The government of Cabo Verde expects to successfully conclude two IMF-supported programmes and retain the institution’s backing, deepening cooperation to drive the country’s development. The position was set out by Secretary of State for Finance Maria José Lopes at the opening of an IMF mission to Cabo Verde.

“We believe that the successful completion of these two programmes should mark a new stage in our partnership with the IMF — a stage of reinforced trust, recognition of the progress achieved, and greater cooperation. We want to continue counting on the IMF’s support,” Maria José Lopes said.

In office since June, following the victory of the African Party for the Independence of Cabo Verde (PAICV) in the May legislative elections, the new government aims to build a relationship with the IMF that goes beyond financial oversight and economic adjustment requirements. According to Maria José Lopes, the executive does not wish to view the institution solely as a mechanism for monitoring public finances, providing financing, and implementing reforms, cuts, and austerity measures.

The Secretary of State argued that the IMF should also serve as a partner in the country’s development. “For us, let it be clear, financial stability is essential — of that there is no doubt — but it must be in the service of development and human dignity,” she declared. In her view, economic growth must translate into more opportunities, jobs, better public services, and improved living conditions for the Cape Verdean population.

This approach is reflected in the “Cabo Verde Para Todos” (Cabo Verde for All) programme, on which the PAICV won the legislative elections and which was subsequently incorporated into the government’s programme. For his part, IMF mission chief Martin Schindler stated that “technical discussions are well under way” and that the institution intends to examine the policies the executive wishes to implement, as well as ways to support it while ensuring macroeconomic and public finance sustainability.

Martin Schindler added that the IMF is willing to continue the partnership in whatever form Cabo Verde considers most appropriate. The mission runs until 6 November and aims to conduct the eighth and ninth reviews of the programme supported by the Extended Credit Facility (ECF), as well as the fourth and fifth reviews of the Resilience and Sustainability Facility (RSF).

The ECF was approved in June 2022 and extended through December 2026, with total financing of €60 million disbursed in periodic tranches. The programme aims to strengthen public finances, place debt on a downward trajectory, reduce fiscal risks associated with state-owned enterprises, and improve public financial management.

The RSF was approved at the end of 2023 and carries €29 million, also disbursed in periodic tranches. The programme is designed to strengthen Cabo Verde’s capacity to address the effects of climate change, supporting the attraction of foreign investment and the implementation of government reforms.