Cape Verde News

FOREIGN TRADE INCREASING

According to the Direccao-Geral de Estatisticas, exports increased from $1.9 million for the first 6 months of 1994 to $4.6 million over the same period in 1995. Of the total of $4.6 million, some $3.7 million was exported to Portugal (around 80%) followed by the Seychelles, France and Spain among other European nations, and the USA.

Exports generally covered only about 5% of imports between 1985 and 1989, but this reduced to 4.2% between 1990 and 1991 with a further decrease to around 2.5% between 1992 and 1994. Over the last five years imports have risen significantly, thus expanding the trade deficit. The increase in exports to $4.6 million over the first 6 months of 1995 helped to increase the cover rate to 3.7% for that period. Imports in 1989 were around $113 million for which exports covered 6.1% of imports, however, imports grew to around $223 million in 1994 covering only 2.4%.

Cape Verde has to import around 85% of its food requirements as well as manufactured goods, fuels and other essentials. The high importation figures include food and infrastructure development materials which are mostly provided free under aid schemes. Exports consist of nominal amounts of bananas, canned tuna, frozen fish, lobster, salt and pozzolana (used for making hydraulic cement). Exports should rise markedly over the coming years as new freezing and canning plants come into operation increasing processed fish exports, also light manufacturing as plants are set up on industrial parks in Praia and Mindelo, as well as earnings from tourism which is set for dramatic growth.

"Fishpackers", the Spanish and Italian consortium which developed and operates an anchovy canning business called "Frescomar" in Mindelo which opened in 1995 employing 220 people has announced it will establish another factory soon. The new factory will can mackerel and tuna caught in Cape Verdean waters and export principally to Europe and the United States. A delegation from Fishpackers announced that it is very satisified with the success of its anchovy canning plant which imports the anchoys from other nations. The realisation of the high availability of mackerel in local waters influenced the company's decision to expand.

Despite somewhat higher exportation and manual labour costs than anticipated, Fishpackers believes it is worth investing in Cape Verde due to its very safe political climate and extremely low level of corruption. "We had very negative experiences in other countries which we did not find in Cape Verde" said a Director of Fishpackers. Frescomar will present its anchovy, tuna and mackerel canned products at the International Food Fair in Paris this October under the brand name "Morna".

The Center for Tourism, Investment & Export Promotion (Promex), Cape Verde's "front desk office" was established by the Government in 1991 to promote private foreign investment, has negotiated a cooperation agreement with the Camara de Comercio, Industria e Turismo - Portugal/Cabo Verde (CCIT). Under the agreement the CCIT will endeavour to promote foreign investment opportunities in Cape Verde through its offices located in Portugal and its extensive contacts spread over Europe. The cooperation agreement stems partly from the announcement made by USAID (US Agency for International Development) that it will close its office and terminate all funding to Cape Verde as of this September, which has up to now been the primary benefactor of Promex.

The "interesting and encouraging progress" which Cape Verde has made over the last 6 years concerning its peaceful transformation to multiparty democracy and economic reform opening up the economy to the private sector as well as good use of external aid has led to a visit to Praia by Mr. Dane Smith, the Director of the West Africa section at the US State Department (foreign ministry of the U.S. Government).

Mr. Smith held meetings with the Minister for Foreign Affairs, Jose Tomas Veiga, where they discussed issues related to current difficulties in Liberia, Guinea (Conakry) and Nigeria, and also the Prime Minister, Carlos Veiga, and the Minister for Economic Coordination, Gualberto do Rosario. Mr.Smith explained that the decision to close USAID's office in Praia and cease its funding activities from this September is not in any way a reflection on the USA's attitude towards Cape Verde which remains very positive, but stems from "across the board" cutbacks in international development >assistance forced by the US Congress last year.

A new US Ambassador, Mr. Lawrence Neal Benedict, will soon assume his post in Praia replacing Mr. Joseph Monroe Segars appointed in March 1993.

Two finance agreements between France and Cape Verde were signed in Praia on January 11 totalling $1.5 million. Under the first agreement France will donate funding of $580,000 destined to improve Cape Verde's national statistical survey department and customs control with training and computerisation and runs in conjunction with a World Bank assisted project. The second, grants funds of $920,000 for a three-year project to improve agricultural productivity. Farming in Cape Verde employs 50% of the population, yet represents only 15% of GDP. On average, Cape Verde manages to fulfill only around 15% of its own food requirements.

The presentation of the book and its author was made by Nuno Almada, the Cultural Adviser at the Portuguese Embassy in Cape Verde, and the poet, Corsino Fortes, ex-member of the PAICV government and the first ever Ambassador of Cape Verde to Portugal. Nuno Almada stated that this is an impartial, journalistic report and that "perhaps we will never know for sure" who was responsible for Amilcar Cabral's death, as in his view, also that of the author and of many others "there was more than one beneficiary" to the assassination of "this great leader and example of humanity". The work is the fruit of three years of investigation which took the author to Guinea-Bissau, Guinea (Conakry), Senegal and Cape Verde. Research was made into local archives of the PIDE-GDS (the notorious Portuguese political police) and Portuguese Diplomatic Records at the Ministry of Foreign Affairs in Lisbon. Equally, the author held many interviews with well known personalities who were involved in the conflict taking place in Guinea-Bissau.

Corsino Fortes and many others of those who were present at the book's launch in the "Centro Cultural Portugues" expressed the view that correct steps were taken by the author to insure impartiality and make a sensible report despite the disappearance of key pieces of evidence from archives of the PIDE in Cape Verde, Guinea and Lisbon. Reports are also missing from the International Commission of Inquiry and from another inquiry conducted by the PAIGC after Cabral's assassination.

The book presents four possible scenarios regarding the identity of the person who gave the order to assassinate Amilcar Cabral. The first theory suggests a conspiracy amongst Guinean members of the PAIGC who were discontented with the favorable position many Cape Verdean members of the PAIGC held in general in Portuguese Guinea. Although Amilcar Cabral was of Cape Verdean parentage he was born in Guinea and sent to school in Cape Verde. The second theory suggests that Sekou Toure, the President of Guinea (Conakry) who afforded the PAIGC safe-haven from which to fight the Portuguese, may have ordered the assassination, as he was more interested in seeing the unification of the two Guinea regions which was clearly not the wish of Amilcar Cabral. A third theory suggests that the "long arm of PIDE" was responsible and that a collaborator was able to infiltrate Amicar Cabral's inner circle of colleagues before his assassination in Conakry on January 20, 1973. The final theory suggests that the Portuguese commander-in-chief, General Antonio Spinola, who was leading the war against the the PAICG and the other rebel forces gave the order for the assassination of Amilcar Cabral so as to deny the PAIGC the powers of his leadership.

The book's launch was not received enthusiastically by some former members and comrades in arms of the PAIGC who fought side-by-side Cabral. Carlos Reis (also one of Cape Verde's Ambassadors to Portugal and a former Minister of Education and Culture), disagreed with the author's viewpoint that the Portuguese could not be blamed for Cabral's assassination for lack of decisive documentation to prove beyond doubt the direct involvement of any one of the thousands of Portuguese soldiers or agents of PIDE who were in the region at the time. Carlos Reis complained that this viewpoint appears to offer a "not guilty" verdict to agents of Portuguese fascism and colonialism .

Osvaldo Lopes da Silva, who was the PAIGC's Commander on the Eastern Front when Amilcar Cabral was assassinated, was accompanied by other former combatants at the book's launch, namely Commandante Pedro Verona Pires (Cape Verde's prime minister from 1975-91) and Corsino Tolentino (formerly Minister of Education) amongst others, said that he believes that the truth may never be discovered due to the lack of any documentary proof, but that in his view responsibility for the assassination must lie with General Spinola as it was he who organised a propoganda campaign to destabilize the PAIGC and cause in-fighting and rivalry between the joint Guinean and Cape Verdean freedom fighters.

Jose Pedro Castanheira admits that the question "Who gave the order to kill Amilcar Cabral?" is polemic, both in Cape Verde and Guinea-Bissau as well as in Portugal, and will probably go away until someone produces documentary evidence pointing the finger at the man who gave the order to kill Cabral..

Between 1994 and 1995, a total of 56 projects were presented to Promex for authorisation representing investment of $93 million. Already, 16 companies are in operation representing investment of $16 million and the creation of 872. Some of these businesses are already exporting and up to December 1994 alone had exported $4.3 million of goods.

Another 10 projects will begin operating soon representing investment of $40 million and generating a further 800 jobs. Authorisation has been granted, or will be granted, for 30 more projects representing investment of $37 million and creating another 1200 jobs. The projects are spread into: industry, 36% (mainly footware and textiles); fishing and civil construction, 27%; and tourism, 37%.

Concerning tourism, some $39 million will be invested over the 1995/96 period creating around 500 more jobs. Sal, Santiago, Boa Vista and S.Vicente Islands will benefit most. In Praia, already existing are the Hotels Praia-Mar, Marisol, America, Aparthotel Holanda and Luar, of which the latter 3 opened since 1994. The Hotel Tropico, 4 Stars, with 53 rooms is due to open in April 1996 in the Prainha district of the capital. A significant project is being planned for the development of a 200 room luxury hotel at Sao Francisco Bay about 10 kilometres to the north east of Praia, which is intended to open once the new Praia international airport is running from 1998.

At Sao Pedro on S.Vicente Island, the luxury hotel "Foya Branca" was opened in 1995 with accommodation for 82 guests and the Hotel Porto Grande in Mindelo is undergoing extensive remodelling and refurbishment and will be transformed into a 3 Star hotel later this year. Stefanini, an Italian tour operator, will open a 200 room complex this year at Santa Maria on Sal Island where the majority of tourism facilities are currently located with the existing hotels Morabeza, Belhorizonte and Albatroz. On Boa Vista, another Italian group, Capotour, is due to open a complex this year and also a Marina Club will be opened.

Courses on hotelling and catering have begun already with funding from the National Tourism Development Fund and which will be augmented by the World Bank. The tourism sector is being promoted through Promex. An increasing number of foreign tourists have been visiting Cape Verde each year, estimated to be about 10,000 in 1995 (merely 2,000 in 1991). Around 65% came from Portugal, followed by Germany, Italy, France, Netherlands, United States, Spain and South Africa. A National Tourism Development Plan states that it hopes the number of tourists entering Cape Verde each year will increase dramatically up to 400,000 by the year 2008.