Cabo Verde Sees 9.4% Rise in Foreign Direct Investment in Q1

Cabo Verde experienced a significant 9.4% increase in foreign direct investment (FDI) during the first quarter of the year. The tourism and tourism-related real estate sectors were the primary recipients, attracting 90% of the total FDI. Santiago island received approximately half of this investment, followed by Sal, São Vicente, and Boa Vista islands. Portugal emerged as the leading country of origin for identified investments, contributing 1,302.3 million escudos (11.8 million euros), which represents about 34% of the total. However, a substantial 44.5% of the investment origin is categorized under 'Other' countries. Tourism and associated services are the long-standing drivers of Cabo Verde's economy. Islands like Sal and Boa Vista are known for their hotel complexes that traditionally attract the majority of foreign tourists through package deals. Santiago, the most populous island with around 280,000 inhabitants, hosts the capital city, Praia. São Vicente, with its second-largest city Mindelo, serves as a gateway to Santo Antão, a destination popular for nature tourism, particularly hiking. Since 2023, Cabo Verde has benefited from airport concessions to the multinational Vinci, which has facilitated the opening of new routes by European airlines. In the previous year, the archipelago welcomed a record 1.2 million guests, marking a 6% increase compared to the year before.