The economy of Cape Verde is a service-oriented economy that is focused on commerce, trade, transport and public services. Cape Verde is a small archipelagic nation that lacks resources and has experienced severe droughts. Agriculture is made difficult by lack of rain and is restricted to only four islands for most of the year. Cape Verde's economy has been steadily growing since the late 1990s, and it is now officially considered a country of average development, being only the second African country to have achieved such transition, after

Botswana Botswana (, ), officially the Republic of Botswana ( tn, Lefatshe la Botswana, label= Setswana, ), is a landlocked country in Southern Africa. Botswana is topographically flat, with approximately 70 percent of its territory being the Kalaha ...

in 1994. Cape Verde has significant cooperation with Portugal at every level of the economy, which has led it to link its currency (the Cape Verdean escudo) first to the

Portuguese escudo The Portuguese escudo was the currency of Portugal from May 22nd 1911 until the introduction of the euro on January 1st 2002. The escudo was subdivided into 100 . The word derives from the scutum shield. Amounts in escudos were written as w ...

and, in 1999, to the

euro The euro ( symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . ...

Resources

About 75% of food is imported. Cape Verde annually runs a high trade deficit, financed by foreign aid and remittances from emigrants; remittances constitute a supplement to GDP of more than 20%. Economic reforms, launched by the new democratic government in 1991, are aimed at developing the private sector and attracting foreign investment to diversify the economy. Since 1991, the policies the government has pursued include an open welcome to foreign investors and a far-reaching privatization program. Fish and shellfish are plentiful, and small quantities are exported. Cape Verde has cold storage and freezing facilities as well as

fish processing plant A fish factory, also called a fish plant, fish processing facility, is a facility where fish processing is performed. Fish factories range in the size and range of species of fish they process. Some species of fish, such as mackerel and herring, a ...

s in

Mindelo Mindelo is a port cityCabo Verde, Statistical Yearbook ...

, Praia, and on Sal. However, the fishing potential, mostly lobster and

tuna A tuna is a saltwater fish that belongs to the tribe Thunnini, a subgrouping of the Scombridae ( mackerel) family. The Thunnini comprise 15 species across five genera, the sizes of which vary greatly, ranging from the bullet tuna (max len ...

, is not fully exploited. The economy is service-oriented, with commerce, transport, and public services accounting for almost 70% of the GDP. Although nearly 35% of the population lives in rural areas, the share of

agriculture Agriculture or farming is the practice of cultivating plants and livestock. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that enabled people t ...

in GDP in 2010 was only 9.2% (up from 8.9% in 1995); of the 1998 total,

fishing Fishing is the activity of trying to catch fish. Fish are often caught as wildlife from the natural environment, but may also be caught from stocked bodies of water such as ponds, canals, park wetlands and reservoirs. Fishing techniques inclu ...

accounts for 1.5%. The Cape Verdean government established the top priorities for development as the promotion of a market economy and of the private sector; the development of tourism, light manufacturing industries, and fisheries; and the development of transport, communications, and energy facilities. In 1994-95 Cape Verde received a total of about U.S.$50 million in foreign investments, of which 50% was in industry, 19% in tourism, and 31% in fisheries and services. Prospects for 2000 depend heavily on the maintenance of aid flows, remittances, and the momentum of the government's development program.

Mineral industry

Mining is an insignificant contributor to the country's economy.Newman, Harold R
"The Mineral Industries of Cameroon and Cape Verde"
(PDF). ''2007 Minerals Yearbook''.

United States Geological Survey The United States Geological Survey (USGS), formerly simply known as the Geological Survey, is a scientific agency of the United States government. The scientists of the USGS study the landscape of the United States, its natural resources, ...

(December 2008) . Most of the country's mineral requirements are imported. As of 2007, production of mineral commodities was limited to

clay Clay is a type of fine-grained natural soil material containing clay minerals (hydrous aluminium phyllosilicates, e.g. kaolin, Al2 Si2 O5( OH)4). Clays develop plasticity when wet, due to a molecular film of water surrounding the clay par ...

on the islands of Boa Vista, Sal, and São Vicente;

gypsum Gypsum is a soft sulfate mineral composed of calcium sulfate dihydrate, with the chemical formula . It is widely mined and is used as a fertilizer and as the main constituent in many forms of plaster, blackboard or sidewalk chalk, and drywal ...

and iron ore on the island of Maio;

limestone Limestone ( calcium carbonate ) is a type of carbonate sedimentary rock which is the main source of the material lime. It is composed mostly of the minerals calcite and aragonite, which are different crystal forms of . Limestone forms whe ...

on the islands of Boa Vista, Sal, and Santo Antão;

pozzolana Pozzolana or pozzuolana ( , ), also known as pozzolanic ash ( la, pulvis puteolanus), is a natural siliceous or siliceous- aluminous material which reacts with calcium hydroxide in the presence of water at room temperature (cf. pozzolanic reacti ...

on the island of Santo Antão; and

salt Salt is a mineral composed primarily of sodium chloride (NaCl), a chemical compound belonging to the larger class of salts; salt in the form of a natural crystalline mineral is known as rock salt or halite. Salt is present in vast quant ...

on the islands of Maio and Sal. Cape Verde was not a natural gas or petroleum producer as of 2007.

Transportation

Cape Verde's strategic location at the crossroads of mid-Atlantic air and sea lanes has been enhanced by significant improvements at Mindelo's harbor (Porto Grande) and at Sal's international airport. Ship repair facilities at Mindelo were opened in 1983, and the harbors at Mindelo and Praia were recently renovated. The major ports are Mindelo and Praia, but all other islands have small port facilities, some of which are to be expanded in the near future. In addition to the international airport on Sal, airports are located on all of the inhabited islands except for the smallest island, Brava, which was built, but found to be too dangerous so it was shut down after a few failed attempted landings. The archipelago has 3,050 kilometers (1,830 mi.) of roads, of which 1,010 kilometers (606 mi.) are paved. The new Praia International Airport is currently operative.

International recognition

Cape Verde is considered a developing country, and is included on the list of the United Nations

Small Island Developing States Small Island Developing States (SIDS) are a group of developing countries that are small island countries which tend to share similar sustainable development challenges. These include small but growing populations, limited resources, remoteness ...

. In 2007 the United Nations graduated Cape Verde from the category of Least Developed Countries, only the second time this has happened to a country. On December 18, 2007, the General Council of the

World Trade Organization The World Trade Organization (WTO) is an intergovernmental organization that regulates and facilitates international trade. With effective cooperation in the United Nations System, governments use the organization to establish, revise, and ...

approved a package for the accession of Cape Verde to the WTO. Accession was effective on July 23, 2008, 30 days after ratification by Cape Verde, which took place on 23 June. The package requires Cape Verde to adapt some of its economic regulation. In particular, it will need to introduce a new Customs Code, and to introduce

copyright A copyright is a type of intellectual property that gives its owner the exclusive right to copy, distribute, adapt, display, and perform a creative work, usually for a limited time. The creative work may be in a literary, artistic, educatio ...

and

patent A patent is a type of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period of time in exchange for publishing an enabling disclosure of the invention."A ...

laws complying with the

Agreement on Trade-Related Aspects of Intellectual Property Rights The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) is an international legal agreement between all the member nations of the World Trade Organization (WTO). It establishes minimum standards for the regulation by nat ...

. According to the

World Intellectual Property Organization The World Intellectual Property Organization (WIPO; french: link=no, Organisation mondiale de la propriété intellectuelle (OMPI)) is one of the 15 specialized agencies of the United Nations (UN). Pursuant to the 1967 Convention Establishi ...

(WIPO), Cape Verde does not have legislation for industrial property, such as patents, trademarks, and industrial designs but does have a law on copyrights (Law No. 101/III/90, December 1990). Pascal Lamy, director-general of the WTO said, "I am very pleased to welcome Cape Verde as a new member. This new membership will strengthen multilateral trading system. Being part of the WTO will enable Cape Verde to continue its integration into the world economy."

Data

The following table shows the main economic indicators in 1980–2017.

Notes

References

CIA World Factbook

External links

Instituto Nacional de Estatística
National Institute of Statistics
Banco de Cabo Verde
Central Bank of Cape Verde
Bolsa de Valores de Cabo Verde
Cape Verdean Stock Exchange *
Cape Verde latest trade data on ITC Trade Map
{{Cape Verde topics Cape Verde Cape Verde