A hotspot for Chinese investment
May 9, 2012, Wednesday
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Print Edition
Print Edition
GOVERNMENT passes baton to the private sector to ensure sustainable growth
Over the last decade, Africa has grown exponentially within a global context. As home to six of the world's 10 fastest growing economies, the continent is slated to grow by another 6 percent this year, thanks to what the World Economic Forum sums up as "improved macroeconomic and political stability, an ongoing resource boom and a growing consumer base."
Investment is flooding in, especially from China, and the resource-rich continent is looking forward to more. As leaders gather to attend the World Economic Forum on Africa in Addis Ababa, Ethiopia in May this year, they will discuss how best to shape the immense change taking place throughout Africa now.
In Cape Verde, the transformation has been dynamic. The country has been identified as one of the few African countries that may meet the Millennium Development Goals (MDGs) by 2015. Four of the eight goals - achieving universal primary education, promoting gender equality, reducing child mortality and improving maternal health - were attained by the end of 2010, and there is plenty of political will to keep the country moving forward, with growth this year projected to reach around 10 percent.
For this beautiful group of islands situated 500 kilometers from west coast of Africa, the most pressing priority is infrastructural projects. Tourism, the main driver of the economy, has seen a steady flow of arrivals despite the global crisis, yet is under-developed, offering huge potential for expansion.
Situated close to major north to south sea routes, Cape Verde provides an important sea and air refueling site in the North Atlantic, as well as an effective communications station. Sea and air transportation, ICT, financial services, fishery logistics and creative industries have therefore been identified as sustainable economic solutions for the mid-term. It also offers an under-exploited fisheries sector.
José Maria Pereira Neves, prime minister of Cape Verde, says: "First and foremost, we need to continue with the modernization of infrastructure, and accelerate the rhythm of construction for water, sanitation, energy, telecommunications, ports, roads and airports.
"We must also face the challenge of human capital development to be able to respond to the dynamics of the transformation of the national economy. We've been betting on investment in other areas as well.
"We are promoting investment in professional training at all levels and in all areas that may result in growth dynamics in the country's economy. Since we intend to become an international services center in the fields already mentioned, we have to develop skills and know-how, starting from university education to the lowest levels of professional training. Ultimately, the most important step will be carrying out capacity-building projects."
The prime minister is keen to showcase Cape Verde's many competitive advantages to China and has been making important strides in attracting investment from the Asian powerhouse.
"China could use Cape Verde as a base for many things. It could provide logistical support for their Atlantic fishing fleet, help develop the fisheries sector, carry out ship repairs, or provide a technological platform to develop an information society. We've been directing our partnership with China towards areas strategic for our development," says Neves.
The relationship between the two countries is strong, with cooperation agreements already in existence for infrastructure, health, education and sporting projects. Negotiations are currently under way with Chinese companies for ship repairs and logistics support for the fisheries. All of this will impact on port activities and employment.
With a small population dispersed across the 1,500 square mile (3,885 square kilometer) chain of islands, Cape Verde is expanding its electricity network to support a rapidly expanding tourism industry. The country plans to cover 50 percent of its fuel needs with renewables by the year 2020 and developing 28 megawatt onshore wind farms on four of its islands. This is the first large-scale wind project in Africa and the first renewable energy Public-Private Partnership (PPP) in sub-Saharan Africa. "We expect major investments from China to come in the energy sector," the prime minister says.
Meanwhile, Chinese exports to Cape Verde continue to rise - in 2000, they amounted to US$19,000 but had grown to US$8.6 million in 2009. "Forecasts predict this trend will continue in the coming years, confirming the importance of China as a commercial partner," Neves says.
Cape Verde's reputation as a tourism destination has grown substantially in recent years, with 475,294 people visiting the islands last year. Despite a contraction in the building of hotels and resorts during 2009/10, the sector continues to motor the economy.
As well as fueling growth in tourism and trade opportunities, the substantial infrastructure projects planned in air and sea transport will also have far-reaching implications for integration and social cohesion in the scattered population. Prime Minister Neves says: "We have enormous potential as far as air and sea transport goes, thanks to our geostrategic location which is complemented by modern port and airport infrastructure.
"Right now, we are providing a sound regulatory system and legal framework, and institutional support in the area in air and sea transportation. Modern infrastructure and well trained staff that will allow us to manage this sector offer the highest standards of quality. All the conditions have been set to make the most of the existing potential in Cape Verde."
Over the last decade, Africa has grown exponentially within a global context. As home to six of the world's 10 fastest growing economies, the continent is slated to grow by another 6 percent this year, thanks to what the World Economic Forum sums up as "improved macroeconomic and political stability, an ongoing resource boom and a growing consumer base."
Investment is flooding in, especially from China, and the resource-rich continent is looking forward to more. As leaders gather to attend the World Economic Forum on Africa in Addis Ababa, Ethiopia in May this year, they will discuss how best to shape the immense change taking place throughout Africa now.
In Cape Verde, the transformation has been dynamic. The country has been identified as one of the few African countries that may meet the Millennium Development Goals (MDGs) by 2015. Four of the eight goals - achieving universal primary education, promoting gender equality, reducing child mortality and improving maternal health - were attained by the end of 2010, and there is plenty of political will to keep the country moving forward, with growth this year projected to reach around 10 percent.
For this beautiful group of islands situated 500 kilometers from west coast of Africa, the most pressing priority is infrastructural projects. Tourism, the main driver of the economy, has seen a steady flow of arrivals despite the global crisis, yet is under-developed, offering huge potential for expansion.
Situated close to major north to south sea routes, Cape Verde provides an important sea and air refueling site in the North Atlantic, as well as an effective communications station. Sea and air transportation, ICT, financial services, fishery logistics and creative industries have therefore been identified as sustainable economic solutions for the mid-term. It also offers an under-exploited fisheries sector.
José Maria Pereira Neves, prime minister of Cape Verde, says: "First and foremost, we need to continue with the modernization of infrastructure, and accelerate the rhythm of construction for water, sanitation, energy, telecommunications, ports, roads and airports.
"We must also face the challenge of human capital development to be able to respond to the dynamics of the transformation of the national economy. We've been betting on investment in other areas as well.
"We are promoting investment in professional training at all levels and in all areas that may result in growth dynamics in the country's economy. Since we intend to become an international services center in the fields already mentioned, we have to develop skills and know-how, starting from university education to the lowest levels of professional training. Ultimately, the most important step will be carrying out capacity-building projects."
The prime minister is keen to showcase Cape Verde's many competitive advantages to China and has been making important strides in attracting investment from the Asian powerhouse.
"China could use Cape Verde as a base for many things. It could provide logistical support for their Atlantic fishing fleet, help develop the fisheries sector, carry out ship repairs, or provide a technological platform to develop an information society. We've been directing our partnership with China towards areas strategic for our development," says Neves.
The relationship between the two countries is strong, with cooperation agreements already in existence for infrastructure, health, education and sporting projects. Negotiations are currently under way with Chinese companies for ship repairs and logistics support for the fisheries. All of this will impact on port activities and employment.
With a small population dispersed across the 1,500 square mile (3,885 square kilometer) chain of islands, Cape Verde is expanding its electricity network to support a rapidly expanding tourism industry. The country plans to cover 50 percent of its fuel needs with renewables by the year 2020 and developing 28 megawatt onshore wind farms on four of its islands. This is the first large-scale wind project in Africa and the first renewable energy Public-Private Partnership (PPP) in sub-Saharan Africa. "We expect major investments from China to come in the energy sector," the prime minister says.
Meanwhile, Chinese exports to Cape Verde continue to rise - in 2000, they amounted to US$19,000 but had grown to US$8.6 million in 2009. "Forecasts predict this trend will continue in the coming years, confirming the importance of China as a commercial partner," Neves says.
Cape Verde's reputation as a tourism destination has grown substantially in recent years, with 475,294 people visiting the islands last year. Despite a contraction in the building of hotels and resorts during 2009/10, the sector continues to motor the economy.
As well as fueling growth in tourism and trade opportunities, the substantial infrastructure projects planned in air and sea transport will also have far-reaching implications for integration and social cohesion in the scattered population. Prime Minister Neves says: "We have enormous potential as far as air and sea transport goes, thanks to our geostrategic location which is complemented by modern port and airport infrastructure.
"Right now, we are providing a sound regulatory system and legal framework, and institutional support in the area in air and sea transportation. Modern infrastructure and well trained staff that will allow us to manage this sector offer the highest standards of quality. All the conditions have been set to make the most of the existing potential in Cape Verde."
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