UN Urges Cape Verde to Shift to Investment-Led Growth
The United Nations has urged Cape Verde to prioritize the strengthening of its domestic capacity to lead and implement local initiatives. This recommendation serves as the cornerstone of the UN’s upcoming cooperation framework, designed to help the archipelago navigate its new status as an upper-middle-income country.
A Shift from Assistance to Investment
According to the UN’s 2025 Annual Results Report for Cape Verde, the organization is pivoting its strategy. Faced with global economic shocks, rising food prices, and the aftermath of tropical storm Erin, the UN is moving away from traditional assistance toward a model centered on strategic investment, private sector engagement, and South-South cooperation.
Cape Verde’s recent reclassification as an upper-middle-income nation presents a unique challenge: reduced access to low-interest concessional financing. To counter this, the UN is advocating for a financing strategy based on “blended” models and deeper partnerships with international development banks.
Three Pillars of Growth
For 2026, the UN System has identified three high-priority sectors to accelerate the nation’s development:
- Blue Economy: Focusing on sustainable growth in the fisheries sector, marine conservation, and coastal protection. The goal is to link tourism with local production and improve access to regional markets.
- Digital Transformation: Leveraging technology as a development accelerator within health, education, and governance systems.
- Local Development: Strengthening municipal governance and economic inclusion, with a specific focus on creating opportunities for youth and informal workers.
Eradicating Poverty and Leaving No One Behind
Despite the focus on modernization, the UN maintains that eradicating extreme poverty remains a critical objective. The organization plans to launch a “Leave No One Behind” mechanism to monitor progress among the most vulnerable populations, including women, children, and people with disabilities. This includes expanding municipal rapid response funds to ensure social safety nets remain robust.
2025: A Year of Tangible Progress
The report highlights significant milestones achieved through UN-Cape Verde cooperation in 2025. Key successes include the elimination of measles and rubella, the modernization of the justice system, and the expansion of the Single Social Registry, which now covers 64% of the population.
Economic empowerment initiatives also bore fruit, with UN support reaching 40 youth-led businesses—nearly half of which are headed by women—resulting in the creation of 65 new jobs. Furthermore, civil registry coverage for children has reached an impressive 99%.
Financial efficiency is also on the rise. In 2025, the UN mobilized $16.8 million for the country, achieving an execution rate of 83.4% for the 2023–2027 cooperation framework—the highest rate recorded since the program began.
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