Cabo Verde & Chinese Imports

Cabo Verde's Growing Dependence on Chinese Imports

China has cemented its position as one of Cabo Verde's most critical economic partners, with bilateral trade reaching $113.89 million in 2024, marking a 10.3% increase from the previous year. China now accounts for roughly 8% of the Atlantic archipelago's total imports, ranking consistently among the top five suppliers alongside Portugal and Spain.

Industrial goods drive import growth

The composition of Chinese imports reflects Cabo Verde's dual economic reality. On one hand, the country relies heavily on Chinese industrial goods to fuel its modernization. Meat, fish and seafood preparations led imports at $14.76 million in 2024, driven by local consumption and the tourism sector. Vehicles accounted for $13.85 million, while electrical and electronic equipment reached $11.55 million. Construction materials—including plastics, aluminum and iron—form another pillar, essential for the real estate and tourism sectors that underpin the island economy.

On the other hand, Chinese consumer goods have become ubiquitous through the network of Chinese-run shops that dot the islands. Footwear imports totaled $3.25 million, apparel $1.88 million, and household items including furniture and toys added millions more. These goods have increased purchasing power among the local population, making basic items more accessible than before.

Cabo Verde is a Gateway to West African markets

The strategic opportunities are considerable. Investors view Cabo Verde not merely as a destination but as a platform to access the Economic Community of West African States, a market of 300 million consumers. The archipelago's renewable energy targets—50% by 2030—create demand for Chinese green technology. Companies like Huawei are already deeply embedded in the country's digital transformation, supplying infrastructure for e-government and 5G networks. The São Vicente Special Maritime Economic Zone offers further prospects in port logistics, ship repair and fisheries.

Market saturation and stark trade deficit pose challenges

Yet the relationship faces significant structural constraints. With a population of approximately 500,000, the domestic market remains limited. The proliferation of Chinese retail shops since 1995 has created saturation in urban centers like Praia and Mindelo, forcing new entrants into rural areas or price wars that erode margins. Local tensions simmer over product quality and employment practices.

Most critically, the trade imbalance is stark. While Cabo Verde imported over $103 million from China in 2023, it exported merely $72,000—a ratio that exemplifies the archipelago's structural deficit. Cabo Verde's export structure proves ill-suited to Chinese import needs, making it difficult to offset this gap. The country remains vulnerable to global volatility, whether from Chinese economic slowdowns or trade tensions between major powers.

The relationship delivers affordability and infrastructure development, yet leaves Cabo Verde heavily dependent on external financing and remittances to balance its books—a precarious foundation for an island economy seeking sustainable growth.

Facts and figures - Cabo Verde - China Trade

Trade volume

• 2024: $113.89m (10.3% increase year-on-year)
• 2023: $103.2m
• 2022: $92.98m
• 2021: $84.5m

Market share

• China accounts for 8% of Cabo Verde's total imports
• Ranks third or fourth largest supplier after Portugal and Spain

Top imports by category (2024)

• Meat, fish and seafood preparations: $14.76m
• Vehicles: $13.85m
• Electrical and electronic equipment: $11.55m
• Nuclear reactors, boilers and machinery: $11.10m
• Plastics: $7.87m
• Aluminum: $5.86m
• Iron and steel articles: $5.23m
• Ceramic products: $5.17m
• Furniture and lighting: $4.22m
• Footwear: $3.25m

Trade imbalance

• Cabo Verde exports to China (2023): $72,000
• Cabo Verde imports from China (2023): $103.2m
• Trade deficit ratio: approximately 1,400:1

Market context

• Cabo Verde population: 500,000
• ECOWAS market access: 300 million consumers
• Renewable energy target: 50% by 2030