RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/CPV/8 
25 March 2004 
 (04-1375) 
Working Party on the 
Accession of Cape Verde Original:   English 
 
 
 
  
ACCESSION OF CAPE VERDE 
 
Additional Questions and Replies
 
 
 
 The Government of the Republic of Cape Verde has submitted the following replies in 
response to additional questions submitted by the memb ers of the Working Party, with the request that 
they be circulated. 
 
 
_______________ 
  WT/ACC/CPV/8 
 Page i 
 
 
TABLE OF CONTENTS 
 
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE ......................................1  
1. Economy ........................................................................................................................ ............1  
(b) Current economic situation..................................................................................................... .1 
2. Economic policies.............................................................................................................. ........2  
(a) Main directions of the on going economic policies..................................................................2  
(c) Foreign exchange and payments system .................................................................................3  
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING 
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES ...........................................3  
6. Description of judicial, arbitral or ad ministrative tribunals or procedures .......................3  
IV. POLICIES AFFECTING TRADE IN GOODS .....................................................................4  
1. Import Regulation.............................................................................................................. .......4  
(a) Registration requirements for engaging in importing...........................................................4  
(b) Characteristics of national tariff ............................................................................................. 5 
(c) Tariff quotas, tariff exemptions............................................................................................... 6 
(d) Other duties and charges, specifying any charges for services rendered ............................6  
(e) Quantitative import restrictions..............................................................................................6  
(f) Import licensing procedures .................................................................................................... 6 
(h) Customs valuation.............................................................................................................. .......7  
(i) Other customs formalities ...................................................................................................... ..8 
(k) Application of internal taxes on imports.................................................................................8  
(l) Rules of origin ................................................................................................................ ...........8  
(m) Anti-dumping regime............................................................................................................ ....9 
(n) Countervailing duty regime ..................................................................................................... 9 
(o) Safeguard regime ............................................................................................................... .......9  
3. Internal policies affecting foreign trade in goods...................................................................9  
(c) Sanitary and phytosanitary measures.....................................................................................9  
(f) Free zones ..................................................................................................................... .............9  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................10  
1. General........................................................................................................................ .............10  
(a) Intellectual property policy................................................................................................... .10 
2.  Substantive standards of protection, including procedures for the acquisition 
and maintenance of intellectual property rights ..................................................................10  
(c) Geographical indications, including appellations of origin.................................................10  
VI. TRADE-RELATED SE RVICES REGIME .........................................................................10  
1.  General........................................................................................................................ .............10  
2.  Policies affecting trade in services .........................................................................................16  WT/ACC/CPV/8 
Page ii  
 
(f)
 Provisions relating to international transfers and payments for current 
transactions of services....................................................................................................... ....16  
(g) Provisions relating to capital transactions affecting the supply of services.......................16  
3.  Market access and nati onal treatment..................................................................................17  
(g)  Measures providing for less than the trea tment accorded to national services or 
service s uppliers .............................................................................................................. ........17   WT/ACC/CPV/8 
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 II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE 
1. Economy (b) Current economic situation Question 1 Could Cape Verde describe the overall impact on  growth and employment of the main services 
sectors such as telecommunications, construction and engineering, tourism and related services, 
transportation, and financial services? 
Answer:
 
See Table Weight of the GDP, current prices in measurements of thousand Escudos (CVE) (CVE 110.265 = 1 EURO (€)) 
Cape Verde:  Gross Domestic Product at Current Prices, 2001-2004 
PIB 
 2001 2002 2003 2004 
Agriculture, forestry, and livestock 7,217.1 7,534.2 8,339.2 8,990.4 
Fishing 1,413.6 1,504.6 1,642.2 1,770.4 
Industry and energy 5,344.8 5,798.4 6,328.4 6,822.6 
Construction 4,877.1 5,241.1 5,396.3 5,873.1 
Commerce 13,085.7 14,156.1 15,493.8 16,624.1 
Hotels 2,012.0 1,585.6 1,632.5 1,771.7 
Transport and communications 14,106.1 15,158.9 16,591.3 17,886.9 
Banks and insurance 2,822.9 3,004.7 3,217.5 3,468.7 
House renting 3,571.8 3,768.9 4,000.8 4,313.3 
Public service 9,014.1 9,714.5 10,472.4 11,290.2 
Other services 1,520.9 1,587.7 1,667.4 1,797.6 
Intermediary banking services -1,843 .2 -1,943.1 -2,060.7 -2,221.6 
Sum of value added 63,142.8 67,111.6 72,721.1 78,387.5 
Taxes on imports and subsidies 7,040.9 7,911.8 8,505.2 9,185.6 
Gross domestic product at market prices 70,183.6 75,023.4 81,226.3 87,573.1 
 
Cape Verde:  Gross Domestic Product by Majo r Sector at Constant 1980 Prices, 2001-2004 
 2001 2002 
(proj.) 2003 2004 
Agriculture, forestry, and livestock 1,506.8 1,536.9 1,652.2 1,734.8
Fishing 159.0 165.3 175.2 184.0
Industry and energy 1,361.0 1,442.7 1,529.3 1,605.7
Construction 1,737.4 1,824.2 1,824.2 1,933.7
Commerce 3,750.0 3,963.7 4,213.4 4,403.0
Hotels 698.6 537.9 537.9 568.6
Transport and communications 4,151.1 4,358.7 4,633.3 4,864.9
Banks and insurance 534.2 555.6 577.8 606.7
House renting 1,208.0 1,245.4 1,284.0 1,348.2
Public service 2,331.7 2,455.3 2,570.7 2,699.2
Other services 302.8 308.9 315.1 330.8WT/ACC/CPV/8 
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 Cape Verde:  Gross Domestic Product by Majo r Sector at Constant 1980 Prices, 2001-2004 
 2001 2002 
(proj.) 2003 2004 
Intermediary banking services -388.5 -400.2 -412.2 -432.8
Sum of value added 17,352.0 17,994.5 18,900.9 19,846.9
Taxes on imports and subsidies 1,930.6 2,119.7 2,213.1 2,327.9
GDP, Gross domestic product at market pr ices 19,282.6 20,114.2 21,114.0 22,174.8
Annual Growth Rate 4.3 5.0 5.0
2001 - 2003 IMF and INE-Cape Verde estimates 
2004 IMF   Forecast 
 
Employment by branch of activity (Classification Section Cape Verde Economic Activities) 
2000 - 2002 
Effectives Structure in % 
Employed Employed Branch of activity 
2000 2002 2000 2002 
Agriculture, Animal Production and Fisheries 31,777 31,082 23.0 22.4
Extractive Industries 1,196 1,596 0.9 1.2
Transformation Industries 9,820 9,047 7.1 6.5
Electricity and Water Production and Distribution 907 1,622 0.7 1.2
Construction 15,597 13,644 11.3 9.9
Commerce and Vehicles Repair 23,546 23,518 17.0 17.0
Hotels and Restaurants 3,497 3,094 2.5 2.2
Transports and Communications 8,071 7,759 5.8 5.6
Financial Activities 715 763 0.5 0.6
Public Administration 19,661 18,743 14.2 13.5
Education and Health 9,803 11,861 7.1 8.6
Other Services 6,814 9,910 4.9 7.2
Families with Domestic Employees 6,257 5,071 4.5 3.7
International Organizations 449 746 0.3 0.5
Total 138,110 138,456 100 100
Source:  National Institute of Statis tics (INE) - Cape Verde  March 2003 
 
2. Economic policies 
(a) Main directions of the ongoing economic policies - Pricing policy Question 2 
Could further information be provided on the maximum prices on rice, corn, sugar, wheat 
grain, wheat flour, bread, potato and onion and on the fixed price on fuel? 
Answer:
 
The price regime was revised by Decree-Law No. 52/2003 of 24 November 2003.  Under the terms of 
article 2 of the referred Decree-Law, Ordinan ce No. 2/2004 of 19 January 2003 was published 
establishing price regimes for the pro ducts referred in this question:  WT/ACC/CPV/8 
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 Of prices which applies to all the goods and services that are not subject to other price regimes 
(Article 2 of Decree-Law 52/2003, published in Official Bulletin No. 39/2003, I Series;  
Of maximum prices applicable to: 
− wheat and wheat flour, wheat bread (Ordin ances Nos. 55/98 and 56/98, both of 
5 October 1998, Official Bulletin No. 37/98, Supplement, I Series; 
− corn (Ordinance No. 1/98 of 5 January 1998, Official Bulletin No. 1/98), I Series; 
− common rice (Ordinance No. 2/98 of 5 January 1998, Official Bulletin No. 1/98); and 
− sugar (Ordinance No. 3/98 of 5 January 1998, Official Bulletin No. 1/98); 
The prices of potato and onions are liberalized in as mu ch as they are not included in the legislation in 
effect. 
(c) Foreign exchange and payments system 
Question 3 Under which circumstances can foreign accounts be frozen?  Is a judicial order necessary?  If 
yes, please describe the conditions for an appeal against such an order. 
Answer:
 
Credits and debits movements in foreign accounts are unrestricted, unless a court's decision decides 
otherwise. 
A foreign account can only be frozen if such acti on is preceded by judicial action. The forensic 
decision requires mandatory execution.  In such cases , the account owner is notified of the fact.  The 
party concerned should constitute an attorney for its defence.  
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING 
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES 
6. Description of judicial, arbitral or administrative tribunals or procedures 
Question 4 
Could Cape Verde describe further the framework for conflict resolution between foreign 
investors and the Government of Cape Verde? 
Answer:  
At present there exist three levels of conflict resolution:  
− Civil – The civil court resolves civil and commercial conflicts – the Civil Code, the 
Commercial Code and the Civil Process Code  and other related laws had similar 
Portuguese laws and Codes as their source; 
− Penal – Crimes are tried in the Criminal C ourt – the Penal Code and the Penal Process 
Code and other related laws on the matter had similar Portuguese laws and Codes as their 
source; and 
− Administrative – The Administrative Court resolves the conflicts involving the Public 
Administration or decisions of the holder of an office of an Organ of a Political Power and the labour issues. WT/ACC/CPV/8 
Page 4  
 
 The Civil Process Code (Article 568 and following) pe rmits the intervention of arbitrators as umpire. 
The contra-ordinations are settled administratively by the entity responsible for that control. Its 
decision remain subject to an appeal before a competent court. 
With regard to Arbitration, the Constitution of Ca pe Verde foresees the possibility for the creation of 
Arbitration courts, as is evidenced in the Memora ndum (WT/ACC/CPV/3).  The Ministry of Justice 
and Internal Administration has already prepared a dr aft of legislation on Mediation and has sent it to 
Council of Ministers.  The same Ministry of Jus tice and Internal Administration intends to present by 
June 2004 draft legislation on Ar bitration, which will be sent by the Council of Ministers.  
The Foreign Investment Law (Law No. 89/IV/93, Official Bulletin No. 47/93)
1 in its Article 17 and 
following, establishes the procedures to be followed  as is evidenced in the Annex (Chapter V of the 
referred Law)  
The Legislative Action Plan will indicate the cale ndar of the approval and implementation process for 
the arbitration law. 
IV. POLICIES AFFECTING TRADE IN GOODS 
1. Import Regulation 
Question 5 
Could Cape Verde specify when the common ext ernal tariff of the Economic Community of 
West African States (ECOWAS) is likely to be applicable? 
Answer:  
At present there is no Common Exterior Customs Tables for ECOWAS. The cases in which the Common Exterior Customs Tables for ECOWAS are applied are indicated in 
Chapter VIII, articles 35 to 53 of the Revised Treaty of the Economic Community of West African 
States (ECOWAS) rectified by Resolution 115/IV/95, fifth Supplement of the Official Bulletin No. 35 
I Series. 
The USAID finances a study about the impact of ex tending the External Common Tables of the West 
African Economic and Monetary Union (WAEMU) to the remaining six Member States (Cape Verde, 
Gambia, Ghana, Guinea, Liberia, Nigeria, Sierra Leona), but such a study is not yet concluded.  
Equally under study in ECOWAS is the change from the 1996 to the 2002 version of the Harmonized 
System Nomenclature for Merchandise Designation and Codification (HS).  The 1996 HS version has 
been in effect in Cape Verde since 1996. 
(a) Registration requirements for engaging in importing 
Question 6 
Please confirm whether or not a foreign company needs to be established in Cape Verde in 
order to conduct foreign trade transactions.  Could further information be provided on the 
average costs and the length of the registration procedure? 
                                                     
 
1 Please see document WT/ACC/CPV/7/Add.1 dated 10 February 2004  WT/ACC/CPV/8 
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 Answer:  
First of all, to establish an enterprise in Cape Ve rde the promoter has to draft the Statutes of the 
enterprise upon consultation with a local attorney.  The fees to be paid depend on the negotiations 
between the interested party and its attorney. 
Secondly: 
A foreign enterprise has to be established in Cape  Verde to develop external commerce activity.  To 
establish itself it must have a branch or an y other form of commercial representation. 
In the framework of external investments, the regist ration of a foreign enterprise is free from financial 
impositions. 
The foreign enterprises are free from stamp tax, notary emoluments and expenses with registration in 
Conservatories and similars, to constitute new ente rprises or increase the capital stock of those that 
are already exercising their activity.  (Article  36 of Law No. 37/VI/2002 of 31 December 2002, 
Official Bulletin No. 44, third Supplement, I Series). 
The average wait for the registration depends  on the interested party's diligence.   
According to Article 3 of Regulamentary Decree No . 1/94 of 3 January, Official Bulletin No. 1, I 
Series, unless the foreign investment enterp rise Evaluation Committee solicits complementary 
information, the time limit designated for a response to  the interested party is 30 days, at the end of 
which, in the absence of a response,  the request for foreign investor's statute is considered approved. 
Upon obtaining the foreign investor's statute the enterp rise has to be registered at the Conservatory of 
Commercial Registration  
In the framework of the modernization process unde r way, the Ministry of Justice and Internal 
Administration projects the establishment of a firms authorization and registration system, on-line, 
that will up to a point, accelerate the registration process. 
See Law No. 89/IV/93, of 13 December 1993, Offici al Bulletin No. 47, I Series, attached to these 
answers. 
(b) Characteristics of national tariff 
Question 7 
Could a copy of Cape Verde's Customs Code, as well as secondary legislation, be made available 
to the Working Party? 
Answer:  
As stated in WT/ACC/CPV/3 and in the answers to the United States set of questions to Cape Verde's 
Memorandum, Cape Verde does not have a Customs Code.   
The Customs legislation is mostly old and in indi vidual and disperse laws, having suffered substantial 
alterations during the last 20 years.  It is difficult, at this moment, to integrate all the different texts of 
the many alterations introduced, for practical reas ons, in as much as an extensive and comprehensive 
Customs Code is being prepared. WT/ACC/CPV/8 
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 The General Legislative Action Plan sets forth the timetable for drafting and passage of the new Cape 
Verde Customs Code.  It is envisaged that the Cu stoms Code will be completed and approved by the 
National Assembly by the first quarter of 2005. 
(c) Tariff quotas, tariff exemptions 
Question 8 
We welcome the information that there are no ta riff quotas for imports in place and would like 
to know whether Cape Verde intends to opera te tariff quotas any time in the future. 
Answer:
 
Currently, Cape Verde has no intention to operate tariff quotas. 
(d) Other duties and charges, specify ing any charges for services rendered 
Question 9 
Will there be no other duties and charges applied when the VAT Lax and Regulation enters into 
force? 
Answer:  
Effective 1 January 2004, the VAT (IVA) Law went into force in Cape Verde.  That law is part of the 
Expenses Taxation Reform, which establishes Custom s Duties, Value Added Tax and a Special Tax 
on Consumption.  However, the State of Cape Ve rde does not exclude the possibility of creating new 
duties and charges. 
(e) Quantitative import restrictions 
Question 10 We welcome the information that there are no qua ntitative import restrictions or quotas in 
effect.  We would like to know whether Cape V erde intends to operate them any time in the 
future. 
Answer:
 
In fact, Cape Verde is in an adva nced stage of a deregulation process. 
If Cape Verde envisages introducing any quantitative r estrictions the WTO Secretariat will be notified 
accordingly. 
(f) Import licensing procedures 
Question 11 Could Cape Verde provide further information on  the original and renewal fees for the export 
licence and the authorization to engage in external commerce operator activity?  WT/ACC/CPV/8 
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 Answer:  
The title of the question refers to procedures on the matter of import licenses and, as was stated in the 
Memorandum (WT/ACC/CPV/3), there is no import licensing procedure. 
More concretely, the question pertains to: The possibility of providing more detailed information on the financial impositions for the emission 
and renewal of export licenses; 
The authorization to be granted to the op erator to exercise foreign trade activity. 
Relatively to the first question above – there is no export licensing.  The Government celebrated 
Protocols with the National Chambers of Commerce, as follows: 
− Chamber of Commerce, Industry, Agriculture  and Services of Barlavento, according to 
Dispatch No. 16/1999 of 26 November 1999, where it is annexed to the respective 
Protocol (Official Bulletin No. 1/2000, of 3 January 2000, II Series); 
− Chamber of Commerce, Industry and Servi ces of Sotavento, according to Dispatch 
n.º16/1999 of 26 November 1999, where it is a nnexed to the respective Protocol (Official 
Bulletin No. 1/2000, of 3 January 2000, II Series); 
− Such Protocols delegate to these Chambers of  Commerce the competen ce to grant, renew, 
deny, suspend or revoke the prior to exerci se the wholesale or commercial agent activity 
in each of the groups of islands in which Cape  Verde is divided (See Articles 11, 12, 14 
and 15 of Decree-Law No. 50/2003 of 24 Nove mber 2003, Official Bulletin No. 39/2003, 
I Series).  The power to delegate is include d in Article 30 of Decree-Law No. 50/2003 of 
24 November 2003, Official Bulletin No. 39/2003, I Series).   
Regarding the second question, the registration f ees are found in Ministerial Ordinance No. 31/86 of 
6 September 1986, published in Official Bulletin No. 37/1986, attached hereto. 
(h) Customs valuation Question 12 Could Cape Verde explain the timetable (next st eps, entry into force) with regard to the new 
Code of Customs Law?  We would also welcome fu rther explanation on the transition period of 
five years to comply with CVA. 
Answer:
 
The calendar relative to the implementation of the proposed Customs Code is found in the already 
prepared Plan of Action, and included in the Plan are all the steps needed for it to  enter in effect in the 
first quarter of 2005.  This Plan shall presented to  the WTO Secretariat at the earliest possible time. 
The proposed five year transition period to begin upon accession is based on the circumstance that, 
until now, Cape Verdian customs are still applying th e Brussels Definition of Customs Value, reason 
why the functionaries, economic operators and offici al customs agents are not familiar with the 
definition of value in the Agreement on the Applic ation of GATT's Article VII.  In as much as the 
GATT definition of value is different from the system in use in the customs, all shall need some time 
to adapt themselves to the new rules and therefore ne ed both training and familiarization.  Cape Verde 
is an archipelago with customs services in the different Islands and this makes difficult the 
application, in the short term, of a new definition of value.  The personnel needs to be trained both WT/ACC/CPV/8 
Page 8  
 
 with regard to the new Customs Code and with regard  to the definition of value.  The management of 
the new definition require the creation of new inform ation and control structures, and the construction 
of new infrastructures heretofore nonexistent, who se value it shall be necessary to evaluate and find 
the means necessary to finance them. 
(i) Other customs formalities 
Question 13 
Could Cape Verde describe how much time de claration, registration and customs clearance 
normally takes? 
Answer:
 
The owner or consignee of the imported goods can initiate the procedures fo r its Customs clearance 
before the arrival the said goods in Cape Verde.  The entry and the processing of the declaration of 
merchandise in the customs runs imperatively within 48 hours at the end of which period, if within ten 
days, the impositions due are not paid, a contra-ord ination will have been committed and a fine shall 
be imposed.  If after the payment of the custom s duties and of unloading and conveyance fees the 
merchandise is not removed within the normal time limit for warehousing [30 days for air transported 
cargo and 90 days for cargo transported by sea] a report giving official notice of that fact shall be 
written for a procedure of administrative of public sale. 
(k) Application of internal taxes on imports 
Question 14 Could Cape Verde indicate whether changes to the import taxes are foreseen in the future? 
Answer:
 
If Cape Verde should envisage introducing any change  in the import taxes the WTO Secretariat will 
be notified accordingly. 
(l) Rules of origin 
Question 15 Does the European Community currently co unt as one entity for origin purposes? 
Answer:
 
WTO work on the Agreement on Rules of Origin  is ongoing.  The WTO Technical Committee on 
Rules of Origin and the World Customs Organi zation (formerly the Customs Cooperation Council) 
are developing harmonized definitions, principles, interpretations and opinions, which may result 
from the work program.  It is not known when the conclusions of the WTO Work Program will be ended. 
What are in effect are the provisions of Annex II of  the Agreement on Rules of Origin.  In the absence 
of specific principles and provisions by the WTO on the question, Cape Verde will defer a decision on this issue until a later time.  WT/ACC/CPV/8 
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 (m) Anti-dumping regime 
(n) Countervailing duty regime (o) Safeguard regime Question 16 We welcome the information that Cape Verde will  develop WTO compatible legislation in these 
areas. Can Cape Verde confirm that it will abstain from using any such duties/measures before 
accession or enacting of appropriate WTO compatible TDI legislation? 
Answer:
 
Neither before nor after the accession will Cape Verde create and even less apply, legislation that is 
incompatible with or in conformity with any WTO imperative norm. 
3. Internal policies affecting foreign trade in goods (c) Sanitary and phytosanitary measures Question 17 Is Cape Verde planning to provide informatio n in the format of the standard check-list 
(WT/ACC/8) to the Working Party? 
Answer:
 
Cape Verde is prepared to provide the Working Pa rty with any additional in formation regarding the 
WT/ACC/8 document, if requested.  However, the WT/ACC/8 document was presented to the WTO Secretariat and was circulated among the Members on 13 January 2004 in document WT/ACC/CPV/6. 
(f) Free zones 
Question 18 
Could Cape Verde please elaborate on the question whether the criteria for free enterprises are 
in compliance with WTO rules (ASCM)? 
Answer:
 
As a Least Developed Country, and under the provisi ons of Article 27 of the Agreement on Subsidies 
and Countervailing Measures, Cape Verde is not requ ired to observe the provisions of Article III and 
Annex I of said Agreement WT/ACC/CPV/8 
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 V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
1. General (a) Intellectual property policy Question 19 Could Cape Verde inform whether it intends to jo in other international conventions in the area 
of intellectual property such as the Berne a nd the Rome Convention in the near future? 
Answer:
 
As stated in the Memorandum WT/ACC/CPV/3, Sec tion V, paragraph 1 (a) Cape Verde adhered to 
the WIPO Convention by Resolution No. 11/V/96 of 11 June 1996; the Paris Act on Berne Convention for the Protection of Literary and Artistic Works by Resolution No. 12/V/96 of 
11 June 1996; and to the International Conventio n for the Protection of Artists, Interpreters, 
Performers and, of Phonograms Producers and Ra dio Broadcasters by Resolution 13/V/96, of 
11 June 1996. 
Should Cape Verde envisage adhering to other si milar conventions the WTO would be notified, 
accordingly. 
2.  Substantive standards of protection, in cluding procedures for the acquisition and 
maintenance of intellectual property rights 
(c) Geographical indications, including appellations of origin Question 20 Could Cape Verde explain how it seeks comp liance with the protection of geographical 
indications under Art. 22 TRIPS in the future and whether it intends to introduce respective 
legislation? 
Answer:
 
Regarding geographical indication, although there are no provisions in the current law on this matter, 
the Government of Cape Verde is going to present to  the National Assembly, for approval, a draft law 
amending the existing legislation, where provisions  for geographical indications will be proposed. 
VI. TRADE-RELATED SERVICES REGIME 1.  General - Telecommunication Services Question 21 Could Cape Verde explain when it intends to a llow alternative networks in mobile services and 
for fixed networks?  We would welcome further information on the definition of "value-added 
services" and the licensing conditions for those s ervices?  Could Cape Verde explain when the 
Institute of Communications and Information T echnologies as regulatory body will be created?  WT/ACC/CPV/8 
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 Answer:  
By the end of July an invitation to tender (for m obile telephone and television service by subscription) 
shall be in progress.  Foreseen for the ends of 2004 and early 2005 is the entry of alternative networks 
of one more GSM operator(s) of subscription televisi on (PZ).  Yet this year, one or more internet 
operators are expected (ISP-Internet Service Provider). 
As specified in Decree-Law No. 70/95 20 November  1995, value added service is understood to be 
those services that, while having the fundamental or complimentary services as sole support, do not 
require their own telecommunications infrastructures and are differentiable with relation to the same 
services that serve as their support. 
The authorization to exercise the value added servi ces activity in telecommunications is granted: 
− to singular persons registered as commercial operators; 
− to legally constituted enterprises or coopera tives having in the ambit of their commercial 
object, the exercise of activity in telecommunications; 
− the affiliates or branches of foreign enterp rises or cooperatives whose principal object is 
to provide telecommunication services. 
The Institute of Communication and Information Technologies (ICTI), created through Regulatory 
Decree No. 1/2004, of 9 February 2004, has as pr incipal objectives the supervision, technical 
regulation, regulation and inspection of the comm unications sector as well as the promotion and the 
development of the information technologies.  
- Air Transport Services 
Question 22 
We would welcome an update by Cape Verde on the privatization process of Cape Verde 
Airlines? 
Answer:  
With the installation of the new Government in 2001 and as a consequence of 11 September and the 
situation in civil aviation, the TACV privatisa tion options were re-evalu ated.  In December 2002 a 
new Privatization Law was approved as a way to facilitate the process. 
At present, the team from the Privatization Offi ce responsible for the process, is working in 
restructuring the enterprise, and as soon as it is made financially sound a nd market conditions are 
favourable the privatization will proceed. 
The timing foreseen is as follows: 
− Restructuring the enterprise: by the end of 2004; 
− Privatization: end of 2005 WT/ACC/CPV/8 
Page 12  
 
 - Tourism services 
Question 23 Could Cape Verde provide information on how many  people work in the tourism sector and the 
evolution in the last years?  Would Cape Verde explain to what extent the FDI attracted by the 
country in the last couple of years has been in the tourism sector?  
We would welcome further information on existi ng plans to promote the tourism sector and 
what measures the government is taking to ensure non-discrimination of foreign service 
suppliers?  Could Cape Verde describe whether national investors are subject to the same 
procedure in order to be granted "Tourism Ut ility Status"?  Are there any plans to improve 
professional education and training related to the tourism sector?  
What is Cape Verde's approach to the regulation of tourism-related aspects of general interests 
such us environment, wildlife, urban planning?  What is Cape Verde's viewpoint on the tourism sector and promotion of local cultures, developm ent of water supply and sanitation services, and 
public security?  
Would Cape Verde inform us about the existi ng legislation applicable to tour managers 
(professionals accompanying groups of tourists in their travel through the country) and tourist 
guides?  
Answer:
 
The Tables below reflect the evolution of Tourism for the years:  
Table (i)a:  Existing Hotels - Year 2002  
Island No. of units No. of rooms No. of beds 
São Nicolau 7 57 74 
Boa Vista 7 179 379 
São Vicente 12 275 486 
Sal 23 1,604 3,444 
Santiago 24 455 7,81 
Maio 3 72 1,41 
Santo Antão 12 131 182 
Fogo 12 100 174 
Brava 4 26 30 
TOTAL 104 2,899 5,691 
Source: Instituto Nacional de Estatísticas (INE) / PROMEX 
Revenue from Tourism – Year 2002: 7,509.04 m illion of Escudos (€ 1 = 110.265 Escudos); 
Contribution to GNP:  10.2 per cent (Source: Balance of Payments)  WT/ACC/CPV/8 
 Page 13 
 
 
 Year Indicators 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 
Weight of Hotels and Restaurants  
In the GDP (%) 1.7 1.4 1.3 1.5 1.4 1.2 1.5 4.9 5.2 5.7
From 1990 to 1996 – definitive data 
1997 and 1998 provisional data 
1999 projection 
Source : Bank of Cape Verde (BCV) 
 
Table (i)c:  Evolution of the principa l Tourism indicators (millions of escudos)  
 2000 2001 2002 
Revenues from Tourism2 4,686.4 6,539.1 7,509.4 
Contribution to GDP 7.3% 9.5% 10.2% 
Wight on Services3** 37.3% 41.1% 42.2% 
Source: Bank of Cape Verde / Annual Report (1 Euro = 110.265 escudos) 
Table (i)d:  Foreign Investment by Sectors of Activity (Structure in %)  
 2000 2001 2002 
Hotels and Others 41.7  86.8  63.3  
Transformation Industry  12.3  9.9  17.5  
Others 45.9  3.3  19.2  
Source: Bank of Cape Verde/Annual Reports (2002); Surveys; Bank of Cape Verde's; and PROMEX 
Table No. (i) E Foreign Investment 
Year Foreigners Nationals Annual Totals4 Annual Totals 
including "others"5 
1999 53 1,508 1,561 1,879 
2000 69 1,776 1,845 1,984 
2001 52 1,996 2,046 2,275 
2002 93 1,950 2,043 2,265 
2003 88 2,193 2,281 2,480 
Source:  INE 
In response to part (ii) of this question 
Table No. (ii)a  
Infrastructures Tourism Services 
Hotels/Similars Basic  
Year Investment Employment Investment Employment Investments Employment 
1994 9,568 219   162 14 
1995 36,911 215     
1996 4,575 36     
                                                      
2 Credits from tourism trips, balance of payments 
3 Credits from tourism including total credit for services 
4 Number of person without including other activities 
5 Number of person with the inclusion of other, similar activities.  The increases in this column reflect 
other tourism activities. WT/ACC/CPV/8 
Page 14  
 
 Infrastructures Tourism Services 
Hotels/Similars Basic  
Year Investment Employment Investment Employment Investments Employment 
1997 20,300 123   1,805 95 
1998 161,910 1,265   1,778 51 
1999 33,568.1 566 20,000 80 5,235 230 
2000 69,586 510 19,947 83 891 23 
2001 5,186 77 0 0 400 9 
2002 28,271 337 6,870 33 1,057 34 
2 0 0 3        
Totals 369,875 3,348 46,817 196 11,328 456 
Amounts in Thousands of US$.                                             
Source: PROMEX 
From the analysis of Table (ii)a it can be seen that the amount of total investment from FDI is 
US$ 432,020,000 distributed as follows: 
− Investment in hotel infrastructures and similars 369,875 
− Employment (Hotels and similars)    3,348 
− Investment in basic infrastructures   46,817 
− Employment (Basic infrastructures)   196 
− Investment (Tourism services)   11,328 
− Employment (Tourism services)   456 
The figures above correspond to investments up to now coming from FDI, (From PROMEX Sources). The total amount mentioned above (US$ 432,020) There is no law in effect in Cape Verde that discriminates foreign suppliers. In response to part (iv) of this question 
The Tourism Utility Status is regulated  by Law No. 42/IV/92 of 6 April 1992. 
In response to part (v) of this question There is a five-year development plan and a pl uriannual public investment plan, which includes 
sectoral activities.  Moreover, the Government h as an ongoing study on the Strategic Plan for the 
Development of Tourism for the years 2004-2015. 
The General Directorate of Tourism Developmen t in partnership with the IEFP (Institute of 
Employment and Professional Training) has been executing a series of training programs in hotelery 
and restaurants with the objective of improving the services provided in the sector. 
As happens with other entities, the Municipalities ha ve prepared several training programs for Tourist 
Guides and Table attendants and Bartenders. 
The creation of a hotel-school is foreseen in th e Island of Santiago for technical and professional 
training in full-time and part-time regimes and the creation of several other restaurant schools, in 
other islands.  
In response to part (vi) of this question  WT/ACC/CPV/8 
 Page 15 
 
 
 Preservation of the environment and the equilibrium  of the eco-system constitute political priorities 
for Cape Verde. 
Law No. 21/IV/91, clearly establishes the environmental preservation policies. In view of that, all projects with more than 21 be ds are required to present an environmental impact 
study precisely to safeguard this environmental policy.  (Law No. 85/IV/93, of 16 July 1993, 
published in Official Bulletin No. 25/1993, I Series, 2nd Supplement. 
The basic policies on tourism development is provided for in Law No. 21/IV/91 of 
30 December 1991, published in Official Bulletin No. 52/1991, Supplement. The Basis for National 
Territorializing Plan and Urban Planning (Law No. 85/IV/93, of 16 July 1993) defines the 
management of the national territory in all its  aspects. The Legislative Decree No. 2/93 of 
1 February 1993, published in Official Bulletin No . 2/1993, defines the zones earmarked for tourism 
development. The Integral Tourism Development Zoning is regulated by Regulamentary Decree 
No. 7/94 of 23 May 1994, published in Official Bulletin No. 20, I Series  
In response to part (vii) of this question The tourism development policy in Cape Verde fo resees the preservation of the cultural values and 
the defence of the local culture, as one strong aspect  of the cape-verdian tourism product.  In this 
regard, several cultural entertainment groups have been given support so as to develop and preserve 
this aspect of the tourism offer as an added value in differentiating our pro duct from other products.  
Regarding the development of water supplies, ther e is an National Institute for Water Resources 
Management (INGRH) and for san itation services there is Energy Water and Sanitation Program 
(PEAS). 
Public Security is assured by a Police Corps (Políc ia de Ordem Pública) and A Judiciary Police.  
There are also Private Security Companies that provide day and night watchmen services.  See 
Decree-Law 74/94 of 27 December 1994, publishe d in Official Bulletin No. 42/1994, I Series.  
In response to part (viii) of this question There are several tour operators in Cape Verde at present.  Decree Law No. 4/94 and Regulamentary 
Decree No. 3/94, of 7 February, published in Official  Bulletin No. 6/1994, I Series, regulate the tour 
operators activities.   
Tourist Guides/Interpreters and Tour Guides are provi ded under the provisions of the same legislation 
cited above 
- Distribution services 
Question 24 
Could Cape Verde provide information on how many  people work in the distribution sector, the 
evolution in the last years and on existing  legislation applicable to retailing services? 
Answer:
 
Active Commercial Enterprises (wholesale and retail) from 1997 to 2000 
Year Wholesale Retail WT/ACC/CPV/8 
Page 16  
 
 1997 5,885 2,834 
1998 6,820 2,952 
1999 6,475 2,853 
20006 6,755 2,864 
Source: National Institute of Statistics (INE), Direct orate of Information Methodology and Management. 
NPS – Number of Persons 
Regarding Brokers, the Stock Market, created by Law No. 51/V/98 has not become operational as yet. 
There is not any registration of enterprises in the service "franchise" branch in Cape Verde. 
- Business services 
Question 25 Could Cape Verde inform us about existing legi slation applicable to management consulting 
and services related to management consulting an d what measures the government is taking to 
ensure non-discrimination of foreign service suppliers? 
Answer:
 
The legislation applicable to management consu lting and services related management consists of: 
− Decree-Law 37/92 of 16 April 1992, published in Official Bulletin No. 5/1992, 
Supplement, on Accountants; 
− Law No. 126/IV/95 of 26 June 1995, published in Official Bulletin No. 20/1995, I Series, 
on Professional Associations; 
− Decree-Law No. 12/2000 of 28 February 2000, p ublished in Official Bulletin No. 5/2000, 
I Series, on Auditing; 
− Decree-Law No. 51/2000 of 4 December 2000, published in Official Bulletin 
No. 35/2000, I Series, on Attorneys. 
The Code of Commercial Enterprises and Registrati on of Firms, Legislative Decree No. 3/99 of 
29 March 1999, published in Official Bulletin No . 9/1999, I Series, covers other aspects of 
management consulting and services related to management.  
2.  Policies affecting trade in services 
(f) Provisions relating to international transf ers and payments for current transactions of 
services 
(g) Provisions relating to capital transa ctions affecting the supply of services 
Question 26 To some extent, these transactions require prior authorization of the Bank of Cape Verde. 
Could Cape Verde provide more information on th is procedure and on the criteria for granting 
or withholding such approval? 
                                                     
 
6 Does not include IAE data (Annual Enquiry to Enterprise)  WT/ACC/CPV/8 
 Page 17 
 
 
 Answer:  
The current invisible operations or transactions ar e unrestricted with the ex ception of the following 
cases that do not need authorization but simply prior verification by the Bank of Cape Verde. 
Transfers relative to current invisible operati ons in amounts greater than CVE 1,000,000 included 
under the line item "private unilateral transfers": 
Transfers of amounts greater than CVE 5,000,000 pertaining to the liquidation of services rendered or 
to revenue, with the exception, in this case, of the interests relative to the concession of loans or 
previously authorized credits. 
The operations involving capitals, with the exception of  those operations carried out through the stock 
exchange or through duly authorized, there is a ne ed for prior authorization by the Bank of Cape 
Verde.  In this case, the authorization requests to carry out these operations may be addressed to the 
Bank of Cape Verde by way of the commercial ba nks and must be accompanied by he documents 
necessary to the identification and verification of th e legitimacy of the stakeholder, the juridical and 
economic characterization of the operation and the determination of the amounts involved and 
effective demand dates, in other words, they must be accompanied with: 
Information regarding the nature and the amount of the subjacent transaction, country of residence of 
the counterpart and identification of the requestor and the beneficiary; 
Copy of the bills, contracts or equivalent documen ts, destined to prove the reality of the subjacent 
contractual obligation, respec tive amount and demand date. 
With compliance with these procedures, the Ba nk of Cape Verde shall issue a favourable 
authorization to the interested party. 
Note:  See Notice No. 4/98 of the Bank of Cape Verde, Official Bulletin No. 47 of 21 December 1998, in annex, 
Decree-Law No. 108/89, Law No. 89/IV/93 and Law No. 42/IV/92, already cited and in annex. 
3.  Market access and national treatment 
(g)  Measures providing for less than the trea tment accorded to national services or service 
suppliers 
Question 27 Could Cape Verde explain further the procedure for granting "Foreign Investor Status" to 
foreign investors? 
Answer:
 
The foreign investor status is granted without di stinction to any singular or collective person, both 
national and foreign, according to article 4 of Law No. 89/IV/93, of 13 December 1993.  This Law, as 
well as Regulamentary Decree No. 1/94, of 3 January 1994 , have, in fact, already been remitted to the 
WTO and both are annexed hereto. 
In the case of the creation of an industrial enterpri se the installation and op erational conditions are 
defined in Decree-Law No. 108/89, of 30 Decemb er (published in Official Bulletin No. 52, IV 
Supplement of 30 December 1989), approved in the ambit of the legislative authority granted by article 45 of the Law No. 50/III/89 of 13 July 1989. WT/ACC/CPV/8 
Page 18  
 
 In the case of a hotel enterprise, such conditions  are found in Law No. 42/IV/92, of 6 April 1992, 
published in the Supplement to the Official Bulletin No. 14/1992. 
 
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