Business confidence increases in tourism and construction in Cape Verde

18 April 2006

Praia, Cape Verde, 18 April – Business confidence in the tourism and construction sectors in Cape Verde continued to climb in year on year terms in the first quarter of 2006, according to figures from the archipelago’s national Statistics Institute (INE).

The tourism sector showed most improvement, with agent confidence speeding up in relation to the previous quarter and above that of the same period of 2005.

The “difficulties in finding staff with appropriate training and insufficient demand,” were the main difficulties pointed out by business owners in this sector.

Despite complaints about “insufficient demand, deterioration of sales prospects and lack of materials,” confidence in the construction and public works sector continued to increase, for the seventh quarter in a row, but still remained negative at the end of March.

Retail at fairs reverted its decreasing trend of the last few quarters, thanks to an improvement in sales and good order prospects, according to the INE figures, while retail in establishments slowed in relation to the same year-ago period.

The lowest level of confidence was found to be in the manufacturing industry, which fell for the second consecutive quarter, after having reached its highest point in the second quarter of last year.

The main difficulties felt were “financial and lack of raw materials,” “excessive bureaucracy and state regulations, high level of absenteeism of staff and insufficiency of equipment .” (macauhub)