Cape Verde has one of Africa's most open economies, and trade represents 85% of GDP (World Bank, 2020). It became a member of the WTO in 2008 and enjoys preferential access to American and European markets, thanks to American legislation - the African Growth and Opportunity Act (AGOA) - and the Treaties of Lome and Cotonou. The country has also signed a free trade agreement with China. Cape Verde mainly exports fish and caviar (61.9% of total exports), clothes (7%), and parts of footwear (5%) ; while it imports petroleum oils (32.1% of total imports), containers (3.6%), vehicles (3.4%), cement (2.7%), iron (1.7) and rice (1.6%) (Comtrade, 2020).
Cape Verde's main customers are Spain (63% of total exports), Portugal (15.1%), Italy (11.6%), the United States (5.6%), and Germany (2.5%). Its major suppliers are Portugal (41.9% of total imports), the Netherlands (16.2%), Spain (8.4%), Italy (6.4%) and China (6.1%) (Comtrade, 2020). However, global trade tensions among China, the United States, and Europe - key trading partners to the island economy - could have a negative impact on their economy. Additionally, the archipelago's strategic location means that Cape Verde is increasingly at the crossroads of the transatlantic narcotics trade. Consequently, the United States and Cape Verde are currently working together to fight drug trafficking along its coast. The construction of a special economic zone (involving Chinese investments) is expected to increase trade in the future.
The trade balance is in structural deficit, a trend that should continue for the next few years. In 2020, Cape Verde shipped USD 53 million worth of goods and imported goods for USD 720 million. With regard to services, the country exported USD 264 million and imported USD 204 million (WTO). According to World Bank data, in 2020 the country had a negative trade balance of USD 659 million. In 2020, due to the COVID-19 pandemic, global trade volumes decreased sharply.
Foreign Trade Indicators | 2016 | 2017 | 2018 | 2019 | 2020 |
---|---|---|---|---|---|
Imports of Goods (million USD) | 666 | 789 | 816 | 796 | 720 |
Exports of Goods (million USD) | 60 | 50 | 76 | 62 | 53 |
Imports of Services (million USD) | 353 | 330 | 363 | 342 | 204 |
Exports of Services (million USD) | 590 | 607 | 661 | 709 | 264 |
Imports of Goods and Services (Annual % Change) | 7 | 16 | 6 | 1 | -22 |
Exports of Goods and Services (Annual % Change) | 4 | 8 | 12 | 8 | -58 |
Trade Balance (million USD) | -532 | -660 | -686 | -663 | -659 |
Foreign Trade (in % of GDP) | 104 | 113 | 117 | 116 | 85 |
Imports of Goods and Services (in % of GDP) | 60 | 67 | 68 | 65 | 60 |
Exports of Goods and Services (in % of GDP) | 44 | 46 | 49 | 51 | 25 |
Source: WTO – World Trade Organisation ; World Bank - Latest available data.
Main Customers (% of Exports) |
2020 |
---|---|
Spain | 63.0% |
Portugal | 15.1% |
Italy | 11.6% |
United States | 5.6% |
Germany | 2.5% |
See More Countries | 2.1% |
Main Suppliers (% of Imports) |
2020 |
---|---|
Portugal | 41.9% |
Netherlands | 16.2% |
Spain | 8.4% |
Italy | 6.4% |
China | 6.1% |
See More Countries | 21.0% |
Source: Comtrade, Latest Available Data
Source: Comtrade, Latest Available Data
To go further, check out our service Import Controls and Export Controls
To go further, check out our service Import Export Flows
List of tariffs and local taxes that apply to your product on our service Customs Duties and Local Taxes
Member of African Union (AU)
Any Comment About This Content? Report It to Us.
Learn more about How to Export to Cape Verde on Globaltrade.net, the Directory for International Trade Service Providers.
© Export Entreprises SA, All Rights Reserved.
Latest Update: May 2022