Assetz® News - New boost for Cape Verde

New boost for Cape Verde

5th August 2008 |

With many a new property market appearing, one question is whether the new developments being created - however scenic the area or nice the local people - are near to the right kind of infrastructure. This may be said to be particularly true of areas listed as developing where limited communications, poor roads and questionable energy supplies may all be issues that need to be resolved.

In the case of Cape Verde, one of the features of the island's development as a property market has been its integration with other forms of economic progress. Central to this and most obvious has been the growth of the tourist industry, meaning that those coming to enjoy the natural resources of sun, sand, scenery and surf will also provide an obvious market for the buy-to-let investor.

But to bring in the tourists requires airports to fly them in, along with roads to link the new developments with these hubs. This in turn requires money, either spent by the government or provided by developers who, among other factors, are sufficiently satisfied that the government is enterprise-friendly and on their side enough to justify their financial commitment.

Luckily, it appears the Cape Verdean government is just that, with the added bonus that it is receiving plenty of help in its commitment to grow the economy. Last month the archipelago was in the headlines for its achievement of becoming a member of the World Trade Organisation. This month more funding is on the way.

It has come in the shape of €51 million (£40.37 million) donated by the European Development Fund, with the money coming in between this year and 2013, reports Macauhub.

The cash has mainly been earmarked for economic development, poverty reduction and good governance, with €30 million for this purpose. There is also €10 million more because of the special partnership that exists between the country and the European Union.

While the money will be sent directly to the capital Praia, the paper noted that Cape Verdean finance minister Cristina Duarte had declared that the way it would be spent would consist of technical co-operation to boost civil society. Thus, the money is not simply a handout from the state but an investment.

But while money is spent building up the economic base of Cape Verde, those in the property industry will hope this continues to translate into a growing tourist and property sector, therefore maintaining the virtuous circle of growth.

One development that may be particularly exciting is that reported recently by Telecom Paper in the Netherlands. The publication noted that ANAC, the telecoms sector regulator for Cape Verde, has started a public consultation on the provision of broadband services. Such a facility, of course, could be another attraction for tourists and investors wanting to maintain good communications with the rest of the world.

Yet air traffic remains the key. It was recently reported by Adrian Lillywhite on Property Wire that in the case of the island of Maio, the airport was recently closed for renovation and the property market slowed as a result. However, he noted, this should soon change as it is soon to reopen, allowing the island to fulfil its "tremendous potential". As ever, infrastructure holds the key.