• Analysis and Studies
• Cape Verde: a look at the market

Cape Verde is an archipelago located in the central Atlantic Ocean, consisting of ten main islands split into two groups, Barlavento in the north and Sotavento in the south: the first group is characterized by diverse landscapes, featuring both sandy beaches and rugged mountains, whereas the second group presents a flatter terrain.

The inhabitation of the archipelago started with the Portuguese explorers in 1456, who colonized it and make it a central hub for the transatlantic slave trade: this not only contributed to the islands' economic growth but also shaped a unique Creole culture blending African and European influences The end of the trafficking of enslaved Africans to the Americas led to an economic decline for the nation, and Cape Verde transitioned from a colony to an overseas province before gaining independence in 1975. Despite early challenges, today Cape Verde has evolved into one of Africa's most stable democracies, with steady economic growth fueled by its tourism and international shipping sectors.

The flag consists of five unequal horizontal bands, with blue at the top and bottom, and three thinner stripes—white, red, and white—in between. A circle of 10 yellow, five-pointed stars is placed in the center of the red stripe. The blue symbolizes the sea and sky, while the stars represent the unity of the nation's 10 major islands. The alternating stripes signify the country's path to independence, with white standing for peace and red for the effort and struggle to achieve it.

Cape Verde has a high level of specialization in Processed Fish ($50.3M), Fishing and Hunting Equipment ($2.72M), Molluscs ($5.81M), Footwear Parts ($2.74M), and Surveying Equipment ($2.03M).

In 2022 Cape Verde was the 196^th economy in the world in terms of total exports, with a trade of $92.2M, and the 184^th in total imports, with a trade of $993M.

In 2022 the most exported product was Processed Fish, with a trade of $50.3M, followed by Molluscs ($5.81M), Fish Fillets ($4.21M), Petroleum Gas ($3.41M), and Scrap Iron ($2.94M), with Spain being the most important destination (55.6%), ahead of Portugal (11.8%), Italy (9.1%), United States (6.06%), and India (5.25%).

We can observe that Cape Verde's export economy is heavily reliant on processed fish, which accounts for 54.5% of total exports, with Spain being the dominant destination: this high concentration on Spain, particularly for processed fish and fish fillets, poses economic risks due to dependence on a single market.

Other key exports included molluscs, petroleum gas, and scrap iron, with trade partners such as the United States, Senegal, and India showing potential for diversification. While the reliance on European markets, especially Spain, makes Cape Verde vulnerable, emerging trade relationships with countries like India and the United States provide opportunities for reducing this dependency.

1. Processed Fish (54.5%): 80% Spain, 16.7% Italy, 2.16% United States
2. Molluscs (6.3%): 55.8% Spain, 44.2% United States
3. Fish Fillets (4.57%): 98.6% Spain, 1.43% Algeria
4. Petroleum Gas (3.7%): 100% Senegal
5. Scrap Iron (3.19%): 95.4% India, 4.55% Portugal

Whereas the most imported product was Refined Petroleum, with a trade of $186M, ahead of Non-fillet Frozen Fish ($24.6M), Cars ($23.8M), Rice ($23.2M), and Cement ($21M), importing mostly from Portugal (41%), Spain (11.9%), China (7.87%), Netherlands (6.87%), and Togo (5.04%).

We can observe that the import portfolio is dominated by refined petroleum, sourced from a diverse group of suppliers, led by Portugal, Togo, and the Netherlands. The reliance on Portugal as a major trade partner extends beyond petroleum, as it also accounts for significant shares in imports like cars and cement, making up the entirety of cement imports.

Even though non-fillet frozen fish, rice, and cars represent smaller portions of imports, they highlight diversified sourcing, such as Spain for fish, Brazil for rice, and a mix of the United States, South Korea, and Europe for cars. Despite the diversification across certain sectors, the strong reliance on Portugal and Spain reflects Cape Verde's heavy dependence on European markets, though emerging trade relationships with countries like China, Thailand, and Togo suggest some opportunities for diversification.

1. Refined Petroleum (18.8%): 30.3% Portugal, 26.8% Togo, 20% Netherlands, 6.72% Gibraltar, 4.84% Senegal, 4.65% United Arab Emirates
2. Non-fillet Frozen Fish (2.47%): 71% Spain, 15.5% Seychelles, 5.61% Morocco, 2.3% Senegal, 1.27% Ecuador
3. Cars (2.4%): 23.4% Portugal, 23.4% United States, 13.5% France, 11.4% South Korea, 5.6% Netherlands, 4.27% China, 1.21% Spain
4. Rice (2.33%): 33.6% Brazil, 25% Thailand, 11% Uruguay, 11% Vietnam, 3.77% China
5. Cement (2.12%): 100% Portugal

Between 2021 and 2022 the country which had a fastest growth was Portugal, with an increase of $1.82M, followed by the United States ($1.78M) and Italy ($1.27M).

1. Portugal: from $9.05M to $10.9M
2. United States: from $3.81M to $5.59M
3. Italy: from $7.12M to $8.39M

Portugal was also the fastest growing importer, with an increase of $38.6M, ahead of Spain ($36.6M) and Togo ($23.9M).

1. Portugal: from $369M to $407M
2. Spain: from $81.4M to $118M
3. Togo: from $26.1M to $50M

Sources: 

https://oec.world/en

https://www.cia.gov/the-world-factbook/countries/