Investment Spotlight: World’s leading economies investing in Cape Verde
Many countries have taken a strong interest in Cape Verde, and China is potentially the best example. After years of investment and diplomatic relations, the 10-island country and huge nation see their work as mutually beneficial.
During the Cape Verdean fight for independence, the Chinese nation stood by those campaigning for freedom, and it sparked the beginning of a beautiful friendship. Over time, there have been numerous investments to improve the infrastructure and facilities on the Islands.
From the Agostinho Neto Hospital in Praia, where an estimated $4.5 million was spent on construction of the consultant and maternity units, to the huge vocational school with space for 1,800 students. From the 26-meter high dam with capacity to hold 1.2 million cubic metres of water and irrigate 65 hectares of land to the development of The Palace of the Government of Cape Verde, there has certainly been continued support for the growth of the archipelago.
Sport in the country also had a huge upgrade thanks to 15,262 seat national stadium in Praia, built and overseen by the Chinese authorities. Valued at $12 million, the stadium includes a 105m² electronic screen, four 50-metre tower floodlights, automatic sprinkler systems, lighting, audiovisual and sound equipment, as well as eight 400-metre athletic fields and a football field with international conditions. The keys were handed over in 2013 and it now proves to be a cultural centrepoint for Island.
- China established diplomatic relations with Cape Verde on 25 April 1976 and has since cooperated with the archipelago in several areas, most notably with the infrastructure.
- Numerous projects have been accomplished in Cape Verde, including the construction of the country’s parliament building, presidential palace, national library, Praia maternity hospital, water dam and a national stadium.
- China Building-Material Industrial Corporation for Foreign Econo-Technical Cooperation signed a contract with the Cape Verde government to build a large cement plant at a cost of $55 million.
- China sends an 8 member medical team to Praia on a regular basis.
- They provide over 100 scholarships, as well as vocational training and cultural, economic and business exchanges.
- Chinese aid to the archipelago amounts to US$25 million, which was increased to US$30 million in 2015.
- It is estimated that more than 400 Chinese entrepreneurs reside in Cape Verde, according to the Association of Chinese Traders Yanzhao.
- China provides a fleet of vessels to connect Cape Verde’s eight dispersed islands.
- BOOM TV, Chinese cable television provider, already services the island of Santiago and will soon reach the island of Sao Vicente.
- In 2015, a Hong Kong firm invested $275m (HK$2.15b) for a project located on the islet of Santa Maria at Praia, which will include hotels, office buildings, museum, a clubhouse and a marina.
What’s clear is that the strong relations between the two countries have garnered many successful investments that have gone a long way towards development in Cape Verde. It’s a relationship we welcome at The Resort Group PLC, especially as China’s status as the world’s second largest economy only underlines their ongoing confidence in this emerging nation. It’s a future we hope is as fruitful as the last 40 years of friendship.
China is not alone is taking a financial interest in Cape Verde, many countries are confident in its touristic potential – the archipelago sees a steady flow of tourists from across the world. When it comes to investment, it’s Italy, Portugal, Spain, the UK, China, Luxembourg and Hong Kong that take the lead, especially in the real estate and tourism sectors. More recently, Brazil and the UAE have also become interested in the investment prospects in Cape Verde.
For more information about property investment opportunities in Cape Verde, contact us today.