Cabo Verde’s climate vulnerabilities are linked to its geography and economic dependencies, particularly on tourism. While the country has made strides in poverty reduction, recent economic fluctuations have raised concerns. The CCDR outlines strategies for climate resilience and low-carbon development, addressing key sectors and recommending actions for institutional and economic improvements.
Cabo Verde’s climate vulnerability is heightened by its geographical attributes and economic dependencies. Although the nation has achieved significant economic progress since the early 1990s, recent years have witnessed volatility and a decline in growth rates. The tourism industry largely drives the economy, contributing around 25% to GDP, over 50% of exports, and most foreign direct investment, reflecting the country’s unique natural assets.
The archipelago relies heavily on imports, especially fuel and food, which creates additional economic pressures. Although remittances and international financing have provided some relief, they also introduce external vulnerabilities. Furthermore, while public spending remains rigid and there has been a slight reduction in fiscal deficits, public debt continues to exceed 100% of GDP, indicating ongoing financial challenges.
The repercussions of the COVID-19 pandemic highlighted Cabo Verde’s external vulnerabilities, leading to a significant drop in tourism revenue and increased costs for food and fuel imports. However, the economy has recovered to pre-pandemic levels by 2023. This Country Climate and Development Report (CCDR) addresses strategies to bolster climate resilience and promote low-carbon development while identifying essential enablers for these initiatives.
The CCDR analyzes the potential economic and social impacts of climate change in its first chapter. Subsequent chapters explore the nation’s institutional and legal landscape, approaches to a climate-resilient economy focusing on water-land interactions, and advancements in the blue economy and infrastructure in chapter three. The green transition in energy, transport, waste management, and the digital sector is discussed in chapter four, emphasizing the importance of social protection for the private sector and community preparedness against climate shocks in chapter five.
Chapter six consolidates the recommendations from previous sections while assessing their associated costs and benefits, ultimately modeling their anticipated impacts on the economy.
Cabo Verde, an archipelago in the central Atlantic, faces significant challenges due to its geographical location and economic structure. The country has demonstrated economic resilience by reducing poverty levels, yet it remains vulnerable to external shocks, particularly in the tourism sector. Understanding the climate risks and financial dependencies is critical for formulating effective strategies aimed at sustainable development and climate resilience.
In conclusion, Cabo Verde must address its economic vulnerabilities and climate-related challenges through targeted strategies that enhance resilience and promote sustainable growth. The CCDR provides a comprehensive framework for navigating these issues by focusing on institutional enhancements, sectoral transitions, and protective measures for the population and private enterprises. Successful implementation of the recommendations will be vital for safeguarding the nation’s future against adverse climate impacts.
Original Source: reliefweb.int
