Adapted from a report by the United Nations Conference on Trade & Development
Cabo Verde, a small island nation navigating the twin pressures of ecological fragility and climate change, is being urged to anchor its development strategy in trade-led growth that respects the environmental limits of its archipelago.
With a limited domestic market and a persistent trade deficit, the country’s future hinges on expanding exports—both in volume and diversity. According to a new report from the United Nations Conference on Trade & Development (UNCTAD), tapping into regional trade opportunities, especially through the African Continental Free Trade Area (AfCFTA), could be a game-changer. Currently, Cabo Verde’s trade with Africa, particularly within ECOWAS, remains minimal.
The report also highlights the broader global context: disrupted supply chains following the COVID-19 pandemic, ongoing conflicts in Ukraine and the Middle East, and rising geopolitical tensions between major powers like the U.S. and China—all of which add layers of complexity to Cabo Verde’s trade ambitions.
A key focus of the analysis is the country’s reliance on tourism and tuna exports—sectors that are highly vulnerable to environmental degradation and global economic shocks. To build resilience, the report advocates for a shift toward regional value chains and a sustainable Blue Economy model that harnesses marine resources while safeguarding ecosystems.
Central to this vision is the proposed Blue Economy Entrepreneurial Ecosystem (BEE), a framework designed to support small and medium-sized enterprises (SMEs) in Cabo Verde. The BEE aims to foster innovation, promote sustainable practices, and diversify the economy in alignment with regional development goals.
In essence, Cabo Verde’s future lies in balancing trade expansion with ecological stewardship—leveraging its ocean assets not just for growth, but for long-term resilience and shared prosperity across the African continent.