Cape Verde: Inclusive Sustainable Growth
A report released today. March 4, 2024, by the International Finance Corporation (IFC) and the World Bank, highlights that Cape Verde can accelerate its economic growth and create jobs, through increased private investment in strategic sectors such as sustainable tourism, blue economy and services digital.
According to the report, a stronger private sector can play a crucial role in promoting sustainable and inclusive growth in Cape Verde, an archipelago of natural beauty and rich culture, with extraordinary tourism potential, still underutilized.
The Importance of CPSD
The Diagnosis of the Country's Private Sector (CPSD) is an essential tool aligned with Cape Verde's national development objectives. It offers a comprehensive analysis of the country's economy, identifying sectors with high growth potential and providing guidance for strategic investments.
The CPSD, in line with Cape Verde's National Development Plans, carries out a detailed analysis of the national economy, identifying areas with high growth potential and providing guidance to private sector actors on investment opportunities.
The report highlights the importance of unlocking the potential of sustainable tourism, blue economy and digital services to drive Cape Verde's economic growth.
Challenges and Opportunities
Olivier Buyoya, IFC Regional Director for West and Central Africa, highlighted:
“A strong and dynamic private sector will help Cape Verde to make better use of its natural and human capital, create more jobs and offer more opportunities to its people”.
“The CPSD aims to support the country in this process and support the Government of Cape Verde in achieving its national development objectives, to create the conditions for sustainable growth”.
Despite the significant progress made in recent decades, Cape Verde faces challenges such as limited economic diversification and vulnerabilities to external shocks, especially climate change.
A robust private sector is essential to harness Cape Verde's natural and human capital, creating jobs and opportunities for its people. In this context, CPSD highlights clear opportunities in key sectors, including sustainable tourism, blue economy and digital services.
Potential of the Tourism Sector
Edouard Al Dahdah, Chief Economist at the World Bank and Program Leader for West Africa, Equitable Growth, Finance and Institutions, reinforced the importance of the report, stating:
“The CPSD is an important analytical work that aims to help Cape Verde achieve its development objectives”.
“This is achieved by boosting job creation, leveraging key sectors for growth, such as the blue economy, digital services and sustainable tourism.”
The document highlights the need to diversify tourist offerings, going beyond the traditional sun and sea. Investments in subsegments with greater added value, such as nature tourism and hiking, have the potential to attract visitors beyond the more developed islands.
Explore Market Niches
Cape Verde also offers strategic investment opportunities in niche tourism segments such as yachting, creative industries and digital nomad tourism. By embracing sustainability and supporting targeted initiatives, the country can drive inclusive and resilient growth in this vital sector.
The blue economy presents significant potential for developing new value chains in fisheries and aquaculture, integrating these activities with tourism to drive growth and create new opportunities, further strengthening the private sector by promoting sustainable use of marine resources .
The Deputy Prime Minister, Olavo Correia, Minister of the Digital Economy and Minister of Finance and Business Development added:
“The Private Sector Diagnosis is a relevant tool that will serve the government in its actions to improve the business environment and reinforce collaboration between the public and private sectors”.
“Many of the CSPD's recommendations are in line with the country's development strategy, and reinforce the structuring projects launched and planned by the government to offer companies optimal investment conditions”.
The report highlights the importance of this approach to providing direct support to businesses, driving comprehensive and lasting growth in the tourism sector, also mentioning Cape Verde's robust digital infrastructure and emerging opportunities in e-government and digital financial services.
With a favorable regulatory environment, the country is well positioned to explore this growing digital market, which can generate jobs and stimulate innovation.
Collaboration between Sectors
The government of Cape Verde is committed to improving the business environment and strengthening collaboration between the public and private sectors, having already developed the Strategic Concertation Agreement (ACE).
In pursuing this goal, it is now entering into a partnership with the World Bank Group to accelerate progress towards development goals and create new opportunities for investment and entrepreneurship.
The Deputy Prime Minister, Olavo Correia, highlighted the importance of the report as a tool to improve the business environment and strengthen collaboration between the public and private sectors, with the government committing to adopt reforms to attract investment and promote economic development .
This partnership aims to promote sustainable and inclusive growth. Through the expertise and resources of IFC and the World Bank, Cape Verde seeks to accelerate progress towards its development goals by creating new investment and entrepreneurship opportunities.
Conclusion
The IFC and World Bank report highlights Cape Verde's potential to achieve sustainable and inclusive growth through strengthening the private sector.
By following CPSD recommendations and seizing opportunities with strategic investments in identified sectors, the country can not only face its economic challenges, but also create a prosperous future for its citizens and communities.
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