Cape Verde is set to expand its solar energy capacity through an international public tender aimed at enhancing photovoltaic production for water collection and irrigation an initiative made possible through a debt conversion agreement with Portugal.
As reported by Forbes on 23 March 2025, the project represents a 4 million investment and will be carried out on the island of Santiago.
It includes the installation of photovoltaic systems in 38 water wells and 18 pumping stations, along with the construction of an operational command centre.
The initiative is expected to benefit approximately 140,000 people.
According to Janine Lélis, Minister of the Presidency of the Council of Ministers and Parliamentary Affairs, the scheme stems from the transformation of public debt into sustainable financing with significant social impact.
"The expected outcomes include a 35% reduction in energy costs for water management systems, greater reliance on renewable energy for public supply and irrigation, and a lower cost of water for Cape Verdean households," Lélis stated during a press conference.
Both Portugal and Cape Verde have presented this debt-to-climate-finance model as a benchmark in international forums, highlighting it as an innovative approach to sustainable development funding.
In 2023, Portugal became the first country to contribute to Cape Verde"s climate fund, pledging 12 million the equivalent of the capital repayment due under the Cape Verde Debt Consolidation Agreement signed in February 2022.
This latest investment supports Cape Verde"s broader strategy to achieve 50% emission-free energy production by 2030, aligning infrastructure development with the country's climate goals.