Starting a Business in Cape Verde
A government committed to a free market economy was elected in 1991 and re-elected in 1995. Then, in 2001, the more socialist party, PAICV regained power. Current investments continue to rely both on overseas aid revenue and tourist development, but the situation may change with the next elections due in February 2006. For the last decade the country has had legislation designed to encourage foreign investment, particularly in fishing, light industry and tourism.
It has promoted Cape Verde's advantages as the following: a strategic position close to Europe, west Africa and the Americas; a large, young and motivated unskilled workforce which is 70% literate; a professional workforce whose members generally have degrees from foreign universities; a stable political members generally have degrees from foreign universities; a stable political system with an unblemished human rights record and low crime rate; and a moderate tropical climate.
The fishing industry needs substantial investment but is said to have huge potential. Cape Verde has an exclusive economic zone of 180 times its land area, or 734,OOOkm2 and is therefore one of the last significantly under used fishing zones in the world. The estimated annual sustainable catch is 45,000 tonnes, of which 6,000 is caught at present, mainly by artisanal fishermen. There is potential for large catches of tuna, lobster, shark and molluscs.
Over the last few years there has been substantial investment in ports, incuding wharves, warehousing, cold storage and repair facilities. A business park has been built at Praia.