfer. Co-operation with the European Union and the World Bank has been particularly important for financing large-scale projects (World Bank).
Agriculture in Cape Verde faces significant challenges due to the arid climate and water scarcity. However, the government is implementing strategies to improve food security and increase local agricultural production. In 2024, agricultural production represented around 10% of GDP, with investments in irrigation technologies and sustainable agricultural practices playing a crucial role.
To combat water scarcity, Cape Verde has invested in efficient irrigation technologies, such as drip irrigation and the use of treated wastewater. These technologies allow for more efficient use of water and increase agricultural productivity, especially in crops such as maize and cassava.
Promoting sustainable agricultural practices is a priority for the Cape Verdean government. This includes the use of organic fertilisers and crop rotation to maintain soil health. In addition, there are training programmes for local farmers aimed at improving cultivation techniques and increasing resilience to climate change.
Cape Verde has been creating a favourable environment for foreign investment, with reforms aimed at simplifying bureaucratic processes and offering tax incentives. International trade is a vital component of the economy, with exports accounting for a significant part of GDP. In 2024, Cape Verde's exports, mainly of seafood and clothing, totalled 200 million euros, an increase of 15% on the previous year (Bank of Cape Verde).
The government has implemented economic reforms to attract more foreign investment, including modernising the tax system and creating special economic zones. These reforms aim to make Cape Verde a more competitive destination for international investors, especially in the tourism and renewable energy sectors (Government of Cape Verde).
Cape Verde has strengthened its trade partnerships, particularly with the European Union and the countries of the Economic Community of West African States (ECOWAS). These partnerships are key to accessing new markets and strengthening Cape Verde's exports. Joining regional and international trade agreements allows Cape Verde to benefit from preferential tariffs and increase the competitiveness of its products (ECOWAS).
Innovation and technology are seen as essential drivers for Cape Verde's economic development. The country has invested in information and communication technology (ICT) infrastructure to foster an environment conducive to innovation. In 2024, Cape Verde was ranked as one of the African countries with the best ICT infrastructure, with internet coverage of 80% of the population.
Cape Verde's start-up ecosystem is growing, with the government supporting entrepreneurship through incubators and funding programmes. These initiatives aim to encourage the creation of new companies, especially in the areas of technology and digital services. Increased internet access and training in digital skills are factors driving this growth.
Investment in technological education and training is a priority for Cape Verde, with the aim of preparing the workforce for the challenges of the digital future. The government has implemented ICT training programmes in schools and universities, and established partnerships with technology companies to offer internships and job opportunities for young talent.
The Information Technology (IT) sector in Cape Verde is emerging as a promising area for growth and investment. With the increase in global digitalisation, Cape Verde has the potential to become a technological hub in the African region. The implementation of fibre optic infrastructure and increased internet access are factors driving this growth. In addition, the government has promoted policies to attract foreign direct investment in the IT sector, offering tax incentives and logistical support (World Bank).
The financial sector in Cape Verde is undergoing a significant transformation, with the aim of increasing financial inclusion and accessibility to banking services. The modernisation of banking systems and the introduction of digital financial services are areas of focus. The creation of local fintechs and partnerships with international financial institutions are opening up new investment opportunities. This development aims not only to improve the efficiency of the sector, but also to increase the confidence of foreign investors.
The transport and logistics sector is crucial for Cape Verde's economic growth, given its strategic location in the Atlantic. Investments in ports and airports are essential to improve connectivity and facilitate international trade. The government is working on public-private partnerships to modernise transport infrastructure, which could increase cargo capacity and reduce logistics costs. This development is vital to turning Cape Verde into a regional transhipment point.
The health sector in Cape Verde presents significant opportunities for investment, especially in improving health infrastructure and expanding medical services. With a growing population and an increasing need for quality healthcare services, there is potential for investment in private hospitals, clinics and telemedicine. In addition, forming partnerships with international organisations can help improve the quality of health services and attract qualified professionals to the country (WHO).
Education and vocational training are critical areas for Cape Verde's sustainable development. Investments in higher education institutions and technical training programmes can help prepare the workforce for the challenges of the global market. A focus on areas such as science, technology, engineering and maths (STEM) is essential to boosting the country's innovation and competitiveness. In addition, partnerships with international universities can bring new opportunities for research and development.
While existing reports cover topics such as sustainable tourism, renewable energies, and technological innovation, this report focuses on sectors such as IT, finance, transport, health and education, which have not been explored in depth previously. The analysis presented here highlights new areas of investment and growth that complement the trends already identified, offering a comprehensive view of the opportunities up to 2025.
Cape Verde's tourism sector is facing increasing competition, both regionally and internationally. The archipelago's strategic location in the Atlantic and favourable climate are natural attractions, but competition with destinations such as the Canary Islands and Senegal is intense. Cape Verde has invested in international marketing and improved tourist infrastructure to differentiate itself. However, the ability to compete also depends on offering unique experiences, such as ecotourism and cultural tourism, areas where the country has the potential to excel.
The energy sector in Cape Verde faces significant challenges, mainly due to its dependence on imported fossil fuels. Although there is an ongoing effort to increase the share of renewable energies, such as solar and wind, competition with traditional energy suppliers and the need for investment in infrastructure are considerable barriers. The transition to a more sustainable energy matrix is essential to reduce costs and increase the country's competitiveness.
The telecommunications market in Cape Verde is characterised by limited competition, with a few companies dominating the sector. Liberalising the market could increase competitiveness and improve the quality of the services offered. The introduction of new technologies, such as 5G, and the expansion of fibre optic infrastructure are opportunities to attract new investors and improve connectivity. However, effective regulation and consumer protection are challenges that need to be addressed to ensure a fair and competitive market.
Although agriculture in Cape Verde faces challenges due to the arid climate, there is growing competition in the domestic and foreign markets. Food imports remain a necessity, but increasing local production through irrigation technologies and sustainable practices can help reduce external dependence. Competition with imported products, which are often cheaper, is a challenge for local producers, who need government support to improve the efficiency and quality of their products.
Cape Verde has been strengthening its international trade partnerships, but faces significant challenges due to its geographical location and market size. Joining regional and international trade agreements is crucial to increasing competitiveness and access to new markets. However, the ability to compete on equal terms with larger economies is limited, requiring innovative strategies and the strengthening of local capacities to make the most of international trade opportunities.
The innovation environment in Cape Verde is evolving, with a growing focus on entrepreneurship and the creation of start-ups. Despite the government's efforts to support the sector, competition with more established technology hubs in Africa and around the world is a significant challenge. Forming partnerships with universities and international organisations can help overcome these barriers, promoting innovation and knowledge transfer. Creating a robust innovation ecosystem is essential to increasing the country's competitiveness on the global stage.
The transport and logistics sector is vital to Cape Verde's economy, but faces challenges related to infrastructure modernisation and operational efficiency. Competition with other ports and airports in the region requires continuous investment to improve capacity and reduce logistics costs (African Development Bank). Public-private partnerships are a crucial strategy for financing these improvements and ensuring that Cape Verde remains competitive as a regional transport hub.
The financial sector in Cape Verde is undergoing a transformation, with an increasing focus on financial inclusion and the digitalisation of services. Competition with fintechs and digital banks is a challenge, but also an opportunity to modernise the sector and increase accessibility to financial services. The introduction of new technologies and collaboration with international financial institutions are essential to improving competitiveness and consumer confidence in the Cape Verdean financial system.
Education and vocational training are critical areas for Cape Verde's economic development, but they face significant challenges in terms of quality and accessibility. Competing with more advanced educational systems in the region requires continuous reforms and investment in educational infrastructure. Collaboration with international institutions and the use of digital technologies for education can help overcome these barriers and prepare the workforce for future challenges.
The health sector in Cape Verde faces challenges related to the quality and accessibility of services. Competition with more developed health systems in the region is an obstacle, but also an opportunity to improve through international partnerships and investments in health infrastructure. The expansion of telemedicine services and the continuous training of healthcare professionals are essential strategies for increasing the competitiveness and quality of healthcare in the country.
Market analysis in Cape Verde reveals a scenario of significant growth and opportunities until 2025, driven by key sectors such as tourism, renewable energies, technology, and international trade. Tourism continues to be an economic pillar, with a remarkable 20% increase in the number of tourists by 2023, thanks to investments in infrastructure and the promotion of sustainable practices. This growth is complemented by the country's commitment to achieving 50% of renewable energy by 2030, standing out as a regional leader in the energy sector with flagship projects such as the Cabeólica wind farm.
In addition, Cape Verde is emerging as a technological hub in the region, with investments in ICT infrastructure and a growing start-up ecosystem. The development of the financial sector, with a focus on inclusion and digitalisation, and the modernisation of transport and logistics are areas that promise to attract investment and improve the country's competitiveness. However, challenges remain, such as competition in the tourism and energy sectors, and the need to modernise health and education infrastructures to increase the quality and accessibility of services.
The implications of these trends are clear: Cape Verde must continue to invest in infrastructure and policies that promote sustainability and innovation, while strengthening international partnerships to overcome challenges and maximise opportunities. Economic diversification and a focus on emerging sectors such as technology and renewable energies are crucial to ensuring sustainable and inclusive growth. A focus on education and vocational training, especially in STEM areas, will be essential to prepare the workforce for future challenges and increase the country's global competitiveness (UNESCO).
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