The United Nations Industrial Development Organization (UNIDO) will support Cape Verde in job creation and revitalization of the business fabric, according to a collaboration agreement signed this Monday in Praia.
It will make it possible to create the conditions for industrial development that generates employment and stimulates the business fabric,” said the Prime Minister, Ulisses Correia e Silva, who presided over the signing of this agreement with that United Nations agency, which promotes sustainable industrial and inclusive development. , to be implemented by 2026.
“We want an intelligent, sustainable industry that generates the export conditions that the country needs so much. Is he program aims to promote a high-productivity industrythat covers training, knowledge, research, digitization, and identifies the factors on which we must act: human capital, development of institutional capacities, energy efficiency, among other factors”, said the Prime Minister.
According to Ulisses Correia e Silva, Cape Verde already has “potential” in several areas, such as pharmaceuticals, extractives or fisheries, and now it needs “scale and dimension, which responds to the purposes of the program” signed with UNIDO.
The implementation will be essentially carried out by the private sector, through the conditions that the Government will create so that small, medium and large companies can invest heavily in a green industry, with renewable energies, a sustainable water strategy, efficient transportation and with perspective for the integration of the regional market”, underlined the prime minister.
According to the Government, the 2022-2026 national program signed this Monday between the Ministry of Industry, Trade and Energy of Cape Verde and UNIDO “has as its main objective to strengthen the integration of Cape Verde in regional and global value chains through a competitive, diversified, sustainable and innovative industrial economy, a strong and active private sector and appropriate policies and strategies”.
UNIDO’s collaboration with the Government of Cape Verde aims to strengthen institutional and business capacities, upgrade domestic industry and resilient, carbon-neutral growth, promoting a “circular economy”.
“Integration of a gender perspective, youth and crisis response will be addressed as cross-cutting components. In order to offer specific solutions aligned with the country’s priorities, the The Government of Cape Verde will establish a Steering Committee for the program, which will be chaired by the Ministry of Industry, Commerce and Energy and which will be the highest governing body of the program”, highlighted the executive.
Cape Verde is facing a deep economic and financial crisis, due to the sharp drop in tourism demand – a sector that guarantees 25% of the archipelago’s Gross Domestic Product (GDP) – since March 2020, due to the Covid-19 pandemic.
After a historical recession of 14.8% in 2020, given the absence of tourism for about nine months, Cape Verde recorded an economic growth of 7% in 2021.
The government now forecasts 4% growth in 2022, a downward revision from the previous 6%, due to the fallout from the war in Ukraine, i.e. rising prices.
Source: Observadora