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The Bank of
Cape Verde is the primary
financial institution of
Cape Verde. The rights of the
bank are described in Article 94 of the Constitution which states that
“The Bank of
Cape Verde shall be the central bank which shall have the
exclusive right to issue money and collaborate in the definition and
implementation of the monetary, financial and exchange rate policies in
accordance with the law.”
The Financial Services
sector is not very well developed. This is primarily because of the lack of
potential margins for foreign institutions and low demand. Corporate and
consumer spending are both at a fairly low level when compared with other
developing nations.
However, with increasing
investment, foreign trade and development of infrastructure and tourism the
financial services sector is likely to grow to meet the increasing demand and
will compel foreign banks to start expanding into this region.
There are currently four
banks with 30 branches operating in
Cape Verde, most of them concentrated on the islands of
Santiago and
Sao Vicente. In addition to the banks, there are three nonblank
financial institutions and two insurance companies. The nonblank financial
institutions consist of a risk capital company (A Promotora), a foreign
exchange agency (Câmbios 24 Horas) and a company issuing credit cards
(Sociedade Interbancària e Sistemas de Pagamentos).
The commercial banking
system in
Cape Verde is largely privatized, although the state retains a
substantial minority interest. Control is now vested in Portuguese banks and
insurance companies.
All banks offer more or
less the same basic financial products. All four banks endeavour to mobilize
funds from the
Cape Verdean Diaspora. Although no Cape Verdean bank has branches
abroad, they can nevertheless benefit from the extensive branch network of
their main shareholders, the Portuguese banks. As a result, money transfer
from abroad, using this network, is inexpensive by international standards.
In order to increase the attractiveness of non-resident accounts, the Government
has granted tax holidays on interest on these accounts.
A stock market is also to be opened
shortly. The law has been approved and the central bank is currently working
out the necessary supervisory regulations.
Health Services
Cape Verde is a third world
country with an under developed health service. The overall expenditure on
health as a percentage of GDP is fairly low. A detailed analysis of the
ratios and levels of expenditure and spending on the health services is
shown:
|
CAPE
VERDE - National Expenditure on Health (Escudos) |
|
|
2002 |
2003 |
2004 |
|
Expenditure ratios |
|
|
|
|
Total expenditure on
health (THE) % GDP |
5.0 |
4.6 |
5.1 |
|
General government
expenditure on health (GGHE) % THE |
75.1 |
73.2 |
75.8 |
|
Private expenditure on
health (PvtHE) % THE |
24.9 |
26.8 |
24.2 |
|
GGHE % General government
expenditure |
11.1 |
11.1 |
12.9 |
|
Social security
expenditure on health % GGHE |
33.6 |
35.5 |
29.5 |
|
Net out-of-pocket
spending on health (OOPs) % PvtHE |
99.8 |
99.7 |
99.8 |
|
Private prepaid plans
expenditure on health % PvtHE |
0.2 |
0.3 |
0.2 |
|
Externally funded
expenditure on health % THE |
15.2 |
10.0 |
20.7 |
A further breakdown of the number and densities of workers in the
health sector is shown:
|
|
2004 |
|
2004 |
|
Physicians (number)
|
231 |
Community health workers
(number) |
65 |
|
Physicians (density per
1000 population) |
0.49 |
Community health workers
(density per 1000) |
0.14 |
|
Nurses (number)
|
410 |
Lab technicians (number)
|
78 |
|
Nurses (density per 1000
population) |
0.87 |
Lab technicians (density
per 1000 population) |
0.16 |
|
Dentists (number) |
11 |
Other health workers
(number) |
42 |
|
Dentists (density per
1000 population) |
0.02 |
Other health workers
(density per 1000 population) |
0.09 |
|
Pharmacists (number) |
43 |
Health management and
support workers (number) |
74 |
|
Pharmacists (density per
1000 population) |
0.09 |
Health management and
support workers (density per 1000) |
0.16 |
|
Public and environmental
health workers (number) |
9 |
|
|
Public and environmental
health workers (density per 1000) |
0.02 |
The
above chart illustrates the need for further investment and increase in the
National Health Expenditure. Disease is not widespread though there is
concern over spread of Tuberculosis. The World Health Organisation has been
investing and promised further support for control of life threatening
conditions such as AIDS and Tuberculosis.
Utilities
The main provider of Electricity and Water in
Cape Verde is Electra (Electricidade and Água)
which was created the 17 of April of 1982. The capital stock of Electra is
about 600 million Escudos.
The overall production of
electricity on
Cape Verde was 44.15 million kWh and the consumption was at 41.06
million kWh (2003).
The above chart illustrates the rise in the number of Electra customers for
electricity and desalinated water over a span of 4 years.
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