Cabo Verde government guarantees it has “smart solution” to capitalise Sovereign Fund

29 January 2019

Cabo Verde’s (Cape Verde’s) government has a “smart solution” to capitalise the 90 million-euro Sovereign Fund to support private investment in Cabo Verde, the deputy prime minister and finance minister said on Monday in Praia.

Olavo Correia, who made statements following the visit to the Multisectoral Regulatory Agency for Economics, also rejected the possibility of using the funds of the National Social Security Institute for the capitalisation of the Sovereign Fund.

In response to some criticism from private sector representatives that this Sovereign Fund will not solve the problem of access to finance by corporations, given that the Cape Verdean business community is mostly made up of micro, small and medium-sized enterprises, Correia said that a country is not only made up of companies of that type.

He stressed that it is necessary to have an economic fabric that involves all companies, indicating that the current Government has instruments to act upon micro, small, medium and large companies.

The government announced last week that the Sovereign Fund would have an initial allocation of 90 million euros, with private sector representatives welcoming the announcement, despite questioning how the government would fund the move. (macauhub)