Country context (P3 lens)

Cabo Verde (Cape Verde) is a small, upper-middle-income island country off the West African coast. P3s are used selectively to mobilize private capital, improve service delivery, and transfer operational risk, particularly in transport, energy, and urban infrastructure. The small population and island geography mean that projects are often medium-scale, revenue-generating, and donor-supported.

Verified sources: World Bank PPP Knowledge Lab, African Development Bank (AfDB), IMF, OECD.

Economic and infrastructure conditions

• Economy: Service-driven, with tourism, transport, and public administration dominating; limited domestic market constrains large-scale P3s.

• Infrastructure priorities:

  • Ports, airports, and inter-island transport

  • Roads and urban infrastructure

  • Water supply, sanitation, and energy utilities

  • Social infrastructure (schools, hospitals)

• Private sector: Small but capable; foreign investors often participate in structured P3 projects in transport and energy.

Given the island context, careful planning and risk management are critical for P3 viability.

Public Private Partnerships framework

Legal and institutional setup

• Cabo Verde has a P3/concession framework, overseen by the Ministry of Finance and line ministries.

• Projects require feasibility studies, value-for-money assessment, and fiscal risk evaluation before approval.

• Typical P3 structures:

  • Concessions for airports, ports, and roads

  • Build-Operate-Transfer (BOT) for energy or transport assets

  • Service or management contracts for urban utilities and social infrastructure

Market characteristics

• P3s are project-specific and selective, often supported by multilateral development institutions.

• Focus is on predictable revenue streams or donor-backed guarantees.

• Private participation is mainly regional or international due to the small domestic market.

Sector experience and opportunities

Transport

• Airport and seaport concessions are the main P3 opportunities.

• Roads and inter-island transport may also be structured as concessions.

Energy

• Private participation in generation and renewable energy projects under BOT arrangements.

• Distribution and transmission remain largely public.

Water and municipal services

• Service contracts for water supply and sanitation in urban areas are possible.

Social infrastructure

• Schools and hospitals delivered as P3s are limited, usually with government or donor support.

Key P3 considerations

• Project scale: Small population limits large-scale P3s; medium-scale, well-structured projects are feasible.

• Fiscal and climate risk: Island geography increases operational and logistical risks; revenue or donor guarantees help attract private investors.

• Institutional capacity: Government oversight is strong; project preparation is often supported by multilateral institutions.

• Market depth: International investors dominate, particularly in transport and energy.

Outlook

Cabo Verde is a small, selective P3 market:

• Projects are mostly revenue-generating or donor-supported, medium-scale

• Focus sectors: transport, energy, and urban utilities

• Multilateral involvement is critical for project preparation, financing, and risk mitigation

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