Women Entrepreneurs in Cape Verde: Challenges, Opportunities and the Road to Economic Empowerment

Women’s entrepreneurship in Cape Verde is one of the most dynamic pillars of the national economy, but also one of the most challenging sectors. With 43% of women involved in business activities, one of the highest rates in sub-Saharan Africa, the archipelago stands out as a regional benchmark in terms of women’s participation in the business sector . However, behind these promising figures lie complex realities that warrant in-depth analysis.

In this article, we explore the structural challenges, the opportunities for growth and the strategies for success for women entrepreneurs in Cape Verde, based on the latest data from the National Institute of Statistics (INE) and other official sources.

An Overview of Women’s Entrepreneurship in Cape Verde

Official Statistical Data (INE 2024)

According to the report “Women and Men in Cape Verde: Facts and Figures 2024”, published by INE in collaboration with ICIEG (Cape Verdean Institute for Gender Equality and Equity), the Cape Verdean labour market exhibits distinctive characteristics with regard to female participation:

• Female unemployment rate: 8.8% (compared with 6.4% among men) in the first half of 2025
• Labour force participation: 52.1% for women vs. 66.3% for men
• Gender gap in economic activity: 14% difference between men and women of working age

These figures reveal a paradox: although Cape Verde has one of the highest rates of female entrepreneurship in the region, women continue to face significant barriers to accessing formal and stable economic opportunities.

Structural Challenges Facing Women Entrepreneurs

1. The Informal Sector and Economic Precariousness

The INE’s third Survey of the Informal Sector (2024) revealed worrying figures regarding the situation of women in the informal business sector:

• Absolute majority: Women run the majority of Informal Production Units (UPIs), most of which are sole traders
• Wage gap: Women in the informal sector earn on average 40% minus that men (11,655 escudos vs. 19,263 escudos per month)
• Average income: 14,599 escudos per month in the informal sector, equivalent to just €132.15

“Most of the work that ensures social wellbeing (74%) was invisible and went unrecorded” — INE, Time Use Survey

2. Working Two Shifts and Unpaid Work

The ICIEG report highlights that Cape Verdean women spend, on average, an extra 3 hours and 30 minutes a day unpaid work compared with men.

This “double burden”, which combines domestic responsibilities with business activities, significantly limits the time available for professional development and business expansion.

Main reasons for inactivity among women:

• Personal or family responsibilities: 17,7% (vs. 2.11 TP3T amongst men)
• Pregnancy and healthcare: 19,4% Women cite disability, illness or pregnancy as barriers

3. Access to Finance and Formalisation

Access to credit remains one of the most significant obstacles. Recent figures indicate that only 30% corporate credit is awarded to companies led by women.

Furthermore, the INE found that the majority of informal entrepreneurs would not be willing to register their businesses or pay taxes, suggesting that “there is hard work ahead to integrate them into the formal economy”.

Opportunities and Growth Trends

1. Public Policies and Support Programmes

The Cape Verdean government has been implementing significant measures to promote women’s entrepreneurship:

Youth & Women’s Bank: A specific funding programme for entrepreneurship and start-ups led by women, cited by the Prime Minister as a key tool for reducing youth unemployment.

Credit BAI Women Entrepreneurs: A specialised credit facility that facilitates access to bank finance, helping to reduce gender inequalities in the business sector.

2. Economic Growth and Women’s Participation in the Labour Market

The figures for 2024/2025 show positive trends:

• Employment growth: 7.3% increase in the first half of 2025
• Greater female participation: A further 5,144 women joined the labour force in 2024
• Reduction in unemployment: 8% rate in 2024, the lowest figure since independence

3. Tourism and Blue Economy Sector

Tourism, which accounts for approximately 25% of GDP Cape Verdean, offers significant opportunities

. Women account for 60% of the workforce in the accommodation and catering sector, although they face challenges in terms of pay and job security.

Specific opportunities:

• Entrepreneurship in sustainable tourism
• Handicrafts and local produce
• Catering services and cultural experiences
• Hotel consultancy and management

Strategies for Success for Women Entrepreneurs

1. Formalisation and Access to Benefits

The transition from the informal to the formal sector enables:

• Access to social security (only 48% of the population are covered by social security benefits)
• Opportunity to bid for major orders and public sector contracts
• Access to business training and mentoring programmes

2. Training and Skills Development

The National Plan for Gender Equality highlights the need to:

• Training in business management and strategic planning
• Digital and technological skills
• Access to networking opportunities and mentoring for women

3. Diversification and Innovation

Women-led companies should explore:

• Digital economy: E-commerce and digital marketing
• Sustainable agriculture: Taking advantage of the fact that 49.7% of the agricultural labour force are women
• Professional services: Consultancy, accountancy and business support services

The Role of Consultancy in Business Transformation

S&D Consultoria positions itself as a strategic partner for female entrepreneurs who wish to:

✅ Setting up your business and to comply with tax and accounting obligations
✅ Accessing funding by drawing up robust business plans
✅ Optimising processes and implement efficient management systems
✅ Expand into new markets through digital marketing strategies
✅ Comply with legal requirements and take advantage of the tax incentives available

Conclusion: The Future of Women’s Entrepreneurship in Cape Verde

Data from INE reveal a changing reality. On the one hand, Cape Verdean women show resilience and entrepreneurial spirit notable figures, who account for a significant proportion of the formal and informal business sectors. On the other hand, there remain structural inequalities which limit the growth potential and sustainability of their businesses.

Reducing the gender gap in access to finance, the gradual formalisation of the informal sector and investment in business capacity-building are essential steps towards consolidating women’s economic empowerment in Cape Verde.

With the support of appropriate public policies and strategic partnerships with organisations such as S&D Consultoria, Cape Verdean women entrepreneurs are well placed to turn challenges into opportunities for sustainable growth.

References and Sources

• National Statistics Institute (INE) — 2024/2025 Continuous Multi-purpose Survey
• INE/ICIEG — “Women and Men in Cape Verde: Facts and Figures 2024”
• INE — Third Survey of the Informal Sector (2024)
• National Plan for Gender Equality (ICIEG)
• Global Entrepreneurship Monitor (GEM) — Women’s Entrepreneurship Report

S&D Consultoria — Specialists in business support, accountancy and management consultancy in Cape Verde. Contact us to find out how we can help your business grow.