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Cabo Verde / Cape Verde - US Relations

Today there are close to 350,000 Cape Verdeans living in the United States, almost equal to the population of Cape Verde itself. The United States and Cabo Verde have strong historical roots. As early as the 1740s, U.S. whaling ships began recruiting crews from the islands of Brava and Fogo, and other ships from the American colonies routinely anchored in Cabo Verdean ports to trade. The tradition of emigration to the United States began at that time and continues today.

Some 4,000 American citizens now reside in the country, while Cabo Verde’s Diaspora in the United States (primarily Massachusetts and Rhode Island) almost rivals the islands’ current population of over 500,000.

The first U.S. consulate in sub-Saharan Africa was established in Cabo Verde in 1818. The United States established diplomatic relations with Cabo Verde in 1975, following its independence from Portugal. Cabo Verde was under one-party rule from independence until 1990; the first multiparty elections were held in 1991. A model of democratic governance, the country enjoys relatively high literacy rates, high per capita income, and positive health indicators. Cabo Verde has few natural resources, although fish and shellfish are plentiful. The economy is service-oriented, notably tourism.

Relations between the United States and Cabo Verde are cordial. Cabo Verde is one of Africa's success stories and an important U.S. partner in West Africa. Its strategic location means that Cabo Verde is increasingly at the crossroads of the transatlantic narcotics trade. The country has partnered with U.S. law enforcement officials to fight drug trafficking. Top U.S. priorities in Cabo Verde are maritime security, and increasing bilateral trade and economic development.

Given that Cabo Verde has the best development indicators of any country in the region and has become a lower middle-income country, U.S. assistance is more focused and limited. There is no bilateral USAID program.

In October 2010, Cabo Verde became the first African state—and the second worldwide--to complete its first Millennium Challenge Corporation (MCC) Compact (for $110 million, signed in July 2005), which strengthened the investment climate, reformed the financial sector, enacted policy reforms, increased agricultural productivity, built or rebuilt roads, bridges, and ports; and improved public access to markets, jobs, and social services. On February 10, 2012, Cabo Verde signed a second MCC Compact for $66.2 million, which is focused on water, sanitation, and land management reforms. Limited U.S. security, counternarcotics, and law enforcement assistance seeks to build the capacity of Cabo Verde’s military and police to respond more effectively to various maritime security challenges.

Cabo Verde is eligible for preferential trade benefits under the African Growth and Opportunity Act (AGOA). U.S. exports to Cabo Verde include poultry, low-value shipments, vehicles, machinery, and perfumery and cosmetics. U.S. imports from Cabo Verde include machinery, aircraft parts, rum and tafia, prepared meats and fish, toys and sports equipment, and baking-related goods. Cabo Verde and the United States have signed an Open Skies agreement to facilitate air travel safety and expansion, which have led to the establishment of direct flights to and from New England. Lacking natural resources and fresh water, Cabo Verde has become a global leader in solar and wind energy and has sought expanded ties with American companies to develop these renewable resources.

On July 4, 2005, the United States, through the MCC, signed a five-year Compact with the Republic of Cape Verde to support the country's goal of poverty reduction through economic growth. The $ 110 million grant supports Cape Verde in achieving its national development goal of transforming its economy from aid-dependency to economically and socially sustainable growth. This funding by MCC makes the US one the largest donors in Cape Verde. MCC funds are being applied to improve the country’s infrastructure, improve access to micro-credit, and provide access to markets, and social services; improved water availability and management to improve agricultural productivity; as well as carry out key policy reforms for sustained development and economic growth. At the completion of the Compact, the program is expected to increase Cape Verde's annual income by at least $10 million.

The United States is supporting Cape Verde’s development, and enhancing relations among Cape Verdeans and Americans, by supplying Peace Corps Volunteers in two multi-sector programs. Some 50 Peace Corps Volunteers, spread over 7 of the 9 inhabited islands, are currently engaged in teaching English and teacher training, small enterprise and community development, and environmental education.

In September 2011 the latest group of 25 new Peace Corps Volunteers will participate in an official Swearing-in ceremony that begins their two-year service in Cape Verde, at a ceremony to be held in the Picos concelho. That region of Santiago Island hosts Volunteers in villages during their pre-service training, where they stay with local families to prepare for living and working in Cape Verde. Their training includes lessons in Crioulo and Portuguese languages and Cape Verdean culture, as well as work on projects with local schools and communities. After taking their oath of service, the Volunteers move to sites all over Cape Verde to work as English teachers, vocational and environmental educators, and teacher trainers, as well as in small enterprise and community development.

Cape Verde is currently the 209th largest goods trading partner with $9 million in total (two way) goods trade during 2014. Goods exports totaled $7 million; goods imports totaled $2 million. The US goods trade surplus with Cape Verde was $6 million in 2014. Cape Verde was the United States' 201st largest goods export market in 2014. US goods exports to Cape Verde in 2014 were $7 million, down 20% ($2 million) from 2013 and down 86% from 2004.