Government and Investor Reach Agreement on Dispute Resolution

In a move aimed at promoting foreign investment in Cape Verde, the government has reached an agreement with investors on a dispute resolution mechanism. The agreement is outlined in the country’s Investment Law, which came into force earlier this year.

Key Provisions of the Agreement

• Disputes between the state and investors will be resolved through conciliation and arbitration.
• Two routes to resolve disputes are provided: either through the national courts or through international arbitration.
• The government has committed to upholding the principles of confidentiality and transparency in the investment process.

Investor Incentives

• Investors are entitled to enjoy incentives, including:
  • Exemptions
  • Tax cuts
  • Deductions from taxable income (as outlined in the Code of Fiscal Benefits)
• Foreign investors have the right to convert their profits into freely convertible currency and transfer them abroad, subject to compliance with certain obligations.

Transfer of Income and Establishment of Accounts

• Foreign workers who have lived abroad for more than five years are entitled to transfer their income from services rendered to companies financed with resources from abroad.
• The agreement also provides for the establishment of accounts in foreign currency, which can be used to perform transactions with others abroad.

Commitment to Fair and Transparent Treatment

• The government has committed to upholding the principles of fair and transparent treatment of investors.
• Investors must comply with all applicable laws and regulations, and must respect the sovereignty and territorial integrity of Cape Verde.

Impact on Foreign Investment

• The agreement is seen as a major step forward in promoting foreign investment in Cape Verde, which has been identified as a key driver of economic growth and development in the country.
• The government believes that the agreement will help to attract more investors to the country, and to create new opportunities for employment and wealth creation.

Minister’s Statement

“This agreement is a major achievement for our country, and we are confident that it will help to promote foreign investment in Cape Verde. We are committed to providing a stable and favorable business environment, and to upholding the principles of fair and transparent treatment of investors.”

Response from Investors and Businesses

The agreement has been welcomed by investors and businesses operating in Cape Verde, who see it as a major step forward in promoting economic development and growth in the country.