What is the World Economics index and why does it matter here?

It is a governance benchmark that scores data quality, policy stability, and institutions across countries. Cabo Verde entered the Top‑30 with an A rating, reportedly the only African state at that grade. For investors, stronger governance can reduce risk premiums and improve terms on debt and infrastructure deals.

How could Canadian investors participate in Cabo Verde FDI?

We can look at green bonds, project finance loans, and direct equity in storage, grid, and transport assets. Use robust covenants, step‑in rights, and currency hedging to CAD. Improved Cabo Verde governance supports clearer procurement, faster permits, and more transparent reporting for due diligence.

Why are Boa Vista renewables important for returns?

Road upgrades reduce logistics costs and delays, while grid‑scale batteries improve dispatch and cut curtailment. Together they target more than 40% renewable penetration by 2026. These features stabilize cash flows under power purchase agreements, allowing tighter debt sizing and better visibility on equity distributions.

What risks should we still underwrite despite the A rating?

We should still test currency convertibility, tariff indexation timing, construction execution, and counterparty strength. Model downside cases for delays and lower demand. Independently verify data and contracts. Cabo Verde governance reduces policy risk signals, but project‑level risks and liquidity constraints still require conservative structures and monitoring.

Law and Government

Cabo Verde February 23: A‑Rated Governance Boosts FDI, Green Push

ByHuzaifa Zahoor February 24, 2026February 24, 2026

Cabo Verde governance just earned an A rating and a Top-30 spot on the World Economics index, a clear signal of lower sovereign risk and stronger transparency. For Canadian investors, that improves pricing for frontier debt and long‑dated infrastructure. The country targets above 40% renewables by 2026, with roads and grid‑scale storage on Boa Vista creating shovel‑ready assets. We explain what this means for Cabo Verde FDI prospects, risk controls in CAD, and how to size exposure in diversified portfolios.