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On July 4, 2005 the MCC signed a five-year, $110 million compact with Cape Verde aimed at contributing to the transformation of the island-nation's economy from aid-dependency to sustainable, private-sector led growth. The compact officially concluded on October 17, 2010 - only the second compact to closeout. The MCC board selected Cape Verde on December 9, 2009 as the first country to develop a second compact. It was reselected in FY2011 to continue developing a second compact.
MCA Status
Cape Verde's compact entered-into-force on October 17, 2005. Strategic investments in three projects improved Cape Verde's investment climate and reformed the financial sector; improved infrastructure to support increased economic activity and provide access to markets, employment, and social services; increased agricultural productivity and raise the income of the rural population; and carried out some key policy reforms needed for sustained economic growth. The MCC is currently undertaking Monitoring and Evaluation of the first compact to assess its impact.
Country Compact
Cape Verde MCC compact
Monitoring and Evalution results from Cape Verde's first compact
CGD's summary of the proposal
MCA-Cape Verde website
By comparison, Cape Verde's Interim Poverty Reduction Strategy Paper (PRSP) outlines five major goals: improving governance, promoting entrepreneurial activity, investing in human capital, increasing social cohesion, and improving physical and institutional infrastructure. The strategies for achieving these goals include renewing economic growth with a focus on equity, strengthening the linkages between poverty reduction strategies and macroeconomic policy, reducing regional and rural/urban disparities, and improving the productive capacities of the poor.
Cape Verde's PRSP
Joint Staff Advisory Note (JSAN) for the PRSP
Country Eligibility
In the FY2011 selection process, Cape Verde scored above the median on all six Ruling Justly indicators, two of five Investing in People indicators, and four of six Economic Freedom indicators. Cape Verde is a lower middle income country (LMIC).
Review Cape Verde's performance on the FY2011 selection indicators
Review Cape Verde's performance on the FY2010 selection indicators
Review Cape Verde's performance on the FY2009 selection indicators
Review Cape Verde’s performance on the FY2008 selection indicators
Review Cape Verde’s performance on the FY2007 selection indicators
Review Cape Verde's performance on the FY2006 selection indicators
A scorecard is not available for Cape Verde's indicator performance in FY2005
Review Cape Verde's performance on the FY2004 selection indicators
Learn more about the MCC's country selection process
Country Facts
Data are for 2009 (or most recent year available)
| Per capita income (GNI, current US$) | $3,010 |
| Poverty rate | 40.2% |
| GDP growth (annual) | 2.8% |
| Population, total | 505,606 |
| Rural population (% of total) | 40% |
| Life expectancy | 71 yrs |
| Literacy rate | 84% |
Source: World Development Indicators 2010
Cape Verde Country Brief from the World Bank
Other U.S. Policies
USAID provides no country-specific funding in Cape Verde. However, USAID’s West African Regional Program (WARP) supports programs that benefit Cape Verde. Review the USAID regional West Africa strategy
Other Donors
The top three donors to Cape Verde in 2009 were:
|
Donor
|
Gross ODA,
2008-2009 average (USD millions) |
|
Portugal
|
64
|
|
United States
|
30
|
|
EU Institutions
|
25
|
*ODA is official development assistance
Other Resources
Department of State country profile providing background on Cape Verde's history and U.S.-Cape Verde relations