Cabo Verde’s tourism sector, which has been a driver of economic growth and job creation, experienced exceptional growth over the past two decades, reaching an estimated 25% of GDP by 2019. The COVID-19 pandemic, however, led to a decline in arrivals by 75%  in 2020, affecting tourism and ancillary sectors resulting in an economic decline of 14.8% in 2020.

The pandemic reinforced the imperative of diversifying the economy as an essential measure of resilience to external shocks. Cabo Verde Ambition 2030 sets the commitment for the diversification of the economy by integrating the country into new global value chains. The Cabo Verdean authorities are prioritizing the Blue Economy, the green transition and renewable energy,  digitalization and innovation, sustainable tourism and culture,  and human capital, including health and education. Cabo Verde is also  seeking to establish an international financial centre with a focus on sustainable finance.

Acknowledging the increasing importance of services in supporting countries’  diversification efforts, it would be beneficial for Cabo Verde to develop new “deep trade agreements" (with respect to the African Continental Free Trade Area and the Economic Community of West African States), including in the broad category of services and digital services (e.g. eservices, ecommerce). Such trade policies involving services could lead to higher labour,  overall positive productivity multiplier effects  on 7 SDGs (SDGs 1,2 ,6, 7,  8, 11 and 12) and 18 associated targets, and to one trade-off on water treatment (SDG target 6.3).  When undertaking these investments, it is vital to incorporate safeguards to address the trade-offs.​

Cabo Verde is served  a good network of national and municipal roads  and rental car parks in good condition, meaning that most of the population has safe and easy access to transport. Most cities are small and, as such, internal mobility does not depend on the availability of public transport, which, in any case, is of high quality, reliable, safe and comfortable in the two largest cities, namely Praia and Mindelo. Interurban transport is served by minibuses and, to a lesser extent, by mixed type vehicles, especially to areas not served by proper or paved roads.

However, no Cabo Verdean city has mobility systems adapted for people with disabilities, and architectural barriers seriously limit accessibility. As a Small Island Developing State, the country also needs to develop its maritime and air transport systems to strengthen its links and connectivity to the rest of the World  as this will be key to unlocking its economic diversification challenge.

Investing in effective low-cost public transportation makes cities more inclusive, safe and sustainable. Effective and low-cost public transportation reduces urban poverty and inequalities and enhances inclusive growth through access to jobs, health care, education services and other public goods when adequately supported by environmental safeguards on SDG Targets 2.3, 7.2 and 14.2.

In Cabo Verde, approximately 70.6% of the population expresses satisfaction with the public services they receive. By focusing on SDG 16 (Peace, justice and strong institutions), specifically on Target 16.6, and improving its  governance systems,  Cabo Verde will reap a “governance dividend.”

Improving governance and fighting corruption remain critical ingredients in boosting inclusive growth and development in Cabo Verde. Sound institutions that guarantee integrity in the management of public affairs are critical on the path toward higher and more inclusive growth. This increase will have a positive multiplier effect on the progress made on other SDGs.

Institutional strength and accountability is instrumental in how effectively countries recover,  build more resilient post-pandemic economies and achieve the SDGs.