Cape Verde Mandates 30-Day Limit on State Payments
The Cape Verdean government has moved to eliminate chronic delays in public spending, mandating that the state must now settle all financial obligations to suppliers within 30 business days. The announcement, released Wednesday, marks a significant shift in the country’s fiscal management policies.
Ending Forced Financing
The new resolution aims to curb a practice where private companies are effectively forced to subsidize the government due to late payments. “When a company waits up to six months for a payment, it is, in practice, financing the state with its own resources,” the government stated. The executive branch intends to “put an end to this reality” by establishing a rigid timeline for each stage of the payment process and assigning clear responsibility to stakeholders.
To ensure compliance, the government is introducing strict accountability measures. Failure to meet the 30-day deadline will now impact the performance evaluations of responsible managers and could lead to disciplinary or financial penalties. Additionally, the government will publish quarterly reports detailing the processing times for every public entity, a move intended to increase transparency and eliminate “vague justifications” for administrative delays.
Stricter Rules for State-Owned Enterprises
Alongside the supplier payment mandate, the government announced new regulations for state-owned companies. To access public support or new financing, these enterprises must now meet higher standards for transparency, financial control, and long-term sustainability plans.
The government cited an “international context marked by uncertainty” as the primary driver behind these reforms, which are aimed at stabilizing the nation’s economy and fostering a better business environment.
Election context
These policy changes come at a critical political juncture, appearing in the Official Gazette just days before the legislative elections scheduled for Sunday. Prime Minister Ulisses Correia e Silva, leader of the Movement for Democracy (MpD) and in power since 2016, is seeking a third consecutive term.
Opposing him is the African Party for the Independence of Cape Verde (PAICV), led by Francisco Carvalho, the current mayor of the capital city, Praia. The PAICV is looking to capitalize on its municipal election successes from late 2024 to reclaim the national government.
The MpD and PAICV have alternated power in Cape Verde since 1991. In the current National Assembly, the MpD holds 38 seats, the PAICV holds 30, and the UCID holds four. Smaller parties, including the People’s Party (PP) and the People, Work and Solidarity party (PTS), are also competing in nearly half of the electoral districts.
Voter registration has surged by 7% since 2021, with 419,755 citizens eligible to cast their ballots for the 72 seats in the National Assembly.
Image: Pexels – Matheus Natan
