Cabo Verde Pursues Privatization in Key Sectors

Cape Verde’s government is emphasizing privatizations and strategic partnerships, as outlined in their latest Public Enterprise Sector Performance Report.

The report outlines plans to complete various initiatives.

The coordinator, Sandeney Fernandes, stresses the importance of this agenda. The government aims to privatize or partially sell several state-owned companies.

These include full privatization and public-private partnerships.

Key projects involve selling the state’s share in Caixa Económica through the Cape Verde Stock Exchange (BVC).

Plans also include privatizing the port operations of ENAPOR.

The government is targeting the pharmaceutical sector with Emprofac/Inpharma and airport cargo management with CV Handling.

They will offer these to strategic partners, including employees and emigrants, via BVC.

Furthermore, Cape Verde intends to sell shares in CV Telecom.

These shares are currently held by the National Airports and Air Safety Company (ASA) and the National Institute of Social Security (INPS).

A major goal is to restructure the energy sector, including privatizing Electra. This will involve selling shares in electricity production and distribution companies.

The restructuring of Cape Verde’s Naval Shipyards (Cabnave) and the national airline, TACV, is also planned.

This is part of a broader effort to stabilize and privatize key national assets.

The government’s agenda also includes consolidating successful projects. These projects span from public maritime transport between islands to airport services in Cape Verde.

On the institutional front, legal reforms are planned. The introduction of a holding company will enhance efficiency and effectiveness in risk assessment and monitoring processes.

The State Business Monitoring Unit (UASE) under the Ministry of Finance aims to accelerate these reforms.

They are focusing on transforming the state business sector into a driver of sustainable growth in Cape Verde.

Lastly, the report highlights a significant 73% reduction in losses of state-participated companies in 2022, indicating progress in Cape Verde’s economic strategies.

Background

This strategic shift in Cape Verde’s approach is part of a broader global trend toward privatization and public-private partnerships.

Privatization can lead to more efficient management and better services in various sectors.

These moves are crucial for economic diversification and growth for small island nations like Cape Verde.

Historically, state-run enterprises in many countries have faced challenges in efficiency and profitability.

By involving private players, Cape Verde aims to overcome these challenges.

This approach is expected to bring in expertise, technology, and investment, which are essential for national development.