The World Bank approved a $30 million Development Policy Financing Operation on December 6 to support the Government’s efforts to strengthen policies for a sustainable, equitable, and greener recovery from the COVID-19 crisis in Cabo Verde.

“As Cabo Verde is recovering from the largest economic contraction in history and leveraging the moment to embark in an ambitious reform agenda, this operation supports policy action to lay the foundations for economic recovery by reducing fiscal risks and improving debt transparency, strengthening the resilience of poor and vulnerable households, particularly women, and enabling a sustainable private sector-led recovery,” says Nathan Belete, World Bank Country Director for Cabo Verde.

This operation, the first in a series of two, is closely aligned with the priorities the Government outlined in its recovery strategy, Cabo Verde Ambição 2030.

The program supports reforms to reduce fiscal risks and improve debt transparency by strengthening fiscal risk management and improving the quality, frequency, and coverage of public debt reporting, including from State-Owned Enterprises. It also builds on the COVID-19 response program to strengthen the social protection system to enable a faster and better targeted response to external shocks. Finally, the operation promotes socially and environmentally responsible private investment in tourism, aquaculture, and tourism.

In sum, the program of reforms supported by the operation is expected to have positive effects on poverty, positive social and environmental impact, and increase the resilience of the economy to external shocks.

The World Bank supports Cabo Verde through 9 national IDA/IBRD projects for a net commitment of $186 million, one regional project for an amount of $15 million along with a comprehensive program of analytical services. These activities contribute to the country’s overall economic growth and development through the implementation of economic reforms related to transport, governance, private sector development, tourism competitiveness and diversification, social and productive inclusion, debt management capacity, human development, and digital transformation.