Cape Verde

The uninhabited islands were discovered and colonized by the Portuguese in the 15th century; Cape Verde subsequently became a trading center for African slaves and a stop for whaling and transatlantic shipping. Following independence in 1975, and a tentative interest in unification with Guinea-Bissau, a one-party system was established and maintained until multi-party elections were held in 1990. Cape Verde continues to exhibit one of Africa's most stable democratic governments. Repeated droughts during the second half of the 20th century caused significant hardship and prompted heavy emigration. As a result, Cape Verde's expatriate population is greater than its domestic one. Most Cape Verdeans have both African and Portuguese antecedents.

Main Airports

Amílcar Cabral (SID), Praia International Airport

U.S. Embassy

Rua Abílio Macedo, 81, Praia; C.P.201
tel. (238) 260 890

Statistics

GDP: purchasing power parity:

$2.99 billion (2005 est.)

GDP - real growth rate:

5.5% (2005 est.)

GDP - per capita: purchasing power parity:

6,200 (2005 est.)

Inflation rate (consumer prices):

0.4% (2005 est.)

Labor force:

NA

Exports:

$73.35 million f.o.b. (2005 est.)

Exports - partners:

Spain 40.3%, Portugal 35.1%, US 9.7% (2005)

Imports:

$500 million f.o.b. (2005 est.)

Imports - partners:

Portugal 41.2%, Italy 7.9%, Netherlands 7%, Spain 5.4%, France 4.7%, Belgium 4.6%, Brazil 4.3% (2005)

Population:

420,979 (July 2006 est.)

Population growth rate:

0.64% (2006 est.)

Population Below Poverty Line:

30% (2000)

Major Industries:

food and beverages, fish processing, shoes and garments, salt mining, ship repair

Employing Workers: 137*

Registering Property: 122*

Enforcing Contracts: 80*

Closing a Business: 151*

*2006 World Bank rank out of 175 countries

Starting a Business

The table below shows the number of steps and the amount of time needed to start a business, on average

Indicator	Cape Verde	Region
Procedures (number)	12	11.1
Time (days)	52	61.8

Cape Verde Risk Assessment

Country Rating

Rating: B

Political and economic uncertainties and an occasionally difficult business environment can affect corporate payment behaviour. Corporate default probability is appreciable.

Risk Assessment

Economic growth reached 6.9 per cent in 2007, driven by a dynamic tourist sector that spurred public and private investment in the building and public works and services sectors. It should exceed 7.0 per cent in 2008 and contribute to a reduction in unemployment below the 20°per°cent threshold. The sustainability of economic development centred on high-end tourism has, however, come up against the shortage of skilled labour.

Imbalances have persisted in public accounts despite tight fiscal policy. External accounts, meanwhile, are structurally in deficit, indicative of an insufficiently diversified productive fabric. Remittances from expatriates, representing nearly 20 per cent of GDP have not sufficed to offset a trade deficit exacerbated by capital goods imports as well as oil and foodstuff purchases, whose prices have been trending up. Too developed to qualify for the HIPC and MDRI programmes, the country has high foreign debt. International aid and foreign direct investment direct inflows have largely covered the financing needs.

The country has enjoyed great political stability since the early 1990s highlighted by four free and democratic elections and two political changeovers. The government in power since 2006 has the support of a large parliamentary majority that has allowed it to pursue reforms fostering development of the private sector and foreign direct investment. Cape Verde became the 152nd member of the WTO in December 2007 and it is now on the verge of leaving the Less-Advanced-Country sub-group. In this context, Cape Verde hopes to set up a privileged partnership with the European Union focused particularly on trade and investment issues but also on immigration and combating organised crime.

• Agriculture
• Apparel
• Arts & Crafts
• Automobile
• Bags, Cases & Boxes
• Chemicals
• Computer Hardware & Software
• Construction & Real Estate
• Consumer Electronics
• Electrical & Electronics
• Energy & Environment
• Food & Beverage
• Furniture & Furnishing
• Health & Medicine
• Home Supplies
• Industrial Supplies
• Lights & Lighting
• Machinery
• Mineral & Materials
• Office Supplies
• Security & Protection
• Service
• Sports & Entertainment
• Telecommunications
• Textile
• Toys
• Transportation