---Interview with H.E. Ms. Tania Romualdo, Ambassador Extraordinary and Plenipotentiary of the Republic of Cabo Verde to P.R. China
VITWO: How would Your Excellency evaluate China-Cabo Verde relations?
Ambassador: In spite of the many thousands of miles that separate us geographically, Cabo Verde and China maintain very honest, transparent, ongoing and mutually beneficial relations. During four decades we drove on a remarkable path of cooperation and the relations between our countries are excellent. In fact Cabo Verde and China are old friends and know they can rely on each other. Since Cabo Verde and China established diplomatic relations on the 25th of April, 1976, (less than a year after our Independence) China has played a significant role in the development of Cabo Verde. Chinese founded public buildings, such as the presidential, parliamentarian and governmental palaces, cover the capital city. The National Stadium built by China is hailed by many as “the greatest construction after Independence” on our islands. Poilão Dam that became operational in 2008 provides water for agriculture irrigation and is very appreciated by local farmers in Santiago Island. Chinese investment in key economic sectors such as infrastructure, industries and tourism is welcomed as they can promote economic growth.
On the other hand we also notice that cultural exchanges between Cabo Verde and China become more frequent every day and in the meantime our mutual knowledge, understanding and friendship grows stronger.
VITWO: How would Your Excellency evaluate economic development of Cabo Verde over the past years?
Ambassador: Good governance, prudent macroeconomic management, trade openness and increasing integration into the global economy, and the adoption of effective social development policies have produced relatively positive results throughout the archipelago’s 42 years of independence. The government in power for 2 years is preaching more proactive investment reforms. Broad political stability is expected to prevail in Cabo Verde, underpinned by strong democratic institutions and decent protection of civic rights. The business and investment climate continues to improve.
Cabo Verde’s economy is service-oriented with commerce, transport, tourism, and public services accounting for about three-fourths of the GDP. Tourism is the mainstay of the economy and depends significantly on economic conditions in the euro-zone countries. Cabo Verde runs a high trade deficit financed by foreign aid and remittances from its large pool of emigrants; remittances as a share of GDP are one of the highest in Sub-Saharan Africa. Although about 40% of the population lives in rural areas, the share of food production in GDP is less than 10%. The local economy suffers from a poor natural resource base and the country imports most of what it consumes. The fishing potential, namely lobster and tuna, is not fully exploited. Economic reforms are aimed at developing the private sector and attracting FDI to diversify the economy and lessen the unemployment rate of the youth.
VITWO: How has Chinese investment been doing in Cabo Verde?
Ambassador: After 41 years of diplomatic relations, Cabo Verde has proven to be “a faithful friend” of China. A shared history of oppression and a common struggle for independence operated as binding glue in solidifying this “truthful” friendship. Although Cabo Verde has little to offer in the realm of natural resources, it enjoys an important geostrategic position, giving China an essential influence at the heart of the Atlantic Ocean if a strategic partnership is set up. As China promotes the One Belt - One Road Initiative as well as the 21st Maritime Silk Road, Cabo Verde’s excellent geostrategic position might prove to be of significant services interest being it included on this course. Cabo Verde can be utile in serving China’s African goal, hitherto the economic partnership is still in its beginning as only small garments shops represents China in the archipelago. Today it is estimated that as many as 3000 Chinese migrants lives in Cabo Verde trading textiles with an annual trade volume underneath a $100 million.
Macau Legend Development Ltd, led by billionaire David Chow, has begun constructing a $275-million casino complex on Santiago Island. The luxury development will feature hotels, office buildings, property development, retail, dining, convention center, museum, function areas, a clubhouse and a marina. Chow credits the project as an extension of China’s “One Belt, One Road”.
VITWO: Which sectors in Cabo Verde could be main target sectors for investors in the following years?
Ambassador: Foreign investment in Cabo Verde is concentrated in tourism and light manufacturing. In terms of transportation, Cabo Verde’s strategic and geographic location places the country in a position to become a regional and international shipping and air hub for both passengers and cargo. Nevertheless, the country remains underserved, with insufficient and inefficient maritime interisland transportation. The energy sector in Cabo Verde is undergoing important regulatory changes and attracting investment. As a regional leader in renewable energy, Cabo Verde has wind farms on four islands. About 27 % of the energy consumed in Cabo Verde comes from renewable sources. The government’s goal is to increase to 50 percent by 2020, which presents additional investment opportunities for foreign companies.
VITWO: How does the government of Cabo Verde take measures to attract new investors?
Ambassador: The government looks to both private and foreign investment to drive the country's economic growth. A great effort has been made to promote a market-oriented economic model where all investors, have the same rights and are subject to the same duties and obligations under the law. The government is investing in administrative decentralization, reduction of the state’s role in the economy and empowerment of the private sector, improving the business climate to attract investments.
However, the government’s lack of capital is limiting its capacity to finance any shortfalls. The economy is service-oriented, with tourism, transport, commerce, and public services accounting for more than 60 percent of GDP. Tourism alone accounts for approximately 25 percent of GDP, and it is expected to continue its strong performance.
In Cabo Verde foreign investors receive the same treatment as the nationals regarding taxes, license approvals and registration, and access to foreign exchange.
Cabo Verde Trade Invest (CVTI), the agency responsible for investment promotion, is the One-Stop-Shop for external investors. It provides assistance based on a single approach. The investors express their interest, attach the necessary documents for formalizing their project, and monitor all the approval stages.
VITWO: Living in Cabo Verde – What kind of life or experience will investors encounter in Cabo Verde?
Ambassador: In Cabo Verde people are always welcome, this is why we are known as the country of “Morabeza” (which means something like warmly welcoming and caring about guests).
Our weather is mild the whole year around (temperatures oscillate between 22 and 30ºC) and our crystalline blue sea water is excellent for the practice of nautical sports. Our 10 islands present a much diversified geographical morphology: volcanic lava landscapes that look like lunar scenarios; white sand beaches and endless dunes created by the winds that blow from the Sahara. Investors who settle in Cabo Verde can enjoy these extraordinary conditions for sea, sand and nature the whole year around.
On the other hand we offer an interesting historic heritage and a rich miscellaneous culture in which African and European roots completely merged giving birth to our People and Creole Nation.
Living in Cabo Verde will be a wonderful lifetime experience that the investors will cherish forever. We think and hope most of them will make Cabo Verde their second home.
