Politics and Governance - News Briefing: Mai to August 2025

Crisis Response and Emergency Measures

The government demonstrated decisive leadership in August by declaring a state of national emergency following catastrophic flash floods on São Vicente and Santo Antão. The disaster, which claimed at least nine lives and displaced thousands, was marked by two days of national mourning. Authorities pledged swift reconstruction efforts and announced new climate-resilience infrastructure projects to reduce future disaster risks.

Social Policy and Regional Cooperation

Earlier in May, Cabo Verde co-hosted the High-Level Regional Conference on Empowering Childcare in West Africa with the World Bank. Held from May 12–14, the event produced the "Sal Commitments"—a roadmap for expanding childcare access, strengthening policy frameworks, and developing sustainable financing models. This initiative underscores the administration's intent to advance social development at home while contributing to regional cooperation.

Fiscal Engagement and International Oversight

On the economic governance front, the IMF concluded its sixth review of Cabo Verde's Extended Credit Facility in July. The Fund praised the government's fiscal discipline, projected inflation stability near 2%, and approved extended arrangements to enhance economic resilience. This review reaffirms Cabo Verde's strong engagement with international lenders and its commitment to maintaining macroeconomic stability.

National Milestones and Political Continuity

July also marked Cabo Verde's 50th independence anniversary, celebrated with official ceremonies and diplomatic visits that elevated the country's profile. Politically, the landscape remained stable, with the Movement for Democracy (MpD) and the African Party for the Independence of Cabo Verde (PAICV) continuing to dominate. Both parties signaled support for ongoing reforms in governance, social policy, and economic management.

Economics and Finance News

Tourism-Driven Growth and Recovery Outlook
Cabo Verde's economy maintained robust momentum across mid-2025, with the World Bank projecting 5.9% GDP growth for the year, following a 7.8% expansion in 2024. Tourism remains the primary growth engine, with hospitality and catering sectors having surged over 20% in late 2024. Visitor arrivals stood at 325,135 by March 2025, though August floods temporarily disrupted travel flows. Agriculture also rebounded, adding balance to the recovery.

Inflation, Poverty, and Inclusive Growth
Headline inflation dropped sharply to 1% in 2024, easing pressures on households and helping poverty rates fall below pre-pandemic levels. A World Bank report, "Unlocking Women's Economic Potential", stressed that reducing gender gaps in the labor force could add up to 12.2% to long-term GDP growth, linking inclusivity with resilience.

IMF Engagement and Fiscal Consolidation
The IMF concluded its sixth review of the Extended Credit Facility in July, praising fiscal discipline while highlighting the return to a small current account deficit. A staff-level agreement in May and subsequent Board approval reaffirmed international confidence, extending and augmenting arrangements under both the ECF and the Resilience and Sustainability Facility. Fiscal consolidation remains a government priority, with public debt and deficits projected to decline steadily through 2027.

Diversification Efforts
Beyond tourism, Cabo Verde is broadening its economic base. In September, authorities approved aquaculture projects under the Interreg MAC program, aimed at sustainable food systems and reducing external dependency. These initiatives reflect efforts to cushion the economy against climate shocks and global market volatility.

Social Issues News Briefing: Mai to August 2025

Impact of Tropical Storm Erin
Mid-August flash floods from Tropical Storm Erin severely affected Cabo Verde's social fabric, impacting 119,000 people across São Vicente, Santo Antão, and São Nicolau. The disaster resulted in 12 confirmed deaths, five missing persons, and over 5,500 households affected. Communities faced acute shortages of drinking water and food, while hospitals in Mindelo and São Nicolau suffered damage, prompting emergency aid to 300 families through Red Cross initiatives. Local markets and small businesses were disrupted, exacerbating food insecurity and isolating vulnerable populations during the rainy season.

Childcare and Social Policy Initiatives
In May, Cabo Verde hosted a high-level conference on empowering childcare in West Africa, supported by the World Bank. The event highlighted strategies to enhance early childhood development, promote inclusive opportunities, and strengthen social protection frameworks in the face of climate risks. The Sal Commitments emerging from the conference outline actionable plans to expand access to quality childcare, invest in sustainable financing, and reinforce regional cooperation.

Progress in Social Development Programs

• Housing: Rehabilitation of 114 houses in Praia improved access to basic services.
  

• Childcare: 321 children now benefit from quality childcare services.
  

• Employment & Productive Inclusion: Over 2,100 vulnerable households received training and grants to foster income-generating activities.
  

Gender and Public Sector Initiatives
Efforts to promote gender equality advanced during this period. Public institutions began implementing gender-equality instruments, with a focus on women's skills in STEM (Women are underrepresented in digital studies and careers, as in other areas of science, technology, engineering and maths (STEM) , the blue economy ( an economic system or sector that seeks to conserve marine and freshwater environments ) , and combating workplace discrimination. These steps align with broader social-inclusion and donor-supported programming priorities.

International Relations and Trade News Briefing: Mai to August 2025

Emergency Aid and Global Solidarity
Following Tropical Storm Erin in August, Cabo Verde received extensive international support. The European Union and member states—including Germany, Spain, France, Portugal, Luxembourg, and the Netherlands—provided emergency aid comprising medical equipment, hygiene kits, water purifiers, blankets, and naval support with specialists for search operations and infrastructure repair.

Engagement with Multilateral Institutions
Cabo Verde deepened its collaboration with the World Bank and IMF, with staff-level agreements in May and a full IMF review in July, focusing on enhancing economic resilience. These engagements reinforce fiscal discipline, policy oversight, and ongoing dialogue on sustainable growth.

Trade, Regional Integration, and Economic Cooperation
In May, the EU reviewed Cabo Verde's trade policy, praising the country's political stability, sound macroeconomic management, and high human rights standards. The EU reaffirmed its position as Cabo Verde's main trading partner and highlighted cooperation under the Global Gateway initiative, targeting digital transition and renewable energy projects. Cabo Verde also maintained active participation in regional integration efforts, including the African Continental Free Trade Area (AfCFTA) and ECOWAS' Common External Tariff (CET) implementation.

Fisheries, Business, and Investment Partnerships
Cabo Verde strengthened fisheries and business cooperation with EU regional partners, particularly in Spain and Galicia, and engaged in EU investment fora to attract private capital for port development and fisheries modernization. These moves aim to diversify trade and reduce vulnerability to external shocks, including climate-related risks.

Strategic Diplomatic Profile
The country's independent diplomatic initiatives, including high-level visits during the 50th independence anniversary, enhanced Cabo Verde's visibility on the international stage. Football qualifiers and participation in continental events further raised its profile, projecting a positive image abroad.

Public Safety and Security - News Briefing: Mai to August 2025

Severe Weather and Emergency Response

The period's most significant safety crisis stemmed from Tropical Storm Erin on August 10–11. Torrential rains triggered flash floods, killing at least nine people (reports vary up to 12) and leaving two missing, while cutting off roads and overwhelming emergency services on northern islands. The government declared a state of emergency, activating national disaster response mechanisms amid concerns over further landslides during the August–October rainy season. International relief and scientific assessments flagged infrastructure and coastal vulnerabilities.

Transport and Connectivity Disruptions
Domestic air services were heavily affected, with TACV Airlines canceling multiple flights in August and September. Airports such as Praia, Sal, and São Vicente experienced significant disruptions, impacting both tourism and supply chains. Despite these challenges, Cabo Verde remains a generally safe destination for visitors, combining natural beauty with low crime rates, though travelers are advised to monitor weather alerts closely.

Crime, Migration, and Border Security
Public safety priorities include border management and crime prevention. Cabo Verde hosted the 19th Annual Meeting of Police Chiefs, focusing on the Threat of Terrorism and Violent Extremism and implications for airports and borders, referencing the 2025 Global Terrorism Index. While overall crime rates remain low, tourist hubs such as Praia, Sal, and Boa Vista report minor incidents like petty theft. Cabo Verde's geostrategic position also raises concerns about irregular migration and organized crime, prompting international cooperation to combat human trafficking and drug smuggling.