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The Economic Crisis In Cape Verde

October 26th, 2010

The Economic Crisis In Cape VerdeThe world is experiencing a deep economic crisis that began in 2007 with the start of the U.S. financial crisis, and then widened to the world.

The interdependence between the economies, the economic fragility of Cape Verde and its meagre resources did not leave Cape Verde out of this crisis scenario.

Some argue that when analysing Cape Verde it is possible to understand that having a population of only about 500 000 inhabitants, the country has serious difficulties in developing just by itself. There are several studies pointing in this direction. Being an archipelago, the question becomes even more relevant, therefore our potential for development lies in how we relate to the world.

The recent report by the International Monetary Fund (IMF) in December 2009 found that the economy of Cape Verde had resisted well to the global economic crisis thanks to prudent economic management and strong fundamentals that have allowed growth rates to be considered as “solid”.

In the analysis of economic developments in Cape Verde under the Policy Support Instrument (PSI) approved in July 2006, the IMF concluded that the global financial crisis had little impact on the financial sector in Cape Verde and, despite a slight decline, “the international reserves remain adequate”…

The IMF proposed that Cape Verde should make efforts towards to developing the domestic financial market taking into account the scope available to gradually lower interest rates.

On this point it should be noted that the Bank of Cape Verde (BCV) decided in late 2009, to reduce the Central Bank benchmark interest rate by 100 basis points (1%) with effect from January 4, 2010.

This decision was supported by the evolution of international interest rates, particularly in the Eurozone. In turn, the ADB (African Bank of Development) also acknowledged in its report released in Dakar (Senegal), that the Cape Verdean economy would slow down last year from 6.1 percent in 2008 to 3.6 percent in the past year.

However, ADB has confirmed the expectations of the Government of Cape Verde, according to which the archipelago’s economy will experience a recovery from 2010 and should grow in the range 4-5 percent.

The year 2009 was bleak for the normal tourism and real estate tourism industries with serious consequences for the island of Sal. In an interview Olavo Correia, the Cape Verdean economist and president of PROMITUR (the association set up by a group of developers and those in real estate and tourism) spoke about the lack of competitiveness of the Cape Verde destination and warned about the lack of transparency in the business model for residential tourism.

According to official data from the government, tax revenues in Cape Verde had a fall in the first quarter of 2009 of around 16%, as a result of the international economic and financial crisis.

Therefore the international crisis and stagnation together with a slowdown in external demand for Cape Verde, had a negative impact on exports of goods and services, which include tourism and residential tourism. There was also a large negative effect on the public revenues of the state.

In the interview Olavo Correia also said that during the economic crisis more foreign markets have emerged, competing with Cape Verde, using very aggressive marketing strategies. As a result the economy of Cape Verde will have to be much more aggressive, in other words, firms must establish partnerships so they can gain financial capacity, increase production efficiency and promote delivery of services.

According to Olavo Correia, Cabo Verde should look at the crisis as an opportunity to correct what is wrong. Investing more in sanitation and street lighting, improve environmental quality and landscaping, and create a cluster for tourism integrating culture, entertainment, agriculture, and crafts. Basically, the sale of what is original and characteristic of Cape Verde, allowing for the recurrence and return of tourists. This is a great challenge that is required from Cape Verde.

For example Sal and Boa Vista are two potential tourist destinations showing today that leisure tourism and residential tourism are sectors that can ensure a balanced and sustained economic development in all the islands of Cape Verde.

Cape Verde has already shown hopeful signs that tourism can accelerate economic growth, reduce poverty, increase employment and eliminate regional disparities. There is an economic potential generated by the tourism sector which must be used in the best way.

Most economic observers are of the opinion that Cape Verde has a very large potential that waits to be better utilised, developed, expanded and promoted. Cape Verde is a stable country with ten diverse destinations, a good geo-strategic location, and a number of hours of flight which compare favourably with other destinations.

It is a country open to the world, with extraordinary beaches, historical and architectural heritage with a high degree of interest and a beautiful landscape that needs to be properly improved and developed in a coordinated way in order to increase the competitiveness of the destination Cape Verde.

Olavo Correia admits that 2010 will still be a very difficult year in terms of international economic climate with a negative effect particularly in residential tourism in Cape Verde.

In order to tackle the crisis, Tecnicil one of the largest Cape Verdean companies with a strong participation in real estate tourism has been readjusting to reality, developing new businesses including the industrial sector, the internationalisation of the group in trying to penetrate the growing markets in the African continent and invest in the resort tourism in the island of Sal.

Europe is now in a phase of recession, with the exception of Germany, but overall the peak of economic growth in Europe fell by between 0% and 1% and GDP growth tends to be low.

The performance of the Cape Verdean economy will also be lower, due to the financial crisis. In order to reverse this scenario the economist Olavo Correia argues that initiatives will have to be taken by the private sector together with more public investment.

There is hope that this year and next will bring new and better economic prospects.

 

Hernani Almeida has released a second album called “Caalma”

October 26th, 2010

Hernani Almeida A magical acoustic experience – this is what Cape-Verdean guitarist, Hernani Almeida, offers the listener of his second solo album – ingeniously entitled: “Caalma” or “Caalm” – the second “a” having been added to emphasize this invitation to unwind. The album was recorded at Le Studio Mindelo by Jorge Nunes and Hernani Almeida and consists of twelve songs; eleven by the guitarist and one by Biús, a simple tribute to the young Cape Verdean musician who died in 2009.

The journey starts with the first song, also entitled “Caalma”… The mood is set… Velvety, captivating and spellbinding, it displays from the start the virtuosity of Hernani.

One is bound to be surprised at first, after all this is not what you would expect from a young Cape Verdean guitarist!  Very soon however, one is taken by what Hernani calls “music surrealism”.  And surreal his music can be. Think of a musical Dali, Goya or Miro… A patchwork audio painting, mixing different sounds, atmospheres and rhythms.  Away from Cape Verde’s traditional tocatinhas and high pinched guitar cords, Hernani’s music is like mittens for your ears and most definitely cutting edge!

Further into the album, the track numbers four “Maskrinha” and seven “Espera Verde Djga” are like two exclamation marks!! Audacious and lilting, these songs remind us of Hernani’s origins and passion for his continent – Africa. Indeed, one can hear the African drums in the background; the traditional Cape Verdean rhythms take centre stage in a beautiful and harmonious way. Batuku, soul and jazz make friends on those tracks, a revolutionary concept!

Hernani AlmeidaHernani has already experimented with mixing more traditional African rhythms and other sounds for his first “love child” as he likes to call it, his first album entitled “Afro na Mi”.  A disc which shows according to him his Africaness, allowing him to “explore and expose” what he observes in Africa.  Hernani the Afro-centrist touches a sensitive nerve in Cape Verde… Indeed one has to bear in mind that Cape Verde is a “mestizo” society, with seventy-eight percent of the population being Creole. The culture of the islands is a unique mixture of European and African elements and national identity is somewhat fragmented, mainly as a result of geographical division of the islands. Generally speaking, the northern, or barlavento islands tend to identify more with Portugal, whereas the southern or “sotavento” islands  (Santiago in  particular)  have  a strong sense of affiliation to Africa – a special fondness for everything that reminds them of the first African slaves who were shipped to their islands.

Hernani declared to the press a few days after the release of “Afro na Mi” that he simply chooses to identify with Africa and that he wants to explore that side of Africa that he has in him. Therefore, “Afro na Mi” he said is “like [his] Africaness put on disc”.

Born and bred on the island of Sao Vicente, his first musical encounters were with local musicians. Aged seven, he was offered a little keyboard but very soon, young Hernani replaced it with a guitar, his instrument of choice.

In 1994, he formed a rock band “What”, immediately catching the attention of  famous  Cape Verdean  artists,  for  instance  the  renowned  Gerard Mendes  (Boy G.),who invited  him  on  his  European tour, followed by artists  Sara  Tavares, Tcheka and  Mayra Andrade .

In 1997 he recorded two albums with Bau – Cesaria Evora’s former guitarist – before playing alongside Malian super star Habib Koité. Other international collaborations have followed, further enriching his musical spectrum. Over the past few years, we saw Hernani sharing the stage with French DJ Frederic Galliano, hip-hop artists Switch and Tony from Paris, Modeste from Madagascar and Brazilian song smith Lenine. Hernani has more recently performed at Sao Vicente’s annual festival “Baia das Gatas” and has been featured on countless television interviews.

Still, when I asked him what his greatest source of inspiration was, he did not mention his past experiences or his country but Nature!

“Mother Nature inspires me. I want to share with people. Be as generous with them as Mother Nature is with us everyday. Let’s all become more appreciative. How can we be bitter, when Mother Nature is so sweet? We should wake up every morning, open our windows and let the sun illuminate our homes. We should never forget that the sand loves to feel our small feet walking all over its skin!”

Not an easy task trying to capture “Nature’s nature” with notes and instruments but this is the task Hernani has set for himself. The artist bids us “to listen to [his] music with [our] hearts”. Musical visualization, this is what we need to understand his music and appreciate all its subtleties!

So, sit back, relax and take in the full spectrum of Hernani’s musical creativity.

To find out more about Hernani Almeida, go to: http://www.hernanicv.com or http://www.myspace.com/hernani1978

 

LURA: BODY, VOICE AND MUSIC FROM THE SOUL OF CAPE VERDE

October 26th, 2010

LURAAnyone who enjoys the music of Cape Verde knows that in recent years, new voices and new sounds have emerged without completely moving away from the traditional Cape Verdean sound that convey an intense feeling of freshness.

To be aware of this, one needs to do just one simple thing: to listen with one’s heart, because this is the best way to grasp the meaning of a message when it is called “di Korpo ku soul.”

This is what has happened with Lura, whose voice and ability to interpret Cape Verdean music was discovered recently and has become one of the best ways of making Cape Verdean music known internationally.

There is no longer any doubt about the perfect complicity established between the singer and the music of these islands, surely one of the best partnerships in the world.

LURACREOLE IDENTITY

This is more than evident in Lura’s five albums. Lura was born in Portugal in 1975, the same year that the birthplace of her parents, (her mother is from Santo Antão and her father from Santiago), achieved independence from Portugal. Their daughter, less than 30 years later would become a symbol of union between Cape Verdeans and Portuguese, as well as a source of pride for both nations.

The reality is that, despite a career built almost exclusively around the music of Cape Verde, Lura was born and raised in Portugual and her experiences were always dominated by the values of Portuguese culture.

“This situation is changing gradually turning into something special, because of my need to learn about these islands, the longing and curiosity that I experienced in relation to Cape Verde. This is a result of stories that I heard from my parents since I was small, who bequeathed me in that way, a heritage of imagery that I have now the privilege to enjoy”, says the artist, for whom the desire to know Cape Verde in all its aspects and cultural wealth is “increasingly more appealing “.

MUSIC AS A PASSION
If we bother to examine the meaning of some of the titles in the discography of Lura, we can easily understand that from the moment she embraced the music, first as a hobby and after as a career option, the singer always lived life (Nha Vida) in a state of permanent passion (In Love), to which she gave herself with body and soul (Di Korpu Ku Alma).

The final return to her origins happened with M’bem di Fora, which can be interpreted as a declaration of belonging to Cape Verde, and confirmation of the growing musical identity of the islands. This is underlined by Eclipse, Lura’s latest album.

Thus, when analysing the meaning of these titles and looking at the career that Lura has been building, there are interpretations that depending on the imagination, may

 

SAILING TO CAPE VERDE

October 26th, 2010

SAILING TO CAPE VERDEMy name is Bob White and in 2007 I decided to come to Sal to have a look at the boat excursion market.

I had been driving powerboats for over 20 years in and around the UK and I decided it was time for a change of lifestyle, after visiting Sal I knew that this was the place where I wanted to settle.

So, in July 2007 I put my 35 Glastron Powerboat (King Boa) on a container ship to Gran Canaria and flew on ahead to await its arrival. I had to wait 3 months in Gran Canaria to sort out the necessary paperwork and also to await the arrival of a yacht to accompany me to Sal, as it was a dangerous journey to attempt alone. Whilst there, I spent the time preparing the boat for the 961 mile trip to Sal.

I had some challenges to overcome before I set off on my trip, one being my crew man did not arrive so I had to find someone else to accompany me on the trip. This proved very difficult as everyone who saw my boat said it was a suicide mission. I did find one man to do it however, the chef on the accompanying yacht, much to the dismay of his skipper! I was hoping I’d eat well on my journey!

On October 25th we set off from Gran Canaria, carrying 675 litres of fuel in the tank and another 660 litres in jerry cans stacked everywhere on the boat.

We had heard some stories about pirates in local waters so we decided to avoid any coastlines and go offshore all the way, which meant we were sailing 200-350 miles from the nearest coastline. Conditions were pretty good, we had the wind behind us all the way with a 15-30ft swell following us. We travelled at 8 knots in order to get the best mileage but also to avoid overtaking the high swell.

We had no auto pilot so as the swell reached the back of the boat we had to steer left, and as the swell reached halfway down and under the boat we had to steer to the right. We could only run with the steering wheel in the centre position for 10 seconds at a time before starting the manoeuvres all over again, so by the time we got to the end of the journey we had worn the surface off the steering wheel. These manoeuvres meant we had to be at the wheel constantly, so we took it in turns doing 3 hour shifts and covered 200 miles a day driving 24 hours continuously.

Food preparation and quality was limited but having a chef on board meant the food was good and we ate well unless a big swell knocked the food off our laps to the floor, which unfortunately happened quite often.

At night we were bombarded with flying fish, the lights from the boat seemed to attract them but they could be quite dangerous as they flew very close to our faces on many occasions.

The journey was a solitary one, we only saw lights from one other ship once, and they were way off in the distance.

On the 31st of October we saw the coastline of Sal and I have to say I was a very happy man to set foot on land! It was a gruelling journey but also a very exciting and challenging one and if I had to do it again I would do so in a heartbeat.

I am delighted to say we have a whale and dolphin excursion business now and I am enjoying my new lifestyle enormously.

You can follow us on our Facebook page – King Boa Powerboats or contact me on 238 994 9248 to find out more about the excursions we offer.

 

Investor’s Guide

September 10th, 2010
For those of you interested in investing in the fabulous Cape Verde islands, please read our Investor’s Guide. Here you will find information that will assist you in making informed choices about setting up your company, employment of personnel and many other aspects connected with investment in Cape Verde.

Cape Verde Factbook

Country name : Conventional long form: Republic of Cape Verde
Official language : Portuguese
Mother language : Crioul
Capital city : Praia
Total land area : 4,033 km 2
Population : 434,812 inhabitants (2000 Census)
Domestic Currency : Cape Verdean Escudos (CVE)

Reasons for investing in cape verde

Economic and Political Stability

  • Absence of political, ethnic or religious conflicts;
  • Stable social and economic indicators.
  • Privileged Geographic Location

  • Halfway between North America and South Africa;
  • Halfway between South America and Central Europe;
  • Served by major regular north-south sea and air routes.
  • Preferential Access to Markets

  • Country of origin made products benefit from preferential access conditions to markets such as the EU, ECOWAS, USA (SGP and AGOA) and Canada (Memorandum of Understanding on LDC Initiatives).
  • Labour

  • Supply readily available;
  • Easily trained;
  • High level of productivity.
  • Foreign Direct Investment Incentives

  • Two industrial estates, with required facilities, services and equipment available;
  • International sea ports and airports with good capacity;
  • Efficient and competitive information and communication technology;
  • Water supply network and power grid available; ship repair yard and cold storage, processing of fish
  • Government Warranty

  • Non discriminatory policy, fair and just handling of issues;
  • Protection of goods and upholding of rights;
  • 100% repatriation of all legally earned profits in hard currency the investor is entitled to;
  • Freedom to open and maintain bank account in hard currency;
  • Hiring of expatriate workers.
  • Overall Incentives

    Cape Verde offers a set of important incentives, such as:

    Foreign Direct Investment
    Fiscal Incentives

  • 0% tax on dividends and profits to shareholders for a period of 5 years and/or whenever they are reinvested;
  • 0% tax on amortisations and interest falling on financial transactions that constitute foreign direct investment;
  • Stable Fiscal System (Personal Income Taxes of 10% after 6th year of business, without hindrance from benefiting from more favourable and foreseeable terms under bilateral agreements signed between Cape Verde and the country of the recipient investor).
  • Duty Free Enterprises (Special Tax System)

    Fiscal Incentives

  • 0% tax on duties, tariffs or other levies falling on profits for the first 10 years of business;
  • Following said tax exemption period, as foreseen under previous paragraphs, corporate tax on profits or on dividends to shareholders cannot exceed 15% of profits;
  • Furthermore, the duty free enterprise is entitled to full tax exemption and other indirect fiscal assessment namely stamp duty.
  • Customs Incentives

  • Customs duties exemption and excise duty exemption as applicable to the imports of equipment, construction material, fuel and lubricant to be used in manufacturing;
  • Special tax system regarding import of raw materials and others;
  • Duty free export.
  • Export-orientated Companies under Regular Tax System

    Fiscal Incentives

  • Reduced corporate tax rates for the first 5 years in business.
  • Customs Incentives

  • Tax exemption on raw materials, finished and unfinished goods used in the production of export-orientated goods and services;
  • The import of goods and materials to be incorporated in the production of export-orientated commodities is customs duty free, and exempted from excise duty and fees;
  • Freedom to export manufactured goods.
  • Incentives to Specific Sectors

    Industry

  • Customs duties exemption, excise duty, tariffs and overall customs fees on import of goods, equipment and materials as listed;
  • Corporate tax exemption on revenues generated by each new industrial unit registered for a period of 3 years;
  • Freedom to export manufactured goods;
  • Corporate tax deduction on reinvested profits.
  • Tourism

  • Customs duties exemption on the import of materials for the construction and running of hotel establishments, resorts, marinas, golf courses as well as other tourism-orientated undertakings;
  • Corporate tax exemption: 100% exemption for the first 5 years into business and 50% for the following 10 years;
  • Tax rates deduction on profits reinvested in similar activities;
  • Deduction of tax rate on taxable expenditures incurred with training of domestic workers;
  • Freedom to export manufactured goods.
  • Limit to Incentives

  • Is placed on the foreign direct investor engaged in business whose main goal is to supply the domestic market;
  • Is placed on foreign direct investment targeted at the financial sector as the sector is governed by specific law.
  • Business Opportunities

    Industry

  • Water, energy, confectionery, footwear, fish processing, sea salt, cement industry, porcelain, stoneware, earthenware, biscuit production, packing, furniture, commercial printing operations, preparation of feeds and feed ingredients for animals, beverages and soft drinks.
  • Building Industry

  • Production of agglomerates, cement-based products and the like, paints, mosaic tiles, roof-tiles, electrical fittings, household appliances.
  • Fisheries

  • Commercial fisheries, catch, processing, cool storage and sales of fish and fish products.
  • Agriculture

  • Coffee, wine, floriculture, ornamental plants, fruit tree production.
  • Services

  • Teleport, teledata, international ship’s register, catamarans, tourism and industry ancillary undertakings, commercial free trade zones, telecommunications;
  • West Africa shipping routes targeted at coastal trade, feeders and trunking services.
  • Tourism

  • Luxury hotels, resort, marina, golf courses, transportation, restaurants, recreational fishing, diving, inter islands transportation.
  • Privatisation

  • ENAPOR – Port Authority
  • CABNAVE – Shipbuilding Yard
  • EMPROFAC – Importação e Distribuição de Medicamentos
  • TACV – Domestic Flag Carrier (Airlines)

Bureaucratic Red Tape

Foreign Direct Investor Status

Application

Any foreign direct investment operation calls for a prior authorisation (paragraph 1, article 3, Law number 89/IV/93). The Foreign Direct Investor Status application should be addressed to the member of the Government responsible for Finance via CI. The dossier should contain three (3) copies of duly filled in official forms and the following:

  • Identification of the foreign direct investor;
  • Investor’s curriculum and bank references;
  • Intended site;
  • A descriptive project summary;
  • Annexes 1 and 2 (furnished by CI) duly filled in;
  • Environmental Impact Assessment (when applicable).

Delay
Any pronouncement made by the Minister of Finance and Planning is conveyed to the potential investor no later than 30 days after the date of submission of the dossier to CI-ACI. In the event CI-ACI requests additional information to be furnished by the investor, the time spent collecting and furnishing it does not count and the time limit stipulated is adjusted accordingly.

Foreign Direct Investor Certificate
In the event of a No Objection on the part of the Minister of Finance and Planning a Foreign Direct Investor Certificate is issued by CI. The Certifcate becomes void if the investment is not carried out within the timeframe it specifies.

Registration of Foreign Direct Investment
The foreign direct investment operations mentioned under article 5 of Law number 89/IV/93 are subject to registration with the Bank of Cape Verde. Three (3) duly filled in official forms must be submitted.

Inspecção do Empreendimento
In order to start business the undertaking must be duly registered which prompts inspection by the competent authority within 30 days of submission of an inspection note.

Status of Free Trade Companies

Application – Duly filled in form.

Delay

Same directives as under Foreign Direct Investor.

In the event CI-ACI requests additional information be furnished by the investor, the time spent collecting and furnishing it does not count and the time limit stipulated is adjusted accordingly.

Certificate In the event of a No Objection on the part of the Minister of Finance and Planning a Certificate of Free Trade of Company is issued by CI-ACI, a copy of the Certificate is furnished to the domestic authorities in charge of business and labour issues as well as to the applicant. The Certificate entitles the Foreign Direct Investor to access to incentives set in applicable legislation.

Remark
Only 100% export-orientated companies or those that sell their products to other companies operating in a free trade area of Cape Verde are entitled to apply for said status.

Setting up Business in CV
A would-be foreign direct investor willing to set up business in Cape Verde is given the following legal options for creating a company:

Setting up trading companies

Cape Verde sets the following classification of trading companies:

  1. Co-Partnership;
  2. Shareholder Society;
  3. Anonymous Society (or limited company);
  4. Limited Society or Joint-Stock Company;
  5. Co-Operative Society.

The most common forms are Shareholding Society and Anonymous Society (or limited company).

Business Set Up Process

In order to set up a business undertaking in Cape Verde a would-be investor should:

  1. Obtain a certificate of admissible evidence stating that there is no other company bearing same designation;
  2. Demand an original of registration of the trading society and the bylaws, as written by the business partners, with the Registry Office;
  3. Attach the counterfoil of bank deposit as evidence of deposit of amount equivalent to the jointly held capital funds;
  4. Following registration with the Registry Office publish in the Official Gazette (BO) the Bylaws or the business set up agreement;
  5. Obtain with the Directorate General of Tax Collection and Tax Law Enforcement the Fiscal Identification Number (NIF);
  6. Register with the Directorate General of Commerce in order to start commercial business.

As an alternative, a would-be investor is advised to contact (www.portondinosilha.cv) “Casa do Cidadão” if wishing to set up a Trading Company in just one hour.

Fiscal Guide

Single Income Tax (IUR)

IUR falls on the aggregate annual (calendar year) income, derived from different sources. The following are highlighted:

  1. property-derived income;
  2. commercial and industry-derived incomes;
  3. sales of services;
  4. income from agri-business and fisheries;
  5. income from capital investment (gambling income including winnings from lotteries as well);
  6. labour-derived income (self-employment and hired worker).

Under alternative minimum tax method of taxation, such as set under article 57 of Law number 1/96, January 15, 2002 the following tax rates apply:

Hired worker or retiree
Rates charged upon payment concerning incomes generated from the payment of receipts, provision of services and execution of tasks that fall into the category of liberal professions such as stipulated under Law number 1/96 of January 15, 2002.

Legal entities, be it private or public incorporations, judicial persons or not, are liable to pay single income taxes provided they have a head office or businesses domiciled in Cape Verde.

Non-domiciled companies or their equivalent entities, in possession of regular premises but without a head office, an acting board of administration or businesses domiciled in Cape Verde are entitled to pay income taxes falling on the incomes generated.

Individuals residing in the country, actively engaged in commerce, industry, agriculture or fisheries activities as their main source of income as well as premises of non-residents in business are liable to pay income taxes which fall on their statement of income.

In order to compute taxable income, net revenues and relevant inventory taking (positive or negative balance) for a given period must be known from established accounting records and ultimately validated under the terms of Single Income Tax regulation.

The marginal tax percentage applied to a taxpayer’s income bracket (“regular” tax method of taxation) is set at 25%.

The marginal tax percentage under “estimate” tax method of taxation is set at 15%.

The marginal tax percentage under “situation of liquidation” tax method of taxation falls on the following earnings at specified rates:

  1. Interest earned on current account deposits, such as applicable to all depositors, safe for deposits held by emigrants: 20%;
  2. The remaining earnings from capital investments safe for profits distributed by whatever method, including profits generated from the liquidation of business ventures and from investment societies: 15%;
  3. Income generated by non-residents even if they do not own premises, falling on the face value of the invoice: 20%;
  4. Income from gaming, betting:15%.

    Single Property Tax (IUP)

    The marginal tax rate of 2% applies to acts requiring Registry Office procedures.

    Stamp duty
    A stamp duty is due on sales invoices or other transactions and the provision of services.

    Other Information

    Insurance against Accidents at Work and Occupational Diseases

  • Class 1 – 2%
  • Class 3 – 6%
  • Social Security Expenses (Charged upon payment)

  • Expenses incurred by the company- 15%
  • Expenses incurred by the employee – 8%

Real Estate

The sale price of surface unit area in the Comprehensive Tourism Development Areas (ZDTI) varies. Any investor willing to buy real estate in any ZDTI should contact CI-ACI.

To acquire land located in industrial estates willing investors should contact the Municipalities.

Legislation

Foreign Direct Investment – Law number 89/IV/93, December 13;

Decree by Regulation – Law number 1/94, December 3;
Tourism Usefulness – Law number 42/IV/92, April 6;

Free Trade Company Bylaws – Law number 99/IV/93, December 30;

Incentives Applicable to Export and Re-export – Law number 92/IV/93, December 15 (Supplement to BO number 47/93);

Industry Bylaws – Law by Decree number 108/89, December 30;

Trading Companies Code – Legislative Ordinance number 3/99, March 29.

Annual Income Amount Tax %
Less than or Equal to 200,000CVE 0%
Up to: 385,000CVE 11.67%
Up to: 810,000CVE 15.56%
Up to: 1,620,000CVE 21.39%
Up to: 2,430,000CVE 27.22%
Over: 2,430,000CVE 35%

CI-ACI/August 2009
Institutions Telephone(+238) Fax (+238)
CI-ACI (Head Office) 2604110 / 11 2622657
Information Services (CV Telecom) 102
TACV – Cape Verde Airlines (Domestic Flag Carrier) 2608200 2618323
TAP – TAP Portugal (Portuguese Airline) 2615826 2611266
SAA – South Africa Airways 2411358/65 2411093/38
Chamber of Commerce (Sotavento) 2617234 2617235
Chamber of Commerce (Barlavento) 2328495 2328496

Major Sites
Government of Cape Verde www.governo.cv
CI- Cape Verde Investment Promotion Agency www.virtualcapeverde.net
National Institute of Statistics www.ine.cv
Bank of Cape Verde (Central Bank) www.bcv.cv
Cape Verde Telecom www.nave.cv
 

Sailing to Cape Verde

August 10th, 2010

My name is Bob White and in 2007 I decided to come to Sal to have a look at the boat excursion market.

I had been driving powerboats for over 20 years in and around the UK and I decided it was time for a change of lifestyle, after visiting Sal I knew that this was the place where I wanted to settle.

So, in July 2007 I put my 35 Glastron Powerboat (King Boa) on a container ship to Gran Canaria and flew on ahead to await its arrival. I had to wait 3 months in Gran Canaria to sort out the necessary paperwork and also to await the arrival of a yacht to accompany me to Sal, as it was a dangerous journey to attempt alone. Whilst there, I spent the time preparing the boat for the 961 mile trip to Sal.

I had some challenges to overcome before I set off on my trip, one being my crew man did not arrive so I had to find someone else to accompany me on the trip. This proved very difficult as everyone who saw my boat said it was a suicide mission. I did find one man to do it however, the chef on the accompanying yacht, much to the dismay of his skipper! I was hoping I’d eat well on my journey!

On October 25th we set off from Gran Canaria, carrying 675 litres of fuel in the tank and another 660 litres in jerry cans stacked everywhere on the boat.

Sailing to Cape Verde

We had heard some stories about pirates in local waters so we decided to avoid any coastlines and go offshore all the way, which meant we were sailing 200-350 miles from the nearest coastline. Conditions were pretty good, we had the wind behind us all the way with a 15-30ft swell following us. We travelled at 8 knots in order to get the best mileage but also to avoid overtaking the high swell.

We had no auto pilot so as the swell reached the back of the boat we had to steer left, and as the swell reached halfway down and under the boat we had to steer to the right. We could only run with the steering wheel in the centre position for 10 seconds at a time before starting the manoeuvres all over again, so by the time we got to the end of the journey we had worn the surface off the steering wheel. These manoeuvres meant we had to be at the wheel constantly, so we took it in turns doing 3 hour shifts and covered 200 miles a day driving 24 hours continuously.

Food preparation and quality was limited but having a chef on board meant the food was good and we ate well unless a big swell knocked the food off our laps to the floor, which unfortunately happened quite often.

At night we were bombarded with flying fish, the lights from the boat seemed to attract them but they could be quite dangerous as they flew very close to our faces on many occasions.

The journey was a solitary one, we only saw lights from one other ship once, and they were way off in the distance.

On the 31st of October we saw the coastline of Sal and I have to say I was a very happy man to set foot on land! It was a gruelling journey but also a very exciting and challenging one and if I had to do it again I would do so in a heartbeat.

I am delighted to say we have a whale and dolphin excursion business now and I am enjoying my new lifestyle enormously.

You can follow us on our Facebook page – King Boa Powerboats or contact me on 238 994 9248 to find out more about the excursions we offer.

 

Lura: Body, Voice And Music From The Soul Of Cape Verde

June 10th, 2010
Anyone who enjoys the music of Cape Verde knows that in recent years, new voices and new sounds have emerged without completely moving away from the traditional Cape Verdean sound that convey an intense feeling of freshness.

To be aware of this, one needs to do just one simple thing: to listen with one’s heart, because this is the best way to grasp the meaning of a message when it is called “di Korpo ku soul.”

Lura

This is what has happened with Lura, whose voice and ability to interpret Cape Verdean music was discovered recently and has become one of the best ways of making Cape Verdean music known internationally.

There is no longer any doubt about the perfect complicity established between the singer and the music of these islands, surely one of the best partnerships in the world.

Luracreole Identity
This is more than evident in Lura’s five albums. Lura was born in Portugal in 1975, the same year that the birthplace of her parents, (her mother is from Santo Antão and her father from Santiago), achieved independence from Portugal. Their daughter, less than 30 years later would become a symbol of union between Cape Verdeans and Portuguese, as well as a source of pride for both nations.

The reality is that, despite a career built almost exclusively around the music of Cape Verde, Lura was born and raised in Portugual and her experiences were always dominated by the values of Portuguese culture.

Lura

“This situation is changing gradually turning into something special, because of my need to learn about these islands, the longing and curiosity that I experienced in relation to Cape Verde. This is a result of stories that I heard from my parents since I was small, who bequeathed me in that way, a heritage of imagery that I have now the privilege to enjoy”, says the artist, for whom the desire to know Cape Verde in all its aspects and cultural wealth is “increasingly more appealing “.

Music as a Passion
If we bother to examine the meaning of some of the titles in the discography of Lura, we can easily understand that from the moment she embraced the music, first as a hobby and after as a career option, the singer always lived life (Nha Vida) in a state of permanent passion (In Love), to which she gave herself with body and soul (Di Korpu Ku Alma).

The final return to her origins happened with M’bem di Fora, which can be interpreted as a declaration of belonging to Cape Verde, and confirmation of the growing musical identity of the islands. This is underlined by Eclipse, Lura’s latest album.

Thus, when analysing the meaning of these titles and looking at the career that Lura has been building, there are interpretations that depending on the imagination, may.

 

Welcome to thecapeverdean.com

May 20th, 2010

Welcome to thecapeverdean.com, a new website designed to introduce you to the Cape Verde islands.

We will feature articles and general information about Cape Verde and will promote the islands, not only as a great holiday destination, but also as an ideal location for investment and business.

As we become established along with our new magazine The Cape Verdean, we welcome feedback, recommendations and even your favourite photos of the islands to feature on the website. Is there a special place you loved when you visited the islands, was there a great boat trip you took, a fabulous hotel you stayed in? We would like this site to have input from visitors who love the islands, and want to share their experiences of Cape Verde with others.

Please take a look at our new magazine The Cape Verdean by clicking on the pdf link on the homepage.