Informal economy represents 12.1 pct of Cabo Verde’s GDP

19 November 2015

The informal economy represents 12.1 percent of the Gross Domestic Product (GDP) of Cabo Verde (Cape Verde) and annual turnover of US$180 million, according to figures presented Wednesday in Praia by the National Statistics Institute (INE) of the archipelago.

Figures from the non-agricultural informal sector, included in the 2015 Multi-purpose Continuous Survey, released by INE, showed that Cabo Verde had 33,228 informal production units (UPI), against 24,870 in 2009, the year of the previous survey.

Data was collected between June and September, showing that 71.5 percent of Cabo Verde’s informal production units do not want to pay taxes and 61.2 percent are not willing to register.

On the other hand, 15.8 percent want to start paying their taxes and 22.1 percent are willing to register, Portuguese news agency Lusa reported.

The INE figures, presented at the African Statistics Day on Wednesday also showed that about 40 percent of informal units were created after 2009 and that the majority is concentrated in urban areas (26,445), with an average age of 9.5 years.

The city of Praia is home to a third of the total (11,577), followed by São Vicente, with 8,507, operating mostly in industry (36.6 percent), and followed by trade (34.9 percent) and services (28.5 percent).

Many of the informal production units in Cabo Verde (46.7 percent) have no specific location for carrying out their trade, 6.6 percent have no capital, but in the last six years there has been a considerable increase in capital of units from 2,592 euros to 3,501 euros.

Data from the non-agricultural informal sector will later be grouped with the agricultural sector to find out the total contribution of the informal economy to Cape Verdean GDP. (macauhub/CV)