Cape Verde PM Urges Reforms as IMF Raises Growth Forecast
Cape Verde must embrace “disruptive” reforms and break the status quo if it hopes to accelerate economic growth and modernize its workforce, Deputy Prime Minister Olavo Correia declared Tuesday.
Speaking at a press conference following a successful review by the International Monetary Fund (IMF), Correia, who also oversees Finance and Business Development, emphasized that true leadership requires the courage to make unpopular decisions today to secure a prosperous future.
Breaking the ‘Status Quo’
“It is a challenge that requires a coalition of leadership—everyone working at an accelerated pace so that Cape Verde can make this leap,” Correia told reporters. “Leadership is not about consolidating incremental gains; it is about creating disruptions and a new framework. This requires courage and determination.”
The Deputy Prime Minister acknowledged that the path to reform is often met with resistance, as it requires citizens to step away from the familiar toward the unknown. Using a metaphor to describe the transition, he compared the process to a driver switching from a manual car to an automatic one: while the initial change is daunting, the driver would never look back once they experience the improvement.
“If we want to reform, we need to convince people to move from the status quo,” he said. “It is not easy. That is the challenge of leadership: ensuring confidence so they can keep pace and move forward toward something unknown.”
IMF Boosts Growth Forecasts
The push for reform comes at a time of growing optimism for the archipelago’s economy. The IMF mission updated its economic outlook for Cape Verde, raising growth estimates from 4.7% to 6% for 2024. Projections for 2025 were also adjusted upward to 5%.
The IMF team announced a staff-level agreement on two ongoing financing programs, signaling a green light for new disbursements. However, the international lender issued a cautionary note regarding the country’s State-Owned Enterprise (SOE) sector. The mission warned that if reforms in these public companies—many of which are sustained by public debt—are not successful, they could pose a significant risk to the nation’s fiscal health.
A Call for Action
Correia responded to the IMF’s warnings by stressing the need for immediate implementation rather than just planning. He noted that the ultimate goal is to “double the economic growth potential” and create the “qualified and well-paid jobs that the market demands.”
“It was well-noted by the mission that we must accelerate reforms,” Correia concluded. “It’s not just about talking; it’s about doing, and doing it at scale.”
Image: Pexels – Tomas Wells
