World Bank: Transport Woes Stall Cape Verde’s Growth
The World Bank has identified the high cost and unreliability of inter-island transport as a major roadblock to Cape Verde’s economic progress. In a new report titled “Analyzing the Relationship Between Inter-Island Connectivity and Growth,” the institution warns that the archipelago’s internal travel woes are stifling inclusive development.
A Divided Economic Recovery
While Cape Verde has seen impressive post-pandemic recovery—with economic growth hitting 7% in 2024 and 6.3% in 2025—the benefits remain concentrated. Indira Campos, the World Bank representative in the archipelago, emphasized that a “reliable and affordable” transport system is essential to turning tourism-driven success into resilient, nationwide growth.
Currently, the report highlights that weak air and maritime connectivity drives up costs for businesses and households alike. This isolation prevents the development of national value chains and traps the bulk of economic activity on the tourism hubs of Sal and Boa Vista. By improving connectivity, the World Bank argues that Cape Verde can integrate its markets and ensure that citizens on remote islands are not left behind.
The Human Cost of Poor Connectivity
The lack of reliable transport affects more than just the bottom line; it is a significant barrier to employment. Although the national unemployment rate dropped to 6.2% in 2025, youth unemployment remains stubbornly high at over 15%.
The World Bank noted that the current transport infrastructure limits the economy’s ability to create jobs for young people, women, and workers on islands distanced from the primary tourism sectors. Without a way to efficiently move goods and people, the archipelago remains an economy of fragments rather than a unified market.
A Roadmap for Reform
To bridge the gap between islands, the World Bank recommended a series of strategic reforms:
- Stronger Regulation: Improving oversight of existing transport networks to ensure consistency.
- Modernizing Concessions: Updating the models for domestic air and sea connections to improve service quality.
- Private Sector Participation: Creating new opportunities for private companies to invest in and operate transport services.
Economic Outlook
Looking ahead, the World Bank predicts that Cape Verde’s economic growth will slow to 4.8% in 2026, largely due to the ripple effects of conflict in the Middle East. However, growth is expected to stabilize at approximately 5.1% in the medium term. Specialists argue that achieving these targets—and ensuring they benefit the entire population—will depend heavily on how quickly the nation can solve its inter-island logistics crisis.
Image: Pexels – Ana Marta Jorge
