Cape Verde Eyes IMF Exit, Seeks New Development Partnership
Cape Verde is poised to successfully conclude its current programs with the International Monetary Fund (IMF), but the nation’s new government is signaling that it wants a deeper, more development-focused partnership moving forward.
A Shift from Austerity to Development
Speaking at the opening of an IMF mission meeting in Praia on Monday, Secretary of State for Finance Maria José Lopes emphasized that the administration—which took office in June following the PAICV’s electoral victory—views financial stability as a means to an end, rather than the end itself.
“We believe that the successful conclusion of these two programs should mark a new stage in our partnership with the IMF,” Lopes said. “We do not want to look at the IMF merely as an instrument for monitoring, supervision, and belt-tightening. We want to see the IMF as a true development partner.”
Lopes stressed that while fiscal discipline is essential, the government’s priority is ensuring that economic growth translates into “more opportunities, more jobs, better services, and better living conditions” for the people of Cape Verde, aligned with the “Cape Verde For All” national agenda.
Reviewing Progress and Climate Resilience
The IMF mission, led by Martin Schindler, will remain in the country until November 6. The team is conducting a comprehensive review, including the eighth and ninth assessments of the 60-million-euro Extended Credit Facility (ECF) and the fourth and fifth reviews of the 29-million-euro Resilience and Sustainability Facility (RSF).
The ECF, which runs through December 2026, aims to stabilize public finances, reduce national debt, and reform state-owned enterprises. Meanwhile, the RSF—launched in late 2023—is designed to help the island nation combat climate change by attracting foreign investment and modernizing infrastructure.
A Ready Partner
IMF mission chief Martin Schindler noted that technical discussions are already “well underway.” He reaffirmed the Fund’s commitment to supporting Cape Verde’s macroeconomic and fiscal sustainability in whatever capacity the government deems most effective.
“We are ready to continue the partnership in the form the country deems most appropriate,” Schindler said, signaling a positive outlook for the final stages of the current credit lines.
Image: Pexels – Nico Marín
