Praia, Sept. 4, 2024 (Lusa) - Cabo Verde signed on Wednesday in Praia with the European Union (EU) and the European Investment Bank (EIB) the largest ever financial package of support from Brussels to the archipelago, totalling €300 million, said the deputy prime minister.
"It's a historic agreement in terms of the financial envelope: since independence, we've never had an agreement with the EU on this scale," said Olavo Correia, the minister responsible for the economy and finance.
Olavo Correia hopes to be able to count on "other amounts further down the line" and is confident that the country will perform well when the money is spent.
"Let's eat one steak at a time. We already have a good steak on the table," he added.
The funding signed today will support the archipelago's energy, ports and digital infrastructure sectors.
"The co-operation between Cabo Verde, the European Union and the European Investment Bank bears witness to our shared commitment to a sustainable, inclusive and interconnected future," said Jutta Urpilainen, European Commissioner for International Partnerships, in a statement.
The figure exceeds the €246 million planned when the package was announced a year ago in Brussels by the President of the European Commission, Ursula von der Leyen, as part of the Global Gateway strategy, which is committed to mobilising the private sector.
The largest amount, €159 million, which also includes private support from Luxembourg, will finance the construction of infrastructure for the production, storage and distribution of electricity, with the aim of reducing the country's dependence on "expensive and polluting" fossil fuels.
Another axis of funding for the Cabo Verdean state is around €105 million and is dedicated to the development of port infrastructures, with priority given to Porto Grande do Mindelo (São Vicente), Porto Novo (Santo Antão) and Palmeira (Sal).
In the digital area, €37 million in financial guarantees from the EIB are intended to facilitate investment in a new fibre optic cable that will link Europe to the west coast of Africa, as well as investments in connections between islands and in modernising the mobile network, with 5G networks in the pipeline.
The EIB's Vice-President, Ambroise Fayolle, and Myriam Ferran, the EU's Deputy Director for International Partnerships, expect benefits for the public, such as "cheaper energy" and job creation, they said today after signing the agreements with the government in Praia.
Olavo Correia pointed to the creation of qualified jobs for young people as today's main challenge and the major objective to be achieved with the entire investment strategy.
Ambroise Fayolle and Myriam Ferran will end their visit to Cabo Verde on Thursday, visiting some of the construction sites that will benefit from the funding formalised today.
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