Cape Verde, an island state off West Africa, is becoming quite the business destination for those interested in a variety of businesses, including information technology. The stable political situation, improving digital infrastructure, and a government with expectations for innovative endeavors give it an appropriate picture for starting and growing in the IT environment. This guide walks you through everything you need to know to start an IT business in Cape Verde.
Why Cape Verde
Though a country is often forgotten in the African startup arena, it’s slowly but surely building a reputation for being a technology-friendly little spot. Following are the reasons:
Political and economical stability
It is the most politically stable country in Africa, which means it has a strong commitment to democracy and rule of law.
Developing digital infrastructure
Slowly, infrastructure investments have been made for broadband lines and cell networks, with planned expansion to digital access across all the islands.
Strategic position
Its location between Europe, Africa, and the Americas makes it an ideal launch pad for projects across borders.
Government support
The country offers advantages for tech startups, including tax benefits, startup hubs, and easy business filing processes.
Define your business model
Start by picking your IT business plan.Will you give software development, security services, tech help, web development, or SaaS solutions? Understanding your area will guide the rest of your decisions—from filing to hiring and marketing.
Register your business
To properly work in this country, you must register your business.The government has eased the process through the Casa do Cidadão (Citizen’s House), which offers “one-stop shop” services.Key steps include:
- Choose a business name:Verify availability through the government page.
- Choose a legal form.
- Register with the commercial registry.
- Obtain a Tax Identification Number (NIF).
- Register for Social Security: Mandatory for all jobs.
The whole process can take from a few days to a couple of weeks, based on the difficulty of your business.
Comply with licensing and taxation
Most IT companies do not require special licenses, but always check with local municipalities or a legal advisor to ensure compliance. Cape Verde runs under a Value Added Tax (VAT) system, currently set at 15%. Corporate tax is usually 25%, but tech startups may ask for lower rates under investment rules.
Set up infrastructure
You’ll need a strong internet link, office space (if not remote), and important tools and platforms. Praia and Mindelo are the best-connected places for digital businesses, with coworking spaces and innovation hubs like Nodo de Tecnologia giving cheap access to resources and networking.
Hire and build a team
Cape Verde has a small but growing skill group of IT workers, thanks to local colleges and foreign schooling. However, many companies also look to online teams or mixed ways. Hiring locally may qualify you to government benefits, especially if you spend in staff training and development.
Fund your venture
Startups in Cape Verde often start, but there are cash options:
- Local Banks: Offer small business loans with generally low interest rates.
- International organizations like the African Development Bank and EU-funded projects offer funds and help.
- While limited, there is growing interest in tech from local angel investors and diaspora communities.
Market and grow
Cape Verdeans are highly active on social media, making digital marketing a powerful tool. Leverage platforms like FaceBook and Instagram for advertising, and consider SEO and content marketing to reach foreign clients. Partner with local businesses and government projects to build trust.
Challenges to consider
- Limited Market Size: The local market is small, so plan for sale or area growth.
- Connectivity on Remote Islands: Some islands have limited infrastructure, which can affect activities.
- Bureaucracy: Although better, some governmental processes still take time.
Conclusion
Starting an IT business in Cape Verde can be a rewarding work with the right plan. The country gives a unique mix of chance, link, and new markets. With growing government backing and a hunger for digital change, Cape Verde may just be the next tech hub worth investing in.
You may also find these articles helpful
Advantages of registering a company in Spain
Advantages of registering a company in Slovenia
Advantages of registering a company in Serbia
