AfDB Grants €17.7m Loan to Boost Digital Governance Reforms in Cabo Verde
The African Development Bank Group (AfDB) has approved a significant loan to enhance digital governance reforms in Cabo Verde. The €17.71 million financing will support the second phase of the country’s E-Governance and Public Financial Management Reform Programme. This initiative is pivotal for Cabo Verde as it aims to modernize its economy through digital transformation.
Loan Approval Details
The loan was approved on a Monday by the AfDB Board of Directors. It builds upon prior support received in 2024, reinforcing the nation’s commitment to leveraging digital technologies for economic advancement and effective governance.
Key Objectives of the Programme
According to Abdoulaye Coulibaly, Director of the Governance and Economic Reforms Department at the AfDB, the programme aims to foster inclusive growth. This will be achieved through digital innovations and enhanced competitiveness.
Digital Reforms
The first part of the programme focuses on expediting several key digital reforms:
- Implementing E-Justice systems to digitize judicial processes.
- Launching a call for proposals to attract private sector involvement in technology parks.
- Setting admission criteria for digital nomads and tech firms.
- Enhancing digital infrastructure to support innovation and remote work.
These initiatives position Cabo Verde as a competitive hub for digital services in West Africa, potentially attracting foreign investment.
Strengthening Governance
The second component aims at modernizing public administration and reinforcing fiscal discipline through several reforms:
- Enhancing public resource management systems.
- Creating an action plan to streamline tax expenditures.
- Publishing tax expenditure estimates in the 2026 national budget.
- Conducting a Public Expenditure and Financial Accountability (PEFA) assessment in early 2026.
These strategies will aid in improving governance and fiscal transparency while bolstering investor confidence in Cabo Verde.
Beneficiaries of the Programme
The AfDB-supported programme is expected to benefit various governmental and regulatory bodies:
- Ministry of the Digital Economy – leading national digitisation efforts.
- Central Bank of Cabo Verde – enhancing governance in the financial system.
- Institute for Gender Equality and Equity – ensuring inclusivity in digital reforms.
- National Directorate of State Revenue – improving tax transparency.
- Public Procurement Regulatory Authority – enhancing procurement efficiency.
By integrating digital advancements with sound public financial governance, the AfDB’s initiative supports Cabo Verde’s vision for a resilient economy. This economy will not only thrive in the local context but also compete on a global digital platform.
