Cabo Verde’s 2030 national development strategy places digital transformation at the heart of development in every socio-economic sector. In the finance sector, digital tools are expected to boost competition and improve financial inclusion.

Cabo Verde will soon adopt a bill governing the establishment and operations of digital banks. Indeed, the country submitted a draft bill that will be reviewed by the parliament during its parliamentary session scheduled for March 8-10, 2023.  

According to the preamble of the government bill, digital banking institutions will have to comply with the requirements prescribed in the money laundering and terrorism financing prevention acts and other applicable regulations.

The government believes that digital banks can be highly beneficial to the country’s economy. They can for instance boost competition, expand the product offering with advanced and specialized products and improve access to financing for SMEs. In that regard, the draft bill wants to regulate the activities, make the funding processes more efficient, and keep the interest rates charged for loans to various clients in check.

In Cabo Verde, seven banks operate with a general commercial license, employing nearly 1,300 workers. They recorded historic profits of 42.5 million euros in 2022, up 26.5 percent from the previous year, according to Central bank provisional data reported by Portuguese news agency Lusa in late February.

Samira Njoya