Excerpt from africa-news-agency.com
By Bylkiss Mentari
At independence in 1975, Cabo Verde faced multiple challenges: geographic isolation, limited natural resources, and an economy dominated by subsistence agriculture. With one of the lowest GNI per capita in Africa, the archipelago seemed destined for economic marginalization. However, political stability and a series of ambitious economic reforms allowed the country to gradually diversify its activities and build a more resilient economy.
“An increase of 16.8% in gross national income per capita between 2023 and 2024 reflects the country’s economic evolution. As of today, July 1, 2025, Cabo Verde will be classified as an upper-middle-income country according to World Bank criteria,” the institution stated in a press release.
Tourism: the engine of growth
In 2024, Cabo Verde’s GDP reached $2.77 billion, with an annual growth rate of 7.3%. Tourism, the main growth driver, increased by 16.5% and now accounts for nearly 25% of GDP and 55% of exports, according to Coface. The archipelago successfully attracted European markets, particularly Portugal, France, and the UK, and the arrival of low-cost airlines further boosted its appeal.
“Cabo Verde’s recovery is a testament to the resilience of its people and institutions. But to transform this rebound into lasting and inclusive prosperity, bold reforms are needed – particularly to improve SOE governance, support women’s economic participation, and diversify the economy,” said Indira Campos, World Bank Resident Representative for Cabo Verde.