1. INVESTMENT IN CAPE VERDE
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

2. COUNTRY PROFILE
CAPE VERDE ISLANDS
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

3. COUNTRY PROFILE
Cape Verde: an archipelago of the West Coast of Africa - 10 islands;
Land Area: sq miles (4.033 sq Km);
Population: (June 2000 census);
Main Towns: Praia (capital) and Mindelo
Language: Portuguese, Creole
Time: 1 hour Behind GMT
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

4. COUNTRY PROFILE Republic of Cape Verde since July 5th, 1975;
Legislative Branch: Unicameral Parliament (National Assembly);
President: Elected Head-of-State for 5 year term;
Executive: Prime Ministry and Cabinet;
Judiciary System: Supreme Court of Justice and courts of first appeal; Court of Audit, Fiscal and Customs Courts;
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

5. COUNTRY PROFILE Fiscal Year: January 1st – December 31th
Currency: Cape Verde escudo (CVE);
Exchange rate (2001)
1 EURO = 123,52 CVE
1USD = 112,27 CVE
(source: BCV)
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

6. COUNTRY PROFILE Tourism Product
Beautiful sceneries, impressive landscapes, as valleys, green mountains. Santo Antão, São Nicolau, Brava and Santiago island are the destination for those who love trekking, hiking expedition and other adventures .
Golden sand beaches with crystal clear water perfect for those who love nautical sports, scuba diving, fishing (Sal, Boavista and Maio islands).
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

7. COUNTRY PROFILE Tourism Product
Strong culture, handicraft, rich gastronomy, music festivals, religious activities in all islands.
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

8. INVEST IN CAPE VERDE
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

9. POLITICAL CONDITIONS
Political System: Democratic (multi-party) system of government (universal suffrage); proportional representation through electoral districts;
Consolidated Democracy: multi-party elections have been held on a regular basis since Cape Verde already has experienced two peaceful political transfer of power (in 1991 and 2001).
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

10. ECONOMIC CONDITIONS Economic System: Private Sector oriented;
Inflation Rate: 3,5% (2001);
Major trading Partners : EU (Portugal, France, Holland, Germany, Spain and Italy);
Excellent relationship with the World Bank and IMF.
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

11. ECONOMIC CONDITIONS
Natural Resources - Marine resources, salt, limestone, wind and solar energy
Industry: Fish and sea products, salt,construction, building materials, ship repair, clothing, shoes, furniture, metal products, beverages
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

12. ECONOMIC CONDITIONS
Exports: electronic components, shoes, fish, pharmaceutical products, clothing, services.
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

13. INFRASTRUCTURAL CONDITIONS
One international airport with daily connections to Europe and the USA
Latest, competitive communication technology (including optical fibbers linking all the islands)
Availability of two industrial parks
Fish processing and storage space available
Availability of shipping related services as naval repair and ports with modern facilities
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

14. ECOLOGICAL CONDITIONS
Sahelo – Saharan climatic Zone: Dry and tropical, rainfall is erratic and there are long periods without rain, average temperature 20 – 27 ºC
Volcano in Fogo: last eruption in 1995, altitude 2829 meters
High environmental protection standards
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

15. REASONS TO INVEST IN CAPE VERDE
Optimal geographic location: Halfway between the Americas, South Africa and Europe.
Access to more than 500 million consumers: Preferred access of national products in some regions: West Africa (ECOWAS) Europe (Cotounou agreement); United States (AGOA,SGP)
privileged relationships with African Portuguese speaking countries (Angola, Mozambique)
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

16. REASONS TO INVEST IN CAPE VERDE
Fiscal Incentives:
Tax exemption on dividends during the first 5 years of operation
Tax exemption on dividends when reinvested
Tax exemption on amortization and interests
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

17. REASONS TO INVEST IN CAPE VERDE
Guaranties to the Investors:
Protection of investor’s rights and property;
Free repatriation of dividends and income;
Direct operation of foreign currency accounts;
Hiring of foreign workers without restrictions;
Fiscal, customs, financial and administrative tax incentives to exportations
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

18. INVESTMENT OPPORTUNITIES
Tourism:
Resort Hotels, Executive Hotels, Sports fishing and diving, yacht marinas, windsurf, rock-climbing, golf courses,leisure spaces with restaurants, time-sharing complex and “chalets”
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

19. INVESTMENT OPPORTUNITIES
Industry:
Export oriented industries (textile and apparel); assembling industries; traditional food products for the immigrant communities, marine salt industry, ornamental stones industry, porcelain production, carpentry/joiner, packing, furniture etc
Agriculture: floriculture, fruits, decoration plants
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

20. INVESTMENT OPPORTUNITIES
Services: registry of ships, duty-free zones;
Teleport (data processing, telecommunications)
Banking off shore
International shipping
Fishery and Marine resources - industrial fishing, fish processing, aquaculture;
Cultural Industry – music, arts & crafts, others
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

21. INVESTMENT OPPORTUNITIES
Privatization
ENAPOR - Ports
CABNAVE – Ship repair Services
EMPA - Trading
EMPROFAC – Import and distribution of pharmaceutical products
TACV - Airline Transportation
INTERBASE – Seafood Conservation
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

22. GOVERNMENT GUARANTEES
No discrimination equal rights for all;
Protection of investor´s rights and property ;
Free expatriation of dividends and income;
Foreign currency accounts
Hiring of foreign workers, protecting their rights and guarantees
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

23. SPECIAL CONDITIONS FOR EXTERNAL INVESTORS
Settlement Agreements – Exceptional conditions for activities with strategic interest
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

24. LIMITS TO INCENTIVES Do not apply to:
External investment and economic activities mainly oriented to internal market.
External investment applicable to the financial sector, once this sector is regulated by a specific law
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

25. CONDITIONING FACTORS High cost of factors
Lack of professional training;
Limited internal market.
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

26. EXTERNAL INVESTMENT TREND (‘000 USD)
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

27. ORIGIN OF CAPITAL year 2001
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

28. EXTERNAL INVESTMENTS AUTHORISED PROJECTS Year 2001($USD)
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

29. GROWTH OF LODGING INFRAESTRUCTURES
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

30. ECONOMIC INDICATORS GDP – 3,5% (2001)
Unemployment Rate – 15,9% (4º trim. 2001)
Inflation– 3,7% (2001)
(source: BCV)
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

31. ECONOMIC INDICATORS Tourism Indicators (2001) Incomes – 39,5%
Contribution to GDP – 9,5%
Contribution to Balance of Payments – 41,1%
(source: BCV)
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

32. ECONOMIC INDICATORS Tourism Demand (structure in % 2001) (source: BCV)
Italy – 35,9%
Portugal - 24,9%
Germany – 13,9%
France – 8,8%
Holland e Belgium – 1,7%
Other countries – 14,8%
(source: BCV)
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

33. PERSPECTIVES MACROECONOMIC STABILITY PRIVATE SECTOR SUPPORT REFORMS
TRAINNING
PUBLIC SECTOR
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002

34. Ladies and Gentlemen Thank You for Your Attention
Promex - Centre for Tourism, Investment and Export Promotion of Cape Verde - July 2002