IMF considers Cape Verde’s economic growth “strong”

The International Monetary Fund (IMF) will wrap up an observation mission to Cape Verde today, March 16. According to the IMF delegation chief, Maitland Macfarlain, the country’s economic situation may be considered “stable,” and Praia has fulfilled the criteria defined in the Policy Support Instrument (PSI) through which the financial institution surveys macro-economic gains registered during a given period of time.

During its two weeks in Cape Verde, the IMF delegation made contact with a wide range of state departments and services, with the parliament and with various businesses. One of the sectors upon which the IMF mission focused was energy and fuels, with the members of the delegation traveling to Mindelo to meet with officials from water and electricity utility Electra and fuel companies Shell and Enacol. According to one source, the IMF mission proved particularly interested in ensuring that the project for the creation of a fuel stockage and logistics company would become a reality.

Indeed, at the beginning of the two-week mission, delegation chief Maitland Macfarlain indicated that the energy sector is currrently “one of the greatest problems” affecting the Cape Verdean economy. Despite this, Macfarlain said he believed that it was “possible to stabilize the situation at Electra” with the investment plan that has been elaborated.

Macfarlain called Cape Verde’s economic growth, which has generally remained above 6% over the past several years, “strong,” and called attention to the country’s need to “continue along the same path.” “There has been progress in tax sector reform, the financial sector has also registered gains, and the economy has grown,” he said, expressing his conviction that Cape Verde should continue making efforts to maintain or improve its performance in the areas mentioned.

The IMF specialist also referred to the public and private investments planned for the near future, adding that the government must assure that these investments serve as “support for economic growth” in Cape Verde, which, in his opinion, “does not face any major problems, but should continue with the reforms” currently under way.


Source: ASemanaOnline (March 16, 2007)