Cape Verde needs 1 billion euros to consolidate its development

13 September 2012

Cape Verde needs 1 billion euros in order to consolidate its development in the mid to long term, the country’s Prime Minister, José Maria Neves said following a meeting with the chairman of the African Development Bank (ADB), Donald Kaberuka.

Admitting that this was a “a very high” amount for a country like Cape Verde, the Prime Minister denied that this could constrain the debt capacity of the country, which currently has total foreign debts of 80 percent of its gross domestic product (GDP).

Cited by Portuguese news agency Lusa, Neves said that the figure was a total amount to fund the archipelago’s “enormous development needs,” not only short term projects but also to build the bases for investment in the long term.

He noted that Cape Verde was working towards turning itself into an international service centre, similar to Singapore, which he planned to visit on 20 September at the invitation of his Singaporean counterpart Lee Hsien Loong.

Neves noted that all loans would be subsidised “with extremely low interest rates, of between 1 and 5 percent,” and payment periods of up to 30 years, and highlighted efforts underway to modernise the country’s airports and ports.

“We are studying the creation of new financing options,” he added, noting the “excellent relationships of trust,” with financial institutions such as the ABD, the Arab Bank for Economic Development of Africa, the European investment Bank and countries such as Portugal, South Korea, Brazil, China, Japan, and Australia. (macauhub)