Cape Verde, with its archipelago of ten islands in the Atlantic Ocean, is experiencing significant economic growth, demonstrating its resilience after the impacts of the COVID-19 pandemic. The country is recognised as an emerging model of sustainable economic development, with a strong emphasis on tourism, infrastructure investment and the transition to renewable energy.
Tourism: Cape Verde’s economic engine
The tourism sector is one of the key pillars of Cape Verde’s economy, contributing 25% of the national GDP and accounting for 40% of overall economic activity. The archipelago attracts visitors from all over the world thanks to its pristine beaches, year-round temperate climate and cultural richness. Destinations such as Sal and Boa Vista continue to experience a high flow of tourists, consolidating the country’s role as a preferred destination for beach and sustainable tourism.
After the sharp drop in GDP (-14.8%) caused by the pandemic, tourism played a central role in the economic recovery. In 2021, GDP grew by 7%, a clear sign that the sector has regained ground, thanks in part to improved infrastructure and the restoration of international flights.
Infrastructure investments: a vision for the future
To support this growth and diversify the economy, Cape Verde has launched an ambitious infrastructure investment programme. Through collaboration with the European Union and the Team Europe initiative, an investment package worth EUR 246 million has been launched. These funds are intended for projects that integrate environmental sustainability and economic development.
One of the most important aspects of these investments is the focus on green energy and sustainable transport. The country aims to improve port infrastructure, crucial for trade and tourism, and to enhance digital connectivity. In addition, renewable energy projects such as the expansion of the Cabeólica wind farm consolidate Cape Verde’s role as a leader in Africa’s energy transition.
Sustainable economic growth
The International Monetary Fund (IMF) has underlined the robustness of Cape Verde’s economic growth, attributing it not only to tourism, but also to the recovery of industry, construction and agriculture. The latter sector, in particular, is showing signs of recovery after years of drought, thanks to water management initiatives and the development of sustainable agricultural techniques.
This combination of economic growth and environmental sustainability has positioned Cape Verde as a model for other island nations, demonstrating that it is possible to combine economic development with environmental protection.
The outlook for Cape Verde
With economic recovery underway and strong support from international partners, Cape Verde’s future looks bright. The country aims to become a leading destination for sustainable tourism, attracting knowledgeable visitors seeking authentic and environmentally friendly experiences. At the same time, investments in infrastructure and renewable energy are creating jobs and improving the quality of life for the local population.
These developments not only strengthen the economy, but also enhance Cape Verde’s image as an attractive destination for investment and tourism. The country’s strategy is based on inclusive and sustainable growth that takes into account the needs of present and future generations.
