Foreign investment in Cape Verde accounts for 50 pct of GDP in 2007

30 April 2007

Praia, Cape Verde, 30 April – Cape Verde expects to approve Foreign Direct Investment (FDI) projects to the value of 600 million euros this year, representing more than half of the islands’ GDP (Gross Domestic Product), officials have said.

The head of Cape Verde’s CVI state investments agency, Victor Fidalgo, told Portuguese news agency Lusa last week that foreign investment of 180 million euros, equivalent to 20 percent of GDP, has already been made this year. This figure could rise to 1.5 billion euros by the end of the current session of Parliament, he added.

Fidalgo described these forecasts as “pessimistic”, as the interest shown by many countries to invest in Cape Verde suggests that the final figures could be much higher.

Overseas investment in Cape Verde per year was around 30 million euros until 2004 and the current level of 600 million euros would have been unthinkable at that time, noted the CVI chief.

British investors currently top the overseas investment league in Cape Verde, followed by those from France, Portugal, Italy, the UAE and other countries.

Sal, São Vicente, Boavista and Santiago are the most popular targets for investment, added Fidalgo, giving the example of the 600 million euros Sambala Village project on Santiago.

Other projects already approved on Cape Verde’s main island are the Santiago Golf Resort, west of the capital, and the Ocean Gardens in the historic city of Cidade Velha. Some 1.5 billion euros will be invested on the island in the coming five years.

New projects ready for development on Sal Island include a marina, golf courses and hotel and villa complexes.

On São Vicente, a number of tourism projects with European funding are due to get underway. Similar ventures are planned on the smaller islands of Brava, Fogo and São Nicolau, said Fidalgo. (macauhub)