Cape Verde: Investing

FDI in Figures

After growing steadily for several years, FDIs into Cape Verde slowed down in 2009 due to the global economic crisis. They have stabilized since the beginning of the recovery and should continue their upward trend.

Cape Verde enjoys remarkable political and economic stability, as well as solid institutions. Moreover, the growth in sectors such as public works, tourism and fishing have created new opportunities. However, its dependence on exports, the high level of its debt, the rigidity of its job market, limited natural resources, dilapidated infrastructures and geographical isolations constitute some of the country's barriers to investment.

Tourism is the sector that attracts most of FDI. Italy, Portugal, Spain and Hong Kong are the main investing countries in Cape Verde.

	Cape Verde	Sub-Saharan Africa	الولايات المتحدة	Germany
Index of Investor Protection	4.0	4.4	8.3	5.0

Source: Doing Business

Note: The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment	2008	2009	2010
FDI Inward Flow (million USD)	212	119	111
FDI Stock (million USD)	973.7	1,028.7	1,140.1
Number of Greenfield Investments***	1.0	-	-
FDI Inwards (in % of GFCF****)	28.7	15.0	-
FDI Stock (in % of GDP)	56.8	63.0	-

Source: UNCTAD - Last Available Data

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

Tax Rates

VAT: 15%
Company Tax: 30%
Withholding Taxes: Dividends: 0%, Interests: 20%, Royalties: 20%.
Bilateral Agreement: Cape Verde and Egypt are not bound by a Double Taxation Agreement.
Social Security Contributions Paid By Employers: 15%

Investment Opportunities

Tenders, Projects and Public Procurement: Tenders Info, Tenders in Cape Verde
DgMarket, Tenders Worldwide
Setting Up a Company: Consult Doing Business Website, to know about procedures to start a Business in Cape Verde.
Useful Resources: Economic Developments and Prospects in Cape Verde - African Economic Outlook

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Learn more about Investing in Cape Verde on Globaltrade.net, the Directory for International Trade Services.