Cabo Verde - China Development Cooperation

Healthcare cooperation spans four decades

Health represents one of the oldest and most active areas of Sino-Cabo Verdean cooperation. Chinese medical teams have worked in the capital city of Praia since 1984, marking forty years of continuous medical presence. In May 2024, the two countries signed a six-year protocol covering 2024 to 2029 to strengthen medical collaboration, promoting global development initiatives and improving Cabo Verde's medical response capacity. The partnership extends beyond personnel exchanges to infrastructure, with China having built hospitals including a newly inaugurated maternity hospital that serves the archipelago's population.

Infrastructure projects reshape the archipelago

Since 2000, the Chinese government has delivered $63.5 million in development finance through various infrastructure projects. Major completed works include the Parliament Building, National Library, and multiple hydraulic projects. China invested $4.4 million in the Poilão dam in Santa Cruz, which improves water access for agriculture and communities. On Santo Antão island, a Chinese-funded dam connects to a power plant, while Santiago island received a $4.5 million water project. In the sports sector, China built a $22 million stadium in Monte Vaca, providing facilities for both competitive athletics and community recreation.

The University of Cabo Verde benefited from Chinese reconstruction of government buildings and construction of a new campus, expanding higher education capacity. China has also provided $2.3 million in debt forgiveness, easing fiscal pressures on the small island economy.

Digital transformation powered by Chinese technology

Huawei has become deeply embedded in Cabo Verde's digital infrastructure, providing the backbone for e-government systems and expanding connectivity across the islands. The company's safe city systems underpin most of the surveillance and security infrastructure, while the Huawei SHARE undersea cable connecting Senegal and Cabo Verde competes with the European Ella Link cable that runs from Senegal to Europe. China has helped build the country's data storage and processing capacity, essential for the government's digital economy ambitions.

State electricity company Electra partners with Chinese supplier Hexing, whose African branch maintains headquarters in Senegal and Kenya. Hexing electric meters are visible throughout the islands, including in tourist areas like Santa Maria on Sal island, demonstrating the penetration of Chinese technology into everyday infrastructure.

Energy sector receives growing attention

While the Cabeólica wind farm project originated from Denmark, Chinese contractors installed the wind farms across Santiago (9.35 megawatts), São Vicente (5.95 megawatts), Sal (7.65 megawatts) and Boa Vista (2.55 megawatts). These installations form part of Cabo Verde's push toward renewable energy, taking advantage of consistent trade winds and abundant solar radiation. The China Africa Development Fund also seeks to mitigate strains on energy consumption and potable water supplies, addressing two critical constraints for the water-scarce archipelago.

The recent €26.3 million commitment includes specific allocations for renewable energy projects, though details on precise installations remain under negotiation. Given Cabo Verde's target of 50% renewable energy by 2030 and complete decarbonisation by 2040, Chinese technology suppliers are well-positioned to capture market share in solar panels, batteries and grid management systems.

Agricultural development through South-South cooperation

In February 2021, the FAO-China South-South Cooperation Programme contributed $1.5 million to launch a three-year project aimed at increasing agricultural productivity and food security in Cabo Verde. The project agreement was signed in Praia by Gilberto Correia Carvalho Silva, Minister of Agriculture and Environment, with Chinese Ambassador Du Xiaocong witnessing the ceremony. The initiative, coordinated jointly by FAO, Cabo Verde's Ministry of Agriculture and Environment, and China's Ministry of Agriculture and Rural Affairs, supports agricultural production, pest control, livestock development and seaweed aquaculture.

This agricultural cooperation reflects China's broader approach of sharing expertise in managing arid landscapes and developing alternative farming methods suited to challenging environmental conditions. For Cabo Verde, where rainfall is scarce and arable land limited, such technical assistance carries practical value beyond the monetary commitment.

Education and cultural exchange expand

China began offering scholarships to Cabo Verdean students in 1996, creating pathways for higher education that would otherwise be financially prohibitive for many islanders. By 2023, approximately 180 Cabo Verdean students were studying in China, gaining exposure to Chinese universities and technical institutes. In 2015, a Confucius Institute was established at the University of Cabo Verde, and two years later the Ministry of Education signed a cooperation agreement to carry out Chinese language education in secondary schools across the archipelago.

This educational dimension serves multiple functions. It creates a cohort of Cabo Verdeans with Chinese language skills and cultural familiarity, facilitating future business and government interactions. It also projects soft power, building long-term relationships with future leaders and professionals who have experienced China firsthand.

Strategic economic zones and Belt and Road alignment

Cabo Verde has expressed support for the Belt and Road Initiative and willingness to join it, particularly through developing the São Vicente Special Economic Zone. Prime Minister Ulisses Correia e Silva identified the São Vicente zone, the safe city project and community housing as priorities in the national development agenda, expressing hope that China would participate in these projects and contribute to economic and social development.

The São Vicente Special Maritime Economic Zone represents Cabo Verde's ambition to serve as a logistics hub for Chinese fleets and companies accessing West African and European markets. While the zone received a $2.7 million investment, development has proceeded more slowly than initially anticipated. In 2003, there were plans for a "Sino-Atlantic Bank" attached to a casino resort on Santiago island near the international logistics port of Praia. Macau investor David Chau spearheaded the project, which was intended to develop Cabo Verde's financial system and serve as a connecting point to other Portuguese-speaking countries through the Macau Forum. However, construction was scrapped due to transparency concerns, illustrating the complexities and occasional setbacks in bilateral projects.

Multilateral frameworks structure cooperation

Forum Macao, established by China in 2003, serves as a multilateral platform promoting economic and trade cooperation with Portuguese-speaking countries, using Macao as a bridge. Cabo Verde actively participates in this forum, which supports collaboration across trade, investment, education and culture. During the 2010 Forum Macao meeting, Chinese Premier Wen Jiaobao announced creation of a $1 billion fund aimed at boosting trade between China and Portuguese-speaking countries, benefiting Cabo Verde's access to Chinese financing.

The Forum on China-Africa Cooperation provides another institutional framework, convening every three years with around 300 Chinese and foreign representatives from 53 African countries and regional organisations. These multilateral structures provide predictability and regular opportunities for project announcements and policy coordination.

Scientific and technological collaboration

In July 2023, Cabo Verde participated in the China-Africa Innovation Cooperation and Development Forum in Wuhan, where eighteen China-Africa science and technology projects were signed. The agreements involved advanced technology, modern agriculture, health sciences and higher education, with Chinese universities, research institutions, medical facilities and corporations partnering with African counterparts. Areas covered include smart city development, multimedia communication, energy storage, water-saving irrigation and infrastructure development.

Cabo Verde also participates in remote sensing cooperation, with delegates attending conferences focused on mangrove remote sensing monitoring and ocean-related application services in Africa. The China-Africa Centre for Earth Observation will serve as a hub for knowledge exchange and technical cooperation, facilitating capacity building, technology transfer and joint research initiatives to harness satellite remote sensing in addressing environmental and developmental challenges.

Retail presence transforms consumer markets

Independent of government-to-government cooperation, Chinese entrepreneurship has significantly impacted daily consumption patterns. Chinese-run corner shops, known locally as "lojas chinesas," have proliferated across the islands since the mid-1990s, selling more affordable goods than shops importing from Europe. These retail operations provide Cabo Verdeans access to clothing, footwear, household items and electronics at price points the general population can afford, effectively increasing purchasing power even as they compete with local merchants.