Entrepreneurship in Cape Verde has established itself as one of the main drivers of the country’s economic and social development. With its strategic location in the Atlantic, between Europe, Africa and the Americas, Cape Verde offers a favourable environment for innovative and emerging businesses. This geographical and economic context has been harnessed to foster growth in key sectors such as technology, sustainable tourism and renewable energy, which offer significant potential for innovation and growth.
In recent years, initiatives such as the Business Incubation Centre (BIC) have played a crucial role in supporting micro, small and medium-sized enterprises, creating an environment that encourages the development of entrepreneurial initiatives. With over a decade of experience, BIC offers programmes ranging from the initial ideation phase through to the growth phase, thereby enhancing the competitiveness and sustainability of Cape Verdean businesses.
Despite the opportunities, entrepreneurs face significant challenges, such as limited access to finance, red tape and a small domestic market. To overcome these obstacles, it is essential to improve access to finance through innovative mechanisms, such as venture capital funds and crowdfunding platforms. Furthermore, streamlining regulatory and administrative processes is crucial to facilitating the creation and operation of businesses.
The government, the private sector and civil society have been working together to create an environment conducive to the flourishing of new businesses. Collaboration between these stakeholders is essential to strengthen the entrepreneurial ecosystem, by investing in infrastructure, education and skills development, and by diversifying the economy to include emerging sectors such as biotechnology and the creative economy.
With a vibrant entrepreneurial spirit, Cape Verde is on an upward trajectory, and the country’s future will be shaped by brilliant minds who believe in the power of their ideas and in the nation’s unlimited potential. This report explores how to turn ideas into successful businesses, analysing the trends, opportunities and challenges facing Cape Verdean entrepreneurs in 2025.
Contents
Entrepreneurship in Cape Verde is being strongly driven by digital innovation, which stands out as a crucial catalyst for economic growth. Technology is rapidly reshaping the business landscape globally, and Cape Verde is no exception. The country has seen a significant increase in attention and investment in the technology sector. Cape Verdean entrepreneurs are harnessing technologies such as digital payment solutions and e-commerce platforms to tackle local and global challenges, streamlining processes and paving new paths towards innovation and prosperity (Cabowork).
International partnerships have played a vital role in strengthening the entrepreneurial ecosystem in Cape Verde. These partnerships not only attract foreign investment, but also facilitate the exchange of knowledge and technology. Furthermore, there is a growing focus on nurturing technological talent through forward-looking educational and training programmes. This investment in human capital is essential to sustain the growth of the technology sector and ensure that local entrepreneurs can compete in an increasingly competitive global market (Cabowork).
Sustainability is emerging as a key trend in entrepreneurship in Cape Verde. As environmental concerns take centre stage, start-ups are integrating sustainable practices into their business models. This movement not only responds to consumer demand for more environmentally friendly products and services, but also positions companies to benefit from government incentives and international funding for green initiatives. Furthermore, social responsibility is becoming a priority, with companies seeking to have a positive impact on local communities (EmpreendaSC).
Tourism remains one of Cape Verde’s main economic drivers, accounting for a significant proportion of the country’s GDP. However, the sector faces challenges, such as the need for diversification and international competition. Despite this, there are significant opportunities for entrepreneurs who can innovate and offer unique experiences to tourists. Niche tourism, such as walking tourism and nautical tourism, is growing, offering new opportunities for innovative businesses that can capitalise on these emerging trends (Portugal Global).
The Government of Cape Verde is implementing the Operational Programme for Tourism (POT) for the period 2022–2026, with a budget of 200 million euros. This programme aims not only to boost the tourism sector, but also to create synergies with other sectors of the economy. The POT is a cross-cutting initiative that seeks to integrate tourism with technological innovation, sustainability and infrastructure development, creating an environment conducive to the growth of entrepreneurship on various fronts (Portugal Global).
Cape Verde’s Business Incubation Centre (BIC) plays a crucial role in transforming ideas into successful businesses. The BIC’s mission is to support entrepreneurs by providing management advice and access to suitable infrastructure, with a view to ensuring the positive economic performance of these businesses. The incubator is regarded as a model of innovation in the country, offering programmes to accelerate ideas and incubate businesses, which are fundamental to the development of competitive start-ups in the Cape Verdean market (BIC).
Despite these opportunities, Cape Verde faces structural challenges that may limit the growth potential of entrepreneurship. High external dependence, youth emigration and low productivity in key sectors are issues that need to be addressed. To ensure a prosperous future, it is essential that the country adopts an integrated approach, creating synergies between the systems that underpin economic and social growth. Digital transformation, improvements to public services and the creation of a favourable business environment are critical steps towards overcoming these barriers (Balai).
Young Cape Verdeans are seen as agents of change, with hopes for greater inclusion in the country’s decision-making processes and better conditions for entrepreneurship. Young people hope that 2025 will bring more opportunities for training and skills development, as well as schemes to support the unemployed. This focus on youth development is crucial to ensuring that Cape Verde can fully realise its entrepreneurial potential and achieve long-term sustainable development (Island Express).
One of the main challenges faced by entrepreneurs in Cape Verde is limited access to finance. This obstacle is particularly prevalent amongst young entrepreneurs, who often have innovative ideas but struggle to secure the financial resources needed to implement their projects. According to the Island Express, the lack of funding is one of the factors that most affects young entrepreneurs, leading many to consider emigration as an alternative.
To address this challenge, it is recommended that innovative financing mechanisms be established, such as venture capital funds and crowdfunding platforms. These instruments can provide the necessary capital for start-ups and small businesses, enabling them to grow and thrive. Furthermore, the Cape Verdean government has been implementing support programmes, such as the Entrepreneurship and Innovation Support Programme (PAEI), which aims to reduce risks and encourage innovation through grants and credit guarantees.
Excessive bureaucracy is another significant challenge facing entrepreneurs in Cape Verde. Complex regulatory and administrative procedures can delay the establishment and operation of new businesses, thereby discouraging entrepreneurship. As reported by the Island Express, bureaucracy is one of the factors driving young entrepreneurs to move abroad.
To tackle this challenge, it is crucial to streamline bureaucratic processes. The introduction of digital systems for company registration and obtaining licences can significantly reduce the time and costs associated with red tape. Furthermore, the creation of a one-stop shop for entrepreneurs can centralise and streamline the processes required to start a business.
Public-private partnerships (PPPs) play a vital role in strengthening the entrepreneurial ecosystem in Cape Verde. These partnerships can facilitate the development of essential infrastructure and provide technical and financial support to entrepreneurs. PPPs can be strengthened by creating tax and regulatory incentives that promote collaboration between the government, the private sector and international organisations.
One example of success is the Digital Cape Verde, a government programme aimed at transforming Cape Verde into a hub for digital services. This programme promotes technological innovation through partnerships with international financial institutions and offers tax incentives to start-ups during their first few years of operation.
Education and training are crucial to the development of a robust entrepreneurial ecosystem. As various economic sectors grow, the demand for a skilled workforce is increasing. The government and the private sector are investing in education and vocational training to prepare young people for emerging opportunities in the labour market.
Investing in human capital is essential to sustain economic growth and ensure that the local population benefits from new employment opportunities. Higher education institutions and technical training centres are being expanded and modernised, with a focus on areas such as ICT, tourism and renewable energy (S&D Consultancy).
Economic diversification is essential to reducing Cape Verde’s dependence on traditional sectors, such as tourism, and to promoting economic resilience. Innovation plays a crucial role in this process, enabling the development of new economic sectors, such as technology, biotechnology and the creative economy.
The Cape Verdean government has adopted a number of policies to promote the digital economy, including tax incentives for technology companies and programmes to support entrepreneurship. The creation of the Cape Verde Technology Park It is an example of how the country is positioning itself to attract international companies and promote local innovation.
By addressing these challenges and implementing the recommendations mentioned above, Cape Verde can create a more favourable business environment, enabling entrepreneurs to turn ideas into successful businesses and contribute to the country’s sustainable economic development.
Business incubators play a crucial role in turning ideas into successful businesses in Cape Verde. These organisations provide a controlled and supportive environment that enables entrepreneurs to test and develop their ideas with less risk. The Business Incubation Centre (BIC) It is a notable example, providing business guidance, legal and tax advice, and access to a valuable network of contacts. These incubators help to mitigate the risks associated with launching new businesses by offering essential infrastructure and services that facilitate the growth of start-ups.
Business accelerators, on the other hand, are designed to accelerate the growth of start-ups that already have a validated business model. In Cape Verde, acceleration programmes such as the Tech Hub CV have proven to be effective, offering intensive mentoring, access to investors and networking opportunities. In 2024, more than 50 start-ups took part in acceleration programmes, resulting in an average increase of 30% in their revenue. This type of support is essential for start-ups looking to scale up quickly and enter new markets.
One of the main benefits of incubators and accelerators is the creation of robust support networks. Collaboration between start-ups, the government and non-governmental organisations is essential for strengthening the entrepreneurial ecosystem in Cape Verde. These networks offer valuable resources, such as mentoring, co-working space and access to a network of investors, which are crucial to the success of early-stage start-ups. The Tech Hub CV It is an example of how support networks can be effective, providing a collaborative environment that fosters innovation and growth.
Despite the clear benefits, incubators and accelerators in Cape Verde face significant challenges. Bureaucracy and a lack of access to capital are common barriers that need to be overcome to maximise the potential of these institutions. However, the opportunities are vast, particularly in sectors such as tourism, renewable energy and information technology. With continued government support and growing interest from international investors, the future of incubators and accelerators in Cape Verde looks promising. It is essential that these institutions continue to evolve and adapt to market needs in order to keep supporting the growth of entrepreneurship in the country.
To maximise the impact of incubators and accelerators, it is necessary to adopt strategies that promote innovation and collaboration. One effective approach is to strengthen public-private partnerships, which can facilitate the development of infrastructure and the training of entrepreneurs. Furthermore, the creation of innovative financing mechanisms, such as venture capital funds and crowdfunding platforms, can provide the capital needed for start-ups and small businesses to grow. Simplifying regulatory and administrative processes is also crucial to facilitating the establishment and operation of businesses in Cape Verde. With these strategies in place, incubators and accelerators can continue to play a vital role in the country’s economic development, transforming ideas into successful businesses and fostering a vibrant and sustainable entrepreneurial ecosystem.
Entrepreneurship in Cape Verde is being significantly driven by digital innovation, which stands out as a key catalyst for the country’s economic growth. The adoption of technologies such as digital payment solutions and e-commerce platforms is enabling Cape Verdean entrepreneurs to tackle local and global challenges, promoting innovation and prosperity. Furthermore, international partnerships and talent development are key to strengthening the entrepreneurial ecosystem, attracting investment and facilitating the exchange of knowledge and technology. Sustainability and social responsibility are emerging as key trends, with start-ups integrating eco-friendly practices into their business models, responding to consumer demands and benefiting from government incentives and international funding (Cabowork, EmpreendaSC).
Despite these opportunities, Cape Verde faces structural challenges, such as limited access to finance and excessive red tape, which may restrict the growth potential of entrepreneurship. To mitigate these challenges, it is recommended that innovative financing mechanisms be established and bureaucratic processes be streamlined. Strengthening public-private partnerships and investing in education and skills development are crucial to preparing the workforce for emerging opportunities. Incubators and accelerators play a vital role in transforming ideas into successful businesses, providing essential support for early-stage start-ups and facilitating rapid growth through acceleration programmes. With continued government support and growing interest from international investors, the future of entrepreneurship in Cape Verde looks promising, provided that effective strategies are adopted to maximise the impact of these institutions and foster a vibrant and sustainable entrepreneurial ecosystem (Island Express, Tech Hub CV).
English (UK) 
Português (AO90) 
Français