Cabo Verde

Situated 500 km off the west coast of Africa, this former Portuguese colony is a ten-island archipelago, nine of which are inhabited. Despite limited natural resources, arable land or mineral wealth, Cabo Verde has earned a reputation for political and economic stability, and effective poverty reduction policies. The government actively welcomes international investment, offering incentives and tax breaks in sectors such as tourism, information and communication technology, and renewable energy. Its strategic location and growing connectivity with other West African nations enhance its appeal. Other strengths include efficient banking services, a relatively well-developed regulatory framework, and an exchange rate cooperation agreement with Portugal that provides a fixed rate between the euro and the Cabo Verdean escudo.

However, the country also faces several challenges. The economy heavily depends on tourism and the economic performance of Eurozone countries. Cabo Verde also suffers from aging, poor-quality infrastructure and relies on food imports for over 80% of its needs. Furthermore, its island location makes it vulnerable to climate change, volcanic and earthquake events, and hurricanes.