INVESTMENT IN CAPE VERDE

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INVESTMENT IN CAPE VERDE
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COUNTRY PROFILE
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COUNTRY PROFILE

• Cape Verde an archipelago of the West Coast of
  Africa - 10 islands
  
• Land Area 1.557 sq miles (4.033 sq Km)
• Population 434.812 (June 2000 census)
• Main Towns Praia (capital) and Mindelo
• Language Portuguese, Creole
• Time 1 hour Behind GMT

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COUNTRY PROFILE

• Republic of Cape Verde since July 5th, 1975
• Legislative Branch Unicameral Parliament
  (National Assembly)
  
• President Elected Head-of-State for 5 year
  term
  
• Executive Prime Ministry and Cabinet
• Judiciary System Supreme Court of Justice and
  courts of first appeal Court of Audit, Fiscal
  and Customs Courts

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COUNTRY PROFILE

• Fiscal Year January 1st December 31th
• Currency Cape Verde escudo (CVE)
• Exchange rate (2001)
• 1 EURO 123,52 CVE
• 1USD 112,27 CVE
• (source BCV)

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COUNTRY PROFILE
Tourism Product

• Beautiful sceneries, impressive landscapes, as
  valleys, green mountains. Santo Antão, São
  Nicolau, Brava and Santiago island are the
  destination for those who love trekking, hiking
  expedition and other adventures .
• Golden sand beaches with crystal clear water
  perfect for those who love nautical sports, scuba
  diving, fishing (Sal, Boavista and Maio islands).

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COUNTRY PROFILE

• Tourism Product
• Strong culture, handicraft, rich gastronomy,
  music festivals, religious activities in all
  islands.

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INVEST IN CAPE VERDE
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POLITICAL CONDITIONS

• Political System Democratic (multi-party) system
  of government (universal suffrage) proportional
  representation through electoral districts
  
• Consolidated Democracy multi-party elections
  have been held on a regular basis since 1991.
  Cape Verde already has experienced two peaceful
  political transfer of power (in 1991 and 2001).

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ECONOMIC CONDITIONS

• Economic System Private Sector oriented
• Inflation Rate 3,5 (2001)
• Major trading Partners EU (Portugal, France,
  Holland, Germany, Spain and Italy)
  
• Excellent relationship with the World Bank and
  IMF.

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ECONOMIC CONDITIONS

• Natural Resources - Marine resources, salt,
  limestone, wind and solar energy
  
• Industry Fish and sea products,
  salt,construction, building materials, ship
  repair, clothing, shoes, furniture, metal
  products, beverages

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ECONOMIC CONDITIONS

• Exports electronic components, shoes, fish,
  pharmaceutical products, clothing, services.
  

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INFRASTRUCTURAL CONDITIONS

• One international airport with daily connections
  to Europe and the USA
  
• Latest, competitive communication technology
  (including optical fibbers linking all the
  islands)
  
• Availability of two industrial parks
• Fish processing and storage space available
• Availability of shipping related services as
  naval repair and ports with modern facilities

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ECOLOGICAL CONDITIONS

• Sahelo Saharan climatic Zone Dry and tropical,
  rainfall is erratic and there are long periods
  without rain, average temperature 20 27 ºC
  
• Volcano in Fogo last eruption in 1995, altitude
  2829 meters
  
• High environmental protection standards

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REASONS TO INVEST IN CAPE VERDE

• Optimal geographic location Halfway between the
  Americas, South Africa and Europe.
  
• Access to more than 500 million consumers
  Preferred access of national products in some
  regions West Africa (ECOWAS) Europe (Cotounou
  agreement) United States (AGOA,SGP)
• privileged relationships with African
  Portuguese speaking countries (Angola, Mozambique)

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REASONS TO INVEST IN CAPE VERDE

• Fiscal Incentives
• Tax exemption on dividends during the first 5
  years of operation
  
• Tax exemption on dividends when reinvested
• Tax exemption on amortization and interests

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REASONS TO INVEST IN CAPE VERDE

• Guaranties to the Investors
• Protection of investors rights and property
• Free repatriation of dividends and income
• Direct operation of foreign currency accounts
• Hiring of foreign workers without restrictions
• Fiscal, customs, financial and administrative tax
  incentives to exportations
  

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INVESTMENT OPPORTUNITIES

• Tourism
• Resort Hotels, Executive Hotels, Sports fishing
  and diving, yacht marinas, windsurf,
  rock-climbing, golf courses,leisure spaces with
  restaurants, time-sharing complex and chalets

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INVESTMENT OPPORTUNITIES

• Industry
• Export oriented industries (textile and apparel)
  assembling industries traditional food products
  for the immigrant communities, marine salt
  industry, ornamental stones industry, porcelain
  production, carpentry/joiner, packing, furniture
  etc
• Agriculture floriculture, fruits, decoration
  plants

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INVESTMENT OPPORTUNITIES

• Services registry of ships, duty-free zones
• Teleport (data processing, telecommunications)
• Banking off shore
• International shipping
• Fishery and Marine resources - industrial
  fishing, fish processing, aquaculture
  
• Cultural Industry music, arts crafts, others

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INVESTMENT OPPORTUNITIES

• Privatization
• ENAPOR - Ports
• CABNAVE Ship repair Services
• EMPA - Trading
• EMPROFAC Import and distribution of
  pharmaceutical products
  
• TACV - Airline Transportation
• INTERBASE Seafood Conservation

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GOVERNMENT GUARANTEES

• No discrimination equal rights for all
• Protection of investors rights and property
• Free expatriation of dividends and income
• Foreign currency accounts
• Hiring of foreign workers, protecting their
  rights and guarantees

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SPECIAL CONDITIONS FOR EXTERNAL INVESTORS

• Settlement Agreements Exceptional conditions
  for activities with strategic interest
  

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LIMITS TO INCENTIVES

• Do not apply to
• External investment and economic activities
  mainly oriented to internal market.
  
• External investment applicable to the financial
  sector, once this sector is regulated by a
  specific law

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CONDITIONING FACTORS

• High cost of factors
• Lack of professional training
• Limited internal market.

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EXTERNAL INVESTMENT TREND (000 USD)
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ORIGIN OF CAPITAL year 2001
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EXTERNAL INVESTMENTS AUTHORISED PROJECTS Year
2001(USD)
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GROWTH OF LODGING INFRAESTRUCTURES
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ECONOMIC INDICATORS

• GDP 3,5 (2001)
• Unemployment Rate 15,9 (4º trim. 2001)
• Inflation 3,7 (2001)
• (source BCV)

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ECONOMIC INDICATORS

• Tourism Indicators (2001)
• Incomes 39,5
• Contribution to GDP 9,5
• Contribution to Balance of Payments 41,1
• (source BCV)

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ECONOMIC INDICATORS

• Tourism Demand (structure in 2001)
• Italy 35,9
• Portugal - 24,9
• Germany 13,9
• France 8,8
• Holland e Belgium 1,7
• Other countries 14,8
• (source BCV)

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PERSPECTIVES

• MACROECONOMIC STABILITY
• PRIVATE SECTOR SUPPORT
• REFORMS
• TRAINNING
• PUBLIC SECTOR

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Ladies and Gentlemen Thank You for Your Attent
ion