The Government of Cabo Verde received a positive acknowledgment from the Support Group for Cabo Verde (GAO) regarding the country’s progress in renewable energy production and storage capacities. The GAO pointed out, however, that challenges in sector governance remain.
Electra, the public electricity company, is undergoing restructuring to create a robust sector governance framework. This is expected to expedite investments aimed at enhancing the resilience and preventive maintenance of the electrical system, thereby improving efficiency, reliability in electricity supply to end consumers, and advancing the country’s energy transition goals.
Partners emphasized the necessity to develop capacity-building plans for the Multisectoral Regulation Agency of the Economy (ARME) to strengthen sector regulation.
Furthermore, the partners underscored the urgency of implementing social energy tariffs and expanding their coverage according to outlined objectives, as stated by the GAO.
The capital city of Praia and other areas experienced daily power outages, sometimes exceeding 12 hours, in September and October due to malfunctions at the Santiago Island power plant.
The Government issued an apology for these disruptions and announced several investigations, though no results have been made public yet.
The latest mission of the GAO, co-chaired by the Government and the African Development Bank (BAD), took place in Mindelo and Praia from November 20 to 28.
The GAO provides financial support and technical assistance to the State Budget through grants and loans, aligned with national development priorities, with membership from Luxembourg, Portugal, Spain, the European Union (EU), BAD, and the World Bank.
Discussions involved the energy sector, macroeconomic conditions, budgetary and debt issues, public finance management, public administration reform, employment, poverty reduction, climate actions, digital and transport connectivity.
Concerning the public debt, the GAO noted a “downward trajectory,” but authorities reported that debt servicing reached 50.3% of State revenues in the second quarter of 2025, prompting partners to advise prudent management and enhanced monitoring of fiscal risks.
