Cabo Verde Businesses Show Strong Growth in Revenue and Employment

In 2024, Cabo Verde's business sector demonstrated significant expansion, with total revenue reaching approximately 437 million escudos, a 13.5% increase from the previous year. The number of active businesses also grew, employing over 94,000 people, an increase of 5.1% or 4,610 workers compared to 2023. Microenterprises continue to dominate the business landscape, accounting for 78.7% of all enterprises, though larger companies, despite their smaller numbers, employed a substantial portion of the workforce. Business activity remains concentrated in the islands of Santiago, São Vicente, and Sal, which collectively generated 93.2% of the national turnover. The trade sector, encompassing wholesale, retail, and vehicle repair, was the largest employer, followed by accommodation and food services, and manufacturing. Notably, the construction sector saw a remarkable 75.1% increase in business volume. The International Monetary Fund (IMF) has advised Cabo Verde to maintain prudent fiscal policies and continue reducing public debt, while protecting vulnerable households without resorting to broad, unsustainable subsidies. The IMF mission, visiting between July 21-24, acknowledged the country's real GDP growth and low inflation but highlighted the persistent vulnerability of high public debt and exposure to external shocks. They emphasized the need for sustainable public finances, a firm debt reduction trajectory, and structural reforms to support inclusive economic growth.