Sekondi Accra

Presidential elections are to be held in July 2011 and former prime minister Carlos Veiga (1991-2000) of Movimento para a Democracia (MPD) is considered by many to be the odds on favorite. He will be challenged by Aristedes Lima, National Assembly, but his chances of securing an upset victory are improbable. Even though the current President Pedro Pires is retiring from office, his party Partido Africano da Independencia de Cabo Verde (PAICV) will still be a major player in national politics because current prime minister Jose Maria Pereira Neves, well connected and exerts considerable influence in governement. The MPD and PAICV are similiar in that both have somewhat left-leaning agendas.

Cape Verde is developing very well in the private sector. In fact, it is one of the best economies in Africa and is slated to be the African country that achieves the most Millennium Development Goals by 2015. Therefore, it is not surprising that both the MPD and PAICV will be campaiging on their legacies of economic development and fiscal probity. Indeed under Veiga's leadership in the 1990's, there were high incomes and low levels of unemployment. While Neves is sure to increase the number of supporters for the PAICV by highlighting the construction of airports, roads, and ports which should energize the economies of the archipelago's smaller islands. According to the International Monetary Fund (IMF) the country's economy growth will rise above 5% in 2010 and reach 6% in 2011. Inflation will remain just at or under 2% in 2010-11. The few economic problems the country does face are notable. So much so that foreign investors are urging the government to address the problems of drug trafficking, illegal immigration and off shore banking.

Bretton Woods along with other international financial institutions has lauded the Praia government's counter-cyclical spending on social services and infrastructure, which in their estimates, have buffered the country from the potential shocking impacts of global financial vicissitudes. The government's prudent fiscal policies paved the way for increased hiring of clerks, nurses, police and teachers. There is also increased spending for energy, housing, parks and transportation. ENAPOR Cape Verde's port authority plans to construct modern infrastructure for four-fifths of the country's ports by 2011. The only problem with all of these improvements is the that the government could increase the medium-term debt through increased spending by almost 20% in nominal terms in 2010. But so what? Afterall, the 2011 election year is here. Why not accentuate the positive?

The most important sector of the economy is tourism which accounts for more 22% of the GDP. In the first quarter of 2010, tourism receipts increased by 7.75% over the same period in 2009. Cape Verde's tourism industry remained vibrant while sluggish growth in European hotels caused price decreases to attract tourists. However, the negative overseas fiscal environments have been exerted a somewhat minor drag on some construction projects, foreign investments and lucrative remittances because many Cape Verdeans live abroad.

The government would like to decrease its subsidies of parastatal power and transportation companies which would then reduce fiscal losses. Electra, a power company, is in the process of transitioning from fuel-generated electricity to wind power. Praia is currently in negotiations with the governments of Austria and Portugal to sell its carbon credits in order to finance green projects. The government is also thinking of privatizing TACV Cabo Verde Airlines against a back drop survey that concludes Cape Verdeans are most concerned about employment and poverty. In order to make way for the airline's acquisition, the government has terminated employees to make operations more efficient.


Official Data


[Back to Top]
Cape Verde maintains an embassy in the United States at 3415 Massachusetts Avenue, NW, Washington DC 20007 (tel. 202-965-6820) and one consulate at 607 Boylston Street, Boston MA 02116 (tel. 617-353-0014).
Valid XHTML 1.0 Strict