| Project Detail |
The proposed Results-Based Financing (RBF) project, spanning from 2024 to 2028 is structured to cover four budget years (2025, 2026, 2027 and 2028). The Bank’s financing of EUR 24 million accounts for 15.37% of the overall cost of the broader program, which totals EUR156.18million. This support is specifically targeted towards the implementation of 18 out of 37 key activities under Cabo Verde’s Digital Economy Sector Strategy. These activities focus on critical areas such as promoting digital nomads, supporting the digitalization of non-digital MSMEs, building capacity through training, and expanding access to digitally enabled financial inclusion for MSMEs. The project contributes to climate finance, with 9 million USD of the total approved amount dedicated to mitigation. Project Objectives The primary objective of this project is to use digital innovation to contribute to private sector growth and employment, for youth and women in particular, in Cabo Verde. As alluded to in the country context, Cabo Verde’s private sector faces distinct challenges due to its geographic and demographic realities. As a Small Island Developing State (SIDS), an archipelago comprising nine islands and a dispersed population of approximately 600,000, the country struggles with poor economies of scale and limited market size, which hinder local private sector growth. Additionally, the small, dispersed population constrains the supply of talent necessary to sustain economic growth and competitiveness. Beneficiaries The project aims to attract and retain technology talent, including digital nomads and tech-enabled companies, positioning Cabo Verde as a hub for digital services. By incentivizing elite talent and growth-stage digital/ digitally enabled enterprises, it will contribute to expanding Cabo Verde’s talent pool and market reach, addressing the challenges posed by its small and dispersed population. And also aims to develop the local MSME ecosystem by promoting the use of technological tools, digital services, and platforms to boost productivity and using fintech platforms to scale access to finance. By scaling up local businesses and enabling them to access new markets, the project seeks to disrupt traditional growth cycles and foster long-term economic sustainability. |
