Cape Verde, a fascinating archipelago of ten volcanic islands located in the Atlantic Ocean, is emerging as a prime destination for foreign investment. With a mix of political stability, advantageous tax incentives and a strategic geographical location, Cape Verde represents a unique opportunity for those seeking to expand their business in a growing and changing environment.
Political stability and economic growth
One of Cape Verde’s greatest strengths is its political stability. The archipelago is known for its established democratic system and a government that favours long-term economic policies. This institutional solidity has been a catalyst for economic development, making the country a safe and predictable environment for foreign investors.
In recent years, the government has adopted a number of reforms to attract foreign capital. These include the introduction of the “Estatuto de Utilidade Turística”, which offers tax breaks to companies that invest in new or improve existing tourism projects. This programme provides tax credits and duty exemptions for imported goods destined for tourism developments.
Tourism: the beating heart of Cape Verde’s economy
Tourism is the main driver of the Cape Verdean economy, contributing 20% of GDP and representing a key source of income for local communities. With its white sandy beaches, crystal-clear waters and year-round mild tropical climate, Cape Verde attracts visitors from all over the world.
The archipelago has invested heavily in tourism infrastructure to meet the growing demand. The islands of Sal and Boa Vista, in particular, have become tourist hubs, thanks to luxury resorts and facilities that promote sustainable tourism. Interest in authentic experiences, such as exploring local villages and food and wine, is leading to a diversification of the tourism offer.
The real estate market: opportunities to be explored
Besides tourism, Cape Verde’s real estate market represents one of the most promising areas for investors. The country offers foreign investors the possibility of acquiring properties with full ownership, without the need for local partnerships. Property prices are competitive with other international tourist destinations, making Cape Verde an attractive option for those seeking long-term investment.
The government is also working to improve the regulatory framework and simplify the processes for acquiring land and property, making the real estate market even more accessible to foreign investors.
Tax incentives and economic benefits
Cape Verde is characterised by a well-structured tax system that encourages investment. Businesses can benefit from competitive tax rates, ranging between 20% and 30%, and from specific tax credits for development projects. For the tourism sector, there are additional exemptions on customs duties and concessions for the import of materials and equipment.
These tax incentives combine with a growing banking system and a favourable business environment, making the archipelago an ideal destination for innovative projects and start-ups.
A strategic geographic location
Cape Verde enjoys a unique geographical location, situated about 600 kilometres from the coast of Senegal. This proximity to mainland Africa, combined with its strategic location between Europe, the Americas and Africa, makes the archipelago a crucial logistical hub for international trade.
The port of Mindelo, on the island of São Vicente, is a key port of call for ships crossing the Atlantic. The government is investing in the improvement of port and airport infrastructure to consolidate Cape Verde’s role as a logistical hub for freight and passenger transport.
International cooperation and future prospects
Cape Verde maintains close cooperation relations with Portuguese-speaking countries such as Brazil and Angola, as well as with the European Union and China. These partnerships are opening up new opportunities in strategic sectors such as renewable energy, sustainable tourism and technological agriculture.
In particular, the Team Europe initiative, with an investment package of EUR 246 million, aims to support Cape Verde’s green and digital transition. This project includes the development of renewable energy, the improvement of transport infrastructure and the modernisation of digital connections.
Cape Verde: a vision for the future
With its combination of political stability, economic incentives and commitment to sustainable development, Cape Verde is emerging as a promising destination for foreign investment. With a growing economy and a focus on sustainability, the archipelago is a virtuous example of how a small country can make the most of its resources to create opportunities for economic and social development.
