The African Development Bank Group (AfDB) has approved a $20.7 million loan to fund the second phase of Cabo Verde’s E-Governance and Public Financial Management Reform Programme (E-PFMRP).
This multi-phase initiative, primarily supported by the AfDB and the World Bank, aims to modernise public administration, enhance fiscal transparency, and foster economic growth through digital transformation.
The funds build upon last year’s ongoing support as Cabo Verde seeks to leverage technology to boost economic development and improve administrative efficiency, according to the AfDB. The financial support is intended to stimulate growth while advancing e-governance reforms that modernise public services and strengthen public finance management. Beneficiaries include key agencies such as the Ministry of the Digital Economy, Central Bank of Cabo Verde, Institute for Gender Equality and Equity, National Directorate of State Revenue, and the Public Procurement Regulatory Authority.
The initiative’s first component focuses on continuing digitisation reforms to enhance private-sector competitiveness. Key measures include introducing e-justice to judicial processes and launching calls for proposals to attract private operators to the country’s technology park under the digital nomads program. AfDB also plans to develop admission criteria to facilitate the establishment of digital nomads and high-growth tech firms.
The second component aims to modernise public administration and promote fiscal sustainability. It will support policy actions to strengthen transparency and improve the efficiency of public resource management. Notably, an action plan to rationalise tax expenditures will be developed and published, with full estimates included in the 2026 budget to enhance fiscal transparency.
