Cape Verde to Shield Economy from Rising Fuel Prices
In a move to shield the nation from volatile global energy markets, Cape Verdean Prime Minister Francisco Carvalho announced today that his administration is overhauling 2019 legislation to create more robust fuel price stabilization mechanisms.
Protecting Households and Industry
Speaking at a ceremony marking his administration’s first 100 days in office, Carvalho emphasized the need for modern tools to safeguard the economy. “We are working on revising the mechanisms provided for in the 2019 legislation so that the country has more effective instruments for stabilization and the protection of families, transport, fisheries, and companies,” Carvalho said. “When reality changes, the State must have the capacity to review its responses and act.”
The policy shift comes just days after gasoline and diesel prices surged by 12%, prompting calls from the opposition Movement for Democracy (MpD) to reactivate price-capping measures used by the previous government. To address these inflationary pressures, the executive has already earmarked 10.8 million euros in the 2027 draft budget specifically to manage future price fluctuations.
A Challenging Transition
Reflecting on his first three months since taking office in June, Carvalho admitted that the situation he inherited was “more demanding than initially anticipated.” He cited deep-seated issues including water and electricity shortages, crumbling road infrastructure, and long-term economic stagnation.
Despite these hurdles, the Prime Minister reaffirmed his commitment to social welfare. Key initiatives launched during the first 100 days include:
- Education: Subsidies for daycare and preschool, alongside the implementation of free higher education.
- Housing: The “Barraca Zero” program, aimed at eliminating precarious living conditions.
- Infrastructure: New desalination projects in Praia and Calheta de São Miguel to reinforce water security.
- Healthcare: A pledge to guarantee universal and free access to public health, a priority integrated into the 2027 State Budget.
A Greener Future
Looking ahead, Carvalho set ambitious targets for Cape Verde’s energy transition. The government aims to have renewable energy account for 70% of electricity generation by 2031, with a goal of reaching 100% by 2040.
The Prime Minister also pledged to bridge the gap between central and local governments, promising that no municipality would be left behind under his leadership. “Governing does not mean promising that everything will be resolved quickly,” Carvalho concluded. “It means defining priorities, making choices, mobilizing resources, and being accountable.”
Carvalho’s party, the African Party for the Independence of Cape Verde (PAICV), secured an absolute majority in the May elections, positioning the administration to push forward with its agenda of social reform and economic stabilization.
Image: Pexels – Tom Fisk
