Reform of the Public Business Sector in Cape Verde – Main Changes

Law No. 56/X/2025, published on July 8 and currently in force, makes the second amendment to Law No. 104/VIII/2016, of January 1, as amended by Law No. 58/IX/2019, of 29 July, which establishes the principles and rules applicable to the Public Business Sector in Cape Verde, including the general basis for the status of public companies.

This change brings significant changes to the management of the Public Business Sector in Cape Verde, introducing a more structured governance model, focusing on professionalization, transparency and sustainability.

Among the main changes, the creation of the Holding Management Entity (EGP), responsible for the technical management of the State’s holdings, stands out.

This measure separates the shareholder function from political management, allowing the State to act based on technical and economic criteria. At the same time, the management autonomy of public companies is maintained, which must incorporate strategic guidelines defined by the State in their business plans and budgets.

The aforementioned law also establishes new rules for transparency and accountability, including a Digital Monitoring and Evaluation Platform.

This platform will consolidate financial, operational, and risk data, and management, accounts, and sustainability reports must be published, ensuring public access to information.

In the context of risk management and sustainability, companies will have specific obligations, such as assessing financial, operational, climate, and environmental risks, and producing annual environmental sustainability reports.

Furthermore, feasibility studies for new investments must include an assessment of environmental and climate sustainability.

The law also defines clear procedures for audits, company formation, and the sale of shares, establishing deadlines and technical criteria for each process.

Regarding market performance, public companies operating under a fully competitive regime are exempt from some public procurement rules, ensuring flexibility and competitive neutrality. This measure aims to allow public companies to compete on an equal footing with the private sector, promoting efficiency and competitiveness in the market.

With these changes, Law No. 56/X/2025 structures the management of the Public Business Sector in Cape Verde, defining responsibilities, strengthening control instruments, and promoting transparency and sustainability in the sector. The effective implementation of these measures will be crucial for the country’s economic development and for improving the quality of services provided to the population.