Financing Sustainable Development on Cape Verde
Description
Source: Government of Cape Verde
With tourism, fishing activities and remittances from of the Diaspora, the program "100% renewable energy" could be an important source of income because of its structural effects on the rest of the economy.
Indeed this program will among other things allow business development and employment among others with the promotion of SMEs, lower energy costs, improvement of the environment through better management of natural resource and opportunities in developing carbon trading
The electricity needs of Cape Verde are currently covered to 25% by renewable energies, with peaks of 35%. Current studies show that if the needs were covered to 50%, the upward trend in oil prices would still result in a fuel oil bill of 13,800 billion over 20 years. The same studies show that investments between 1,000 and 1,800 million could increase the covering of these needs to 100% by 2020, the costs of raw material of renewable energies being zero. The accurate amount of these investments is not yet determined.
Given the savings that might result from these investments, Cape Verde wishes to achieve them through a public private partnership. It will select for this purpose a private management company by call for tender to implement the program according to commercial standards.
It hopes that such investments do not result in a significant increase in its debt likely to create a macroeconomic unbalance. Cape Verde's external debt remains under control. The country has always paid its debt service and is, therefore, not beneficiary of the HIPC initiative. The development of activities induced by the program 100% renewables will increase the tax basis and generate new revenues for the government budget.
Cape Verde hopes also that these investments will help promote Cape Verdean companies responding to international competitive standards. To this end, a number of financial instruments and a capacity building program will be implemented. To ensure the optimality of the investment program, Cape Verde benefits an international technical assistance in order to have a sound grid and a competitive price for its electricity.
SDGS & Targets
Goal 8
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
8.1
8.1.1
Annual growth rate of real GDP per capita
8.2
Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors
8.2.1
Annual growth rate of real GDP per employed person
8.3
Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services
8.3.1
Proportion of informal employment in total employment, by sector and sex
8.4
Improve progressively, through 2030, global resource efficiency in consumption and production and endeavour to decouple economic growth from environmental degradation, in accordance with the 10-Year Framework of Programmes on Sustainable Consumption and Production, with developed countries taking the lead
8.4.1
Material footprint, material footprint per capita, and material footprint per GDP
8.4.2
Domestic material consumption, domestic material consumption per capita, and domestic material consumption per GDP
8.5
8.5.1
Average hourly earnings of female and male employees, by occupation, age and persons with disabilities
8.5.2
Unemployment rate, by sex, age and persons with disabilities
8.6
8.6.1
Proportion of youth (aged 15-24 years) not in education, employment or training
8.7
Take immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labour, including recruitment and use of child soldiers, and by 2025 end child labour in all its forms
8.7.1
Proportion and number of children aged 5‑17 years engaged in child labour, by sex and age
8.8
Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment
8.8.1
Fatal and non-fatal occupational injuries per 100,000 workers, by sex and migrant status
8.8.2
Level of national compliance with labour rights (freedom of association and collective bargaining) based on International Labour Organization (ILO) textual sources and national legislation, by sex and migrant status
8.9
By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products
8.9.1
Tourism direct GDP as a proportion of total GDP and in growth rate
8.10
Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all
8.10.1
(a) Number of commercial bank branches per 100,000 adults and (b) number of automated teller machines (ATMs) per 100,000 adults
8.10.2
Proportion of adults (15 years and older) with an account at a bank or other financial institution or with a mobile-money-service provider
8.a
8.a.1
Aid for Trade commitments and disbursements
8.b
By 2020, develop and operationalize a global strategy for youth employment and implement the Global Jobs Pact of the International Labour Organization
8.b.1
Existence of a developed and operationalized national strategy for youth employment, as a distinct strategy or as part of a national employment strategy
SDG 14 targets covered
Deliverables & Timeline
Resources mobilized
Partnership Progress
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