The African Development Bank Group has granted Cabo Verde a loan of €17.71 million. This financing is part of the second phase of the country’s E-Governance and Public Financial Management Reform Programme. The approval of this loan occurred on Monday, continuing the Bank’s support that started last year.
Cabo Verde’s Focus on E-Governance and Financial Reform
The primary goal of this budgetary support is to boost economic growth via digitization and enhance the competitiveness of the private sector. Abdoulaye Coulibaly, the Director of Governance and Economic Reforms at the African Development Bank Group, emphasized the importance of modernizing public administration and consolidating public finances.
Key Components of the Reform Programme
- Digitization Initiatives: The first component focuses on ongoing digitization reforms aimed at strengthening private-sector competitiveness. Key initiatives include:
- Launch of e-Justice to digitize judicial processes.
- Call for proposals to attract private operators to the technology park, under the digital nomads programme.
- Establishment of Digital Nomads: Admission criteria will be developed to facilitate the presence of digital nomads and high-growth tech firms.
Modernization of Public Administration
- The second component targets the modernization of public administration and fiscal sustainability:
- Support for policy actions to enhance transparency and improve public resource management efficiency.
- Development and publication of an action plan to rationalize tax expenditures.
- Inclusion of complete estimates of annual tax expenditures in the 2026 budget.
Upcoming Assessments and Beneficiaries
A Public Expenditure and Financial Accountability assessment is planned for the first quarter of 2026. This assessment will be funded through the Middle Income Countries Grant.
The key beneficiaries of this programme include:
- Ministry of the Digital Economy
- Central Bank of Cabo Verde
- Institute for Gender Equality and Equity
- National Directorate of State Revenue
- Public Procurement Regulatory Authority
This initiative represents a significant step for Cabo Verde as it seeks to enhance its governance framework and bolster economic development through effective financial management and e-governance reforms.
