Cape Verde: Nearly $100 million for international competitiveness of start-ups
October 7th 2025
The country wants to make digital technologies a central element of its socio-economic growth. The government aims to increase the digital sector’s share of GDP, which currently stands at around 5%.
The Cape Verdean government announced on Monday, October 6, the launch of the Morabeza Fund, designed to support local startups. The mechanism has an initial budget of €24 million (approximately $28 million), with an additional €60 million in funding expected from the European Union. The initiative is part of the authorities’ efforts to develop the national digital ecosystem and support the development of local solutions for export across the continent and around the world.
“We have talent, capacity and young entrepreneurs who need a financial boost. This is what we are bringing today, and I believe it will revolutionize the startup ecosystem in Cape Verde and provide a solid foundation to accelerate our ambition: to make Cape Verde a digital nation ,” said Digital Economy Minister Olavo Correia, according to the national news agency, Inforpress.
According to the authorities, the fund will be implemented through several mechanisms, including grants, concessional loans, and venture capital, to provide financial support to technology startups so they can design, develop, and test their solutions in Cape Verde, commercialize them locally, and then expand to African and global markets. The country also aims to attract digital nomads to achieve its goal.
In an interview with Agence Ecofin in May 2025, Pedro Lopes, Secretary of State for the Digital Economy, detailed the reforms intended to stimulate the startup ecosystem: a startup law currently being developed with tax benefits and easier access to financing, the creation of a Special Economic Technology Zone (ZEET), the simplification of business registration and visas for digital nomads.
In July, the government launched the BOOST.CV program, designed to support 150 young digital entrepreneurs through training, mentoring, and the incubation of innovative projects. This program complements several initiatives already underway, including the Cape Verde Digital program, which supports 200 young people each year through scholarships and finances around 100 startups, covering up to six times the minimum wage for two co-founders, with logistical and marketing support.
Through the Go Global program, Cape Verdean startups benefit from international visibility by participating in major technology events such as the Lisbon Web Summit, Gitex Morocco, and Next Web in the Netherlands. Finally, the Reinvent Cape Verde initiative promotes local innovation through hackathons, where the best projects receive up to $5,000 to further their development.
As a reminder, Cape Verde’s startup ecosystem ranks 75th in the world and 2nd in West Africa, according to StartupBlink’s “Global Startup Ecosystem Index 2025.” The report highlights that Cape Verdean startups face challenges related to weak physical infrastructure and a fragile investment climate. Additionally, many citizens prefer stable public sector jobs and view entrepreneurship as risky.
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