China to help Cabo Verde companies to draft projects

17 June 2015

China will set up a fund to finance feasibility studies for Cape Verdean business projects as part of the Public Development Assistance programme signed with Cabo Verde (Cape Verde), reported Cape Verdean weekly newspaper, A Semana.

The newspaper added that the fund was aimed at helping businesses and Cape Verdean promoters to access non-repayable funding from China, but which had never been able to benefit from it because of the cost and technical specifications of the studies required by Chinese financial institutions.

In addition, China expressed its willingness to grant loans to support the development of micro and small Cape Verdean companies, during the government mission by the Minister of Tourism, Investment and Business Development, Leonesa Fortes to China from 31 May to 5 June.

Speaking about the visit, which was intended to take stock of the economic and technical partnership between China and Cabo Verde and propose a model of cooperation now based on economic and business parameters, the minister said the fund “should allow the Cape Verdean companies yo present credible feasibility studies, which will allow them access to financing provided by the China-Africa Development Fund, the Fund for Cooperation for Development between China and Portuguese-Speaking Countries and the China Development Bank.”

As a result of the visit, China decided to provide financing to Cabo Verde with special conditions taking into account the country’s debt level and was even willing to accept contract terms that might mitigate the foreign exchange risk to existing and future agreements.

The two countries, Fortes said, agreed to take this leap – official development assistance for economic-business partnership and extend two-way relations to strategic sectors of their economies – the sea, the air, renewable energy, information technology, tourism, finance and micro/small businesses. (macauhub/CN/CV)