Foreign investment in Cape Verde soared more than 75% through September

According to the latest monthly statistical report of the Bank of Cape Verde (BCV), the archipelago attracted from January to September 2022 about €96 million in foreign investment (FDI) – mainly in the tourism sector – compared to almost  €54.2 million in the same period in 2021.

FDI in Cape Verde, which thus increased 76.9% in the first nine months of last year compared to the same period of 2021, was again led by Portugal, with almost €9.5 million, a strong increase compared to the €10 million invested by Portuguese entrepreneurs in the archipelago in the same period of 2021.

Lusa reported that FDI in Cape Verde increased 38.2% in 2021, year-on-year, to more than €85 million, a growth strongly driven by Portugal.

A previous BCV report said that the archipelago attracted more than €85.2 million in foreign investment in 2021 – more than half in the tourism sector – compared to €61.6 million in 2020, then already with the effects of the crisis caused by the covid-19 pandemic.

FDI in Cape Verde, which includes participation, reinvested earnings, and other capital, was again led in 2021 by Portugal, with over €24 million, also mainly in the tourism sector, doubling the amounts invested in the previous year.

In 2020, Portuguese FDI in Cape Verde was €11.9 million, according to historic BCV data.

Overall, FDI in Cape Verde fell 33.7% in 2020, an impact justified by the constraints caused by the covid-19 pandemic.

Meanwhile, FDI from Spain in Cape Verde fell from €11.1 million in 2020 to €2.2 million in 2021.

In the history of FDI in Cape Verde, Portugal, and Spain have led for several years.

According to data from the Agency for Investment and Foreign Trade of Portugal, the Portuguese community in Cape Verde develops activities in the areas of trade, including food and beverage distribution, hotels and restaurants, construction, and metal, among others.

Spain’s investments in the archipelago are mainly related to the fisheries and hospitality sectors.

In 2019, before the covid-19 pandemic, overall FDI in Cape Verde was more than €93 million.

With information from Notícias ao Minuto