Cabo Verde

Luxembourg’s Development Cooperation in Cabo Verde

The development cooperation relations between Cabo Verde and Luxembourg date back to the end of the 80s. In 1993, with the signing of a first general cooperation agreement (Pdf, 2.10 Mb), Cabo Verde became a partner country of Luxembourg’s Development Cooperation. Since then, this agreement has defined the general framework for cooperation activities in the cultural, scientific, technical, financial and economic fields between the two countries. Along with Portugal, Luxembourg is currently the archipelago’s main development partner. Over the years, the areas of intervention of Luxembourg’s Development Cooperation have changed, reflecting the evolution of relations between the two countries.

Cooperation relations were intensified in 1999 with the establishment of annual Partnership Commissions. These meetings, which are held alternately in Praia and Luxembourg, provide an opportunity for high-level exchanges to take stock of bilateral relations and provide guidelines for further strengthening them.

Since 2002, Luxembourg’s Development Cooperation activities have been part of multi-annual programmes called "Indicative Cooperation Programmes" (ICPs), which are signed by the two governments and constitute the most important planning instrument, establishing a clear and coherent framework for the implementation of the various projects monitored by the Luxembourg Embassy in Cabo Verde.  The first Indicative Cooperation Programme (ICP I (Pdf, 117 Kb)), valid for four years (2002-2005), focused on education, health, water and sanitation, and food aid.

On the occasion of the 7th Partnership Commission, in October 2005, the two countries signed the PIC II (Pdf, 123 Kb) in Luxemburg, which extended the scope of Luxembourg’s Development Cooperation to the whole of Cape Verde towards a programmatic approach in support of national projects.

ICP III (Pdf, 2.13 Mb), signed in July 2010, introduced sectoral budget support as a new implementation modality. While retaining the priority areas of employment and employability and water and sanitation, ICP IV (Pdf, 1.88 Mb) (2016 to 2020) also opened up to renewable energies as a new intervention sector, as well as a substantial increase in sectoral budget support, cooperation with decentralised players and the intensification of bilateral economic relations.

While the initial focus was on infrastructure projects in education and health, more recent programmes have been aimed more at strengthening Cabo Verde’s institutional and human capacities. Among the major flagship projects carried out with Luxembourg’s support are the Ecole d’hôtellerie et de tourisme du Cabo Verde (EHTCV), which has been up and running since 2011, and the Centre pour les énergies renouvelables et la maintenance industrielle (CERMI), which has been operational since 2015. In the health sector, Luxembourg has also left its mark through the construction and implementation of two regional hospitals.

Looking to the future: ICP DCE

The current ICP, which covers the period 2021-2025, is entitled ICP Development-Climate-Energy (Pdf, 9.42 Mb). It was designed specifically for the Cape Verdean context, a small island developing state (SIDS) with a fragmented territory that is highly vulnerable to the effects of climate change and lacks fresh water, while presenting favourable conditions for the production of renewable energy. With an indicative budget of €78 million when it was signed in 2021, the current envelope stands at nearly €86 million spread over 6 intervention sectors covering all the islands: employment and employability, water and sanitation, energy transition, local development, climate action and health.

This ICP DCE is the first in which Luxembourg has implemented a pan-governmental approach, aimed in particular at strengthening coherence and synergies in economic, cultural, political and security relations. In Cabo Verde, this approach facilitates the integration and coordination of development actions and other areas, such as the energy transition and the fight against climate change.