Cabo Verde’s economy is significantly influenced by climate exposure due to its geography and reliance on tourism. The Country Climate and Development Report reviews the nation’s economic vulnerabilities caused by external reliance and outlines strategies to foster climate resilience and sustainable growth, focusing on legal frameworks, green transitions, and social protection measures.
Cabo Verde faces significant climate exposure, which is exacerbated by its geographic and economic vulnerabilities. While the nation has achieved notable economic growth since the early 1990s and has significantly reduced poverty, recent years have witnessed a slowdown in this growth. Tourism drives the economy, contributing a quarter of GDP, over half of exports, and attracting most foreign investment, yet this reliance makes the country vulnerable to external shocks.
The climate challenges that Cabo Verde encounters are closely linked to its economic structure and geography. Despite notable economic progress, the country’s heavy dependence on tourism and imports, especially for fuel and food, poses risks. The COVID-19 pandemic highlighted these vulnerabilities through a drastic drop in tourism revenues and increased import costs, necessitating a focus on building resilience and promoting sustainable development.
To enhance climate resilience and foster low-carbon development, Cabo Verde must focus on several critical areas. The Country Climate and Development Report outlines strategies that encompass improving the institutional and legal framework, achieving a climate-resilient economy, transitioning to green energy, and bolstering social protections. Implementing these recommendations will be essential for sustainable economic growth and reduced vulnerability to climate impacts.
Original Source: reliefweb.int
