Cabo Verde: Global Gateway - Team Europe expands its support for digital sector, port infrastructure and renewable energy

On 4 September 2024, the government of the Republic of Cabo Verde, the European Union and the European Investment Bank (EIB) announced the signature of new financing totalling €300 million to back the strategic digital, port and renewable energy sectors in the country. This decision falls under the European Union’s Global Gateway strategy in Cabo Verde.

1) Support for Cabo Verde’s energy sector, with Team Europe funding of €159 million provided by the EIB, European Union and Luxembourg. This involves designing and building an electricity generation, grid and storage system up to 2029. This investment falls under Cabo Verde’s national electricity master plan 2018-2040, and will reduce the country's dependence on expensive and polluting fossil fuels by 2040. It will also provide new storage capacity for electricity from renewable sources.

2) Stronger digital connections, with €37 million to help the private sector and the country to become a digital hub for the West African region.

The European Union is backing this EIB operation by providing a financial guarantee. Investments will be made into a new state-of-the-art system of submarine cables linking Europe with the west coast of Africa. This financing will also enable the replacement of the fibre-optic submarine cable between the country's islands and modernisation to improve functionality and efficiency.

As a result, the project is expected to deliver major socioeconomic benefits for Cabo Verde and the wider West African region, particularly in terms of digital connectivity availability and quality for the local private sector, including small and medium-sized companies.

This initiative will therefore boost innovation and support the creation of highly skilled jobs in Cabo Verde, turning the country into a digital crossroads between Africa, Europe and South America.

3) Development of port infrastructure, with joint EIB-EU support of €105 million for expanding and modernising Cabo Verde’s strategic ports.

The European Union is working with the EIB to provide the Cabo Verde government with €105 million in financing to expand and modernise several of the country’s strategic ports, notably Porto Grande in Mindelo on the island of São Vicente, Porto Novo on Santo Antão and the port of Palmeira on Sal. In addition to the extension of breakwaters and mooring docks, basic infrastructure will also be installed to make it easier for the private sector to invest in the growing maritime economy sector in Cabo Verde.

European Commissioner for International Partnerships Jutta Urpilainen said: “The cooperation between Cabo Verde, the European Union and the EIB shows our shared commitment to a sustainable, inclusive and connected future under the Global Gateway strategy. This investment will not only modernise important infrastructure, but also position Cabo Verde as a regional leader in renewable energy and digital innovation. Together, we are paving the way for a more sustainable and prosperous future for the people of Cabo Verde and the entire West African region.”

EIB Vice-President Ambroise Fayolle added: “I am delighted that the EIB is supporting projects that are so important for sustainable development and innovation in Cabo Verde. The EIB is showing its determination to address the country’s priorities in developing more modern and more effective infrastructure with a real impact on the economy and people's daily lives. As a key partner of the European Union's Global Gateway initiative, we provide financing and expertise in vital sectors such as innovation, the digital economy, renewable energy, water, agriculture and transport across Africa. Our development arm, EIB Global, is strengthening our partnerships at an international, national and local level. By closely aligning our operations with regional and individual needs, we are laying the groundwork for a more sustainable future for all.”

Deputy Prime Minister, Minister of Finance and Business Development and Minister of Digital Economy of Cabo Verde Olavo Correia said: “It is with great enthusiasm that we welcome these strategic investments – a major step forward on our journey to sustainable development and technological innovation. These projects will not only modernise our digital and energy infrastructure, but also reinforce our commitment to creating a prosperous future for all Cabo Verdeans. The investments show our ongoing effort to position Cabo Verde as a regional leader in technology and renewable energy. They also illustrate our ability to form high-level international partnerships, reflecting global confidence in our vision and policies. We sincerely thank the European Union and EIB for their support and confidence in our ability to make these projects a reality. Together, we are building a brighter and more sustainable future for Cabo Verde.”

Background information

The EU and EIB support is fully aligned with the European Union's sub-Saharan Africa regional multiannual indicative programme 2021-2027 to promote sustainable energy and other links around the world.

Global Gateway

Launched at the end of 2021, the Global Gateway strategy is a European Commission initiative to mobilise new investment to better contribute to the sustainable development of emerging partner countries in the fields of digital, energy and transport; and for improving health, education and research systems around the world.

With the new Neighbourhood, Development and International Cooperation Instrument (Global Europe), Team Europe – the European Union, its Member States (including their implementing agencies and public development banks) and the EIB – are mobilising the private sector to promote local added value, sustainable growth and job creation.

About the European Investment Bank

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It provides long-term financing for sound investment projects helping to achieve EU policy objectives.

The EIB has been a strong partner for African countries for more than 60 years, and is expanding its presence on the continent via EIB Global. Over the last five years, the EIB has invested €12 billion in Africa – 25% of which went to West Africa – with the goal of financing projects in key areas for African countries such as clean energy, water and sanitation, sustainable transport, affordable housing, healthcare and support for the private sector and project promoters.

EIB Global is the EIB Group's specialised arm devoted to increasing the impact of international partnerships and development finance. It is designed to foster stronger, more focused partnerships within Team Europe, alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to local people, companies and institutions through our offices around the world.