Africa-Press – Cape verde. The Deputy Prime Minister and Minister of Finance recognized today that 2024 will be a “difficult” and “challenging” year, and called on all Cape Verdeans to engage and commit to facing these challenges together.The challenge was launched by the deputy prime minister and minister of Finance and Business Development, Olavo Correia, during a press conference on the State Budget for 2024 (OE’2024), having stated that the current external scenario is “challenging” , of “many uncertainties” and with consequences for the national level.
According to the government official, the world economy is in a phase of contraction, with rising interest rates in international markets, rising inflation, in basic necessities, but also in energy goods, and in the face of wars and geopolitical and strategic conflicts in Europe, the Middle East, on the African continent and faced with a profound climate crisis, with consequences for Africa and Cape Verde.
Olavo Correia, who expressed some “concern” about these wars, called for everyone’s engagement so that the country can move forward, but stressed that it is necessary to deconstruct this narrative that the responsibility for building the Cape Verdean nation lies with the Government, but also with everything something that did not happen or happens with harmful effects for the Cape Verdean economy.
For the governor, it is very important that in this difficult context that the world lives in, that everyone can be at their best level of performance.
“The moment is difficult and challenging, but we are capable and the entire nation has to be mobilized, we are not going to hold anyone responsible, we are all part of this nation and we are going to engage everyone as a nation to make it happen we have to work with more scale, more speed and with an impact on our fellow citizens”, he pointed out.
However, he highlighted that the 2024 State Budget, budgeted at around 86 million contos, was created to respond to domestic and external demands and will prioritize the issue of currency stability, people’s income, pensions, the protection of the most vulnerable areas and reforms in the business and investment environment.
The deputy prime minister also stated that public policies cannot be changed annually and that the focus must be on the execution and implementation of the strategy that is the Strategic Plan for Sustainable Development and Ambition of Cape Verde 2030.
He admitted that it is urgent and necessary to create jobs for young people, reform the State’s business structure, accelerate the energy transition, build a digital nation, improve air transport and maritime transport, and speed up the implementation of public measures and policies.
On the occasion, the government official also recognized that it is necessary to reduce public debt and reach 100 percent (%) of the Gross Domestic Product (GDP) in the coming years, control fiscal risks, especially those arising from public companies, implement the agenda of reforms, especially with the financing ecosystem of the Cape Verdean economy.
“In 2024 we will start the year without any captivation so that the ministries can smoothly execute their budgets and monthly we will evaluate the execution of the budget and if the scenario requires us to take additional measures we will take”, he said.
Regarding the increase in expenses, the government official explained that this increase is due to the investment that the Government has been making in terms of roads, hospitals, health centers, human capital, urban renewal and in sanitation and water.
The State Budget of Cape Verde for 2024, is budgeted at 85,948,752,206 escudos, its main pillars are the search for economic stability, the promotion of reforms and investments to create jobs and the commitment to protecting the most vulnerable, aiming to sustainable development and social cohesion in the country.
The Government forecasts a public debt of 110.2% of GDP, economic growth of 4.7%, public deficit of 2.9%, inflation of 2.8%, unemployment rate of 8.2% and tax collection at 19.2% of GDP.
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