Cape Verde, an archipelago off the coast of West Africa, is leveraging technology to reverse one of the world's highest emigration rates and transform its economy. Once a hub for the slave trade, the country now aims to become a beacon for free movement of capital and talent across the African diaspora.
Digital Transformation Drive
Pedro Fernandes Lopes, Cape Verde’s secretary of state for the digital economy, is spearheading efforts to turn the country into a digital hub for West Africa, inspired by Estonia’s digitisation programme. The government accelerated these plans after the Covid-19 pandemic caused tourism to plummet, creating a digital economy ministry in 2021 with the goal of making the sector account for 25% of GDP by 2030.
The country already provides digital public services for its 529,000 residents and a diaspora estimated to be three to four times larger. Internet penetration stands at 75%, double the African average. Schoolchildren learn robotics and coding in shipping containers, and new undersea cables are being laid across the Atlantic.
TechParkCV and Startup Ecosystem
TechParkCV, a £44.78 million facility in Praia, houses an incubation centre for startups, a youth training centre, and a conference auditorium. Jessica Sanches Tavares, an adviser who returned to Cape Verde after living in France, says there is a strong energy and ambition to build. The facility, partly funded by the African Development Bank, will host the Web Summit in December 2024, marking its first appearance on the continent.
About two dozen companies have set up in the tax-incentivised special economic zone. Tavares explains that companies can operate remotely from Cape Verde in technically and economically competitive conditions. The ecosystem includes a datacentre, business centre, and incubation centre to support startups.
Challenges and Optimism
Despite progress, barriers include poor air connectivity within Africa and reports of black Africans, especially Nigerians, facing extra searches at airports. Some startups are overreliant on government support, with up to 100 founders receiving funding for salaries and subsidised attendance at tech events abroad.
Lopes remains optimistic: “This generation doesn’t want to only come back when they are retired. If we change the narrative and tell bright minds to return, things will change. We have to walk the talk, and that’s what we are doing now.”
