Financing a Cape Verdean business with public guarantees
In Cape Verde, an entrepreneur usually funds a project with a bank loan partly guaranteed by Pró-Garante or through a Pró Empresa credit line such as StartUp Jovem or Pró Crédito, distributed by BCA, Caixa Económica, BCN and other partners.
SMEs, the backbone of the Cape Verdean economy
Micro, small and medium-sized enterprises make up more than 90% of businesses and over 40% of jobs. Trade, catering, transport and tourism services on Sal or Boa Vista dominate, with many family firms holding very little capital.
Pró Empresa, the public support agency
Based in Praia, Pró Empresa is the institute that helps businesses get started and then grow. The institute runs several financing programmes, accredits consultants, certifies incubators and promotes entrepreneurship across the different islands of the archipelago.
StartUp Jovem, Pró Crédito and Express plus
StartUp Jovem targets young founders, Pró Crédito eases access to bank credit and Express plus aims at faster financing. The precise terms of each line change over time and should be checked with Pró Empresa and the partner banks.
The Pró-Garante guarantee since 2020
Pró-Garante, a guarantee company operating since 2020, covers part of the risk taken by the bank. By July 2022 it had supported about 1,900 businesses with more than 54 million euros of loans, across all islands and sectors.
Banco Jovem e Mulher and its themed lines
Opened in June 2024, Banco Jovem e Mulher offers guaranteed lines for the energy transition, digital, creative industries, returning emigrants and women entrepreneurs. People aged 18 to 35 and adult women of any age are eligible to apply.
The simplified REMPE regime
REMPE, the special regime for micro and small enterprises, aims to promote formalisation, productivity and competitiveness. A business registered under this regime presents clearer accounts, which makes it easier for the bank to assess the application.
Movable collateral instead of a mortgage
Since 2024 the Registo de Garantias Móveis has allowed stock, equipment, vehicles or receivables to be pledged. For a Mindelo restaurant owner without titled land, this can replace the mortgage banks traditionally demand, while the business keeps using the asset.
Microcredit for very small activities
For a need of a few hundred thousand escudos, a cooperative is often more accessible than a bank. Our page on microfinance in Cape Verde presents Morabi, Citicoop and Fami-Picos together with their membership conditions.
Minibuses, pick-ups and rental cars to finance
A passenger minibus, a delivery pick-up or a tourist rental car can be financed outside a standard loan. The mechanism is described on our page about car finance leases in Cape Verde, an option often used by rental firms on Sal.
An escudo business plan for banks in Praia and Mindelo
Banks in Praia expect a business plan costed in escudos, supplier quotes and a cash-flow projection over the life of the loan. Tourism businesses must show how they will get through the low season without missing repayments.
The diaspora and returning investors
Emigrants back from Portugal or the United States set up guesthouses, workshops or shops. Banco Jovem e Mulher has a line dedicated to Cape Verdeans abroad, provided the project is viable and based locally in the islands.
The contrast with business lending in Côte d'Ivoire
The Ivorian model relies on WAEMU guarantee funds and a much larger banking market. Our page on business loans in Côte d'Ivoire shows the gap with Cape Verde's small island market and its own public schemes.
Putting together a business finance application in Cape Verde
- Register the business, obtain its NIF and choose a suitable tax regime, such as REMPE.
- Write a business plan in escudos with quotes, sales forecasts and monthly cash flow.
- Consult Pró Empresa to identify the right line: StartUp Jovem, Pró Crédito, Express plus or Banco Jovem e Mulher.
- File the application with a partner bank and, if needed, request a Pró-Garante guarantee.
- Register movable collateral in the Registo de Garantias Móveis and sign the loan contract.
- Keep regular accounts and send the bank evidence of how the funds have been used.
Charges on a business loan in Cape Verde
| Item | Nature | What makes it vary |
|---|---|---|
| Interest rate | Set by the bank, sometimes reduced by a public line | Line chosen, risk, term |
| Guarantee fee | Due when Pró-Garante covers part of the loan | Share guaranteed and amount |
| Application fees | Bank's assessment of the project | Institution's price list |
| Registering collateral | Recording the pledged movable assets | Number and type of assets |
| Advisory support | Accredited consultant for the business plan | Provider and project complexity |
Business file required by Cape Verdean banks
- Commercial registration certificate of the business
- NIF of the business and its manager
- Articles of association and partners' CNI
- Business plan and financial projections in escudos
- Quotes and pro forma invoices for the investments
- Accounts for recent financial years or a tax certificate
- Operating licence for tourism or catering
Reasons business loans are refused in Cape Verde
- Presenting a tourism project with no plan for the low season, when the bank checks the ability to pay all year round.
- Mixing personal cash with the business account, which makes the income impossible to analyse.
- Believing a Pró-Garante guarantee removes the need for a down payment or collateral, when it covers only part of the risk.
- Paying an intermediary who promises priority access to public credit lines in return for a fee paid upfront.
Business finance in Cape Verde: founders' frequent questions
Does Pró Empresa lend money directly?
Pró Empresa designs and runs programmes, but loans are generally paid out by the partner banks and cooperative. The institute guides project owners, can guarantee or subsidise certain lines and provides technical support throughout the process.
What is the difference between Pró Empresa and Pró-Garante?
Pró Empresa is the public business support institute, which manages financing and advisory programmes. Pró-Garante is the guarantee company that covers part of the banks' risk on the loans they grant to businesses.
Can a foreigner use Cape Verde's business credit lines?
Some lines, such as those for young people or emigrants, are aimed at Cape Verdean nationals. A foreign investor can borrow from a local bank on market terms, with a company registered in Cape Verde and suitable collateral.
Is Banco Jovem e Mulher a conventional bank?
No. It is a digital platform launched by Pró Empresa to guide young people and women towards state-guaranteed lines. The loans themselves are then granted by Caixa Económica, BCA, BCN or the ASDIS cooperative.