Cape Verde profile

Demography and Health

Cape Verde is a small island nation with a population of about 525 thousand as of 2024, indicating a compact market and society where demographic dynamics influence urban planning, education, and health needs. The crude birth rate of 12.3 births per 1,000 people and a crude death rate of 5.06 per 1,000 point to a slowly aging population with ongoing demographic transition. Life expectancy at birth stands at 76.1 years (2023), reflecting comparatively strong health outcomes for a small developing state, supported by a current health expenditure of 6.67% of GDP and a per‑capita health expenditure (PPP) of about 426 international dollars. The under‑5 mortality rate is 11.6 per 1,000 live births, suggesting progress in child health, though not without room for improvement. Moreover, Cape Verde records a suicide rate of 14.9 per 100,000 (2021), highlighting mental‑health considerations alongside broader public health needs. Net migration in 2024 shows a modest outflow (-1,209 people), a pattern common in small economies that can affect the availability of skilled labor and public health staffing over time. Nutrition security shows 12.6% of the population undernourished (2022), while water resource stress remains acute—water withdrawal represents 57.2% of available freshwater resources (2021)—underlining vulnerability to climate and resource constraints in sustainability planning. Internet penetration is relatively high for a small island nation, with 73.5% of the population online in 2023, underscoring the potential for digital health services and outreach. Overall, the health and demographic indicators point to a country with solid health outcomes and robust connectivity, yet challenged by nutrition, water security, and outflows of people in search of opportunities.

Economy, Trade and Investment

Cape Verde’s economy shows a per‑capita income around 5,273 current US dollars (2024) and purchasing power parity that values goods and services at about 11,262 international dollars, signaling a lower‑middle‑income status with significant room for productivity gains. The structure features a notable services orientation, with exports of goods and services at 41.9% of GDP in 2024 and imports at 53.2% of GDP, indicating a small, highly open economy dependent on external markets for both inputs and demand. The inflation rate is subdued at 1.05% (2024), contributing to price stability that can support consumer confidence and investment planning. The current account balance stands at 3.65% of GDP (2024), suggesting a modest external stance within a trade‑and‑services driven economy. Foreign direct investment net inflows equal 3.89% of GDP (2024), reflecting continued international interest but also a need to diversify sources of capital and strengthen domestic investment climate. The economy benefits from some high‑technology exports, totaling 73,876 current US$ (2023), but with a low world‑rank in advanced tech exports (rank 140), indicating that technology activities are present but not yet dominant. Cape Verde maintains a pragmatic import‑dependent model, which can be bolstered by improving local value chains and expanding niche services such as tourism, logistics, and digital platforms. Population size supports cautious scaling of productivity, while governance and infrastructure will shape how fast the economic gains translate into broad welfare improvements.

Governance and Institutions

The governance indicators present a nuanced picture: political stability and absence of violence/terrorism are relatively strong (0.903, rank 36), suggesting a stable political environment conducive to long‑term planning. Control of corruption is notably high (0.985, rank 33), signaling effective anti‑corruption measures or perceptions thereof, which can foster business confidence and public trust. However, regulatory quality (0.243, rank 76) and rule of law (0.4, rank 73) are more modest, pointing to weaknesses in the formal regulatory framework and legal enforcement that can impede contract clarity, risk assessment, and timely dispute resolution. Government effectiveness is reported at 0.0137 (rank 90), indicating limited perceived administrative capacity or efficiency, which can translate into slower policy implementation or complex regulatory processes despite stable political conditions. Innovation indicators are modest, as patent applications by residents stand at 1.0 (2021), underscoring limited domestic R&D activity and a reliance on external know‑how or foreign technology to drive productivity. Net migration outflows further suggest talent displacement pressures that governance and institutions must address through investment in education, job creation, and favorable business environments. Taken together, Cape Verde demonstrates political steadiness and relatively strong anti‑corruption signals, but faces institutional development needs in regulatory quality, governmental effectiveness, and innovation capacity to convert stability into sustained inclusive growth.

Infrastructure and Technology

Digital connectivity is a notable strength, with 73.5% of the population using the Internet in 2023, enabling e‑services, digital entrepreneurship, and broader access to information. The economy’s openness is complemented by a measured level of high‑tech exports (about 73,876 US$ in 2023), indicating some capacity for technologically advanced activity, albeit not yet a major driver of growth. Renewable energy constitutes 21.8% of total final energy consumption in 2022, signaling progress toward cleaner electricity and resilience against imported fossil fuels, while broader energy transition remains a priority. The environmental context—most notably water stress with 57.2% freshwater withdrawal (2021)—highlights infrastructure and planning needs in water management, climate adaptation, and sustainable urban development. The broad internet penetration supports opportunities in financial inclusion, mobile banking, and distance education, but patent activity (1.0 resident patent applications in 2021) points to limited domestic innovation ecosystems and potential reliance on external knowledge circuits. The level of foreign direct investment (3.89% of GDP in 2024) also reflects a climate favorable to foreign capital, provided that regulatory quality and administrative efficiency improve to reduce transaction costs and risk perceptions for investors.

Environment and Sustainability

Cape Verde’s environmental profile shows a modest per‑capita greenhouse gas footprint of 2.36 t CO2e (2023), reflecting emissions patterns typical of small, service‑oriented economies with limited heavy industry. However, environmental vulnerability is evident in water resources: rainfall variability and high water stress (57.2% of available freshwater withdrawal, 2021) challenge water security and agricultural resilience. Renewable energy share at 21.8% (2022) signals a commitment to decarbonization, yet fossil energy dependence likely persists and will be a focal point for climate risk management and energy policy. Socioeconomic indicators, including 12.6% undernourishment (2022), intersect with environmental stress, underscoring the importance of sustainable management of land, water, and coastal ecosystems to safeguard food security and public health. While life expectancy remains high and governance indicators such as control of corruption are strong, environmental stewardship will hinge on expanding renewable capacity, improving water governance, and integrating climate considerations into infrastructure and economic planning to bolster resilience for future decades.