Cabo Verde Airlines should be privatised swiftly, Budget Support Group says

9 July 2018

Members of Cabo Verde’s (Cape Verde’s) Budget Support Group (BSG) stressed on Friday in Praia the importance of the rapid privatisation of Cabo Verde Airlines as well as applying reforms to other companies and programmes that are causing immediate financial pressure on the State Budget, the local press reported.

The recommendation was given by African Development Bank (AfDB) economist Yannis Arvanitis on the release of the report of a five-day visit to Cabo Verde to assess the country’s macroeconomic situation, according to the Inforpress news agency.

In terms of competitiveness, Arvanitis said partners recognised the need to strengthen coordination of reform measures, improve the efficiency of the public sector, and accelerate investment climate reforms.

The latter point, he continued, “will require addressing the various structural barriers to the economy, including access to finance, improved inter-island transport, and the cost and availability of energy,” and added that “the risks of economic deterioration remain high.”

Cabo Verde’s Finance Minister Olavo Correia said at the presentation session of the BSG’s report that Cabo Verde Airlines “should already have been privatised,” but added that the process has already begun and that the government must “comply with a set of procedures,” that are contained in the law and, “must be respected.”

The BSG is made up of the African Development Bank, the European Union, Luxembourg, Portugal and the World Bank, and this first annual country review was intended to assess the general eligibility criteria for State budget support. (macauhub)