The Evolving Economic Partnership Between Cabo Verde and China

The relationship between the Republic of Cabo Verde and the People's Republic of China has reached a transformative milestone1. In 2024, bilateral ties were formally elevated to a Strategic Partnership, signaling a shift from traditional aid-based cooperation to a sophisticated economic alliance centered on trade, infrastructure, and the blue economy2. As both nations approach the 50th anniversary of diplomatic relations in 2026, Cabo Verde is positioning itself as a vital Atlantic hub for Chinese investment and innovation3.

1. Trade Dynamics: Growth Amidst Structural Imbalance

China is currently one of Cabo Verde's most critical economic partners, serving as a primary source of industrial goods and development financing4.

• Trade Volume: Bilateral trade reached approximately $114 million in 2024, marking a 10.3% increase over the previous year5.

• Import Dominance: China consistently ranks as a top supplier, providing vehicles, electrical equipment, and machinery666. In 2023, China's share of imports rose to 5.5% ($103.2 million)7.

• The Export Gap: Trade remains heavily skewed. While Cabo Verde imported over $103 million from China in 2023, it exported only $72,000 in return8. Recent efforts aim to diversify this through niche products like canned fish9.

The Framework for Cooperation

The legal architecture supporting this relationship is built on three major pillars designed to reduce risk for investors and increase market access:

• Bilateral Investment Treaty (BIT): In force since 1998, this treaty guarantees fair treatment, protection against expropriation, and the free transfer of returns for Chinese enterprises10.

• The FOCAC Zero-Tariff Initiative: At the 2024 FOCAC Summit, China announced 100% zero-tariff treatment for all African countries with diplomatic ties, including Cabo Verde11. This is specifically designed to open Chinese markets to Cabo Verdean agricultural and processed goods12.

• The Macao Platform: The Forum Macao serves as a multilateral bridge, utilizing a 2024–2027 Strategic Plan to connect Cabo Verde to the capital and expertise of the Greater Bay Area13.

Strategic Pillars of Investment

Chinese investment is increasingly targeted toward high-growth, sustainable sectors that align with Cabo Verde's national development goals.

The Blue Economy & Infrastructure

Cabo Verde aims to leverage its geography to become a mid-Atlantic logistics center. China has funded the feasibility studies for the São Vicente Special Maritime Economic Zone (ZEEM-SV), which will focus on transshipment, fish processing, and ship repair14141414. Additionally, $1.5 million has been allocated for aquaculture development, including seaweed and shrimp farming15.

Digital Transformation

Through partnerships with Huawei, China has become a primary architect of Cabo Verde's digital landscape16161616. This includes the construction of an e-government network and the ongoing "Safe City" (Cidade Segura) project17. In January 2025, a €26.3 million agreement was signed to expand surveillance and digital security to Tarrafal, Assomada, and Porto Novo18.

Renewable Energy

Aligning with Cabo Verde's target of 50% renewable energy by 2030, new 2025 agreements explicitly allocate funding for green energy projects, reducing the archipelago's reliance on imported fossil fuels19.

投资视角 (Investor Insights)

• Logistics Advantage: Cabo Verde's position makes it a strategic "stepping stone" for Chinese firms looking to access West African, European, and American markets.

• Policy Incentives: The combination of the BIT and the new zero-tariff regime creates a low-barrier environment for manufacturing and export-oriented processing.

• Stable Partnership: Unlike more volatile regions, the long-term diplomatic stability between Praia and Beijing provides a predictable environment for large-scale infrastructure and tech projects.