Lawyer Monthly Magazine - September 2021 Edition

Do these differ greatly from the regulations imposed by other African countries? The countries of the African continent have great ethnic, cultural, social and political diversity, this continent is made up of 54 independent countries, so it is normal that the regulations that regulate the issue of foreign investment are different, varying from country to country. However, regulations may also be the same, varying only in some points. For example, the investment law of the Republic of Guinea-Bissau resembles Cape Verde’s investment law in some points, while varying in others. Both the investment law of the Republic of Guinea-Bissau and Cape Verde offer the same rights and guarantees, namely the freedom to private initiative, security and protection, and the transfer of funds abroad. The resolution of conflicts in both can be undertaken through conciliation and arbitration and recourse to the courts. However, they defer to the incentives offered. Have you witnessed a significant uptick or downturn in demand for foreign investment services in the past 12 months? Due to the COVID-19 pandemic that has WWW.LAWYER-MONTHLY.COM | SEP 2021 MY LEGAL LIFE - CARLA MONTEIRO plagued the world at large since February 2020, there has been a standstill of any foreign investment in Cape Verde in the last 12 months. What common pitfalls are often encountered by foreign individuals and organizations attempting to invest in Cape Verde? A major constraint regarding the attraction of foreign investments is the small size of the Cape Verdean market, which has an impact on insurance. Because of the lack of export diversification and the imposition of the global economy, investors from foreign countries are required to make adjustments with high costs, forcing them to assume greater risks. There are also constraints regarding the division of the territory of Cape Verde and how its distance from the main markets creates additional costs for the small economy. Transport costs are quite high, both for importing raw materials and for distributing the finished product between islands and especially to international markets. In terms of country management, it requires heavy investments in infrastructure – telecommunications, health, education, transport (including ports, airports and roads) and the installation of administrative machinery, among others, thus making more efficient management impossible. What advice would you give to a foreign investor looking to overcome these obstacles? Always seek to collect as much information as possible through lawyers or other competent authorities before starting any investment. View the various possible investment options. It is wise to invest in a sector understood as the future of the Cape Verdean economy and the development of foreign investment, such as tourism, renewable energies, the ocean economy, the digital economy and creative industries, among others. And above all, do not let yourself be affected by these obstacles; keep trying and persist. Investing in the nation has its advantages, as Cape Verde has an attractive policy of incentives, a rich business environment, a mature democracy, and a modern society with a wealth of transformation, diversity and opportunity. The country has “ Due to the COVID-19 pandemic that has plagued the world at large since February 2020, there has been a standstill of any foreign investment in Cape Verde in the last 12 months. ” 20