Cape Verde President Warns Against Low-Wage Growth Model
President José Maria Neves has issued a stark warning about the nation’s economic trajectory, asserting that Cape Verde can no longer sustain growth by relying on low wages. Speaking during a solemn session for Mosteiros Municipal Day on the island of Fogo, which coincided with International Youth Day, the President called for a radical shift toward innovation and structural reform to stem the tide of youth emigration.
A Call for Structural Reform
“We must pick up the pace in implementing structural reforms,” President Neves stated. “Cape Verde should grow based on innovation, productivity, and the competitiveness of its economy, and not based on low wages. It is necessary to create conditions so that Cape Verdeans have opportunities, hope, and confidence in a better future.”
The President emphasized that the country’s current economic model is failing to retain its most valuable resource: its youth. He identified mobility and an aging population as two of the most significant challenges facing the archipelago, noting that the departure of young workers is already straining the labor market, higher education institutions, and the social fabric of the islands.
The Exodus of Talent
The President’s remarks come amid alarming data regarding the desire of young Cape Verdeans to seek lives elsewhere. A study released in July by the National Institute of Statistics (INE) revealed that 65% of surveyed youth intended to emigrate, primarily citing the search for better-paying jobs. The Portuguese Embassy has confirmed this trend, reporting a 62% surge in visa applications in 2025 compared to 2023, with labor-related visas reaching nearly 7,000 in the last year.
While Neves acknowledged that emigration is a historical reality and that Cape Verde functions as a “transnational state” with a powerful diaspora of doctors and entrepreneurs, he warned that the current “massive departure” requires urgent analysis. Beyond the economic drain, sociologists have warned that this exodus is weakening family support networks, leaving children behind without parental care.
Prioritizing the Future
To reverse this trend, the Head of State urged political leaders to move past partisanship and build a national consensus on critical challenges. He identified five key sectors requiring immediate reform: transport, public administration, health, education, and social protection.
The business sector has already begun to feel the pinch, reporting labor shortages in various industries as skilled workers look abroad for dignity and fair compensation. For President Neves, the solution is clear: Cape Verde must transform itself into a competitive, high-productivity hub if it hopes to offer its youth a reason to stay.
Image: Pexels – Mehmet Turgut Kirkgoz
