The government of Cabo Verde has launched a project to propel the development of vibrant capital markets in the country. The African Development Bank approved a $350,000 grant from its Capital Markets Development Trust Fund in October 2021 to help develop the countryโs first-ever Capital Markets Masterplan. The funds will also facilitate the expansion of domestic fixed-income markets by upgrading existing infrastructure.
During the virtual launch held on 1 February 2022, Cabo Verdeโs Vice Prime Minister Olavo Correia said the project would result in a more dynamic, technologically advanced capital market, with greater liquidity. โThe African Development Bank has been an important development partner of Cabo Verde since independence, and now, once again, the Bank is doing so by supporting one of the main instruments for enabling and promoting sustainable investment and savings through the Cabo Verde Stock Exchange.โ
African Development Bank Deputy Director-General for West Africa, Joseph Ribeiro, said: โThe project we are supporting will help Cabo Verdeโs efforts to deepen and widen local domestic resource mobilization needed for economic diversification and the delivery of national development plans. It is in line with both Cabo Verde and African Development Bank priorities.โ
The local stock exchange, Bolsa de Valores de Cabo Verde, will execute the project in partnership with the domestic capital markets ecosystem. Marcia Teixeira Marรงal, Executive Director at the BVC, said he believes the initiative will create business opportunities for companies, investors, operators, and other stakeholders, โfor which we are very grateful for this partnership with the African Development Bank.โ
The objectives of the project are aligned with the priorities of the Bankโs Country Strategy for Cabo Verde, which seeks to build the foundations for economic diversification and inclusive growth. The Capital Markets Development Trust Fund is a multi-donor grant facility that supports the Bankโs efforts to mobilize domestic resources to finance Africaโs development. Administered by the African Development Bank, the Trust Fund is currently supported by two donors: the Ministry of Finance of Luxembourg and the Ministry of Foreign Trade and Cooperation of the Netherlands.
