June 2018

Investment Policy Review of Cabo Verde

This report analyses the Cabo Verde legal and regulatory framework for investment, providing insight into how the country could improve its investment policies with the objective of meeting the Sustainable Development Goals (SDGs).

Cabo Verde's solid foreign direct investment (FDI) performance was instrumental in the country's graduation to a middle-income economy. However, the country has offered very attractive unregulated conditions to large foreign investments, thus generating a dependency on certain business models. FDI and economic activity remain concentrated in a few sectors and limited to a few locations. There is a need for better regulation of FDI and a shift towards sustainable tourism. 

In light of these challenges, an Investment Policy Review (IPR) of Cabo Verde was initiated at the request of its government. This report focuses on growing private sector investment areas in Cabo Verde, in particular, the tourism and fishing sectors. It analyses the legal and regulatory framework for investment and contains a strategic analysis on how to utilise FDI in the tourism sector as a leverage for sustainable development.

The IPR is based on two fact-finding missions undertaken in July and December 2017 as well as information made available to UNCTAD. The mission received the full cooperation of the relevant ministries, departments and agencies, in particular, Cabo Verde tradeInvest. The final report reflects comments from stakeholders, including the private sector, bilateral donors, development partners, ministries and agencies of the Government of Cabo Verde.