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Cabo Verde special economic zones ZDTI

Special Zones in Cabo Verde: Infrastructures Facilitating Private Investments


Cabo Verde, with its strategic Atlantic position and investor-friendly policies, has established a network of special infrastructured zones to attract private investments across various sectors. These zones, equipped with essential utilities like roads, electricity, water, and telecommunications, reduce setup costs and timelines for businesses. Managed under the Investment Code and overseen by agencies like Cabo Verde TradeInvest (CVTI) and the Sociedade de Desenvolvimento Turístico das Ilhas de Boa Vista e Maio (SDTIBM), they offer incentives such as tax exemptions, streamlined permitting, and land concessions. While zones exist for industry, fisheries, and renewables, the most prominent are the Zonas de Desenvolvimento Turístico Integrado (ZDTI)—Integrated Tourism Development Zones—designed exclusively for tourism projects. These ZDTI span the archipelago, promoting sustainable development in hospitality, eco-tourism, and leisure. As of 2025, over 25 ZDTI cover about 5.3% of national territory, contributing to tourism's 25-40% GDP share. This article details the ZDTI by island, highlighting their locations, sizes, features, and investment potential.

ZDTI on Boa Vista

Boa Vista, known for its vast white-sand beaches and desert landscapes, hosts three ZDTI focused on luxury resorts and eco-tourism. These zones benefit from proximity to the international airport and natural reserves, with infrastructures including paved access roads, power grids, and wastewater systems to support large-scale developments.

  • Chaves: Located on the northwest coast, this 1,200-hectare ZDTI features the iconic Chaminé de Chaves (old chimney ruins) and adjoins the Morro de Areia Nature Reserve. It emphasizes beachfront hotels and sustainable tourism, with planned eco-lodges and water sports facilities. Investments here leverage the area's calm waters and dunes, ideal for kitesurfing hubs. Current developments include mid-range resorts, with incentives for green energy integration.
  • Morro de Areia: Spanning 2,131 hectares along the southern coast, this ZDTI encompasses a protected nature reserve with 167-meter sand dunes and unspoiled beaches. It promotes low-density tourism to preserve biodiversity, including rare fauna like loggerhead turtles. Infrastructure supports boutique hotels and nature trails, with recent additions like solar-powered utilities. The zone's ecological focus attracts investors in adventure tourism, with concessions for up to 99 years.
  • Santa Mónica: Covering 1,500 hectares in the southwest, this ZDTI centers on the 22-km Santa Mónica Beach, often hailed as Cape Verde's most beautiful. It facilitates all-inclusive resorts and golf courses, with enhanced road links to Rabil town. Developments emphasize cultural integration, such as morna music venues, and environmental safeguards against erosion. High FDI potential here, with tax breaks for projects creating over 50 jobs.

ZDTI on Maio

Maio, a serene island with pristine beaches and low tourism density, features three ZDTI integrated into the emerging Zona Económica Especial da Ilha do Maio (ZEEIM). These zones prioritize community-led eco-tourism, with infrastructures like fiber optic connectivity and desalination plants to address water scarcity.

  • Sul da Vila de Maio: Situated south of the main town (Vila do Maio), this 800-hectare ZDTI focuses on urban-adjacent developments like boutique hotels and cultural centers. It benefits from port proximity for yacht tourism, with paved roads and electricity grids in place. Plans include heritage sites preservation, attracting investors in agrotourism combining beaches with local farming.
  • Ribeira D. João: The largest at 1,060 hectares on the eastern coast, with 924 hectares (87%) designated for occupation, this ZDTI features white-sand beaches like Cadjetinha and Porto. Infrastructure supports resort clusters and nature reserves, emphasizing biodiversity (e.g., wetlands). It's ideal for wellness tourism, with incentives for solar-powered facilities and job creation in hospitality.
  • Pau Seco: Covering 600 hectares in the north, this ZDTI targets adventure and eco-lodges amid rugged landscapes. Basic infrastructures like access trails and power lines are established, with potential for hiking and birdwatching ventures. As part of ZEEIM, it offers extended tax holidays for sustainable projects, fostering partnerships with local cooperatives.

ZDTI on Santiago

Santiago, the largest and most populous island, boasts eight ZDTI around its coasts, leveraging Praia's urban amenities and natural diversity. These zones are equipped with advanced infrastructures, including highways, ports, and high-speed internet, to support mixed-use tourism like cultural and adventure experiences.

  • Norte da Praia: At 1,650 hectares north of the capital, this ZDTI focuses on urban beach resorts and conference centers, with direct airport access. Developments include luxury hotels, benefiting from city utilities.
  • Achada Baleia: Spanning 351 hectares, it emphasizes eco-tourism with mangrove preservation, supported by coastal roads and eco-friendly power systems.
  • Mangue Monte Negro: 155 hectares dedicated to nature-based tourism, featuring black-sand beaches and hiking trails, with wastewater treatment infrastructures.
  • Porto Coqueiro: A compact 26-hectare zone for marina developments, equipped with docking facilities and electricity grids for yacht tourism.
  • Achada Lage: 68 hectares for boutique accommodations, with road links and water supply enhancing accessibility to nearby cultural sites.
  • Sudoeste da Praia: Southwest of the capital, this 1,200-hectare ZDTI promotes high-end resorts, integrated with urban sewage and fiber optics.
  • Achada Rincão: 400 hectares for adventure tourism, including cliffs and valleys, with trail infrastructures and renewable energy incentives.
  • Alto Mira: In the northwest, 500 hectares for rural eco-lodges, supported by rural electrification and community water projects.

ZDTI on Sal

Sal, the tourism epicenter with its airport, features four ZDTI centered on beaches and salt lakes. Advanced infrastructures like desalination and 5G pilots make it a hotspot for all-inclusive resorts.

  • Santa Maria: Bisected into East and West (total 2,000 hectares), this urban ZDTI hosts major hotels, with full utilities and kitesurfing facilities.
  • Pedra de Lume: Northeast, 800 hectares around historic salt craters, for wellness spas with road and power upgrades.
  • Murdeira/Algodoeiro: Western coast, 1,200 hectares for golf and resorts, integrated with bay protections and fiber networks.
  • Morrinho Branco: Southeast, 600 hectares for eco-tourism, with trails and renewable energy infrastructures.

ZDTI on São Vicente

São Vicente, a cultural hub with vibrant Mindelo, has seven ZDTI emphasizing music festivals, beaches, and marine activities. Infrastructures include port expansions and broadband networks to attract creative industries and events tourism.

  • Palha Carga: Near Mindelo, this ZDTI focuses on urban waterfront developments, with roads and utilities for hotels and event spaces.
  • Praia Grande: A beachfront zone for resorts, equipped with coastal protections and power grids, ideal for water sports.
  • São Pedro: Southwest coast, supporting fishing-integrated tourism with marina infrastructures and eco-lodges.
  • Baía das Gatas: Famous for its music festival, this ZDTI has event venues and beach access roads, promoting cultural tourism.
  • Vale de Flamengos: Inland valley for agrotourism, with irrigation systems and trails linking to beaches.
  • Salamansa: Northern fishing village zone, with community-focused infrastructures like solar power for sustainable lodges.
  • Saragaça: Coastal area for luxury villas, supported by fiber optics and wastewater systems.

Cabo Verde's special zones, particularly ZDTI, exemplify a proactive approach to private investment, offering turnkey infrastructures and incentives via CVTI. By channeling tourism into designated areas, they balance growth with sustainability, creating jobs and preserving ecosystems. Investors should contact CVTI for concessions, with potential returns amplified by the archipelago's 10 million annual visitors by 2030.

Infrastructure Zones for Industrial Investments in Cape Verde

Cabo Verde, a strategically located archipelago in the Atlantic, has prioritized industrial development as part of its economic diversification strategy under the Ambition 2030 plan. To attract private investment in manufacturing, processing, and related industries, the country has established zonas infraestruturadas para investimentos industriais (infrastructured industrial zones) on the islands of São Vicente and Santiago. These zones, equipped with essential infrastructure such as roads, electricity, water supply, and telecommunications, reduce operational costs and accelerate business setup. Managed with support from Cabo Verde TradeInvest (CVTI) and aligned with the Investment Code, these industrial parks offer incentives like tax holidays, customs exemptions, and expedited permitting. As of October 2, 2025, these zones contribute to the nation's goal of boosting industrial GDP from 10% to 15% by 2030, leveraging proximity to ports and urban markets. This background explores the development, features, and significance of these industrial zones on São Vicente and Santiago.

Historical Context and Development

The creation of industrial zones in Cabo Verde reflects a shift from an agrarian and tourism-dependent economy toward industrialization, initiated in the late 1990s with economic liberalization post-independence (1975). The first significant step came with the establishment of the Parque Industrial de Lazareto on São Vicente in the early 2000s, funded by a €5 million loan from the African Development Bank (AfDB). On Santiago, industrial zoning began with the Praia urban master plan in 2005, supported by the Millennium Challenge Corporation (MCC) Compact (2015-2020), which allocated €10 million for infrastructure upgrades. These efforts were reinforced by Decree-Law No. 4/2010, which formalized industrial zone designations and incentives, aiming to attract foreign direct investment (FDI) in light manufacturing, agro-processing, and logistics. By 2025, ongoing digitalization via the Land Management Information and Transaction System (LMITS) has improved land allocation transparency, with 90% of industrial plots now registered.

Industrial Zones on São Vicente

São Vicente, a cultural and commercial hub centered around Mindelo, hosts three key industrial zones, capitalizing on its deep-water port and connectivity to international shipping routes.

  • Parque Industrial de Lazareto: Located on the eastern outskirts of Mindelo, this 33-hectare zone is the island's flagship industrial park. Established in 2003, it features subdivided industrial lots (60% of area), service zones for commercial and social facilities (20%), green spaces (10%), and parking (10%). Infrastructure includes paved roads, a 10 MW power substation, water pipelines, and fiber optic links, supporting over 50 small-to-medium enterprises (SMEs) in fish processing, textile manufacturing, and packaging. Recent expansions in 2024 added a waste management unit, aligning with sustainability goals. The zone's proximity to Porto Grande port (5 km) enhances export potential, with annual cargo throughput of 300,000 tons.
  • Zona Industrial Sul: Adjacent to the Campinho residential area, this smaller zone (15 hectares) focuses on light industries like furniture and metalworks. Developed in 2010, it offers basic utilities—electricity and water—and is expanding with a new industrial shed project funded by €2 million from the European Union. It hosts 20 firms, benefiting from tax exemptions on imports for machinery.
  • Zona Industrial de Ribeira de Julião: Situated 8 km north of Mindelo, this 20-hectare zone targets agro-processing and renewable energy equipment assembly. Initiated in 2015 with AfDB support, it includes solar-powered microgrids and irrigation systems, hosting 15 businesses. Its rural setting supports local supply chains, with plans for a cold storage facility by 2026.

Industrial Zones on Santiago

Santiago, home to the capital Praia, features four industrial zones integrated into the city's urban framework, leveraging its population of 140,000 and port facilities. These zones, defined in the 2005 Praia Urbanization Plan and upgraded under MCC initiatives, cater to diverse industries from construction to food processing.

  • Zona Industrial de Tira Chapéu: Located 3 km west of Praia, this 25-hectare zone specializes in construction materials and metal fabrication. Equipped with a 5 MW power line, water supply, and access roads, it hosts 30 companies, including cement producers. A 2023 expansion added a vocational training center, supported by €1.5 million from the World Bank.
  • Zona Industrial de Achada Grande Trás: Spanning 18 hectares northeast of the city, this zone focuses on food processing and packaging, with cold storage and waste treatment facilities. It supports 25 SMEs, benefiting from proximity to the Praia Fish Market and a new fiber optic node installed in 2024.
  • Zona Industrial de Achada S. Filipe: A 12-hectare area south of Praia, it targets light manufacturing like plastics and electronics assembly. Infrastructure includes a shared industrial building and sewage system, hosting 15 firms. Its urban location aids logistics, with a planned 5G pilot by 2026.
  • Zona Industrial de Palmarejo Grande: Covering 20 hectares in the northwest, this zone emphasizes textile and garment production. It features a 3 MW power grid, water reservoirs, and green spaces, supporting 20 businesses. Recent upgrades include a wastewater recycling plant, funded by €3 million from the African Development Bank.

Significance and Incentives

These industrial zones are pivotal for Cabo Verde's economic diversification, creating 2,500 direct jobs by 2025 and attracting €50 million in FDI since 2010. Incentives include a 5-10 year IRPC (Corporate Income Tax) holiday, VAT exemptions on equipment imports, and subsidized land leases (e.g., €1/m² for 10 years). CVTI coordinates with the Ministry of Industry, Commerce, and Energy to fast-track permits, with approvals often under 60 days. The zones' strategic locations—near ports and urban centers—enhance export competitiveness, with São Vicente targeting West African markets and Santiago serving ECOWAS trade routes.

Challenges and Future Outlook

Challenges include limited land (total industrial area <1% of territory), skills shortages, and occasional water supply issues during droughts. Future plans involve expanding Lazareto to 50 hectares by 2027 and adding a tech park in Palmarejo Grande, supported by €15 million from the European Investment Bank. By 2030, these zones aim to host 200 firms, aligning with Cabo Verde's 15% industrial GDP target.

Conclusion

Cabo Verde's infrastructured industrial zones on São Vicente and Santiago provide a solid foundation for private investment, blending urban access with export-ready infrastructure. From Lazareto's diverse ecosystem to Praia's specialized hubs, these areas exemplify the nation's industrial ambitions. Investors should engage CVTI for concessions, tapping into a growing market with clear incentives and strategic potential.