Cape Verde: Living Costs Tower Over Minimum Wage – Adeco
Families in Cape Verde are facing a deepening financial crisis as the cost of basic necessities now far outstrips the national minimum wage, according to a report released on Saturday by the Association for Consumer Protection (Adeco).
A Growing Deficit
Data from the latest Essential Consumption Index (ICE) reveals a stark disparity between what citizens earn and what they must spend to survive. The index, which tracks costs for housing, food, electricity, gas, and communication, shows that income levels are no longer sufficient to cover the essential needs of the average Cape Verdean household.
Nelson Faria, president of Adeco, highlighted the issue during a press conference on the island of São Vicente. “There is an income deficit in the country to ensure the essential consumption of families,” Faria stated, noting that the cost of living varies significantly across the archipelago.
The High Price of Survival
The monitoring, which was recently expanded to include the capital city of Praia, paints a difficult picture for the country’s main hubs:
- Sal: On the nation’s primary tourist island, the cost of essential consumption has reached 34,909 escudos (€316).
- Praia: In the capital on Santiago island, the index stands at 33,156 escudos (€300).
- São Vicente: The second most populous island recorded an index of 24,856 escudos (€225), a 1.7% increase since the last update.
These figures stand in grim contrast to the national minimum wage, which is currently set at just 17,000 escudos (€154) for the private sector and 19,000 escudos (€172) for public administration.
The Burden of Food Costs
Food remains the most significant burden on family budgets. In Sal, the average monthly cost of food alone is 18,240 escudos—exceeding the entire minimum wage for a private-sector worker. In Praia and São Vicente, food costs hover around 15,000 escudos, leaving virtually no room for housing, utilities, or transportation.
“In the five years leading up to 2025, families suffered a 15% loss in purchasing power,” Faria noted. “We have not seen income increases to match.”
Calls for Urgent Reform
Adeco is urging the government to implement structural reforms, including immediate salary reviews and more robust inflation adjustment policies. Faria warned that the situation could worsen due to global instability, noting that “new inflationary pressure resulting from the war in the Middle East” could further erode the little purchasing power consumers have left.
While the government announced in January that a tripartite commission is working to raise the minimum wage to 25,000 escudos (€226) by 2027, consumer advocates argue that families cannot afford to wait. For many, even the proposed 2027 target would barely cover the current cost of essential goods in São Vicente, let alone the more expensive islands of Sal and Santiago.
Image: Pexels – Markus Winkler
