Cabo Verde is poised to receive US$10.48 million from the International Monetary Fund (IMF) after successfully completing a review of its ongoing reform programs, the Fund announced on February 26.
The disbursement forms part of two IMF-supported initiatives: the Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF). Of the total, US$3.25 million will come under the ECF and US$7.23 million under the RSF, according to the IMF statement.
The review concluded that Cabo Verde had largely met its program targets. Under the ECF-supported framework, all quantitative and continuous performance criteria, as well as indicative targets through June 2025, were achieved. The only exception was the September 2025 social spending target, which fell slightly short. Under the RSF, two of three scheduled reform measures were completed, alongside the adoption of a major governance reform.
“The satisfactory performance demonstrates the country’s commitment to advancing structural reforms and sound macroeconomic policies,” the IMF said, noting that these efforts are critical to enhancing economic resilience and supporting inclusive growth.
Cabo Verde’s economy continues to show solid performance, driven by robust tourism activity, strong export results, and rising private consumption. The IMF highlighted, however, that vulnerabilities remain, including exposure to external shocks, fiscal pressures related to state-owned enterprises, and potential uncertainties linked to the electoral cycle.
The Fund urged authorities to maintain prudent fiscal and monetary policies and to continue implementing reforms aimed at boosting productivity, strengthening governance, and fostering sustainable and inclusive development.
Medium-term prospects for the archipelago remain favorable. Economic growth was estimated at 5.2 percent in 2025 and is expected to converge toward potential over the coming years, while inflation is projected to remain low, around 2 percent.
The IMF review is part of its ongoing support for Cabo Verde under the ECF, which provides concessional financing to low-income countries, and the RSF, which targets resilience-building reforms in areas such as governance, climate adaptation, and sustainability.
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Cabo Verde has used previous IMF programs to consolidate macroeconomic stability, improve fiscal management, and enhance the investment climate. The latest assessment reflects both the country’s progress in implementing reforms and the resilience of its tourism-driven economy, which is central to growth and foreign exchange earnings.
“The continued collaboration with the IMF is intended to strengthen Cabo Verde’s capacity to manage economic shocks, advance inclusive growth, and ensure fiscal sustainability,” the Fund said.
Cabo Verde, an island nation off West Africa, has faced historical challenges related to its small size, dependence on external markets, and vulnerability to climate shocks. IMF-backed programs have provided technical and financial support to navigate these constraints while promoting long-term development objectives.
With the new disbursement, authorities in Praia aim to maintain momentum on structural reforms, while continuing to strengthen governance, enhance public sector efficiency, and improve social protection programs, ensuring that the benefits of growth are widely shared across the population.
