Investment in Cape Verde triples in 2005; tourism 90 pct of total

8 February 2006

Praia, Cape Verde, 08 Feb – Investment in Cape Verde had tripled by the third quarter of 2005 as compared with the whole of 2004, with the tourism sector receiving 90 percent of the total, the Cape Verde investment promotion agency (CVI) said Tuesday.

By the end of the third quarter, investment was 16 percent of the country’s gross domestic product (GDP) at US$169 million, three times the amount invested in 2004 and in 2003, CVI said.

Of this total almost 90 percent, or around US$150 million, was invested in “hotels and other,” a significantly higher proportion than in the previous year, which stood at 56 percent.

The annual total for 2005 should, CVI said, be significantly higher as in December ZKM Investments, a Dubai-based company, signed a contract with CVI to invest around US$150 million in a luxury tourist resort on the island of São Vicente, known as the Cesária Resort.

Accordingt o CVI figures, 7 percent of investments was absorbed by the manufacturing sector, while the remaining sectors accounted for around 3 percent.

Santiago Island, where the country’s capital is located, remained the place where most money was invested, with 35.5 percent of the total, with Sal island receiving 31.6 percent and São Vicente 30.3 percent. (macauhub)