ATI
COUNTRY PROFILE
Cape Verde
The country is classified as a medium economic transformer, with an overall ATI (African Transformation Index) score of 35.1 (out of 100) over the past decade, positioning it among Africa’s high-performing countries. Despite having a relatively high overall ATI score compared to most countries, the country’s scores on various ATI dimensions dipped between 2000 and 2020.
Praia
0.59 million
0.9 %
5.1 %
US $4,322
Cape Verde’s Performance on the African Transformation Index
The overall African Transformation Index score measures the five dimensions of DEPTH.
Overall score
35.1 /100
Score change
since 2000
At a glance
- The country is classified as a medium economic transformer, with an overall ATI (African Transformation Index) score of 35.1 (out of 100) over the past decade, positioning it among Africa's high-performing countries.
- Despite having a relatively high overall ATI score compared to most countries, the country’s scores on various ATI dimensions dipped between 2000 and 2020.
| Score /100 |
Change since 2000 | ||
 |
Diversification |
45.1 |
-9.9
|
 |
Export competitiveness |
5.3 |
-3.4
|
 |
Productivity increases |
31.5 |
-1.6
|
 |
Technology upgrading |
32 |
-4.6
|
 |
Human well-being |
61.4 |
+19.8
|
Diversification of production and exports measures countries’ capability to produce and export a widening array of goods and services.
Score
45.1 /100
Score change
since 2000
At a glance
- The country’s economic diversification score, which increased in the early 2000s, has remained relatively stable, showing a decline from 55 in 2000 to 45 in 2020, with a peak of 59 in 2008. This trend reflects limited progress in diversifying given the country’s growing, yet small, manufacturing sector and a consistently underperforming agricultural sector.
- In contrast, the contribution of services to GDP has exhibited a steady upward trajectory, rising from 59.64 percent in 2000 to 70.25 percent in 2020. This highlights the growing importance of the service sector—particularly tourism, transport, and financial services—to the economy.
- However, tourism’s limited linkages with other sectors of the economy, continues to drive imports (of food and beverage products, in particular), ultimately curtailing its potential to drive broader economic growth. This situation highlights the need for more robust and sustained efforts to diversify the economy—particularly beyond the blue economy—in order to ensure more comprehensive growth.
Export competitiveness is measured as the ratio of a country’s share in the world’s exports of non-extractive goods and services to its share in world non-extractive GDP.
Score
5.3 /100
Score change
since 2000
At a glance
-
Cape Verde’s export competitiveness demonstrates a cyclical pattern tied to the global commodity supercycle, with its score rising from 1.7 in 2003 to a peak of 17.6 in 2011 and then declining to 5.35 in 2020. This trend reflects the country's reliance on a narrow range of exports, including fishery products in particular, with the top five merchandise products accounting for 92 percent of total exports in 2020, up from 78 percent in 2000.
-
The limited industrial base and natural environment favor fisheries over diversified agricultural or industrial production, while the absence of large-scale manufacturing further entrenches this reliance.
-
Additionally, Cape Verde faces logistical and infrastructural challenges that hinder its competitiveness and diversification potential. High transportation costs, linked to its archipelagic geography, reduce export efficiency. Addressing these challenges requires investment in infrastructure, economic diversification, and leveraging regional trade opportunities to mitigate the risks of export concentration.
Productivity increases measure the value added per unit of labor in agriculture, manufacturing, and services.
Score
31.5 /100
Score change
since 2000
At a glance
- Productivity has remained relatively stable with slight decreases. The country’s score of 36.67 in 2000 decreased to 29.87 in 2018 and then increased to 31.52 in 2020.
- Agricultural productivity has remained steady but low, while productivity in industry saw some gradual improvement from 2010 to 2020.
- Service output per worker has grown significantly, driven by burgeoning activity in the sector, especially increased tourism. This trend suggests productivity growth in sectors outside agriculture, but also indicates challenges in driving widespread industrial efficiency outside the service sector.
- Agricultural productivity is constrained by challenges like persistent drought, high costs of financing, and technological gaps.
Technology upgrading measures the medium-and high-technology content in total production activities and total commodity exports.
Score
32 /100
Score change
since 2000
At a glance
- Cape Verde’s scores on technology upgrading have continuously exceeded the sub-Saharan African average. Since peaking at 42.11 in 2005, the country’s score remained relatively flat for majority of the following years until it dipped to 32.03 in 2020.
- The country’s share of medium and high- technology exports in total commodity exports fell from 5.88 percent in 2000 to 1.09 percent in 2020, while the share of medium and high-technology manufactures in total production remained stable around 27 percent throughout the period.
- This is an indication that while the manufacturing sector maintains a steady share of advanced products, this has not translated into significant export growth in medium and high-tech sectors.
Human well-being measures economic and social outcomes and enablers in terms of incomes, income inequality, formal employment, and female participation in formal labor markets.
Score
61.4 /100
Score change
since 2000
At a glance
- Cape Verde’s human well-being score has generally shown a consistent upward trend, rising from 41.54 in 2000 to 61.35 in 2020—among the highest scores on the continent. This is reflected in the country's decent progress in life expectancy, education, and overall social outcomes.
- The country’s Gini coefficient has remained stable, indicating a relatively equitable income distribution. Similarly, gender inclusion in the labor force has shown positive trends, with the share of waged and salaried females in female employment rising consistently.
Discover more from the ATI
ATI Scorecard
Explore the data behind the economic transformation progress of 30 African countries between 2000-2020.
Growth with DEPTH
Explore the ATI in DEPTH and see how African countries performed on each dimension between 2000-2020.
Methodology
Learn more about our methodology, sources, and how we calculate the index.
Country Profiles
To explore the results of the index in greater detail and provide context and analysis, the ATI report includes 11 case studies.
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