A Stronger Private Sector Could Drive Long-Term Sustainable and Inclusive Growth in Cabo Verde: IFC and World Bank Report

Praia, Cabo Verde, March 4, 2024 –Cabo Verde can accelerate economic growth and create jobs by attracting increased private investment into key value-added sectors, including sustainable tourism, the blue economy (fisheries and aquaculture), and digital services, according to a report published today by IFC and the World Bank.

The Country Private Sector Diagnostic (CPSD) aligned with Cabo Verde's National Development Plans (PEDS II and Ambicao 2030) takes a wide-ranging look at Cabo Verde's economy, identifying sectors with high-growth potential and aims to inform private sector investors about the most promising areas for investment. The report recommends specific measures for unlocking sustainable tourism opportunities, the blue economy, and digital services.

Cabo Verde has made significant strides in economic and social development in recent decades. However, the nation faces challenges such as limited economic diversification and vulnerabilities to external shocks exacerbated by climate change.

"A strong and dynamic private sector will help Cabo Verde better leverage its natural and human capital, create more jobs, and offer more opportunities to its people," says Mr. Olivier Buyoya, IFC Regional Director for West and Central Africa. The CPSD aims to support Cabo Verde in this process and support the Government of Cabo Verde in realizing its national development objectives to put in place the conditions for sustainable growth."

"The CPSD is an important analytical work which aims to help Cabo Verde achieve its development goals and boost job creation by leveraging key sectors for growth such as blue economy, digital services, and sustainable tourism," says Mr. Edouard Al Dahdah, Lead Economist and Program Leader for West Africa, Equitable Growth, Finance and Institutions, World Bank. "The World Bank is committed to supporting the government to enact reforms aimed at attracting private investment to diversify the economy and create jobs."

The report highlights the significant potential of Cabo Verde's blue economy to develop new value chains in fisheries and aquaculture, while also strengthening linkages with the tourism sector and domestic private sector. Additionally, the country's strong digital infrastructure, strategic location, and emerging tech scene present exciting opportunities in E-government services or digital financial services. With the right regulatory environment, as emphasized in the CPSD, the blue economy has the potential to supply the private sector in Cabo Verde with fresh fish and other aquaculture species outlined in the report.
Cabo Verde also offers compelling strategic investment opportunities in niche tourism segments, including yachting, the creative industries, and digital nomad tourism.  The report notes that by embracing sustainability initiatives and providing direct support to firms, Cabo Verde can maximize returns and propel its tourism sector towards inclusive and resilient growth.
 

Dr. Olavo Avelino Garcia Correia, Vice Prime Minister, Minister of Finance and Business Development, and Minister of the Digital Economy adds: " The Private Sector Diagnostic is a relevant tool that will serve the government in its actions to improve the business environment and strengthen 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 partnership between The Government of Cabo Verde and the World Bank Group underscores a shared commitment to fostering sustainable and inclusive growth. By leveraging the IFC and the World Bank's expertise and resources, Cabo Verde aims to accelerate progress towards its development goals and create new opportunities for investment and entrepreneurship.
 
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, the IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org

About the World Bank
The World Bank Group has a bold vision: to create a world free of poverty on a livable planet. In more than 100 countries, the World Bank Group provides financing, advice, and innovative solutions that improve lives by creating jobs, strengthening economic growth, and confronting the most urgent global development challenges. The World Bank Group is one of the largest sources of funding and knowledge for developing countries. It consists of the World Bank, including the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID).
For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org
 
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https://www.ifc.org/en/insights-reports/2024/cabo-verde-private-sector-diagnostic