• Cape Verde, EU sign $23.5 million grant-funded budget support programme

• Funds target electricity access, digital ecosystem, public finance reforms

• Deal aligns with broader EU-backed Global Gateway investment framework

The government of Cape Verde and the European Union (EU) have signed a $23.5 million grant-funded budget support programme, an official release announced on Monday.

The funds are intended to support structural reforms and strategic investments under a three-year programme aimed at expanding electricity access for vulnerable households through social tariffs, as well as strengthening the capacity of the National Electricity Control System (ONSEC). The programme also seeks to strengthen the country’s digital ecosystem and improve public financial management, including maritime transport regulation.

“This new support will allow the continuation of public policies that have benefited thousands of Cape Verdeans, particularly in the areas of social protection and reform of the electricity sector,” EU Ambassador Sylvie Millot said.

The EU supports Cape Verde through a partnership focused on economic reforms, sustainable development and resilience to external shocks. Under this framework, the Global Gateway strategy committed $351 million in funding in 2024. Of that total, $186.2 million was allocated to the energy sector, covering energy generation, grid infrastructure and storage. A further $43.3 million was earmarked for digital connectivity via submarine cables, while $123 million was dedicated to the modernisation of strategic port infrastructure.

According to Vice-Prime Minister and Minister of Finance Olavo Correia, the support forms part of a broader financing framework mobilising nearly $586 million, including the Global Gateway and Team Europe initiatives as well as the Morabeza Fund. He said these instruments represent key drivers for accelerating reforms and strengthening the country’s economic resilience.

Ingrid Haffiny