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Cape Verde Economic Profile

【Economic Overview】

Cape Verde is an island nation located in the Atlantic Ocean off the coast of West Africa, an upper-middle-income country with a small economy supporting a population of approximately 560,000. With an economic scale of around $1.8 billion in GDP, its scope is limited, though it has constructed a relatively stable economy among sub-Saharan African nations. Primary industries include tourism, fishing, and transport and logistics services, which constitute the majority of the nation's foreign exchange earnings. Tourism is the largest industry, experiencing rapid growth and accounting for approximately 15-20% of overall GDP, serving as an important driver of job creation. Fishing is also a vital industry backed by rich fishing grounds, linked to canned food manufacturing.

【Recent Economic Trends】

Recently, Cape Verde has focused on tourism infrastructure development and diversification strategies. The nation is recovering from the severe impact of the COVID-19 pandemic on the tourism sector, with increasing visitor numbers observed from 2023 onward. Maritime and port-related industries are also developing, with Praia Port strengthening its function as an important logistics hub in West Africa. Investment in renewable energy, particularly wind power, is advancing, targeting improved electricity self-sufficiency. Meanwhile, elevated debt levels remain a concern, with cooperation programs with the IMF underway.

【Notable Points】

The key to Cape Verde's success lies in its strategic positioning that compensates for limited natural resources. Plans for digitalization and financial center development leveraging the nation's geographic advantage as an island are progressing. However, water resource scarcity due to climate change, high unemployment rates—particularly among youth—and excessive economic dependence on tourism remain as challenges, necessitating continued investment in industrial diversification and human capital development for sustained stable growth.