Cape Verde

Cape Verde Declares Economical Crisis

The Government of Cape Verde declared a social and economic urgency in Archipelago. This declaration was made on the 20th of June following a series of destructive events. In his speech, Prime Minister, Ulisses Silva stated that ‘9 out of 100 citizens in Cape Verde are speculated to suffer severe food insecurities due to the crash in the purchasing power. The situation resulted from a combination of events such as drought, the Covid-19 pandemic, and the Ukraine war according to the report. 

Effect of Tourism on The Economy

Tourism contributes over 60% of the country’s GDP and is a source of employment for over 70% of its citizens, over the years. Hence, the country’s economy declined. Due to the large percentage of the country’s dependence on Tourism revenue and the seizure of its activities during the pandemic  

The Effect of Drought on Cape Verde’s Economy

There has been a rapid decline in agricultural production in Cape Verde. This occurred as an effect of the drought experienced in this part of the country. ‘The food insecurity cannot be abated. Unless immediate actions are taken. Livestock, Agricultural production, and, livelihood in the rural parts of the country are under extreme traits” lamented Dr. Gou.antoueu Robert Guei, Sub-Regional Coordinator for West Africa.

A survey conducted by the Word Food Program in partnership with the Verdan Government shows that most families in the lower -class reduce their rate of food consumption. Mostly from three times to once a day. 

Also, there is a recorded reduction in cheese and milk production as a ripple effect of farmers putting up their livestock for sale 

The Impact of Ukraine Crisis on Cape Verde 

The Ukraine crisis further dragged the Cape Vedran economy down the drain as the country experienced spikes in prices, exports, and fluctuations  indirectly affecting the lower class

The Government Calls for Support

‘The Cape Verde Government was forced to declare an economic and social emergency due to the turnout of events’ said the UN Agency. The government said this action aims to seek help from the International communities to put in place family and business protection systems for the country. The Governor, in his speech, said that in a bid to help the lower-class families, different actions have been taken to stabilize the price of oil and food. Also, he estimated that the cost of these measures will be about 9 billion escudos by the end of 2022

In his last words, he assured us that Cape Verde is working with its partners to provide more resources.