Assetz® News - Cape Verde - the rumours are untrue

Cape Verde - the rumours are untrue

15th August 2008 |

Plenty of true stories have been spoken about Cape Verde in recent years. It's property market and tourist industry are growing. Getting there is easier, not least for Britons now direct flights from Stansted are available. The economy is growing and has gained international credibility, confirmed by the country's accession to the World Trade Organisation last month.

What is not in doubt either is the geographical fact that the archipelago offers the nearest tropical islands to Britain, with no change of time zone to induce jetlag.

Yet a different rumour has surfaced, which must have sent a chill down the spine of some investors or prospective investors - that the government of the islands was about to ban the sale of land to foreign investors.

According to the Portugal News Online, the story first appeared in weekly paper A Semana, in which the chairman of Cape Verde Investments Alexandre Fontes had said the government plans to ban the sale of land to foreigners in order to "preserve the islands' greatest richness, the land."

The response of the government was to point out that nothing of the sort is planned. Economy minister Fatima Fialho said in a radio interview: "The policy of this Government is to promote foreign investment and negotiations with each promoter will continue to be the same. Every time there is an investor proposal, either national or from overseas, it will be analysed."

Such news should come as a great relief to any who may have heard the rumour from Mr Fontes, or perhaps baffle those who had not, since foreign investment has been central to the growth of Cape Verde's economy and infrastructure beyond just bricks and mortar.

The sort of international investment that will therefore continue may be like the proposed project to build a five-star hotel in the capital Praia by Kuwaiti company Kharafi Holdings, reported this week by Macauhub.

Mahmoud Shehata, the Africa director of the company, stated after meeting the Cape Verdean president that his firm has expressed an interest in investing in other parts of the country's economy as well as seeking land to build property on, including water and energy. If the government was keen to ban overseas land buying, this would be the sort of thing they could end up losing.

So as long as the Cape Verdean government is happy to go on letting overseas developers come in, new opportunities will arise, but in the meantime there are plenty to go at. One of the latest examples of what is available is a deal reported via Easier Property this week that could provide a six-star apartment in a new resort for only €6,000 (£4,722) on a bond scheme.

With the government's assurances and the interest shown from overseas in wider investment that could benefit the country, those looking to buy in Cape Verde could look at such investments now or, should they wish, do so in the future. The country has come a long way and the policies that have helped it to do so will continue. Future rumours may be of a much more positive kind.