Cape Verde seeks trade finance support

Cape Verde, a nation that depends heavily on imported goods, is working to improve access to financing for its businesses. The Arab Bank for Economic Development in Africa (BADEA) plans to provide 20 million dollars and 10 million euros (11.23 million dollars) to support trade operations, with a focus on small and medium-sized enterprises (SMEs).

Financing agreement signed in Bangkok

A statement of intent for the financing agreement was signed on October 15, 2026, by Abdullah KH Almusai­beeh, president of BADEA, and Souhail Sultan, general director of the Intercontinental Investment Bank (iiB) group. The signing took place during the Annual Meetings of the World Bank Group and the International Monetary Fund (IMF) in Bangkok, Thailand.

Cape Verde faces a growing trade deficit

Cape Verde's economy is marked by a significant trade deficit. In 2025, merchandise imports reached about 199.5 billion Cape Verdean escudos (2.03 billion dollars), a 5% increase from the previous year. National exports, while growing by 18.2%, reached 9.38 billion escudos, leaving a trade deficit of nearly 190.57 billion escudos.

Efforts to improve credit access

To help businesses access credit, the Cape Verdean government launched the Registo de Garantias Mobiliárias platform in March 2025. This platform allows more types of assets to be used as collateral for loans, beyond just real estate. Additionally, the country has a public mechanism called "Pró-Garante," which helps reduce risks for banks and makes it easier for eligible companies to get credit.

Financing aims to boost trade resources

The new financing is expected to strengthen the iiB's resources for trade operations in Cape Verde. However, its implementation depends on completing the necessary procedures. The country also faces the challenge of diversifying its economy, as the IMF predicts a slight slowdown in GDP growth to 5.1% in 2026, down from 5.2% in 2025.