Cape Verde: AfDB loan of €14 million will reinforce role as regional technology center

2023-07-31 19:37:54

Banco Africano de Desenvolvimento (African Development Bank) and the Government of Cape Verde signed a €14 million loan agreement to improve the Cape Verde Technology Park, making it more resilient to climate change and supporting business development.

The agreement was signed in Cidade da Praia, Cape Verde. Previously, the African Development Bank had granted a loan of 31.59 million euros to finance the first phase of the state-of-the-art technology park, which is already transforming the country into an innovative regional center for information and communication. The park, which functions as a special economic zone with tax breaks and import duties, will attract ICT professionals from across Africa. It has two campuses: one in the capital, Praia, and the second on the island of São Vicente.

As part of the second phase, the hub will be equipped to run on renewable energy and, under a public-private partnership, equipped with two data centres.

Cape Verde’s ICT platform will launch a €1 million start-up capital fund to invest in around 20 innovative Cape Verdean companies. It will provide more than 50 tech startups across Africa with integration grants of at least €5,000 each. There are also plans to collaborate with universities and international companies to extend soft skills training to 300 young Africans over the next three years, as well as to help them prepare to secure the jobs that will be created under the Fourth Industrial Revolution.

The Deputy Prime Minister and Minister of Finance of Cape Verde, Olavo Avelino Garcia Correia, signed the loan agreement, and expressed his enthusiasm for the transformative potential of the project. “Our ambition is to transform Cape Verde into a digital nation, with a circular economy, and Praia’s technology parks are part of this important government strategy,” he said.

During the ceremony, Uyoyo Edosio, responsible for the project at the African Development Bank, highlighted the synergies of the project. She said that Cape Verde’s unique advantage in terms of tourism will now be reinforced as tourism will meet technology.

Commenting on the loan signing, Dr. Abdu Mukhtar, African Development Bank Director for Industrial and Commercial Development, said “The next generation of African talent need not look abroad for opportunities; Cape Verde has the necessary infrastructure and a supportive political system to cultivate your dreams and ambitions in your homeland.”