PPIAF Assistance in the Republic of Cape Verde

The Republic of Cape Verde (Cape Verde) is a small island country comprised of an archipelago of ten islands, located off the coast of Western Africa. Unlike many of its neighboring countries, Cape Verde is known for being a stable country, with no history of political coups or social conflicts. Despite its recent graduation from the list of the United Nation’s Least Developed Countries, the government of Cape Verde continues to face great challenges due to the country’s insularity and high vulnerability to exogenous shocks. To mitigate the risks of economic downturns and maintain its lower-middle-income status, the government of Cape Verde has committed to modernizing the country’s socio-economic infrastructures and implement a favourable business environment to attract private sector investment. Supporting infrastructure provision is a priority for the government, particularly to improve the delivery of basic services to the poor and stimulate economic growth. To this end, the government, with support from its donor partners such as the World Bank, International Finance Corporation, European Union, and Millennium Challenge Corporation, is supporting the development of innovative project development modalities and financing instruments to leverage the investment and operational capacity of the private sector. Cape Verde has also received support from PPIAF to strengthen its regulatory environment for the development of public-private partnerships (PPPs) in the country’s infrastructure sectors.