Cape verde ‘riding the global storm’

Cape Verde is seemingly immune to the global credit crunch…

As a global phenomenon, the credit crunch is expected to have an impact all around the world. Having already spread from its origins in the US subprime market, the crunch transported itself across the Atlantic and elsewhere, with the tighter lending criteria and withdrawal of products by lenders plus the Northern Rock affair being the most obvious symptoms.

Yet while many markets may find themselves having to take a breather and batten down the hatches until the storm passes, this need not be the case everywhere, according to London-based property firm RMDS, which sells land and property in the Cape Verde Islands.

Director Marco Pietropoli stated that the islands had one advantage which would keep it growing despite the slowdown in some other markets - that of being an emerging destination for property investors.

A ‘reasonable year’ ahead

Speaking about prospects for Cape Verde in 2008, he said: "It will be a reasonable year, but obviously it has to be related to the overall economic situation; nowhere is immune to that but it is a very specific situation, rather than a developed property market, which there is in many other countries."

The difference, he suggested, was that while some markets (including Britain) may be due for a correction after years of growth, Cape Verde's status as an emerging market prevented it being in this position.

Indeed, he noted, this emerging status meant that much of its infrastructure was not in place. But, because this is happening now, it is pushing growth in the country.

"It is such a small country - only 750,000 population and you are going from having one international airport to a situation a few years later with four international airports; it is a huge transformation," he commented.

This transformation is helping to bring in the tourists as access to the islands improves and the number of man-made attractions to compliment the sun, sand and surf grows.

Among the papers to notice this was the Essex Chronicle, which recently described the islands as the "hot new holiday destination" for 2008. The paper noted the rise in numbers from 67,000 in 2000 to 280,000 in 2006, with an expected 2007 total of 320,000.

Another step forward

The expansion of the property and tourism sectors is in line with other advances Cape Verde is making. Last week it concluded negotiations to enter the World Trade Organisation (WTO), which will go before the body's council on December 18th for ratification.

Cape Verde's entry to the WTO will mark another step forward for a country which is moving forward thanks in no small part to its tourist and property market growth. Whatever happens elsewhere in 2008,

Mr Pietropoli was sure enough that the country is set to go on growing. He concluded: "Cape Verde will be ok because it still is only just being discovered."