Starting your own business in Cape Verde

Hi! I'm an exchange student in Boa Vista for 3 months. My project is investigating if we could start an interim office over here. I already found the labor code but it is in Portuguese, which I do not speak or understand. I was wondering if the "tribunal" would help me with this information or is there a company/service where I can ask the questions below? I already made a business plan in Belgium, so I know which steps I should take. But over here I'm insecure because I do not speak the language.

Thank you in regard!

Elisabeth

Hi Elisabeth,

Your message is very difficult to understand because you have provided very little context! You want to start and interim office...in what economic sector and for how long? You referred to "these questions below"...but there were no questions below. You already know "what steps to take"...well, what steps are they? How are we going to help you take these steps if you do not say what steps you are talking about?

By the way, "tribunal" is the court. I doubt very much if a court is going to help you with anything. The labor code will tell you nothing about the requirements to start a business-set up an office. And frankly, you may already be seeing evidence of how successful it will be to try to set up an office here. If you cannot speak the language, it will be very difficult to get anything done. Why are you trying to set up an office in a place where you cannot even understand what the laws will require of you? And in only 3 months? Or else you will need professional help, and that will have a significant cost which does not seem viable for your investigation.

As you can tell, I'm quite confused by your note. Please provide additional details so what you are looking for is clear. This is the only way that we can help you.

My only other suggestion is that if you simply want to know how to start a business and you want to ask some questions about the process, then simply visit the local Casa do Cidadão in Boavista. Take someone along who can translate for you.

Angelo
P.S. If you are now in Cape Verde and you want to speak with me directly, send me a private message and we can exchange cell phone numbers so that we can talk. Perhaps you will be better able to verbally explain what it is you are trying to do.

ElisabethCox wrote:

Hi! I'm an exchange student in Boa Vista for 3 months. My project is investigating if we could start an interim office over here. I already found the labor code but it is in Portuguese, which I do not speak or understand. I was wondering if the "tribunal" would help me with this information or is there a company/service where I can ask the questions below? I already made a business plan in Belgium, so I know which steps I should take. But over here I'm insecure because I do not speak the language.

Thank you in regard!

Elisabeth

Hi! I said "questions below" because if you write a comment/post, the box moves up. In your first message, you wrote 5 questions that you need to know when you want to start a business.
As I told you, I'm an exchange student. I'm here to fulfil my international internship. So I will not start this business myself, but we will try to find someone local to start this business. I study people management. In this study, I had to make a business plan. So I can use this business plan for my business plan of the interim office. That was what I ment by "I already know which steps to take". There are some topics I need to investigate and I will have to make a SWOT-analyses.
I'm here with a Association without lucrative purpose, called Boa Vista O Mundo. The founder is a Belgian teacher. He asked me if I could research the possiblity of starting an interim office to employ the people of the Barracas. The main goal of the association is to help the people of the Barracas. He already helped building a school and we will be helping by giving local people English lessons. It was not obligated to learn Portuguese, as we have local people that can help us. So right know I'm not quite sure which sector, but I'm thinking mostly hotels and restaurants.
I suggested the court, because one of my co-students suggested this. I don't know Boa Vista that well yet, because I just arrived Saturday.

Kind regards
Elisabeth

Hi Elisabeth,

Thanks for the additional details and context. Your request is now much clearer. Still, I have some questions that you should answer in order for me to provide the most helpful responses. I've been helping local and foreign entrepreneurs evaluate and/or start-up businesses (large and small) in Cabo Verde for several years.

Here are my questions. The reason I must ask them is that each possible scenario has different answers:

1. Is Boa Vista O Mundo Foundation (BVOMF) an officially registered NGO or business in Cabo Verde? I read your website and I cannot tell if it is only a Belgian entity (I see that there are foreign accounts at Fortis), or if you have created a counterpart organization in Cabo Verde also. I searched on the official registry of businesses/entities in Cabo Verde and I could not find it. So I assume that it is not yet registered here. Please confirm.

2. Will this office you are looking to create be an associated entity of BVOMF or will it be a separate standalone business registered in Cabo Verde that simply has an arm's length relationship with BVOMF in Belgium? If BVOMF or a related office does not yet exist as a legal entity (NGO) in Cabo Verde, I assume that this is what you mean by creating an interim office? In other words, you are trying to now create the formal NGO here in Cabo Verde, correct?

3. Will this entity you are setting up actually employ Cabo Verdeans in Boa Vista, or are you simply teaching and preparing the local residents of Boa Vista so that they will be ready for jobs in the hotels and restaurants, etc? If you will be employing Cabo Verdeans, you will need to take some steps to protect the entity from expensive requirements of the labor laws. If you will not be employing citizens directly, it will be a lot easier to set up a feasible company.

4. Why is the office "interim"? Interim means temporary or not final. This is the most confusing part at this point. It is not clear why you are setting up a temporary/transitory office instead of a permanent office. If you are truly setting up a temporary/transitory business, then you may not want to formalize anything until you are clear about what the final business will be. Or by interim, did you mean a temporary LOCATION?

By the way, what BVOMF is trying to do for the poor residents of Boa Vista is admirable. It is very disturbing to me that in the midst of all of the tourism activity in Sal and Boa Vista (representing about 20% of the GDP of Cabo Verde) that there are communities of Barracas where people are starving and unemployed. It is shocking that the hotel operators themselves have not made much efforts to improve the conditions of the communities on these islands. I put full responsibility for this on the government. How could they negotiate with such investors and not require that the investors help to contribute to the communities in which they locate their hotels to reap incredible profits?

Finally, you should be aware that there is a School for Hotels and Tourism in Santiago that prepares students to be employed in the hotels and restaurants of the tourism sector. Instead of trying to teach the residents of the communities of Boa Vista skills for employment in the tourism industry, perhaps one of the most effective things the Foundation could do is provide the deserving residents with transportation and scholarships to attend (Escola de Hotelaria e Turismo de CV) EHTCV. It is a 9 month course including the final internship and it costs around €1.000 to get one individual through the program. Here is the EHTCV website for more info: School of Hotel and Tourism Cabo Verde (EHTCV).

Angelo

ElisabethCox wrote:

Hi! I said "questions below" because if you write a comment/post, the box moves up. In your first message, you wrote 5 questions that you need to know when you want to start a business.
As I told you, I'm an exchange student. I'm here to fulfil my international internship. So I will not start this business myself, but we will try to find someone local to start this business. I study people management. In this study, I had to make a business plan. So I can use this business plan for my business plan of the interim office. That was what I ment by "I already know which steps to take". There are some topics I need to investigate and I will have to make a SWOT-analyses.
I'm here with a Association without lucrative purpose, called Boa Vista O Mundo. The founder is a Belgian teacher. He asked me if I could research the possiblity of starting an interim office to employ the people of the Barracas. The main goal of the association is to help the people of the Barracas. He already helped building a school and we will be helping by giving local people English lessons. It was not obligated to learn Portuguese, as we have local people that can help us. So right know I'm not quite sure which sector, but I'm thinking mostly hotels and restaurants.
I suggested the court, because one of my co-students suggested this. I don't know Boa Vista that well yet, because I just arrived Saturday.

Kind regards
Elisabeth

Hi Angelo

I will try to give a good answer to all of your questions. As you will see, I did not answer your questions chronologically.

1. To some of your questions I do not have an answer, because I'm not that familiar with BVOMF. This might sound confusing. The founder of BVOMF is a teacher of my school and through him I work for BVOMF. I assume it is a Belgian entity.

2. I think BVOMF will be an invester, but not the founder of the interim office. So it will be a separate standalone business registered in Cape Verde. It is not my job to formalise the NGO to Cape Verde. It is also not my main task to start the office. My main task is to research if it is possible to start one. To find a correct answer, I need to know how to start the office. For now I'm trying to find answers to all my questions (my other questions are for the local tourism companies). In my thesis, I will write all my findings and I will write tips for the future, such as your proposal about EHTCV.

4. I think you use the term "interim office" differently. In Belgium, this is an office that employs people with contracts on daily- or weekly-base. You can say that the office is an intermediary. In some industries, like tourism, you have low and high season. In high season, the companies need more menpower to complete all the tasks. Then, the company can appeal the interim office with their vacancy. The interim office has a database of all their interim-employees and their qualities. This way, the company does not need to search for a temporary labor themselves. The interim office will have some permanent menpower for administation and as a contact person for the companies. The interim-employees will only recaive wage if a company employed them. So to answer your question, the interim office is a permanent office, but the employees will not get a permanent contract. I hope I explained it well. 

3. The interim office will be started by a Cape Verdean and it will employ Cape Verdeans. My task is to make a database of all the people in the Barracas that want to work and what their qualities, education, former jobs, ... are. As I told before, it is my job to find as much information as possible for my thesis. This way, it will be easier for BVOMF to find the right person and to find investers to open the interim office.

Kind regards
Elisabeth

Hello Angelo, i am a nigerian currently living in lagos, i am making plans to relocate to praia cape verde to start up a business but my problem is that i don't know the kind of lucrative business one can start please can you suggest to me some lucrative business that i can start easly, the starting cost and registration. Please help me. From ibechy  email: earnpeace01@gmail.com

Hi Ibechy,

There are a number of business opportunities you might consider in Cabo Verde. It all depends on how much you want to invest. If you are a big investor, the best opportunities are in telecommunications and tourism since those are the fastest growing sectors. In telecommunications, there is a big need for cheap mobile smartphones, so a good opportunity is in the importation of branded, but cheap smartphones. The potential returns are about 100% of capital. In the area of tourism, the biggest opportunity is in hotel construction and services especially on the tourism islands of Sal, Boa Vista and Maio. Returns are near 100% of the capital invested.

For smaller business startups, the areas of opportunity are:
* development of mobile apps and mobile-web sites
* retailing of accessories (SD cards, etc) for mobile devices
* arts and craft stores catering to tourists
* development of an online crowd-funding service
* scooter & golf cart rentals in tourist islands
* hair salon/barber shop

All of these businesses can be easily started. Registration of the business takes 48 hours and costs about $350. You simply go to the Casa do Cidadão to register. Once you are registered, you get your business licence from the local chamber of commerce if your business involves retailing. The retail license is less than $500 per year. Many people retail informally without a license, but I do not recommend it as there can be stiff fines if you are caught.

Angelo

Ibechy wrote:

Hello Angelo, i am a nigerian currently living in lagos, i am making plans to relocate to praia cape verde to start up a business but my problem is that i don't know the kind of lucrative business one can start please can you suggest to me some lucrative business that i can start easly, the starting cost and registration. Please help me. From ibechy  email: earnpeace01@gmail.com

Hello Elisabeth,

My apologies. I never saw your response here, and I think you made a separate post in another Topic where I replied. I will try to add some feedback given your answers below:

First, your sponsor will have to create and register a formal NGO in Cape Verde. It is not difficult to do so. Refer to the Law of Public Utility where NGOs are defined. You can find the law here http://www.platongs.org.cv/. Look under the tab called Legislation. It is the first law that appears in the list. You will need to translate it from Portuguese.

Next, thanks for clarifying the term "interim" office. It definitely has a different connotation from the way I use the term in English. So you are talking about temporary workers. Please be aware that under Cape Verde's restrictive labor laws, there is no such thing as a temporary work contract. You cannot provide a worker with a contract of temporary work. All labor contracts are permanent! So how do you get around this? Well what you do for workers who are not needed permanently is that they are considered to be "lending services", so no contract is needed. They work on a project by project basis. When the project is done, so are they. For example, construction jobs.

However, you have to be very careful. You cannot put such a worker to sit down in an office doing a particular job and simply send them home because it is the end of the season. Some may accept this because they want the work. But there are others who will take you to the labor syndicate because they know they will easily get a judgement against you.

The job must therefore truly be a temporary job. There is a very sly way some employers try to get around the issue. They offer a permanent contract. Now, the law allows for an initial 3 month "trial period" under a permanent contract. After 3 months, they simply release the worker and hire another one. Actually, the law allows for two successive 3 month trials after which you are considered to have hired them permanently if you allow the contract to continue after the trial periods. So, in principle, you can hire a "temporary" worker for a maximum of 6 months under a permanent contract simply by giving the worker two 3 month "trial" periods, but then after the second trial period, you simply terminate the contract at will and send them packing. The Chinese store owners were famous for this practice when they first came to Cape Verde. However, I find the practice unethical and I do not advise it.

So the best approach is to tell workers they are providing a "prestação de serviço" and that the project they are working on is temporary. As long as the work is truly seasonal, and the job actually disappears (e.g., the office shuts down for the season), then you should be OK. But if it is the case that there are simply fewer jobs during the low season and the jobs don't actually all disappear, be advised that some unhappy worker will take you to court and the courts always side with the workers.

Angelo

ElisabethCox wrote:

Hi Angelo

I will try to give a good answer to all of your questions. As you will see, I did not answer your questions chronologically.

1. To some of your questions I do not have an answer, because I'm not that familiar with BVOMF. This might sound confusing. The founder of BVOMF is a teacher of my school and through him I work for BVOMF. I assume it is a Belgian entity.

2. I think BVOMF will be an invester, but not the founder of the interim office. So it will be a separate standalone business registered in Cape Verde. It is not my job to formalise the NGO to Cape Verde. It is also not my main task to start the office. My main task is to research if it is possible to start one. To find a correct answer, I need to know how to start the office. For now I'm trying to find answers to all my questions (my other questions are for the local tourism companies). In my thesis, I will write all my findings and I will write tips for the future, such as your proposal about EHTCV.

4. I think you use the term "interim office" differently. In Belgium, this is an office that employs people with contracts on daily- or weekly-base. You can say that the office is an intermediary. In some industries, like tourism, you have low and high season. In high season, the companies need more menpower to complete all the tasks. Then, the company can appeal the interim office with their vacancy. The interim office has a database of all their interim-employees and their qualities. This way, the company does not need to search for a temporary labor themselves. The interim office will have some permanent menpower for administation and as a contact person for the companies. The interim-employees will only recaive wage if a company employed them. So to answer your question, the interim office is a permanent office, but the employees will not get a permanent contract. I hope I explained it well. 

3. The interim office will be started by a Cape Verdean and it will employ Cape Verdeans. My task is to make a database of all the people in the Barracas that want to work and what their qualities, education, former jobs, ... are. As I told before, it is my job to find as much information as possible for my thesis. This way, it will be easier for BVOMF to find the right person and to find investers to open the interim office.

Kind regards
Elisabeth

Hello Angelo, thank you for the informations you just passed to me i appreciate. please i still have questions to ask. do i have to register the business  before entering cabo verde?. how do i bring in the goods?. do i need a business visa or tourist visa to enter for the first time. please kindly help me with these informations. thank's and God bless you. from ibechy

Hi Angelo!
I just want to tell you how we appreciate the way you helping us with informations Thank you so much!

Mulkita

Hi Mulkita,

You are welcome! Next time you are in Cape Verde, let's connect. Especially if you have interests in participating in local business opportunities to support yourself while live here. There are several excellent opportunities to generate a monthly income in the tourism sector.

Angelo

Mulkita wrote:

Hi Angelo!
I just want to tell you how we appreciate the way you helping us with informations Thank you so much!

Mulkita

Hi Angelo,

I am thinking about CV.
May I have your mail for a private msg, please?
I have  several questions to ask you if that’s OK with you.

Thank you,

Sorin D

My email: sorin.dobrescu.euro@gmail.com

Hi Angelo,
First, I have to say that you’re doing a great job for CV. 
Instead of an arid listing of laws and regulations your presence seems to make things “treatable” for an outside viewer. Thank you for that!
I wonder now if you’re doing that to earn your living or just because of lack of social life in CV.
If it is for money than I will ask you how do you charge somebody for your assistance? It’s obvious that you know what you do and that it would be my first point of interest connected to you. Please, answer this question.
As I said, I’m back with my questions but before of that I have to explain you briefly what do I have in my mind.
I am 48 years old, I have a wife and a son. I get enough money in terms of Romanian wages but also in Europeans ones, lately.
Now I’m working for a Romanian company in Bucharest whose shareholders are Dutch. I work for them for almost nine years. We are, for the fact, a huge cool storage warehouse offering also office rooms, car cleaning and disinfection and other services. I am a good friend with the shareholders and the business is now growing again after few years of slowdown. My position is not only safe but the future seems to bring new opportunities for me and the company.
The problem is a personal one. I have always dreamed to spend my life in a place with an endless summer, coconuts and so on… That may sound ridiculous or like a cheap cliché. I don’t mind! That’s what I want and I’m going to fulfill my dream, but not at any cost or fallowing a mindless action. Therefore I have to plan carefully my steps in order to avoid future regrets or losing my savings.
Other important thing to say is that in March I will go in Tenerife, where a friend of mine is living for some time, to see if a water related business which he already has started it worth to invest in. So, the CV is a recent discovery for me and seems to be a good alternative for Tenerife. 
The options I have are not much but very clear defined.
1 To go there as a private person and try to earn enough to sustain first for myself and lately for my family.
2 To go there as a representative of my shareholders and start a business for them having a share of the business.
Option no one has also several alternatives.
A To sell some of my properties here, take the money and go to CV. That’s a kind of “burning the bridge” behind me which lures me so intense that I have to consider the last just because of it.
B To invest some money (which I afford to lose) for the start and make good plans for the future investments following the result of this action.
C To come with some money and try to get hired to a local company.
The questions are:
-    How much money do I need for a minimum investment in order to set up a small business which allows me to support myself for the time I’ll get used to the country(learning Portuguese, the legislation, the geography, to deal with authorities, to make contact and know important people etc)?
That means a business to survive for at least one year and eventually to be kept or sold lately? Regarding a job I have to admit your position which is reasonable: is hard to get one while somebody doesn’t speak the national language. As a parenthesis I wouldn’t totally disregarding the chance because I’m pretty good in property maintenance which is exactly what I do now taking care of power, water, internet etc supply, maintenance and development of all the installation like water, power, cooling machines, air conditioners etc, building related like maintenance,  renewing  warehouse and office spaces, modifying, compartmenting, building new ones etc . I have a team qualified for concrete work, painting, metal structure welding, pipes network construction, heating installations and so on… If there is an interest for a job like this it would be my first option including eventually my own team which I could bring from here. Secondly, I have worked for 10 years in a firefighter and rescue team of the Bucharest subway where I was in charge for the whole its underground network fire prevention, disaster intervention and rescue activity. That it be another qualification.
-    What are the small businesses it worth to invest?
Here I have another story. Since 1996 to 2001 I have invested in a shops network which reached a maximum of six small shops at a moment. The shops were selling perfumes, cosmetics, leather bags, silvery and many other articles. Is this suitable for CV? Is there a market for such things? Without any intention to offend someone I think it is a very poor country and I wonder what its population is capable to spend on? So, an import activity does it make any money?
Another story. Between 2000 and 2006 I have set up another company with a different activity like antiques restoration, metal religious icons and other orthodox religious objects, glass sandblasting, glass galvanic plating(metal on glass objects like vases, plates, glass cups etc), different metal objects metal plating with copper, brass, silver or gold, promotional and advertising objects for media promoters agencies, and many other things. Could be there a market for such activity or related? It would worth it to invest in a production company to sell the goods on outside markets? What are the specific products of CV? What are CV known for export products? Is an export company a good idea considering only the trade activity with no production?
I think that it would be all about my direct and personal investment possibilities for the first stage of an eventual relocation.

The second part it is more difficult in theory but may be easier in practice.
My shareholders have invested by now in different fields in Romania (the warehouse, hydro electrical production, wind mills, agriculture, agriculture land, live stock breading and so on.
-    Here is the question: could you or somebody you work with to present a corporate business plan for an investment?
I am thinking for instance at a cool storage warehouse where I will be directly in charge. Or an import activity for European food products? Or even better a warehouse and a food import connected to a third party activity like offering cool storage for other companies like the big resorts on the island? What you think is the amount to be invested in a medium business and what are the possibilities/chances to grow later on by its self sustaining activity or further investment?
-    What the government is interested to attract the investors for, like road and infrastructure, energy, tourism, exports?
-    Are there any facilities accorded to investors? Are there any subsidies accorded?
-    What are from your knowledge the successful investments by now? Please give me some success stories.
Well, Angelo, now you’ve got a closer picture of what my thoughts, intentions or possibilities are…!
Even it may seem dazzling or overwhelming, which in fact is not, I think there might be some good chances for a good idea of business.
I don’t need a fast answer. It is time enough to question each other to make ourselves understood. That’s the basics of any enterprise! The more we talk, the more our ideas will be crystal clear which is the first step for trust.

Looking forward for your answer,
Yours,
Sorin Dobrescu

Hi Sorin,

You asked some excellent questions and it's clear that you are an extremely thoughtful person with a great head for business. I can definitely reply to your questions and also suggest which options are bset for you in the context of Cape Verde.

However, you posted this on the public forum and some of the answers should be given in confidence. So I will post a detailed answer in a private reply.

For the public forum, I will provide the following thoughts so that other readers may benefit. Some of the questions are of a nature that I feel they are worth having others hear the answer.  So here are some preliminary thoughts :

1. The romantic notion you have of living in on a paradise island is admirable. I have always had the same dreams. But they have to be balanced with the reality of what Cape Verde is. CV is certainly beautiful but it is also a poor country with all the social challenges that come along with that. And it is a very small market.

2. The only way to make serious money here is with a GLOBAL business. The majority of your revenues have to come from foreign clients. Think of businesses that serve tourists, and think of businesses that can use CV as a platform to reach other African states due to proximity and favorable trade laws. The tourists coming to CV annually outnumber the local population and are much wealthier. And the African market numbers in the tens to hundreds of millions.

3. Don't burn your bridges behind you, ever. Unless you have a guarantee that what you are leaving is worse than where you are headed in every dimension. Or you have to be prepared and able to deal with disappointments in some dimensions. Be prepared to accept trade-offs.

4. Your best option is therefore to start a business here with a good capital investment that is at risk as there are no guarantees. The business should be focused on supplying external markets, especially Africa or tourists , but you could look further out. Secondarily, you look to the local market because it is tiny. Remember also that since CV has few natural resources, the primary products you should think of for export are those which involve intellectual capital. My personal choice is technology but there are several other possibilities.

5. Finally, given the small size, products made in CV,  like the excellent European quality wines made from grapes grown in the crater of a volcano, will have a very limited supply. May be insufficient to create a good export business unless you can create a compelling story around the product to support an extremely high demand-driven price based on the limited supply. That's marketing at its best. I have often wondered why no Cape Verdean company has used the unique story about the grapes growing in the middle of an active volcano to create this demand for a product with limited supply. There is no other wine story like this any where else on earth, and only 200.000 litres are produced annually. There's even a Facebook page called "Cape Verde Wine"  that I personally created to educate people about this unique opportunity.

6. The cost of creating a business entity here inCV is less than €500. Of course, additional amounts required will be consistent with the nature and scale of the business to be started. This would require a good business plan to sizs. Contacts with the right people and decision makers is the easiest part actually. Cape Verde is small. It's hard not to know all of the key players personally. The real issue is credibility which comes with knowing what you are doing and earning respect. I've personally paid those dues here in CV.

That's it for now. The wine story is just an example of international opportunities that are here for the taking. Will respond with other details in a private reply.

In an amazing coincidence...the volcano on the island of Fogo, Cape Verde has erupted today!!! Just saw it on the news. They evacuated all the residents of Chã das Caldeiras...the little village of 1.000 people which sprung up a century ago in the crater. Imagine the marketing power of this story about the wines now that this news of the eruption goes worldwide!

But it's not a massive eruption...just a minor one, thank goodness. No lives have been lost and hopefully, no grapes will be destroyed either.

Hi man,

Thank you for your answer!
I thought I've sent you a private message... I can see now it wasn't...
The first one was sent from the phone and I don't have a clue how can I answer on private from PC.

Anyway, you can use my email address that I gave you.

Take your time for your answer, as I said!

All the best,

Sorin

Hi Angelo, I realize this is an old post but I do have some quick questions that I will appreciate your answering:

1. I have two wives (hoping to marry a third if I do invest in Cape Verde), will this be a problem legally in Cape Verde? where I come from and in my religion Polygyny is legal.


2. I want to open two banks, merchant and offshore, in Cape Verde. I happen to have a bit of money and a bit of connections, what are the processes I would need to go through including employment regulations on hiring local staff etc.. what are the regulations? CV has poor archival material on the open net.

3. I would be buying two houses (or three if I marry a cabo verdeana), what kind of family housing will $50,000 buy me? what kind of same housing will $100,000 buy me? I e In Praia..

4. How costly is it to get private holiday tutors for my kids?

5. Assuming I marry a local woman, I get citizenship on request right?  how do I get citizenship for my kids and wives?

6. is there a golf course on CV?

7. are there shoooting ranges?

8. If I want to start an ISP and a GSM-service provider, what are the licensing, registration processes I have to go through?

Solaahudin wrote:

Hi Angelo, I realize this is an old post but I do have some quick questions that I will appreciate your answering:

1. I have two wives (hoping to marry a third if I do invest in Cape Verde), will this be a problem legally in Cape Verde? where I come from and in my religion Polygyny is legal.


2. I want to open two banks, merchant and offshore, in Cape Verde. I happen to have a bit of money and a bit of connections, what are the processes I would need to go through including employment regulations on hiring local staff etc.. what are the regulations? CV has poor archival material on the open net.

3. I would be buying two houses (or three if I marry a cabo verdeana), what kind of family housing will $50,000 buy me? what kind of same housing will $100,000 buy me? I e In Praia..

4. How costly is it to get private holiday tutors for my kids?

5. Assuming I marry a local woman, I get citizenship on request right?  how do I get citizenship for my kids and wives?

6. is there a golf course on CV?

7. are there shoooting ranges?

8. If I want to start an ISP and a GSM-service provider, what are the licensing, registration processes I have to go through?

Hi Solaahudin,

It's not an old post. It was an initial post to start this thread about doing business in CV. You have come to the right forum. We can help you with your questions. I have given my quick feedback below:

1. I have two wives (hoping to marry a third if I do invest in Cape Verde), will this be a problem legally in Cape Verde? where I come from and in my religion Polygamy is legal.

WHILE CAPE VERDE ALLOWS THE FREE PRACTICE OF ONE'S RELIGION, MULTIPLE WIVES ARE NOT RECOGNIZED BY THE CIVIL LAW HERE. YOU CAN ONLY HAVE ONE LEGAL WIFE IN CV. SO IF YOU MARRY A CAPE VERDEAN, SHE WILL BE RECOGNIZED AS YOUR SOLE LEGAL WIFE AND ALL OF YOUR POSSESSIONS WILL BE HERS UPON YOUR DEATH (UNLESS YOU DIRECT OTHERWISE IN A WILL). OR IF YOU BECOME DIVORCED FROM HER, IN THE ABSENCE OF A PRE-MARITAL AGREEMENT, SHE AND SHE ALONE WILL BE ENTITLED TO 50% OF YOUR POSSESSIONS IN CV. THIS WILL ALSO HOLD TRUE IF YOU SIMPLY LIVE WITH HER AND DO NOT BECOME MARRIED IN A CIVIL CEREMONY. IN CAPE VERDE, A WOMAN IS RECOGNIZED AS YOUR COMMON-LAW WIFE AFTER YOU HAVE LIVED TOGETHER FOR ONLY 3 MONTHS, AND SHE HAS THE SAME LEGAL RIGHTS AS A WOMAN YOU MARRY IN A CIVIL CEREMONY. I USUALLY ADVISE ALL FOREIGNERS TO NOT MARRY OR HAVE A LIVE-IN CAPE VERDEAN PARTNER UNLESS YOU REALLY AND TRULY WANT HER FOR LIFE. OTHERWISE LIVE ON YOUR OWN OR LEAVE ALL YOUR ASSETS IN YOUR HOME COUNTRY. CAPE VERDEAN WOMEN TAKE THEIR LEGAL RIGHTS VERY SERIOUSLY.

2. I want to open two banks, merchant and offshore, in Cape Verde. I happen to have a bit of money and a bit of connections, what are the processes I would need to go through including employment regulations on hiring local staff etc.. what are the regulations? CV has poor archival material on the open net.

THE EMPLOYMENT REGULATIONS ARE PRETTY STRAIGHTFORWARD. ESSENTIALLY, IT IS ALMOST IMPOSSIBLE TO FIRE ANY WORKER EXCEPT AT GREAT COSTS (2 WEEKS OF PAY FOR EVERY YEAR OF EMPLOYMENT + OTHER "DAMAGES") THE LABOR COURTS HERE ALWAYS, AND WITHOUT HESITATION, DECODE IN FAVOR OF THE WORKER, REGARDLESS OF WHAT COMPLAINTS YOU MIGHT HAVE AGAINST THEM. FOR EXAMPLE, AN EMPLOYEE WHO HANDLES CASH IS LEGALLY ENTITLED TO MAKE "MISTAKES" THAT AMOUNT TO AROUND $20/DAY WITHOUT RETRIBUTION. SO CHOOSE YOUR EMPLOYEES WELL AND ALWAYS DRAW UP A VERY STRICT CONTRACT OF EMPLOYMENT (YOU MAY EVEN CONSIDER HAVING LIMITED TERM CONTRACTS FROM THE BEGINNING). TAKE FULL ADVANTAGE OF YOUR RIGHTS AS AN EMPLOYER AND DO NOT CUT EMPLOYEES ANY SLACK...YOU WILL GET NOTHING IN RETURN FOR GIVING UP ANY RIGHTS.

THE BIGGER ISSUE WILL BE GETTING APPROVAL OF THE BANK OF CAPE VERDE WHICH REGULATES THE BANKING INDUSTRY. IT IS VERY RESTRICTIVE EVEN FOR LARGE MULTI-NATIONAL BANKS. FOR EXAMPLE, ECOBANK, ONE OF THE LARGEST BANKS IN AFRICA HAS WAITED TWO YEARS TO BE ABLE TO ISSUE VISA CARDS, BUT AS OF THIS DATE, THEY HAVE NOT YET RECEIVED SUCH APPROVALS. THE BOTTOM LINE IS THAT YOU WILL NEED TO COMPLY WITH THE CAPE VERDE INVESTMENT AND BANKING LAW. I HAVE A COPY IN ENGLISH WHICH I CAN SEND TO YOU. IT REQUIRES THE DEPOSIT OF LARGE SUMS IN TRUST WITH BCV AS WELL AS STRINGENT REQUIRED RESERVES. I CANNOT SAY THAT THIS IS A BAD THING, BUT IT IS CERTAINLY AN ONEROUS AND CONSERVATIVE CLIMATE FOR FINANCIAL INSTITUTIONS.

BUT DO NOT LET THIS BE A DETERRENT. THERE ARE TWO HUGE NEEDS IN THIS AREA THAT HAVE GONE UN-SERVED. FOR ONE THING, THE CAPE VERDEAN SMALL/MICRO BUSINESS SECTOR REQUIRES BANKING SERVICES THAT ARE MORE FRIENDLY TO SMALL BUSINESSES. THE NATIONAL BANKS DO NOT SERVE THIS SECTOR AT ALL WELL.

IN ADDITION, THERE ARE MANY FOREIGN NATIONALS (ALL OVER THE WORLD) WHO HAVE US CITIZENSHIP AND WHO MUST DECLARE ALL BANKING ACCOUNTS TO THE US GOVERNMENT. BANKS HAVE BEEN FORCED TO COMPLY NOT BECAUSE THEY FEAR THE US GOVERNMENT BUT BECAUSE IF THEY DO NOT COMPLY, THEY WILL HAVE TO PAY FEES ON TRANSACTIONS WITH BANKS THAT DO COMPLY. THUS THEY WILL HAVE NO CLIENTS. ON THE OTHER HAND, THERE IS AN OPPORTUNITY TO CREATE AN OFF-SHORE BANK IN CAPE VERDE TO SHELTER/HOUSE THE BANKING DEPOSITS OF US NATIONALS WHO DO NOT LIVE IN THE US, WHO HAVE NEVER LIVED IN THE US OR WHO HAVE NO INTENTION OF EVER RETURNING TO THE US. SUCH AN OFFSHORE BANK WOULD THEN HAVE NO DEALINGS WITH ANY OTHER COMPLYING BANKS AND CAN THUS STAY OUT OF COMPLIANCE WITH THE US LAW WITHOUT SUFFERING ANY PENALTY. THIS IS SOMETHING THAT COULD BE DONE IN CAPE VERDE AND ATTRACT BILLIONS OF DOLLARS FROM OUTSIDE OF CAPE VERDE. RIGHT NOW, THE MILLIONS OF AFFECTED INDIVIDUALS HAVE NO SOLUTION.

3. I would be buying two houses (or three if I marry a cabo verdeana), what kind of family housing will $50,000 buy me? what kind of same housing will $100,000 buy me? I e In Praia..

$50,000 WOULD BUY YOU A BASIC 1-BEDROOM APARTMENT IN AN OK AREA. $100,000 WOULD BUY YOU A NICE 3-BEDROOM APARTMENT IN A MODERN BUILDING IN AN EXCELLENT AREA. $150,000 WOULD BUY YOU A NICE HOUSE IN A GREAT AREA. WHEN YOU'RE READY TO SEE EXCELLENT REAL ESTATE, LET ME KNOW. I HAVE SOME INVENTORY ON THE MAIN ISLAND OF THAT IS WELL SELECTED.

4. How costly is it to get private holiday tutors for my kids?

LABOR IN CAPE VERDE IS RELATIVELY CHEAP. BUT IF YOU WANT EXCELLENT WORKERS, YOU WILL NEED TO PAY A BIT MORE. YOU CAN PROBABLY GET AN EXCELLENT BI-LINGUAL, WELL-EDUCATED PRIVATE TUTOR FOR NOT MORE THAN $360/MONTH ASSUMING THEY ARE TO HELP EDUCATE THE CHILDREN. IF YOU'RE JUST LOOKING FOR A BABYSITTER, SOMEONE TO WATCH THE KIDS, YOU WOULD PAY ABOUT $120/MONTH.

YOU SHOULD ALSO CONSIDER PLACING THE KIDS IN PRIVATE SCHOOL. YOU DID NOT MENTION THE AGES. FOR KIDS UNDER 5-YEARS OLD A PRIVATE DAYCARE CENTER WOULD COST AROUND $50/MONTH PLUS MEALS. PRIVATE SCHOOL FOR KIDS OVER 5-YEARS IS AROUND $200/MONTH. THIS WAY THEY CAN INTERACT WITH OTHER KIDS AND LEARN THE LOCAL LANGUAGE (KRIOULO). THERE ARE MANY AFRICAN IMMIGRANTS FROM THE WEST-COAST WHO SEND THEIR OWN KIDS TO LOCAL SCHOOLS. SO YOUR OWN KIDS WILL FIND OTHER CHILDREN WHO ALSO SPEAK ENGLISH. BUT FROM MY OBSERVATION, ALL THE FOREIGN KIDS LEARN KRIOULO VERY RAPIDLY.

5. Assuming I marry a local woman, I get citizenship on request right?  how do I get citizenship for my kids and wives?

YES, IF YOU MARRY A CAPE VERDEAN WOMAN, YOU AND YOUR CHILDREN ARE ENTITLED TO CITIZENSHIP ALMOST IMMEDIATELY FOLLOWING THE MARRIAGE (HOWEVER, SEE REPLY TO #1 ABOVE). YOUR OTHER WIVES WOULD HAVE NO LEGAL STANDING IN CAPE VERDE.

6. is there a golf course on CV? NO. THERE ARE NO GOLF COURSES ANYWHERE IN CAPE VERDE. THERE HAVE BEEN MANY PROPOSED INVESTMENT PROJECTS BUT NONE HAVE EVER BEEN PURSUED. THE PROBLEM IS THAT CAPE VERDE HAS NO NATURAL WATER RESOURCES. IT IS A DESERT CLIMATE. A GOLF COURSE WOULD BE MASSIVELY EXPENSIVE TO MAINTAIN. BUT YOU CAN ALWAYS FY TO BRAZIL, OR NEARBY WEST-COAST AFRICAN RESORTS, OR THE CANARY ISLANDS FOR A QUICK GOLFING-HOLIDAY IF THAT'S YOUR THING.

7. are there shooting ranges?

ABSOLUTELY NONE. THERE ARE FEW GUNS AND BULLETS I IMAGINE WOULD BE VIEWED AS AN EXTRAVAGANT EXPENSE SINCE THEY ARE ALL BUT WASTED ONCE FIRED. THIS TYPE OF RECREATIONAL ACTIVITY IS NOT AVAILABLE (AND MAY EVEN BE FROWNED UPON IF SOMEONE TRIES TO INTRODUCE IT...I DOUBT IT WOULD EVER BE AUTHORIZED).

8. If I want to start an ISP and a GSM-service provider, what are the licensing, registration processes I have to go through?

THIS IS AN EXCELLENT BUSINESS IDEA. THE LOCAL PHONE COMPANY HAS A MONOPOLY ON INTERNET SERVICE BECAUSE THEY OWN THE ONLY FIBRE-OPTIC CABLE FEEDING CAPE VERDE. THERE IS A MASSIVE OPPORTUNITY FOR ANOTHER PROVIDER TO STEP IN WITH SATELLITE SERVICES (INTERNET AS WELL AS TELEVISION). TO INTRODUCE A NEW ISP, YOU WILL ONLY NEED THE AUTHORIZATION OF ANAC, THE LOCAL REGULATOR. I KNOW THE PRESIDENT AND HIS 2ND IN COMMAND PERSONALLY. TEY WOULD BE VERY RECEPTIVE TO SUCH A PROPOSAL BECAUSE THE COUNTRY NEEDS IT.

ANOTHER GSM PROVIDER WOULD BE WELCOME AS THERE ARE ONLY TWO PROVIDERS AND THE COSTS TO CONSUMERS FOR TELEPHONE AND INTERNET SERVICES IS AMONG THE HIGHEST IN AFRICA. AGAIN, YOU WILL SIMPLY NEED THE APPROVAL OF ANAC.

HOWEVER, A BETTER INVESTMENT MAY BE TO PROVIDE REFURBISHED SMARTPHONES TO THE LOCAL MARKET. EVERYONE WANTS AN ANDROID DEVICE (BECAUSE OF THE AVAILABLE APPS), BUT FEW CAN AFFORD ALL BUT THE CHEAPEST SETS.  THERE IS THIS A HUGE OPPORTUNITY TO BRING IN OLDER CHEAP BRAND-NAME MODELS (AS LONG AS THE PHONE HAS A RECOGNIZED NAME, CAN RUN FACEBOOK, VIBER AND THE OTHER SOCIAL APPS, THE PHONE WILL SELL EXTREMELY WELL. PERFORMANCE IS TOTALLY IRRELEVANT). BUT UNFORTUNATELY, MANY CAPE VERDEANS FALL FOR THE SCAM ARTISTS WHO SELL FEATURE-PHONES THAT ARE DISGUISED/DESIGNED TO LOOK LIKE A SMARTPHONE.

I PERSONALLY PLAN TO BUILD A MARKET FOR USED/REFURBISHED BRAND-NAME ANDROIDS LIKE SAMSUNG, LG, MOTOROLA, ZTE, ETC ALONG WITH REPAIR AND MAINTENANCE SERVICES. I AM AN EXPERT TECHNICIAN IN SMARTPHONE REPAIR. I AM ALSO INTRODUCING APPS WHICH BRING NEW AND INNOVATIVE SERVICES TO CAPE VERDE (AND THAT CAN ALSO BE EXPORTED TO OTHER AFRICAN COUNTRIES).

I hope this helps you in your plans for a potential move to Cape Verde. Feel free to send me a private message if you'd like to follow up on anything I've said.

Regards,

Angelo

@ CVAngelo > Can you please lower caps when posting on the forum? Proper "netiquette" dictates that all caps is considered shouting at others.

Thank you

Priscilla 

Well aware, but read the post for context. I used all caps so responses to questions could be more easily seen within the post in relation to the questions asked. Read my other historical posts...I am not in the habit of using all caps. Next time I will reply in color. Is there a particular color or colors that are not in accordance with netiquette.

CVAngelo wrote:

Next time I will reply in color. Is there a particular color or colors that are not in accordance with netiquette.

Thank you Angelo,i really think that replying in colour is best. 

Do not worry, the choice of the color is all yours, just make sure that it is easy for the other members to read your post. For example, yellow is too pale, but red, pink or even the blue that you have previously used are perfect ! 

Have a nice day

Priscilla

We love you no matter what cap you use CVAngelo!

Mulkita wrote:

We love you no matter what cap you use CVAngelo!

Hi Mulkita,

hahaha. I appreciate the love! And I would be happy to repay the favor on your next visit to Cape Verde. <3

Angelo

Thanks for your informative reports. I will like to start a charitable organization to empower Women and youths. Please kindly advise on the requirements and amount to pay. Is it possible i have a few people on ground to be members. We have branches in The Gambia, Nigeria, Ghana and hope to establish one in Cape Verde.
Regards,
Henry

Hello Henry!
Iam a socialworker in Stockholm Sweden, I would love to be part of charity in CV. Tell me more about what I can do. Thanks
Regard
Malaika

Henry Fisher wrote:

Thanks for your informative reports. I will like to start a charitable organization to empower Women and youths. Please kindly advise on the requirements and amount to pay. Is it possible i have a few people on ground to be members. We have branches in The Gambia, Nigeria, Ghana and hope to establish one in Cape Verde.
Regards,
Henry

Hi Henry. That's music to my ears as I too have had designs on a charitable organization in CV with exactly the same purpose in mind. You on the other hand have actually executed in other countries. However, I just want to be sure that you realize that unlike The Gambia, Ghana and Nigeria, English is not spoken in CV.

Now, it is very easy to start for-profits and not-for-profit (ONGs) companies in Cape Verde. I have all of the regulations and paperwork necessary to establish an ONG, and I can certainly guide you through the process, or if you prefer, I can act on your behalf on the ground here (i.e., to help coordinate the start-up). The amounts required are rather nominal, however, it is really in the establishment of a physical location (office), hiring of staff, retention of providers and of course the delivery of services where the costs are incurred.

I presume you already have a business model (plus tons of practical experience) from your operations in these other countries. It would be fairly easy for me to take your business template and translate it into the local context, i.e., what you might expect from such a model in CV in terms of all aspects such as: operating costs, fundraising possibilities, linkages with providers, government institutions, etc., etc.

Feel free to contact me via private message and we can discuss further. And I would also be happy to share my own initial thoughts on the matter, for whatever that may be worth (since my idea has been sitting on the shelf with no possibility of moving forward).

Regards,

Angelo

Dear Angelo,
I am happy to know someone share a similar passion towards humanity. I will like to share our templates with you later and hope you can work with us towards a common goal. maybe we can use your contact, physical address and logistics to launch before we come over and do all that. Anyway, let us have the cost break down to prepare the budget and plan for a visit.. Our area of focus is women empowerment with vocational skills training and micr-financing to support themselves and family. We have youths on our mind and will like you to share the challenges with youths and women with us especially on poverty alleviation and social problems that can be corrected with employable skills.Our experience in several countries will come useful and we hope to replicate same in C.V. We are aware of the language barrier, but with some one local on ground like you or someone you can recommend, that will be no problem. I will like to share more information with you if we can chat or am i allowed to send email or phone contacts on this forum?
Regards,
Henry

Henry Fisher wrote:

Dear Angelo,
I am happy to know someone share a similar passion towards humanity. I will like to share our templates with you later and hope you can work with us towards a common goal. maybe we can use your contact, physical address and logistics to launch before we come over and do all that. Anyway, let us have the cost break down to prepare the budget and plan for a visit.. Our area of focus is women empowerment with vocational skills training and micr-financing to support themselves and family. We have youths on our mind and will like you to share the challenges with youths and women with us especially on poverty alleviation and social problems that can be corrected with employable skills.Our experience in several countries will come useful and we hope to replicate same in C.V. We are aware of the language barrier, but with some one local on ground like you or someone you can recommend, that will be no problem. I will like to share more information with you if we can chat or am i allowed to send email or phone contacts on this forum?
Regards,
Henry

Hi Henry,

I would be happy to assist and coordinate for you on the ground here in CV. I have also provided this kind of assistance for another charity that works with children who have cerebral palsy. I will send you my contact information privately.

Also, perhaps you should contact Malukita, a member of this forum, who expressed interest in moving to Cape Verde to work in the area of charity. Finally, I have a friend, Alfred Robinson, who is also a member of the Cape Verde forum here. He lives in Gambia now, but he knows Cape Verde very well and wants to move back. I think he is also someone you could rely on to help you advance your goals here in CV.

I will contact you shortly via private message to exchange contact information.

Angelo

CVAngelo wrote:

Henry Fisher wrote:

Dear Angelo,
I am happy to know someone share a similar passion towards humanity. I will like to share our templates with you later and hope you can work with us towards a common goal. maybe we can use your contact, physical address and logistics to launch before we come over and do all that. Anyway, let us have the cost break down to prepare the budget and plan for a visit.. Our area of focus is women empowerment with vocational skills training and micr-financing to support themselves and family. We have youths on our mind and will like you to share the challenges with youths and women with us especially on poverty alleviation and social problems that can be corrected with employable skills.Our experience in several countries will come useful and we hope to replicate same in C.V. We are aware of the language barrier, but with some one local on ground like you or someone you can recommend, that will be no problem. I will like to share more information with you if we can chat or am i allowed to send email or phone contacts on this forum?
Regards,
Henry

Hi Henry,

I would be happy to assist and coordinate for you on the ground here in CV. I have also provided this kind of assistance for another charity that works with children who have cerebral palsy. I will send you my contact information privately.

Also, perhaps you should contact Malukita, a member of this forum, who expressed interest in moving to Cape Verde to work in the area of charity. Finally, I have a friend, Alfred Robinson, who is also a member of the Cape Verde forum here. He lives in Gambia now, but he knows Cape Verde very well and wants to move back. I think he is also someone you could rely on to help you advance your goals here in CV.

I will contact you shortly via private message to exchange contact information.

Angelo

Hi Henry,

I sent you a private message as promised with all the details you requested. That was at the start of the week. Is there some reason why you never responded at all? I am inclined to believe you were not at all serious about the initiative of which you spoke. Where is the "passion towards humanity" of which you so eloquently spoke? Is this some kind of a joke?

It leaves me very disappointed! Why people do this kind of thing will always remain a mystery to me.

Angelo

I am from Cape Verde and I have been working in IT (Data Recovery Industry) --all types of medias we repair it and retrieve the data from all types./

Anybody out there who give me ideas or discuss on how it would easier to stablish the business or partnership
Many thanks
J. Moreno

Dear Angelo,
I would like to ask from u some information about how I can open bussines in Cape Verde..
I read your posts these are very useful! Thank u, u share them!
Could u help me how can I write u in private message? I'd like to share with u my plans and my situation..
Kind regards,
Palma

kentokija wrote:

Dear Angelo,
I would like to ask from u some information about how I can open bussines in Cape Verde..
I read your posts these are very useful! Thank u, u share them!
Could u help me how can I write u in private message? I'd like to share with u my plans and my situation..
Kind regards,
Palma

Hello Palma. It is very easy to register a business in Cabo Verde. It takes just 48 hours and costs around €200. But of course, there are other expenses to set up and operate the business depending on the nature and size of the business. I would be happy to help review your plans and give you feedback.

You can send me a private message using the message service here on Expat.com. In fact, I will message you and you can respond to my message.

CVAngelo wrote:

Hello Palma. It is very easy to register a business in Cabo Verde. It takes just 48 hours and costs around €200. But of course, there are other expenses to set up and operate the business depending on the nature and size of the business. I would be happy to help review your plans and give you feedback.

You can send me a private message using the message service here on Expat.com. In fact, I will message you and you can respond to my message.

Palma, I cannot send you a private message because it appears you disabled your private messages. So you will have to send me a private message. Or just go read my blog which is listed here on Expat (it is called "Invest In Cape Verde") and leave me a comment there. I can respond to you there.

Hi Angelo,
Thank u your fast answer!
It would be great if u write me firts in private cus I'm new in this system and I can't use it well yet..
I wish u nice day!
Palma

Ohh, I try to change my settings..
Can u help me how can I write to u?

Hello CVAngelo,
I lost contact with this site. i need you to send me personal information to register the charity to empower women. My contact details is: ***    Henry Fisher. looking forward to your mail.Regards.

I have given you my contact please get in touch. i want us to get started immediately.

HENRY fisher 2 wrote:

Hello CVAngelo,
I lost contact with this site. i need you to send me personal information to register the charity to empower women. My contact details is: cmfgam(at)yahoo.co.uk    Henry Fisher. looking forward to your mail.Regards.

Hi Henry,

I will send you my contact information shortly.

Angelo

HENRY fisher 2 wrote:

I have given you my contact please get in touch. i want us to get started immediately.

I responded to your Yahoo email Henry. Please confirm that you received my email.