• IMF approves $10.48 million in disbursements under ECF and RSF programs

• Program targets largely met, with progress on governance reforms

• Growth seen at 5.2% in 2025, inflation around 2%

Cabo Verde could receive $10.48 million from the International Monetary Fund as part of its ongoing reform programs, the institution said.

In a Feb.26 statement, the IMF announced that it had reached an agreement with Cabo Verdean authorities following a review of programs supported by the Extended Credit Facility and the Resilience and Sustainability Facility. The planned disbursements amount to $3.25 million under the ECF and $7.23 million under the RSF.

Performance under the ECF-supported program was assessed as satisfactory. All quantitative performance criteria, continuous performance criteria, and indicative targets for end-June 2025 were met, except for the September 2025 indicative target on social spending. Under the RSF, reforms are advancing, with two of the three measures scheduled for the review completed and a major governance reform adopted.

The economy continues to post solid performance, supported by strong tourism activity, robust export results, and rising private consumption. Despite this environment, risks remain, including exposure to external shocks, fiscal pressures linked to state-owned enterprises, and the electoral cycle.

The IMF urged the authorities to maintain prudent macroeconomic policies. It said the implementation of reforms aimed at boosting productivity, promoting inclusive growth, and strengthening economic resilience is key to preserving stability and supporting the country’s development path.

Medium-term economic prospects remain favorable, with growth estimated at 5.2% in 2025 and expected to converge toward its potential, while inflation is projected to stay contained at around 2%.

Ingrid Haffiny (intern)