As we informed you on our website a year ago, the international credit rating agency Fitch upgraded the long-term rating of the Republic of Cabo Verde to “B”, with a Stable Outlook. One year later, we can confirm that Fitch’s assessment was sound: Cabo Verde remains stable and continues to maintain its upgraded rating.
Fiscal consolidation and sound public finances
In its latest report, Fitch praises the country’s ongoing fiscal consolidation. A budget surplus of 0.3% of GDP is expected in 2025, driven by a 3.2% increase in revenues. This positive outlook reflects improvements in tax administration and efficient control of public spending.
Reduction of public debt
The level of public debt is projected to decrease to approximately 104% of GDP by 2025, compared to 115% in 2023. This downward trend is supported by sustained economic growth and consistent primary budget surpluses.
Stable banking sector and monetary policy
The domestic banking sector remains healthy and well-capitalised. Fitch notes positive developments in monetary policy, which contribute to the overall stability of the national currency. The interest rate differential between Cabo Verde and the euro area is expected to gradually narrow.
A clear signal for business
The reaffirmed rating of ‘B’ with a Stable Outlook sends a strong message: Cabo Verde continues to implement reforms and retains the trust of international institutions. For investors and business partners, this confirms the country’s steady progress and its potential for closer economic cooperation.
🔗 Original Fitch Ratings release (13 May 2025): Fitch Affirms Cabo Verde at ‘B’; Outlook Stable
