weighted score 4.3 · ten dimensions
Sourcing Attractiveness Index · ten dimensions
Cape Verde
Labour cost, supply base depth, logistics infrastructure, trade access, and innovation scores for Cape Verde as a sourcing destination.
Labour cost competitiveness
5
Moderate wages for West Africa — island cost premium. Small population (~590,000) limits available workforce. Higher than mainland alternatives.
Supply base depth
2
Minimal manufacturing base. Economy dominated by services and fisheries. No industrial clusters. Very limited component or material supply chains.
Logistics & infrastructure
4
Island archipelago with adequate ports and airports. Mid-Atlantic position offers logistics hub potential. Inter-island connectivity adds complexity.
Workforce skills
5
High literacy rates for Africa (~90%). Strong education system. Limited technical/vocational training for manufacturing. Many skilled workers emigrate.
Scalability
6
Tourism and fisheries can scale within natural limits. Manufacturing scalability constrained by population, geography, and supply base. Renewable energy potential.
Ease of doing business
6
Best governance in West Africa (CPI 62). Rule of law established. Transparent regulatory framework. Small market but low corruption reduces friction.
Trade access & tariffs
4
EU EPA provides duty-free access. EU Special Partnership. But small export base limits practical trade volumes. No major FTAs beyond EU.
Sustainability baseline
5
Renewable energy targets ambitious (100% by 2040). Marine conservation efforts. Water scarcity is a challenge. Tourism sustainability framework developing.
Innovation & IP
2
Minimal R&D infrastructure. No significant patent activity. Innovation ecosystem nascent. Digital economy developing but from low base.
Quality standards
4
Fisheries products meet EU SPS standards for export. Limited manufacturing quality infrastructure. Tourism services at international standards on key islands.
Labour & Cost Competitiveness
Labour & Cost Competitiveness
- Wage levels
- Cape Verde has moderate wages for West Africa — higher than mainland neighbours due to island cost structure. Minimum wage around USD 150/month. Small population (~590,000) limits labour pool significantly.
- Economic structure
- Services-dominated economy (tourism ~25% GDP, remittances significant). Limited manufacturing base. Fisheries are the main productive export sector. The economy is vulnerable to external shocks affecting tourism demand.
- Remittances
- Diaspora remittances are a major income source (>10% GDP). This creates wage floor effects and reduces labour availability for low-wage manufacturing.
Infrastructure & Market Access
Infrastructure & Market Access
- Connectivity
- Island archipelago with international airports on Sal and Santiago. Port infrastructure adequate for current trade volumes. Geographic position in mid-Atlantic provides potential as logistics hub between Africa, Europe, and Americas.
- EU special partnership
- Cape Verde has a Special Partnership with the EU (since 2007) covering governance, security, and development cooperation. This provides preferential regulatory alignment pathways but is not a comprehensive FTA.
- Trade access
- EPA (Economic Partnership Agreement) with EU provides duty-free access for most goods. Strong rule of law for the region makes it attractive for business despite small market size.
Governance & Business Environment
Governance & Business Environment
- Democracy
- Most stable democracy in West Africa. Multi-party system with peaceful power transitions since independence (1975). Freedom House rates Cape Verde as 'Free' — rare in the region.
- Corruption
- TI CPI 2025: 62 — strongest in West Africa. Judiciary is independent. Rule of law is well-established for the region. Anti-corruption framework functional.
- Business environment
- Regulatory framework is relatively transparent. Foreign investment welcomed. Banking sector stable. Small market limits economies of scale but governance quality reduces transaction costs.