Cabo Verde

Cabo Verde, officially known as the Republic of Cabo Verde, is an archipelagic country located in the eastern Atlantic Ocean off the coast of West Africa. Comprising ten volcanic islands and several islets, the nation covers a combined land area of approximately 4,033 square kilometres.

What defines the economic structure of Cabo Verde today?

Lacking natural resources and operating largely as a semi-desert environment, Cabo Verde has nevertheless developed a stable, service-oriented economy. Commerce, transport, and public services account for more than 70% of the gross domestic product. Although nearly 35% of the population resides in rural areas, agriculture and fishing contribute only about 9% of the GDP due to persistent drought conditions and limited arable land, with over 90% of all consumed food being imported. Light manufacturing accounts for most of the remainder of economic output, supported by fish processing plants and cold storage facilities located in Mindelo, Praia, and on Sal.

Since the early 1990s, the government has pursued market-oriented economic policies, welcoming foreign investment and executing privatization programs focused on tourism, light manufacturing industries, and fisheries. Expatriate Cape Verdeans living abroad—particularly in the United States and Portugal—contribute significantly to the domestic economy through remittances, estimated at roughly 20% of GDP. Furthermore, international development aid and capital inflows have supported the nation's financial stability, allowing the country to build up national currency reserves.

Energy infrastructure remains a key focus of the present-day economy. In 2011, a wind farm was constructed across four islands to supply approximately 30% of the nation's electricity. Serving as the host for the ECOWAS Regional Centre for Renewable Energy and Energy Efficiency, the country has pursued policies aimed at increasing sustainable power production, with current targets aiming for 50% renewable energy sources by 2030 and 100% by 2050. Having joined the World Trade Organization in 2007 and graduated from least developed country status to middle-income status in 2008, Cabo Verde maintains one of the highest living standards in the region.