The microfinance cooperatives of the Cape Verde archipelago
Microcredit in Cape Verde is provided by seven institutions, five cooperatives and two mutuals supervised by the Banco de Cabo Verde, of which Morabi, Citicoop and Fami-Picos hold about 84% of outstanding loans, mostly lent to women working in trade.
A small microfinance sector
In 2023, the assets of Cape Verdean microfinance amounted to about 0.54% of GDP. The sector counted more than 10,000 active clients and some 4,000 depositing members, up by around 8.5% over one year.
Morabi, Citicoop and Fami-Picos lead the field
Three institutions hold almost 84% of the microcredit portfolio. Morabi, which grew out of a women's advancement association, Citicoop and Fami-Picos, which comes from Santiago, are the main contacts for a first small loan in escudos.
Cooperatives and mutuals watched by the Banco de Cabo Verde
All seven institutions are set up as cooperatives or mutuals and fall under Banco de Cabo Verde supervision. Before joining, it is wise to check that the organisation is listed among the entities authorised to take savings and lend.
A mainly female clientele
Women make up about 62% of Cape Verdean microcredit borrowers. Fish sellers, market traders in Praia and seamstresses in Assomada form the core of the clientele, often heads of household with irregular incomes from one month to the next.
Trade and services, the main use of loans
About 41% of microloans fund trade and services: shop stock, a kiosk, a small food business or transport. For a more ambitious project, our page on loans for Cape Verdean entrepreneurs describes the state-guaranteed bank credit lines.
Home rehabilitation funded by small loans
Nearly a quarter of outstanding loans, about 24%, goes on improving homes: roofing, bathrooms, extensions. These loans support the gradual construction typical of Praia's outer neighbourhoods, often carried out room by room as the family's means allow.
Farming and livestock on the rural islands
About 11% of microloans go to agriculture: seeds, small livestock and drip irrigation. The specific needs of farmers on Santiago, Santo Antão or Fogo are set out on our page about farm credit in Cape Verde, where repayments follow the harvests.
Consumption and family spending
About 14% of outstanding loans fund consumption: household equipment, medical costs, the start of the school year. These loans help households with no access to a bank, but repayments must match an income that can depend on the tourist season.
ASDIS and Banco Jovem e Mulher
The ASDIS cooperative is one of the partners of Banco Jovem e Mulher, launched by Pró Empresa in 2024. This gateway also offers a restructuring line for micro-enterprises that have fallen behind on an earlier loan.
Movable assets accepted as security
Since 2024, the Registo de Garantias Móveis has allowed stock, livestock or a harvest to be pledged. For members without titled land, this security adds to the joint guarantee and prior savings that the cooperatives require.
Microcredit as a way out of unemployment
For a jobless person who wants to start an income-generating activity, microcredit is often the only formal way in. The other options are presented on our page about borrowing without a job in Cape Verde.
Profitability and sustainability of the cooperatives
The sector's net profit rose by about 6% in 2023 to reach almost 92 million escudos. This modest return is a reminder that cooperatives must cover high follow-up costs across a scattered archipelago of islands.
Getting a microloan from a Cape Verdean cooperative
- Find the cooperative or mutual operating on your island and check its authorisation with the Banco de Cabo Verde.
- Join by buying member shares and open a savings account with the institution.
- Present your activity to the loan officer, with sales, purchases and needs costed in escudos.
- Provide the security requested: savings, joint guarantee, or a pledge on stock or livestock.
- Sign the contract, receive the funds and keep to the repayment schedule agreed with the officer.
Cost of a microloan from Cape Verdean cooperatives
| Item | Description | What makes it vary |
|---|---|---|
| Member shares | Compulsory purchase to become a member | Each cooperative's statutes |
| Prior savings | Amount to deposit before the first loan | Amount requested and length of membership |
| Interest rate | Stated in the loan contract | Product, term and institution |
| Application fees | Assessment and monitoring of the loan | Cooperative's fee scale |
| Insurance | Death cover sometimes included | Depends on the institution |
Documents required by Cape Verdean microfinance institutions
- CNI or passport
- NIF
- Proof of residence in the area served
- Written description of the activity and its income
- Documents for the joint guarantor or guarantors
- List of movable assets offered as security
Microcredit pitfalls in Cape Verde
- Using a loan meant for trade to pay for celebrations or consumption, then being unable to repay from sales.
- Borrowing from two cooperatives at once to repay one with the other, a cycle that ends in default.
- Handing money to an unauthorised association that presents itself as a savings cooperative.
- Agreeing to be a joint guarantor without knowing the borrower's activity, when the cooperative will turn to you if they fail to pay.
Microfinance in Cape Verde: answers to key questions
How many microfinance institutions operate in Cape Verde?
Data published for 2023 show seven registered institutions, five cooperatives and two mutuals, all supervised by the Banco de Cabo Verde. Morabi, Citicoop and Fami-Picos dominate, with about 84% of the loans granted.
Does a Cape Verdean cooperative require savings before a loan?
In most Cape Verdean cooperatives, yes. Membership involves buying shares and often building up prior savings, which shows the borrower can put money aside every month and also serves as partial security for the loan.
Do Cape Verde's cooperatives lend only to women?
No, but women account for about 62% of borrowers. Some institutions were created to promote women's economic independence, which explains the proportion, without excluding men who run an activity of their own.
Is microcredit available on every Cape Verdean island?
Coverage is uneven: cooperatives are mainly established on Santiago and a few other islands. On the smaller islands, access may go through a local branch or through Banco Jovem e Mulher lines distributed by partner banks.