Cape Verde: Economic growth to be maintained, but “structural challenges” remain – OECD

15 May 2008

Maputo, Mozambique, 15 May – The rate of economic growth in Cape Verde is expected to be maintained until 2009, but the archipelago still has “enormous structural challenges” to overcome, namely unemployment and poverty, the Organisation for Economic Cooperation and Development (OECD) said in Maputo.

An annual report on the “Economic Prospects for Africa 2008” published Monday in Maputo by the OECD and the African Development bank (ADB), forecasts an increased growth rate in Cape Verde from 6.6 percent to 7.6 percent this years and a slowdown to 7 percent the following year.

Particularly since 2004, economic growth and human resources development have allowed the archipelago to rise in the Human Development Index, ending this year with its raised status to “madium income country” and joining the World Trade Organization (WTO).

But, the reported added, “despite this impressive progress, the country is still facing enormous structural challenges,” particularly unemployment (18.3 percent in 2006), poverty, a need to improve public and private services, a lack fo qualifications and infrastructure.

Corruption and a lack of transparency “are seen as serious challenges” by Cape Verdean society, despite “substantial progress in this field,” although the country currently has “one of the most stable democratic systems,” on the African continent. (macauhub)