O Start-Up Youth Programme, a nationwide initiative promoted by the Government of Cape Verde, has emerged as a strategic pillar in the promotion of youth entrepreneurship across the archipelago. Officially launched in 2017 during the 3E – Entrepreneurship, Employability and Employment event, this programme aims to empower young people aged between 18 and 35, with academic or vocational qualifications, to turn innovative ideas into sustainable businesses.
With an inclusive approach, the programme ensures equal opportunities across all the islands, from Santo Antão to Brava, promoting regional economic development and decentralisation. Through financial incentives, such as subsidised interest rates and funding guarantees of up to 100% for disruptive projects, the initiative facilitates access to credit, removing barriers that often limit the growth of start-ups.
Furthermore, the programme supports emerging sectors, such as technology, renewable energy and the creative economy, helping to diversify the Cape Verdean economy and reduce dependence on traditional sectors, such as tourism. This effort is in line with the objectives of the Strategic Plan for Sustainable Development (PEDS), thereby strengthening sustainability and social inclusion in the country.
The technical training and personalised support offered by the programme are further distinguishing features, preparing young entrepreneurs to tackle the challenges of the global market. Furthermore, Cape Verde’s participation in international innovation networks has raised the country’s profile as an attractive destination for investment, consolidating its role as a regional hub within the start-up ecosystem.
This report explores the many benefits provided by the Youth Start-Up Programme, highlighting its impact on job creation, the strengthening of strategic sectors and the promotion of a dynamic and innovative business environment.
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The Youth Start-Up Programme, implemented by the Government of Cape Verde, has the promotion of innovative and sustainable businesses as one of its main pillars. This initiative is designed to transform creative ideas into viable businesses, with a particular focus on strategic sectors such as technology, renewable energy and sustainable tourism. Through financial incentives, such as subsidised interest rates and tax exemptions, the programme aims to reduce the financial barriers that often hinder the progress of young entrepreneurs. This effort is in line with the objectives of the Strategic Plan for Sustainable Development (PEDS), which prioritises economic diversification and the creation of quality jobs. (consultancy.cv)
One of the programme’s key objectives is to empower young entrepreneurs through technical training and ongoing support. The programme offers workshops and courses in areas such as business management, digital marketing and technological innovation. These training initiatives are essential for preparing participants for the challenges of the market, ensuring that entrepreneurs acquire the skills needed to manage their businesses efficiently. Furthermore, the programme promotes networking between start-ups and established companies, fostering the exchange of knowledge and experience. (governo.cv)
Through a decentralised approach, the Youth Start-Up Programme ensures that young people from all the islands of Cape Verde, from Santo Antão to Brava, have equal access to its benefits. This strategy aims to reduce regional disparities and promote economic development in less favoured areas. The inclusion of women in entrepreneurship is also a priority, with specific measures to encourage female participation in sectors traditionally dominated by men. This inclusive approach reinforces the programme’s commitment to equal opportunities and social cohesion. (governo.cv)
A distinctive feature of the programme is its accessible funding structure, which includes the 100% guarantee on loans for young entrepreneurs. This measure, announced in 2023, removes the need for participants to provide personal guarantees, thereby facilitating access to credit. Funding is secured through international partnerships, such as Luxembourg Cooperation, which contributes to the employability and reintegration of young people into the labour market. This approach significantly reduces the risks for banks and encourages the creation of innovative businesses. (onelegal.pt)
The programme has a direct impact on Cape Verde’s economic sustainability, promoting the diversification of economic activities and reducing dependence on traditional sectors, such as tourism. The focus on emerging sectors, such as renewable energy, not only helps to generate consistent revenue but also strengthens the country’s economic resilience in the face of external shocks. Furthermore, the collaboration between start-ups and large companies, fostered by the programme, creates synergies that drive innovation and competitiveness. (mindelinsite.com)
The Youth Start-Up Programme encourages the development of innovative ideas and the expansion of existing businesses, thereby promoting economic diversification in Cape Verde. This support is specifically aimed at projects that incorporate technological solutions or introduce sustainable practices to the market. Entrepreneurs benefit from favourable conditions to implement their projects, including access to specialist consultancy and personalised mentoring, which help them to structure their businesses in a more competitive manner. This type of technical support is essential to enable young entrepreneurs to tackle the challenges of both the global and local markets (Pro Company).
In addition to preferential interest rates of 50%, the programme offers tax exemptions for start-ups during their first few years of operation. This measure aims to reduce the initial financial burden, enabling entrepreneurs to focus their resources on growing and consolidating their businesses. The funding available ranges from 500,000$00 to 5,000,000$00, covering both companies in their early stages and those already in operation. This financial incentive scheme is complemented by a 100% credit guarantee for disruptive projects, eliminating the need for collateral, which facilitates the inclusion of young people without access to their own financial resources (Government of Cape Verde).
The programme promotes the creation of collaborative networks between start-ups, financial institutions and business incubators. These partnerships are vital for strengthening the entrepreneurial ecosystem, offering young people access to resources and specialist knowledge. Collaboration with organisations such as the Association of Young Entrepreneurs of Cape Verde (AJEC) and the Association of Women Entrepreneurs (AMES) reinforces technical and strategic support, whilst agreements signed with commercial banks ensure the financial sustainability of the projects. This collaborative environment is one of the cornerstones of the success of start-ups in the country (Government of Cape Verde).
Encouraging the adoption of sustainable practices is another significant benefit of the programme. Start-ups are encouraged to integrate green technologies and eco-friendly solutions into their business models, contributing to environmental conservation and the achievement of the Sustainable Development Goals (SDGs). This focus on sustainability not only attracts international investment but also positions Cape Verde as a leader in environmental innovation in the West African region. Sectors such as renewable energy and the circular economy have received particular attention, promoting a transition towards a greener and more resilient economy (Consultancy.cv).
The programme invests heavily in training young entrepreneurs, offering workshops and courses in areas such as financial management, digital marketing and innovation. These initiatives are complemented by mentoring schemes that help participants develop practical skills and implement effective strategies for their businesses. Furthermore, the programme promotes entrepreneurial education in schools and universities, encouraging young people to consider entrepreneurship as a viable career path. This focus on talent development is essential for creating a skilled workforce that is aligned with the needs of the global market (Consultancy.cv).
Although regional inclusion has already been addressed in previous content, it is important to highlight that the programme also promotes gender equality in entrepreneurship. Specific measures are being implemented to encourage women’s participation in sectors traditionally dominated by men, such as technology and engineering. This effort to balance gender representation in the labour market is an essential component of the programme’s commitment to social inclusion and economic cohesion (Government of Cape Verde).
The Youth Start-Up Programme has played a crucial role in attracting investment to Cape Verde. By creating a favourable business environment and implementing incentive policies, the programme has attracted investors keen to support promising start-ups. This influx of capital is vital for financing business expansion and fostering economic growth. International partnerships, such as the Luxembourg Cooperation, have been fundamental to the success of this strategy, providing financial and technical resources that complement local efforts (Consultancy.cv).
The programme offers incubation services for start-ups, providing a controlled environment where entrepreneurs can develop their projects with the support of experts. These incubators provide access to facilities, such as offices and laboratories, and to technical resources, such as software and specialist equipment. This support is essential for reducing initial operating costs and ensuring that start-ups have a solid foundation on which to grow and thrive in the market (Pro Company).
The programme has contributed significantly to the diversification of the Cape Verdean economy, encouraging the development of emerging sectors such as technology, the creative economy and renewable energy. This effort reduces dependence on traditional sectors, such as tourism, and promotes the creation of quality jobs. Economic diversification is one of the central objectives of the Strategic Plan for Sustainable Development (PEDS), and the Youth Start-Up Programme has been a crucial tool in achieving this objective (Consultancy.cv).
The Youth Start-Up Programme has played a crucial role in creating employment opportunities for young Cape Verdeans, particularly in emerging sectors such as technology and renewable energy. Through financial and technical support, the programme facilitates the creation of start-ups, which in turn generate both direct and indirect jobs. According to recent data, the programme has helped to reduce youth unemployment, which has historically been one of Cape Verde’s greatest economic challenges. Furthermore, by promoting the formalisation of businesses, the programme helps to integrate young entrepreneurs into the formal economy, thereby reducing the informal economy. This impact is particularly significant in less developed regions of the archipelago, where job opportunities are scarcer (Government of Cape Verde).
Although gender inclusion has been addressed in previous content, this section highlights the direct economic impact of women’s participation in the programme. Through specific measures, such as targeted mentoring and financial incentives, Start-Up Jovem has increased the representation of women in sectors traditionally dominated by men, such as engineering and technology. This effort not only promotes gender equality but also contributes to the diversification of the labour market, boosting competitiveness and innovation. Studies show that companies led by women tend to have a more significant social impact, which reinforces the relevance of this approach in the Cape Verdean context (Consultancy.cv).
One of the programme’s most striking features is its focus on economic decentralisation. By ensuring equal access to the programme’s benefits across all the islands, from Santo Antão to Brava, Start-Up Jovem has contributed to regional economic development. This approach reduces disparities between the more developed islands, such as Santiago, and the outlying regions, promoting more balanced growth. Furthermore, the creation of support infrastructure, such as business incubators and innovation centres, in various locations has facilitated access to resources and opportunities for entrepreneurs in remote areas (Pro Company).
The programme’s social impact is also reflected in the strengthening of Cape Verde’s entrepreneurial ecosystem. Through strategic partnerships with financial institutions, business associations and international organisations, the programme has created a robust support network for young entrepreneurs. This ecosystem not only provides financial and technical resources, but also promotes collaboration and the exchange of knowledge between different market players. For example, events such as the Youth Investment and Financing Summit have been instrumental in attracting investors and strengthening links between start-ups and large companies (LBC Global).
Another significant impact of the programme is the reduction of the informal economy in Cape Verde. Through tax incentives and access to finance, Start-Up Jovem encourages entrepreneurs to formalise their businesses, which contributes to increased tax revenue and the country’s economic stability. This process of formalisation is particularly important in sectors such as trade and services, where the informal economy has traditionally had a significant presence. Furthermore, formalisation enables entrepreneurs to access additional benefits, such as insurance and lines of credit, thereby strengthening the sustainability of their businesses (Pro Company).
The programme has been a catalyst for innovation in Cape Verde, encouraging young people to develop creative solutions to local and global problems. This drive for innovation not only boosts the competitiveness of Cape Verdean start-ups in the international market, but also attracts foreign investment. The introduction of advanced technologies and sustainable practices into the start-ups’ business models is another factor that strengthens Cape Verde’s position as an innovation hub in West Africa (Consultancy.cv).
Whilst economic sustainability is often highlighted, the programme’s social and environmental impact also deserves attention. By promoting responsible business practices and the adoption of green technologies, Start-Up Jovem contributes to environmental conservation and to improving the quality of life in local communities. This focus on sustainability is in line with the Sustainable Development Goals (SDGs) and reinforces Cape Verde’s commitment to a more inclusive and resilient future (Government of Cape Verde).
Although economic diversification has been addressed in previous reports, this section focuses on the social impact of this strategy. Diversification not only reduces dependence on traditional sectors, such as tourism, but also creates new opportunities for young people in areas such as technology, the creative economy and renewable energy. This social impact is particularly evident in the creation of quality jobs and the inclusion of marginalised groups in the labour market (Consultancy.cv).
Finally, the programme has a significant impact on the development of young Cape Verdeans, providing them with the tools and resources they need to become successful entrepreneurs. Through training, mentoring and workshops, Start-Up Jovem not only develops technical skills but also promotes critical thinking and resilience. This investment in human capital is fundamental to the economic and social development of Cape Verde, ensuring that young people can make a significant contribution to the country’s future (JA Brazil).
The Youth Start-Up Programme has proved to be a strategic initiative in strengthening the entrepreneurial ecosystem in Cape Verde, promoting innovation, sustainability and social inclusion. Through financial incentives, such as subsidised interest rates and credit guarantees from 100%, the programme removes the economic barriers that often limit young people’s access to entrepreneurship. In addition, technical training, provided through workshops and mentoring, equips participants with the essential skills to manage their businesses efficiently and competitively. This focus on talent development is crucial for creating a skilled workforce that is aligned with the demands of the global market (Government of Cape Verde).
Furthermore, the programme stands out for its commitment to regional inclusion and gender equality, ensuring that young people from all the islands and women in under-represented sectors have equal access to the opportunities on offer. The focus on emerging sectors, such as technology and renewable energy, not only contributes to economic diversification, reducing dependence on traditional sectors such as tourism, but also positions Cape Verde as a model of sustainable innovation in West Africa. Collaboration with international partners and the creation of robust support networks have been fundamental to attracting investment and strengthening the competitiveness of local start-ups (Consultancy.cv).
The programme’s results point to significant economic and social impacts, such as job creation, a reduction in youth unemployment and the formalisation of businesses, thereby contributing to the country’s economic stability. However, to maximise its potential, it is essential to continue expanding support infrastructure, such as business incubators, and to strengthen the strategic partnerships that underpin the entrepreneurial ecosystem. This ongoing effort will consolidate the programme’s role as a catalyst for Cape Verde’s sustainable and inclusive development (Pro Company).
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