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 Economy of Cape Verde

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kosovohp
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PostSubject: Economy of Cape Verde   Mon Nov 15, 2010 10:56 am

Cape Verde has few natural resources, scant rainfall and limited supplies of fresh water.[22] Only 4 of the 10 main islands (Santiago, Santo Antão, Fogo, and Brava) normally support significant agricultural production, and over 90% of all food consumed in Cape Verde is imported. Mineral resources include salt, pozzolana (a volcanic rock used in cement production), and limestone.[8] Its small number of wineries making Portuguese-style wines have traditionally focused on the domestic market, but have recently met with some international acclaim. A number of wine tours of Cape Verde's various microclimates began to be offered in spring 2010 and can be arranged through the tourism office. [23]

The economy of Cape Verde is service-oriented, with commerce, transport, and public services accounting for more than 70% of GDP.[citation needed] Although nearly 38% of the population lives in rural areas, agriculture and fishing contribute only about 9% of GDP. Light manufacturing accounts for most of the remainder. Fish and shellfish are plentiful, and small quantities are exported. Cape Verde has cold storage and freezing facilities and fish processing plants in Mindelo, Praia, and on Sal. Expatriate Cape Verdeans contribute an amount estimated at about 20% of GDP to the domestic economy through remittances.[8]

Since 1991, the government has pursued market-oriented economic policies, including an open welcome to foreign investors and a far-reaching privatization programme. It established as top development priorities the promotion of a market economy and of the private sector; the development of tourism, light manufacturing industries, and fisheries; and the development of transport, communications, and energy facilities. From 1994 to 2000 about $407 million in foreign investments were made or planned, of which 58% were in tourism, 17% in industry, 4% in infrastructure, and 21% in fisheries and services

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