Last month, the Government of Cape Verde approved the new program to promote the micro-entrepreneurship in order to encourage new opportunities in the country as well as to increase the available income for the families.
The program’s objectives are, among others, to encourage micro-business from the perspective of contributing to economic inclusion, especially of young people and women, through the opportunity to create self-employment and income through entrepreneurship. The purpose of this program is also to promote the financing of the local economy and the generation of employment and sustainable income for micro and small entrepreneurs.
All the micro and small companies with tax and social security contributions regularized may apply, as well as cooperatives, economic interest groups, and producers’ associations.
Among the areas in which the program allows application are: agriculture, livestock, and fisheries; food processing; production of tradable products from recycled materials; sustainable rural tourism; tourist guide; cultural tourism; gastronomy and catering; handicraft; information technology; marketing services; gyms; barber shops; fashion projects; miscellaneous house maintenance services; mechanics; among others with relevant potential.
The financial conditions given by the banking partners to the microcredit institutions are an agreed interest rate, maximum operation term of 5 years, subsidization of the agreed interest rate by the State up to 100%, being the value paid annually by the first quarter, and state guarantees up to 80% of the amount owed.
In order to apply the micro-entrepreneurship project shall have an amount between CVE 150,000 (around USD 1.615) and CVE 1,500,000 (around USD 161,500) and a minimum of 5% of own capital, with the possibility of this 5% being financed by the incubator or another entity for temporary participation in the business.
Article by Marco Correia Gadanha
Marco Correia Gadanha is a partner of the Portuguese law office MC&A. He is specialized in legal advice to international transactions. Marco has extensive experience of legal practice in Portugal and in the Portuguese-speaking African countries. Since 2008, he has practiced mainly in the areas of labor and litigation, assisting national and international clients in these and other matters, namely corporate law, especially in Portugal, Angola and Mozambique. He graduated at the University of Coimbra in 2005 and he holds post-graduations in Labor and Angolan Law.