Cabo Verde, officially the Republic of Cabo Verde, is an island nation in the central Atlantic Ocean, approximately 570 kilometers off the coast of West Africa. With a population of about 560,000 and a GDP of roughly $2.1 billion as of 2023, it is a small but stable economy that relies heavily on services, tourism, and remittances. The United States and Cabo Verde have maintained cordial diplomatic relations since independence in 1975, and trade between the two countries, while modest in absolute terms, has grown steadily in key niches. Under the African Growth and Opportunity Act (AGOA), Cabo Verde enjoys duty-free access to the U.S. market for a range of products, creating opportunities for exporters. For U.S. firms, Cabo Verde offers a gateway to West Africa with a business-friendly environment, English proficiency in the services sector, and a stable democratic government. This advisory provides a comprehensive overview of the trade relationship, highlighting top import and export sectors, regulatory considerations, logistics infrastructure, and how Coppermont can help businesses navigate this market.

Economy Snapshot and US Trade Relationship

Cabo Verde’s economy is service-oriented, with tourism accounting for about 25% of GDP. The country has limited natural resources and depends on imports for food, fuel, and manufactured goods. The U.S. is one of Cabo Verde’s top trading partners outside Europe, though bilateral trade remains small. In 2022, U.S. exports to Cabo Verde were valued at approximately $45 million, while U.S. imports from Cabo Verde reached about $8 million, according to the U.S. Census Bureau. The trade balance strongly favors the United States. Key U.S. exports include machinery, aircraft parts, agricultural products (especially poultry and wheat), and pharmaceutical products. Cabo Verde’s exports to the U.S. are dominated by fish and seafood, particularly tuna and lobster, as well as prepared foods and beverages. The country also benefits from the Millennium Challenge Corporation (MCC) compact, which has invested in infrastructure and energy projects, further opening opportunities for U.S. firms in construction and renewable energy.

Top Import Sectors from the US

U.S. exporters to Cabo Verde find demand in several key sectors. First, agricultural products: Cabo Verde imports about 80% of its food, and U.S. poultry, wheat, and dairy products are competitive. In 2022, U.S. poultry exports to Cabo Verde were valued at $12 million, making it the largest single category. Second, machinery and mechanical appliances: the country’s growing tourism and construction sectors require equipment such as HVAC systems, elevators, and generators. U.S. machinery exports were around $8 million in 2022. Third, aircraft and parts: Cabo Verde’s national airline and international carriers servicing the islands rely on U.S.-manufactured aircraft components, with exports of $5 million in 2022. Fourth, pharmaceutical products: U.S. medicines and medical devices, particularly for chronic diseases, are increasingly imported as the healthcare system modernizes. Fifth, renewable energy equipment: with solar and wind projects underway under the MCC compact, U.S. firms can supply photovoltaic panels, inverters, and wind turbines.

Top Export Opportunities to the US

Cabo Verde’s export basket to the U.S. is concentrated in fisheries. Tuna, skipjack, and yellowfin are the primary exports, with frozen fish exports totaling $4 million in 2022. Lobster and other crustaceans add another $2 million. Under AGOA, these products enter the U.S. duty-free, giving Cabo Verde a competitive edge. There is growing interest in value-added seafood products, such as canned tuna and fish fillets, which could increase export value. Additionally, Cabo Verde produces small quantities of processed fruits, coffee, and alcoholic beverages like grogue (rum), which have niche appeal in the U.S. market. The country also has potential for exporting handicrafts, textiles, and artwork, though volumes remain low. For U.S. importers, Cabo Verde offers a reliable source of high-quality seafood with traceability, as the government has invested in fisheries management and certification.

Business Entry and Regulatory Overview

Cabo Verde has a relatively straightforward business registration process. The country ranks 137th out of 190 economies in the World Bank’s Ease of Doing Business index, with improvements in recent years. Foreign investors can establish a wholly owned subsidiary, branch, or joint venture. The Cabo Verde TradeInvest agency provides support and incentives for priority sectors such as tourism, renewable energy, and fisheries. Key regulatory considerations include: corporate tax rate of 22%, VAT at 15%, and customs duties that vary by product. Cabo Verde is a signatory to the WTO and has a bilateral investment treaty with the United States. Intellectual property protection is governed by national laws aligned with international standards, though enforcement can be weak. For U.S. exporters, the most practical entry route is through a local distributor or agent, given the small market size. The U.S. Commercial Service in Dakar, Senegal, covers Cabo Verde and offers trade counseling and matchmaking.

Key Ports and Logistics Infrastructure

Cabo Verde’s main port is Porto Grande in Mindelo, on São Vicente Island, which handles about 60% of the country’s container traffic. The Port of Praia, on Santiago Island, is the second largest and serves the capital. Both ports have undergone modernization, including new container terminals and cranes. The country also has several smaller ports serving inter-island traffic. Air cargo is handled at Amílcar Cabral International Airport on Sal Island, which is a major hub for transatlantic flights. Logistics can be challenging due to the archipelago’s geography; shipping times from the U.S. East Coast are about 10–14 days. Customs clearance is generally efficient, with electronic documentation encouraged. For perishable goods like seafood, cold chain infrastructure is improving but still limited. Companies should plan for potential delays during peak tourist seasons.

Coppermont Advisory for Cabo Verde

Coppermont provides end-to-end trade advisory services for businesses looking to enter the Cabo Verde market or source products from the islands. Our team offers market research, partner identification, compliance support, and logistics coordination. For U.S. exporters, we can help navigate customs procedures, identify reliable distributors in the tourism and construction sectors, and assess opportunities in renewable energy projects. For U.S. importers, we source high-quality seafood directly from certified fisheries, conduct quality inspections, and manage shipping and documentation. We also provide regulatory guidance on AGOA compliance, labeling, and food safety standards. Whether you are a small business exploring new markets or a large corporation seeking to optimize your supply chain, Coppermont’s expertise in Cabo Verde can save you time and reduce risk. Contact us today to discuss your trade goals and learn how we can support your success in this emerging Atlantic hub.

Ready to Start Trading with Cabo Verde?

Coppermont is your partner for navigating trade between the United States and Cabo Verde. From market entry strategy to logistics execution, we provide the insights and support you need. Get in touch with our team to schedule a consultation and take the first step toward expanding your business in this dynamic island nation.