Cape Verde has secured €17.7 million from the African Development Bank to drive digital transformation across the government. This historic funding approved the second phase of the E-Government and Public Financial Management Reform Program. The investment aims to digitize the judiciary, improve tax efficiency and attract global technology talent to the island nation.
🔥 Overview
Loan of EUR 17.71 million approved by AfDB Board on December 2, 2025 Second phase of e-government and public financial management reform program to strengthen digital administration Cape Verde ranks 111th in the world in the 2024 United Nations e-Government Development Index (EGDI) High EGDI category Key initiatives include e-justice systems for the digitalization of courts and a digital nomads program for the growth of the technology sector
African Development Bank’s strategic investment fuels Cape Verde’s digital future
The African Development Bank Group Board approved a €17.71 million loan on 2 December 2025, extending critical support. This represents a continuation of support begun last year as the island nation accelerates economic growth through technology adoption.
Abdoulaye Coulibaly, Director of the Bank’s Governance and Economic Reform Department, stressed that the budget support is aimed at stimulating economic expansion through digitalization and private sector competitiveness. The program will also advance e-government reforms to modernize public administration while consolidating finances across government agencies.
Empowering government operations with technology
The first element of this initiative will advance ongoing digitalization reforms aimed at significantly increasing the competitiveness of the private sector. Key measures include the introduction of an electronic judicial system to digitize judicial procedures across the island’s courts. This modernization enables remote access to legal proceedings and significantly accelerates case management.
Additionally, the program will launch a call for competitive proposals to attract private operators to Cape Verde’s Technology Park under the innovative Digital Nomads Program. Newly developed admission criteria will encourage remote workers and the creation of high-growth technology companies looking to operate in the country’s expanding digital economy.
Program components Focus areas Strengthening digital reforms Launch of e-justice system, technology park development, digital nomads program Administrative reforms Rationalization of tax expenditures, increased transparency, management of public resources Fiscal sustainability PEFA assessment (Q1 2026), publication of annual tax expenditures in Budget 2026 Timeline Implementation with quarterly milestones from 2026 to 2027
Administrative modernization and strengthening fiscal transparency
The second component targets public sector modernization and fiscal sustainability through comprehensive policy instruments. These efforts will strengthen transparency and dramatically improve the efficiency of public resource management across all government departments.
The program will develop an action plan to rationalize tax spending, an important reform that will address budgetary inefficiencies. Full estimates of annual tax expenditures will be published in the 2026 National Budget, ensuring unprecedented transparency and public accountability. The African Development Bank will further fund the Public Expenditure and Financial Responsibility Assessment, which will be funded through the Middle-Income Countries Grant and is scheduled for the first quarter of 2026.
“The aim of this budget support is to build on the support provided last year to stimulate economic growth through digitalization and private sector competitiveness, while advancing e-government reforms to modernize public administration and strengthen public finances.”
— Abdoulaye Coulibaly, AfDB Director of Governance and Economic Reform
Key beneficiaries and national impact
The program will directly benefit five key government agencies positioned to lead implementation across the Cape Verdean government. The Department of Digital Economy oversees technology deployment and vendor coordination across all government agencies across the country.
Additional partners include the Central Bank of Cape Verde, which is responsible for modernizing the financial system. Institute for Gender Equality and Equity, ensuring inclusive digital access. The National Bureau of Revenue, which is leading the tax reform effort. A public procurement regulator that oversees a transparent procurement system. Together, these institutions create coordinated governance improvements that benefit people and businesses across the island nation.
What kind of transformation will Cape Verde achieve through this digital initiative?
Cape Verde has shown remarkable commitment to advancing digital governance and is currently ranked 111th out of 193 countries in the United Nations’ 2024 e-Government Development Index, placing it in the prestigious High EGDI category. The country also achieved 78th place in the world on the Electronic Participation Index, reflecting the increasing engagement of its citizens through digital platforms and online services.
This €17.71 million investment is expected to strengthen Cape Verde’s comprehensive efforts to build a demonstrably more competitive, transparent and resilient economy, based on modern e-government services. The implementation will strengthen the business environment for entrepreneurs, expand digital access for its citizens, and establish the island nation as an increasingly attractive destination for technology investment and digital innovation across West Africa.
source of information
African Development Bank Group – Official press release on Cape Verde e-Governance Program approved funding for NGOs of €17.7 million News – Comprehensive coverage of AfDB financing for Cape Verde’s digital transformation Ecofin Agency – Analysis of public sector digitalization and tax efficiency reforms
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