Cabo Verde

Cabo Verde benefits from reduced tariffs granted under the GSP+ since January 2012 and has successfully maintained ratification of the 27 core international conventions on human and labour rights, environmental standards and good governance as required by GSP+. Cabo Verde is a lower-middle income economy with a per-capita income of $3.950 in 2022. In recent years, the island state experienced rapid economic transformation and solid economic growth, mainly driven by private consumption, exports and the service sector. The EU is the main trading partner for Cabo Verde and cumulative imports amounted to about €70 million in 2022, of which about 86% made use of GSP+ duties.

What is the GSP+?

The GSP+ is a special incentive arrangement for Sustainable Development and Good Governance that supports vulnerable developing countries. Next to fulfilling the eligibility requirements of the Standard GSP, GSP+ countries are required to ratify 27 international conventions on human rights, labour rights, environmental protection and climate change, and good governance. In order to ensure effective implementation of the conventions as well as compliance with reporting obligations, the EU engages in monitoring activities with the GSP+ countries. GSP+ beneficiaries can benefit from complete duty suspensions for products across approximately 66% of all EU tariff lines.

Cabo Verde flag

At a glance: EU preferential imports from GSP+ beneficiary countries

group

0.5M (2023)

Population

account_balance
Parliamentary Republic

Government

trending_up

5.5% (2023)

GDP Growth

equalizer

3.7% (2023)

Inflation

money

$ 2.5B (2023)

GDP

92 -

Freedomhouse index

- ^

ITUC Global Rights Index

41.9 ^

Environmental Performance Index

Facts about Cabo Verde's economy

Island Economy

Cabo Verde is a small island economy with limited natural resources and arable land which explains the country's high dependence on the service sector.

Export Products

Cabo Verde's main export products are prepared or frozen fish (e.g. tuna, mackerel, skipjack, or squid) and other products made of fish like flours, meals, or pellets.

Trade Partners

Cabo Verde is highly dependent on the EU both as a destination for exports and as a source for imports. Total trade with the EU accounts for 69% of total trade, leaving the country vulnerable to economic fluctuations on the European market. Other international partners are Argentina, China and the US. Their trade shares, however, are below 10%.

Economic Structure

Cabo Verde's GDP is dependent on the service sector, particularly the tourism industry, which contributes more than 57% to the GDP. Industry (17%) and agriculture (4%) only contribute a smaller share. With almost 12% of the GDP, remittances play an important role for the West African country.

Usage of GSP+ Preferences

Cabo Verde uses trade preferences granted under the GSP+ for 75% of its total exports. The preference utilisation rate, which represents the ratio of preferential imports to GSP+ eligible imports, currently stands at over 93%.

Trade with the EU

Total trade with Cabo Verde summed up to €584 million in 2021. The EU is by far the most important trading partner and accounted for a share of over 60%. More than 80% of products from Cabo Verde are exported to the European market.

Cabo Verde and the EU

Imports from Cabo Verde by product section (2023, € million)

Imports from Cabo Verde over time (€ million)

Opportunities in Cabo Verde

  • Further opportunities in the fisheries sector, mainly in tuna and lobster fishing as well as in through addressing logistical bottlenecks
  • Cabo Verde aims at supplying 100% of its electricity from renewable sources by 2025 according to the "sustainable energy for all" agenda which requires substantial investments in respective technologies
  • The strong tourism sector brings opportunities to related sectors, particularly for the local food supply chains and handicrafts sectors
  • Stable political environment

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