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Investment Opportunities in Industry and Manufacturing

Cabo Verde's industry and manufacturing sector, while not the economy's largest contributor (around 10-12% of GDP as of 2024), offers significant growth potential for foreign investors seeking diversification beyond tourism and services. The archipelago's stable political environment, strategic Atlantic location, and proactive policies under the Ambition 2030 strategy make it an appealing entry point for light manufacturing, agro-processing, and value-added industries. With a focus on export-oriented production—leveraging ports like Porto Grande and free trade agreements such as AGOA and ECOWAS—opportunities are amplified by government incentives and infrastructured zones. As of October 2025, the sector has seen a 15% year-over-year FDI increase, driven by EU and AfDB funding, with approved projects totaling €50 million in 2024 alone. This article explores key sub-sectors, infrastructure, incentives, and practical steps for investors, drawing on recent developments like the Cabo Verde Investment Forum 2025 on Sal Island, which highlighted industrial synergies with renewables and logistics.

Key Sub-Sectors for Investment

Cabo Verde's manufacturing landscape emphasizes low-to-medium tech industries that capitalize on local resources (e.g., fisheries, agriculture) and proximity to European/African markets. Total industrial output grew 8% in 2024, supported by 20+ SMEs in zones like Mindelo.

Agro-Processing and Food Industries

  • Opportunities: Value addition to local products like tuna, bananas, coffee, and grogu (rum). With 8% of GDP from fisheries and agriculture, investors can establish canning, packaging, or juice plants for export to the EU (duty-free under EPA agreements).
  • Facts & Figures: €25 million cumulative FDI (2020-2023); 51% local ownership required; Potential for 1,000 jobs by 2030 via FAO-backed sustainable projects. Example: A €10 million fish processing facility in São Vicente could yield 20% ROI within 3 years, targeting West African markets.

Textiles and Garment Manufacturing

  • Opportunities: Assembly and apparel production using imported fabrics, benefiting from AGOA quotas for U.S. exports. Low labor costs (€300-500/month) and skilled workforce from vocational programs make it viable for fast fashion or uniforms.
  • Facts & Figures: 5-7% of FDI; €15 million in 2024 approvals; 500 jobs created (2020-2023). The sector aims for €50 million exports by 2028, with incentives for eco-friendly dyeing.

Light Manufacturing and Assembly

  • Opportunities: Electronics components, plastics, and furniture assembly, tied to construction booms (e.g., tourism infrastructure). Proximity to EllaLink cable supports tech assembly for digital exports.
  • Facts & Figures: Emerging at 10% of industrial FDI; €20 million pipeline (2025); 300 jobs projected. A €5 million plastics plant in Praia could serve regional logistics, with 15% annual growth.

Renewable Energy Equipment Manufacturing

  • Opportunities: Production of solar panels, wind components, or batteries, aligning with the 50% renewables target by 2030. Hybrid with tourism (e.g., off-grid solutions for resorts).
  • Facts & Figures: 12% of 2024 FDI; €40 million inflows; 200 MW capacity goal. Partnerships like Huawei's 5G integration create ancillary manufacturing needs.

Industrial Infrastructure and Zones

Cabo Verde has designated infrastructured zones to ease entry, with turnkey utilities (power, water, fiber optics) and land at €1/m² for 10 years.

  • São Vicente (Mindelo): Parque Industrial de Lazareto (33 ha, 50+ SMEs, €20 million AfDB upgrade); Zona Industrial Sul (15 ha, light industry); Ribeira de Julião (20 ha, agro-focus). Handles 670,000 tonnes cargo annually via Porto Grande.
  • Santiago (Praia): Four zones (Tira Chapéu 25 ha, Achada Grande Trás 18 ha, Achada S. Filipe 12 ha, Palmarejo Grande 20 ha); €10 million MCC investment; 818,900 tonnes cargo (2024).

These zones, covering <1% of territory, support 2,500 jobs and €50 million FDI since 2010.

see also --->  Cabo Verde special economic zones ZDTI

Incentives and Support

  • Tax Breaks: 10-year IRPC exemption (20% rate otherwise); VAT relief on imports; CIN-CV regime for 80% exports (duty-free).
  • One-Stop Services: BUI approves projects in 75 days; CVTI offers partner matching.
  • Funding: €15 million EIB for expansions; AfDB loans at 2% interest.
---->  Cabo Verde Corporate Taxation

Challenges and Outlook

Challenges include water scarcity (desalination costs €0.50/m³) and skills gaps (addressed by training centers). Outlook: 15% industrial GDP by 2030; €100 million FDI target (2025), with 40% non-tourism. The June 2025 Investment Forum on Sal emphasized manufacturing synergies with renewables.

summary

Cabo Verde's industry and manufacturing beckon with low-risk, high-reward prospects in agro-processing and assembly, backed by zones and incentives. With €50 million in recent FDI and 8% sector growth, it's ripe for investors. Contact CVTI (info.cvti@gov.cv) via BUI to launch—your Atlantic manufacturing hub awaits.