Cape Verde has one of Africa's most open economies, and trade represents 83% of its GDP (World Bank, latest data available). It became a member of the WTO in 2008 and enjoys preferential access to American and European markets, thanks to American legislation - the African Growth and Opportunity Act (AGOA) - and the Treaties of Lome and Cotonou. The country has also signed a free trade agreement with China. Cape Verde mainly exports fish and caviar (74.2% of total exports), clothes (8.1%), and parts of footwear (5.9%); while it imports food products (21.4%), fuels (19.2%), construction materials (8.7%), and machinery (6.1% - data INE, 2022).
Cape Verde's main customers are Spain (54.7% of total exports), Portugal (19.2%), Italy (18.8%), and the United States (5.2%). Its major suppliers are Portugal (42.7% of total imports), Spain (8.6%), China (5.1%), the Netherlands (5%), and the U.S. (2.4% - data INE 2022). However, global trade tensions among China, the United States, and Europe - key trading partners to the island economy - could have a negative impact on their economy. Additionally, the archipelago's strategic location means that Cape Verde is increasingly at the crossroads of the transatlantic narcotics trade. Consequently, the United States and Cape Verde are currently working together to fight drug trafficking along its coast. The construction of a special economic zone (involving Chinese investments) is expected to increase trade in the future. Overall, the export base of the country is limited in terms of products and partner countries.
The trade balance is in a structural deficit, a trend that should continue for the next years. In 2021, Cape Verde shipped USD 54 million worth of goods and imported goods for USD 800 million. With regard to services, the country exported USD 282 million and imported USD 229 million (WTO). According to World Bank data, in 2021 the country's trade balance was negative by 33.4% of GDP. According to preliminary data by the National Institute of Statistics (INE), in 2022 the country exported CVE 5 million worth of merchandise, importing CVE 96 million.
Foreign Trade Indicators | 2017 | 2018 | 2019 | 2020 | 2021 |
---|---|---|---|---|---|
Imports of Goods (million USD) | 789 | 816 | 796 | 720 | 800 |
Exports of Goods (million USD) | 50 | 76 | 62 | 53 | 54 |
Imports of Services (million USD) | 330 | 363 | 342 | 204 | 229 |
Exports of Services (million USD) | 607 | 661 | 709 | 264 | 282 |
Imports of Goods and Services (Annual % Change) | 16 | 6 | 1 | -23 | 4 |
Exports of Goods and Services (Annual % Change) | 8 | 12 | 9 | -59 | 6 |
Trade Balance (million USD) | -660 | -686 | -666 | -660 | -711 |
Foreign Trade (in % of GDP) | 113 | 117 | 116 | 85 | 83 |
Imports of Goods and Services (in % of GDP) | 67 | 68 | 65 | 60 | 58 |
Exports of Goods and Services (in % of GDP) | 46 | 49 | 51 | 25 | 25 |
Source: WTO – World Trade Organisation ; World Bank - Latest available data.
Main Customers (% of Exports) |
2020 |
---|---|
Spain | 63.0% |
Portugal | 15.1% |
Italy | 11.6% |
United States | 5.6% |
Germany | 2.5% |
See More Countries | 2.1% |
Main Suppliers (% of Imports) |
2020 |
---|---|
Portugal | 41.9% |
Netherlands | 16.2% |
Spain | 8.4% |
Italy | 6.4% |
China | 6.1% |
See More Countries | 21.0% |
Source: Comtrade, Latest Available Data
Source: Comtrade, Latest Available Data
To go further, check out our service Import Export Flows
0.3 bn USD of services exported in 2020 | |
---|---|
56.22% | |
Personal travelPersonal travel | 52.50% |
OtherOther | 52.33% |
Education-related expenditureEducation-related expenditure | 0.17% |
Business travelBusiness travel | 3.72% |
18.62% | |
Air transportAir transport | 14.58% |
OtherOther | 11.16% |
PassengerPassenger | 3.42% |
Sea transportSea transport | 3.78% |
OtherOther | 3.78% |
8.81% | |
8.59% | |
2.93% | |
1.94% | |
Telecommunications servicesTelecommunications services | 1.94% |
1.28% | |
ReinsuranceReinsurance | 1.28% |
0.99% | |
Computer servicesComputer services | 0.54% |
Information servicesInformation services | 0.44% |
0.31% | |
0.29% | |
0.01% |
0.2 bn USD of services imported in 2020 | |
---|---|
30.45% | |
Sea transportSea transport | 20.99% |
FreightFreight | 20.81% |
OtherOther | 0.19% |
Air transportAir transport | 9.43% |
PassengerPassenger | 5.18% |
OtherOther | 2.45% |
FreightFreight | 1.79% |
24.19% | |
Personal travelPersonal travel | 23.11% |
Education-related expenditureEducation-related expenditure | 10.13% |
OtherOther | 8.85% |
Health-related expenditureHealth-related expenditure | 4.13% |
Business travelBusiness travel | 1.09% |
23.37% | |
6.48% | |
5.95% | |
Computer servicesComputer services | 5.62% |
Information servicesInformation services | 0.33% |
2.71% | |
ReinsuranceReinsurance | 2.67% |
Other direct insuranceOther direct insurance | 0.04% |
2.28% | |
1.77% | |
1.37% | |
1.31% | |
Telecommunications servicesTelecommunications services | 1.31% |
0.11% |
Source: United Nations Statistics Division, Latest Available Data
Member of African Union (AU)
Member of African Union (AU)
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Latest Update: September 2023