Cabo Verde EU Cooperation

Gateway to the Atlantic: The EU-Cabo Verde "Sustainable Ports" Initiative

As an archipelagic nation located at the crossroads of Africa, Europe, and the Americas, Cabo Verde's economic destiny is intrinsically linked to the ocean. To leverage this geostrategic position, the European Union (EU) and the European Investment Bank (EIB), operating under the "Team Europe" banner, have launched the "Sustainable Ports" initiative. Part of the broader Global Gateway strategy, this initiative mobilizes significant financing—specifically a €105 million package (part of a wider €148 million framework loan)—to transform the country's maritime infrastructure into a green, unified logistic hub,,.

The core of this cooperation is the expansion, modernization, and decarbonization of strategic ports across three different islands: Porto Grande in Mindelo (São Vicente), Porto Novo (Santo Antão), and Porto da Palmeira (Sal).

A Unified and Modernized Port Network

The primary objective of the initiative is to unify Cabo Verde's scattered market. By upgrading infrastructure across different islands, the project aims to reduce the economic isolation of outer islands and create the conditions necessary to explore international value chains,.

1. Porto Grande (São Vicente): The Maritime Engine Located in the city of Mindelo, Porto Grande is the archipelago's primary deep-water port. The EU-EIB investment targets the expansion of breakwaters and mooring docks to increase capacity,. A critical component of the intervention in São Vicente is the rehabilitation of the CABNAVE shipyard. By modernizing this facility and acquiring new equipment, the initiative aims to bolster national capacity for naval repair and maintenance, capturing higher value-added services from vessels traversing the mid-Atlantic,,.

Furthermore, the port is being integrated with the new Mindelo Cruise Terminal (inaugurated in June 2025), which positions the island as a major cruise hub capable of handling up to 6,000 passengers simultaneously. While the terminal had diverse funding sources, the EU Global Gateway support includes equipping the terminal with photovoltaic roofing and energy systems.

2. Porto Novo (Santo Antão): Enhancing Connectivity Santo Antão, an island with high agricultural and tourism potential but no airport, relies entirely on maritime transport. The expansion of Porto Novo is vital for securing the flow of goods and people between Santo Antão and the neighboring hub of São Vicente, thereby supporting the tourism ecosystem and local agricultural exports,.

3. Porto da Palmeira (Sal): Supporting the Tourism Hub Sal Island is the engine of Cabo Verde's tourism sector. The modernization of Porto da Palmeira is designed to improve logistics for the importation of goods required to support the island's extensive resort infrastructure, while also facilitating potential maritime tourism activities,.

Decarbonization: The "Green" in Blue Economy

A defining feature of this initiative is its focus on environmental sustainability. The "Sustainable Ports" project aims to decarbonize the maritime sector through specific technological interventions:

• Onshore Power Supply (OPS): The ports are being equipped with OPS infrastructure, also known as "cold ironing." This technology allows ships to shut down their diesel engines while docked and connect to the local electricity grid, significantly reducing carbon emissions, noise, and air pollution in port cities,.
• Renewable Energy Integration: The project finances the installation of solar photovoltaic systems and LED lighting across the targeted ports (including Praia), promoting energy efficiency and reducing the carbon footprint of port operations,.

Strategic Context: The West African Corridor

These investments are not isolated; they are strategically aligned with the Praia-Dakar-Abidjan multimodal transport corridor,. By modernizing its ports, Cabo Verde is positioning itself as a secure and efficient transshipment and logistics platform within the wider West African region.

In December 2025, the partnership was further solidified with the signing of a specific €33.3 million grant agreement between the Government of Cabo Verde and the EIB,. This tranche is specifically earmarked to accelerate the modernization works and the energy transition components, ensuring that Cabo Verde's blue economy becomes not only more competitive but also more resilient to climate change,.

Restoring Maritime Strength: The Revitalization of CABNAVE and the Atlantic Blue Economy

Situated in the deep-water port city of Mindelo on the island of São Vicente, CABNAVE (Estaleiros Navais de Cabo Verde) serves as the archipelago's primary naval repair facility. Recognizing the shipyard's pivotal role in the nation's economic future, the European Union and the European Investment Bank (EIB) have identified the rehabilitation of CABNAVE as a critical component of the "Cabo Verde Blue Economy Sustainable Ports" project. This intervention is part of a broader financing package, totaling between €105 million and €148 million, mobilized under the Global Gateway strategy to modernize the country's maritime infrastructure.

Modernization and Infrastructure Upgrade

The CABNAVE rehabilitation project is designed to transform the shipyard into a regional center of excellence equipped with modern technology and infrastructure. The funding is specifically allocated for the modernization of the shipyard's physical infrastructure and the acquisition of new, state-of-the-art equipment. These upgrades aim to address capacity limitations and safety efficiency, ensuring the facility can cope with future traffic forecasts and international maritime standards. The project encompasses improvements that will bolster the national capacity for ship maintenance and repair, a vital service for an archipelagic nation reliant on inter-island transport.

Strategic Vision: A Maritime Hub in the Mid-Atlantic

The revitalization of CABNAVE is essential for realizing Cabo Verde's "Ambition 2030," which targets the blue economy to contribute 25% of the national GDP. By upgrading the shipyard, the government aims to position Cabo Verde not merely as a transit point, but as a fully integrated maritime and logistics hub in the Atlantic. This initiative aligns with the strategic "Praia-Dakar-Abidjan" multimodal transport corridor, facilitating regional integration within West Africa.

The modernization is expected to enable the private sector to invest further in the nautical economy, capturing higher value-added services that go beyond basic logistics. A renovated shipyard creates the necessary conditions to boost both industrial and artisanal fishing sectors by ensuring reliable vessel maintenance, thereby improving the conservation and export capabilities of fish products.

Capturing Value in the Blue Economy

The intervention aims to enable CABNAVE to service a dual market: the national fleet and the international vessels traversing the mid-Atlantic. By bolstering its naval repair capacity, Cabo Verde can capture significant economic value from the ships that pass through its waters, offering services that generate skilled jobs and industrial know-how. This move moves the country toward a more diversified economy, reducing reliance on tourism by fostering a resilient industrial base centered on the ocean.

In December 2025, the partnership was further solidified when the government and the EIB signed a specific €33.3 million grant agreement to accelerate these modernization works, reaffirming the confidence of international partners in Cabo Verde's vision for a sustainable and inclusive blue economy.

Background Information

The port of São Vicente (specifically the deep-water Porto Grande in Mindelo) has become a focal point of geopolitical competition between China and the European Union. Both powers view the island as a critical logistics node in the mid-Atlantic, leading to overlapping interests in infrastructure, ship repair, and the ocean economy.

Here are the key areas of competing interests:

1. "The Battle" for the Shipyard (CABNAVE)

The most direct contestation appears to be over CABNAVE, Cabo Verde's primary naval repair facility located in São Vicente.

• China's Interest: The People's Republic of China (PRC) has maintained a strong presence in this sector. A PRC firm previously refurbished a ship-repair facility on São Vicente intended to service Chinese-origin vessels. Furthermore, negotiations were reported in the past for the acquisition of CABNAVE by the China National Fisheries Corporation (CNFC), which intended to use the yard to repair its fleet of hundreds of vessels fishing off the West African coast.
• EU's Response: Under the Global Gateway strategy—which is explicitly framed as an alternative to China's Belt and Road initiative—the EU has recently moved to secure this asset. In late 2024 and 2025, the EU and European Investment Bank (EIB) signed agreements to finance the rehabilitation and modernization of CABNAVE. This investment aims to keep the shipyard within the sphere of European standards and operations, bolstering national capacity for ship maintenance and ensuring it serves the "Praia-Dakar-Abidjan" strategic corridor favored by Europe.

2. The Special Maritime Economic Zone (ZEEM)

The development of the Special Maritime Economic Zone in São Vicente is another arena where influence overlaps.

• China's Role: China was instrumental in the early development of the Special Economic Zone on São Vicente, aiming to create a hub for the ocean economy. The Cabo Verdean government has actively sought Chinese investment for this zone, seeing it as a vehicle to attract private capital for fisheries and port infrastructure.
• EU's Counter-Offer: The EU is now heavily investing in the infrastructure that underpins this zone. The Global Gateway package includes €105 million specifically for expanding and modernizing strategic ports, including Porto Grande in São Vicente. This includes equipping the port with Onshore Power Supply (OPS) and renewable energy systems to align it with European "green port" standards.

3. Fisheries and Logistics

São Vicente is a critical base for distant-water fishing fleets, creating competition for logistical services and catch landings.

• EU Interests: The EU's fisheries agreements are designed to ensure food security for the European market and employment for EU fleets (Spain, Portugal, France). The 2024–2029 protocol specifically incentivizes these vessels to land their catches in Mindelo to support local processing industries. The EU is trying to integrate São Vicente into its supply chains, ensuring fish caught in the region enters the EU market compliant with its sanitary and IUU (illegal, unreported, and unregulated) fishing regulations.
• China Interests: China's distant-water fleet operates extensively in the region and utilizes São Vicente for logistics and repairs. Studies suggest that while EU vessels are bound by strict agreements, other fleets (including Asian ones) often operate with different standards regarding labor and transparency. The presence of Chinese vessels in the region challenges EU dominance and creates competition for port services.

4. Strategic Influence and Security

• China: Beyond the port, China has deepened its influence in Cabo Verde through technology infrastructure, such as the "Safe City" surveillance project implemented by Huawei, which includes installing CCTV in urban zones. This provides China with a technological foothold in the archipelago's security infrastructure.
• EU: The EU counters this by focusing on maritime security cooperation. It uses Mindelo as a docking port for its Coordinated Maritime Presences (CMP) missions, where naval assets from member states (like France and Spain) patrol to combat piracy and trafficking. The EU frames its port investments as supporting "secure" transport corridors, implicitly contrasting them with Chinese investments.