The archipelago of Cape Verde is made up of ten islands and nine islets, and is located between latitudes 14º 28' N and 17º 12' N and longitudes 22º 40' W and 25º 22' W. It is located approximately 450 km from the Senegal coast in West Africa.

 

The islands are divided into two groups: Windward and Leeward. The Windward group is composed of the islands of Santo Antao, São Vicente, Santa Luzia, São Nicolau, Sal and Boavista; and the Leeward group is composed of the islands Maio, Santiago, Fogo and Brava. The archipelago has a total land surface of 4,033 km2 and an Economic Exclusive Zone (ZEE) that extends for approximately 734,000 km2.

 

The surface area, geophysical configuration, and geology vary greatly from one island to the next. Cape Verde, due to its geomorphology, has a dense and complex hydrographical network. However, there are no permanent water courses, and temporary water courses run only during the rainy season. These temporary water courses drain quickly towards the main watersheds, where, unless captured by artificial means, continue rapidly to lower areas and to the sea. This applies equally to the flatter islands.

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Cape Verde is both a ‘least developed country’ (LDC) and a ‘small island development state’ (SIDS). In 2002, the population of Cape Verde was estimated at approximately 451,000, of whom 52% were women and 48% men. The population was growing at an average 2.4% per year, and the urban population was estimated at 53.7 %.

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Over the past 15 years, the Government has implemented a successful development strategy, leading to a sustained economic growth anchored on development of the private sector and the integration of Cape Verde into the world economy. During this period, the tertiary sector has become increasingly important, with strong growth in the tourism, transport, banking and trade sectors. Overall, the quality of life indicators show substantial improvements in almost all areas: housing conditions, access to drinking water and sanitation, use of modern energy in both lighting and cooking, access to health services and education

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Source: Ministry of Environment and Agriculture from Cape Verde.

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Yet despite these overall socio-economic successes, the production of raw materials and basic foods has witnessed limited progress. Weak performance in crop production has had a severe negative impact on incomes and the poverty risks faced by rural workers. Moreover, relative poverty has increased significantly during the past decade. The poverty profile shows that:

 

• Extreme poverty is mostly found in rural areas, although it has also increased in urban areas.

• Poverty is more likely to occur when the head of the household is a woman.

• Poverty increases with family size.

• Education significantly affects poverty.

• The predominantly agricultural islands of Santo Antao and Fogo have the highest poverty rates.

• Unemployment affects the poor greater than those with some wealth.

• Agriculture and fisheries workers are more likely to be amongst the poorest than those in other sectors.

• The fight against poverty and income inequalities remains one of the greatest challenges for Cape Verde with the focus largely upon the rural population.

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Cape Verde’s economy depends on development aid, foreign investment, remittances, and tourism. The economy is service-oriented with commerce, transport, tourism, and public services accounting for about 75% of GDP. Tourism is the mainstay of the economy and depends on conditions in the euro-zone countries. Cape Verde annually 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 60% of the population live in rural areas, the share of food production as a percentage of GDP is low. The island economy suffers from a poor natural resource base, including serious water shortages, exacerbated by cycles of long-term drought, and poor soil for growing food on several of the islands, requiring it to import most of what it consumes. The fishing potential, mostly lobster and tuna, is not fully exploited.

 

Economic reforms are aimed at developing the private sector and attracting foreign investment to diversify the economy and mitigate high unemployment. Economic growth was an estimated 3.9% in 2018, down marginally from 4.0% in 2017. This performance was supported by strong growth in the electricity and water sectors (22.8%), manufacturing (14.2%), tourism and hotels (14.9%), fisheries (9.4%), retail trade (8.1%), and financial intermediation (8.1%).