The Cabo Verde Economy: Small is Beautiful

Highly unique country in Africa

We increase our research coverage with this first report on Cabo Verde, a country that we believe is quite unique in the African continent in part due to its relative political, economic and social stability. This has allowed Cabo Verde to benefit over the years from international development aid and significant emigrant remittances. More recently, the country has also profited from material foreign direct investment inflows mostly targeted at the tourism sector, which plays a major role in the local economy, accounting for about 20% of its GDP and employing a relevant part of the population. Cabo Verde is a well-diversified economy largely based on the services sector. Its natural resources are scarce and only a small part of the land is arable, which means that most of the food consumed comes from abroad.