Cape Verde

Located 500km off the west coast of Africa, Cabo Verde (Cape Verde) is an archipelago of 10 islands with a land mass of 4,033km² of which only 10% is classified as arable land, and the country possesses limited mineral resources. It has a population of 604,461 people who live on nine of the islands and a GDP of US$2.9bn. It’s currency is the Cape Verdean Escudo.

Politics has been largely consensus-oriented, and since its independence from Portugal in 1975, it has not experienced a coup. Elections are considered free and fair, and parties in power alternate regularly.

Economic growth was 5.2% in 2024 and 5.4% in 2025, boosted by agriculture, energy, the digital economy, and private consumption. The outlook is premised on a stable global environment and vibrant tourism. Inflation is projected to average 2.1% over 2024–2025 on the back of weaker demand and declining food and energy prices. The fiscal deficit is expected to narrow 2.1% in 2025 owing to fiscal consolidation measures, higher tax revenues, and privatization of state-owned enterprises.

The most important sector of the economy is services, which accounts for 72% of GDP, of which public administration accounts for 18%, real estate and other services 13%, wholesale and retail trade 12%, transport 11% and hotels and restaurants 7%. Industry contributes 21% with construction accounting for 9% and manufacturing, mining and quarrying 8% and agriculture and fishing 7%. The contribution of the mining industry to Cape Verde’s economy is insignificant and minerals produced are clay, gravel, limestone, sand, and volcanic ash.

Sources: Who Owns Whom sector reports, CIA Factbook, African Development Bank, World Bank, Trading Economics, African Statistical Yearbook and IMF.