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Banking in Cabo Verde

Banking in Cabo Verde: What Foreign Business Owners Need to Know

For foreign entrepreneurs establishing operations in Cabo Verde, understanding the banking system is essential. The country operates a relatively stable financial sector regulated by the Banco de Cabo Verde (BCV), with eight onshore commercial banks serving the archipelago. While the system is accessible to foreigners and offers international services, specific requirements around account opening, capital deposits, and currency transfers require careful attention. Here's what you need to know.

The Banking Landscape


Cabo Verde's banking sector includes several major institutions, classified by systemic importance:

High Systemic Importance:

  • Caixa Económica
  • Banco Comercial do Atlântico (BCA)

Slight Systemic Importance:

  • Banco Cabo-verdiano de Negócios (BCN)
  • Banco Interatlântico

International Presence:

  • Ecobank (pan-African bank offering international connectivity)

The sector is considered liquid and resilient, operating under strict compliance with international anti-money laundering and terrorism financing standards (AML-CTF-CPF).

Corporate Account Opening: The Critical Rule

The most important requirement for foreign businesses to understand is this: It is absolutely NOT possible for a non-resident company that is not registered in Cabo Verde to open a corporate current account.

This means you cannot open a Cabo Verdean business bank account for a foreign entity. You must first register your company locally in Cabo Verde before any bank will allow you to establish a corporate account.

The Registration-Banking Link

Opening a corporate bank account is intrinsically linked to the company registration process:

  1. You must first register your company in Cabo Verde
  2. As part of incorporation, you'll open a provisional corporate bank account to deposit initial share capital
  3. After full commercial registration is approved, the deposited funds become accessible
  4. You can then establish full banking services

Required Documentation

To open a corporate account, banks require:

  • Certificate of Incorporation (Certidão de Registo Comercial)
  • Operating Agreement (Acordo Operacional)
  • NIF (Tax Identification Number) for all shareholders and the company itself (obtaining NIF is free)
  • Identification documents for all representatives, directors, and Ultimate Beneficial Owners (UBOs)
    • Non-residents must provide passport
    • Residents can provide passport or national ID (BI)
  • Declaration of NIF for all parties

Banks must conduct thorough Know Your Business (KYB) due diligence, verifying legal details and beneficial ownership structure. They may request additional information, which must be satisfied within 30 days.

Remote Account Opening

While accounts generally must be opened in person, some banks like Ecobank Cabo Verde offer remote opening services for non-residents:

  • The applicant must sign a power of attorney for a local agent
  • Physical documents must be sent to the bank within 30 days of initiating the process
  • The account cannot process debits or credits until the bank verifies and validates all identifying information

Timeline for Cards

Debit and credit cards (Vinti4, Visa, Mastercard) are widely available but typically require:

  • In-person pickup at the bank
  • Two-week waiting period for card production

Minimum Capital and Deposit Requirements

One of Cabo Verde's most attractive features for entrepreneurs is the minimal capital requirement for company formation.

Company Incorporation Capital

Company Type Minimum Capital Required Upfront Deposit Remaining Payment Deadline
Sociedade por Quotas (Lda) CVE 1 (€0.01) 50% of subscribed capital Within 3 years
Sociedade Anónima (SA) CVE 1 (€0.01) 30% of subscribed capital Within 5 years

The symbolic minimum of CVE 1 (approximately €0.01) is among the lowest in the world. However, for credibility purposes, a higher capital amount such as CVE 100,000 or more is recommended.

Practical Example:

If you establish an Lda with CVE 100,000 subscribed capital:

  • You must deposit CVE 50,000 (50%) in the bank during incorporation
  • You have 3 years to deposit the remaining CVE 50,000
  • Funds become accessible after commercial registration approval

Account Opening Minimums

Minimum deposits to open accounts vary by bank and currency:

General/Personal Accounts:

  • Typically: 2,000-10,000 CVE

Ecobank Non-Resident Accounts:

  • CVE accounts: 5,000 CVE
  • EUR accounts: 50 EUR
  • USD accounts: 50 USD

BCN Business Account:

  • 10,000 CVE minimum opening deposit

Annual Maintenance: Ecobank charges 1,000 CVE / 10 EUR / 10 USD per account annually.

Currency Options and International Services

Cabo Verdean banks offer genuine international banking capabilities suitable for foreign businesses.

Available Currencies

Accounts can be established in:

  • Cape Verdean Escudo (CVE)
  • Euro (EUR)
  • US Dollar (USD)
  • British Pound (GBP)

Multi-currency accounts are available, typically with no additional cost between currencies.

International Services

All major local banks provide:

  • International IBAN for recognized international wire transfers
  • Current accounts in national and foreign currencies
  • Debit and credit card access
  • Seamless international transfers

The Euro Peg

Cabo Verde operates under a fixed exchange rate regime where the CVE has fixed parity with the Euro. This peg, supported by the country's strong foreign reserves, provides exchange rate stability for businesses operating in CVE but thinking in EUR.

Currency Exchange Control and Transfer Rules

While Cabo Verde maintains a generally open regime for investment flows, specific rules govern international transfers—particularly the repatriation of profits.

The Investment Registration Requirement

This is critical: To legally convert local currency and transfer income abroad, foreign investment must be duly registered with the Banco de Cabo Verde (BCV).

Registration is handled electronically through Cabo Verde TradeInvest (CVTI) the day after your Investment Registration Certificate is issued.

Penalty for non-registration: Failure to register may result in non-recognition of the right to transfer funds—meaning you could be unable to repatriate your profits.

Repatriation Rights

Once properly registered and having complied with all tax obligations, foreign investors have the free right to convert and transfer abroad:

  • Net operating profits
  • Dividends
  • Interest
  • Royalties
  • Capital repayment (initial and additional capital)

Foreign Currency Account Credits

Foreign investor accounts in convertible currency can only be credited via:

  • Transfers from abroad
  • Transfers from other foreign currency accounts held within authorized local institutions

Transfer Authorization Timeline

The BCV must authorize international transfers, but there are specific timeframes:

Standard authorization: Within 30 days from:

  • The date the request is submitted, OR
  • The date any requested additional information is received

Penalty for delay: If the BCV exceeds the 30-day period, it is liable to pay interest on the deposited amount at the 30-day LIBOR rate.

Balance of Payments Exception (rare): In exceptional circumstances where a transfer might cause serious balance of payments disturbances, the BCV Governor may require equal, consecutive quarterly remittances over a period not exceeding two years.

Large Transfer Verification

Transfers of foreign currency amounts greater than CVE 1 million by residents are subject to prior verification by the BCV.

Access to Financing: A Major Challenge

Despite the relatively stable banking system, access to financing remains a major obstacle for approximately 44% of companies in Cabo Verde. This reflects:

  • Conservative lending practices
  • Limited credit availability
  • High collateral requirements

Foreign businesses should plan to be largely self-financed or have access to international credit facilities, as securing local bank financing can be challenging.

Banking Sector Trends

Commercial banks have increasingly held liquid foreign assets, particularly Euros, driven by the interest rate differential between the BCV and the European Central Bank (ECB). The BCV monitors this trend closely to contain risks to external reserves and ensure sustainability of the Euro peg.

Practical Recommendations for Foreign Businesses

Before Incorporation:

  1. Research banks and compare account terms
  2. Prepare all UBO documentation in advance
  3. Budget for the 50% (Lda) or 30% (SA) upfront capital deposit
  4. Consider starting with recommended CVE 100,000+ capital for credibility

During Incorporation:

  1. Open provisional account for capital deposit
  2. Obtain NIF for all shareholders and the company
  3. Ensure all documentation meets KYB/AML requirements
  4. Plan for 30-day processing windows

After Registration:

  1. Immediately register investment with BCV through CVTI—this is essential for profit repatriation
  2. Establish multi-currency accounts (CVE, EUR, USD) as needed
  3. Request international IBAN for wire transfers
  4. Order cards and plan for 2-week production time
  5. Maintain meticulous tax compliance to preserve repatriation rights

For Ongoing Operations:

  1. Budget 30 days for international transfer authorizations
  2. Keep transfers under CVE 1 million to avoid additional BCV verification
  3. Maintain proper documentation for all foreign currency movements
  4. Don't rely on local bank financing—arrange international credit facilities

The Bottom Line

Banking in Cabo Verde is accessible to foreign businesses but requires navigating specific regulatory procedures. The symbolic CVE 1 minimum capital makes incorporation affordable, but proper BCV investment registration is non-negotiable for profit repatriation. The fixed Euro peg provides exchange rate stability, and banks offer genuine international services with IBAN access.

The key is understanding the sequence: register locally first, then establish banking; register investment with BCV immediately; maintain tax compliance rigorously. Follow these steps, and Cabo Verde's banking system will serve your international business operations effectively. Skip the investment registration, and you may find yourself unable to access your own profits—making this perhaps the single most important administrative step for foreign investors.

Cabo Verde Banking

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