Rédaction Africa Links 24 with Sheilla Ribeiro
Published on 2024-03-20 12:15:00
The Prime Minister, Ulisses Correia e Silva, argued today that privatization initiatives were essential for the country’s transition from a state-controlled economy to a market economy, and that this change not only meant a shift in economic models, but also a transformation of the role of the State.
During his speech at today’s parliamentary debate, the Prime Minister stated that “trade liberalization, exchange rate and capital operations liberalization, investment protection, opening up to FDI, fixed parity of the escudo to the euro, reforms in the monetary, financial and fiscal systems, and privatizations created conditions for the development of the market and the private sector.”
Ulisses Correia e Silva also highlighted the positive results of this transition, pointing out that the entrepreneurial private sector represents 82% of Gross Fixed Capital Formation and generates 41% of employment in the country.
Additionally, he mentioned success stories such as the privatization of PROLACT, which resulted in IOGUREL, and the privatization of the Hotel Praia Mar, which boosted investments in other tourist areas of the country.
“Privatizations through strategic partners have driven growth and modernization in sectors such as the financial system (banking and insurance), telecommunications, and energy. Caixa Económica de Cabo Verde, privatized in 1999, modernized and expanded its activities. Before privatization, it had a profit before taxes of 59 thousand contos and employed 99 workers. In 2021, it recorded profits of 1.1 million contos and employed 384 workers,” he pointed out.
The Head of Government emphasized the continuation of the privatization agenda and public-private partnerships, mentioning that the agenda includes airport concessions, restructuring of AEB – Água and Energia da Boavista, public sale operation of Caixa Económica, among other measures to boost economic growth and modernize strategic sectors.
“The Strategic Concertation Agreement 2024/2026 signed with social partners assumes the restructuring of the State Business Sector as one of the integrated measures in sustainable economic growth policies and resilience,” he concluded.
Read the original article(Portuguese) on Expresso das Ilhas
