African Development Bank provides credit line for SMEs in Cape Verde

21 March 2006

Praia, Cape Verde, 21 March – The African Development Bank (ADB) is to make a credit line available to small and medium-sized enterprises in Cape Verde as part of the support program for the archipelago, the local press reported Monday.

According to the online version of Cape Verde newspaper, A Semana, the credit line, the amount of which has not yet been set, will be made available to Cape Verde bank Banco Cabo-Verdiano de Negócios (BCN), which will grant the loans at a lower rate of interest than the market currently offers.

The negotiations for the private sector support program were practically concluded last week when a technical delegation from the ADB visited Cape Verde, and will be officially launched before the next meeting of the ADB board of directors on April 17..

According to the paper, which quotes a source from the Sotavento Chamber of Commerce, the program also includes supporting the set up of new companies, investment in companies that have already been set up as well as internationalization and promotion of product and services exports.

The ADB cooperation program with Cape Verde for 2006 outlines total financial support of US$16 million, US$14 million of which are earmarked for the power sector, as well as further budget support of US$5 million.

Almost all the funding for the power sector will be spent on building a power plant on Santiago Island, estimated to cost a total US$16 million, which will receive the remaining US$2 million in financing from the local government.(macauhub)