Cape Verde has few natural resources and suffers from poor rainfall and limited fresh water. Only 4 of the 10 main islands (Santiago, Santo Antão, Fogo, and Brava) normally support significant agricultural production. Mineral resources include salt, pozzolana (a volcanic rock used in cement production), and limestone.

The economy of Cape Verde is service-oriented, with commerce, transport, and public services accounting for more than 70% of GDP. Although nearly 70% of the population lives in rural areas, agriculture and fishing contribute only about 10% of GDP. Light manufacturing accounts for most of the remainder.

An amount estimated at about 20% of GDP is contributed to the domestic economy through remittances from expatriate Capeverdeans.

Since 1991, the government has pursued market-oriented economic policies, including an open welcome to foreign investors and a far-reaching privatization program. It established as top development priorities the promotion of market economy and of the private sector; the development of tourism, light manufacturing industries, and fisheries; and the development of transport, communications, and energy facilities.

From 1994 to 2000 there was a total of about USD 407 million in foreign investments made or planned, of which 58% were in tourism, 17% in industry, 4% in infrastructure, and 21% in fisheries and services.

Fish and shellfish are plentiful, and small quantities are exported. Cape Verde has cold storage and freezing facilities and fish processing plants in Mindelo, Praia, and on Sal.

Cape Verde's strategic location at the crossroads of mid-Atlantic air and sea lanes has been enhanced by significant improvements at Mindelo's harbor (Porto Grande) and at Sal's international airport (Amilcar Cabral). Ship repair facilities at Mindelo were opened in 1983, and the harbors at Mindelo and Praia were recently renovated. The major ports are Mindelo and Praia, but all other islands have smaller port facilities. In addition to the international airport on Sal, airports have been built on all of the inhabited islands. All but the airport enjoy scheduled air service. The archipelago has 3,050 kilometres (1,830 mi.) of roads, of which 1,010 kilometres (606 mi.) are paved.

FOREIGN RELATIONS

Cape Verde pursues a non-aligned foreign policy and seeks cooperative relations with all states. Angola, Brazil, China, Cuba, France, Portugal, Senegal, Russia, and the United States maintain embassies in Praia. Several others, mostly European countries, maintain honorary consulates. In addition, Cape Verde maintains multilateral relations with other lusophone nations and holds membership in many international organizations. It currently is working to accede to the World Trade Organization.