Any other lucrative business other than Tourism in Cv

Hello Sappy,

You have asked some good questions about business opportinities in CV. The first principles to be aware of are that there are two "markets" in CV. One comprises the local consumers and businesses, and the second is tourists and expats.

The two markets are dramatically different. The local market comprises the 500,000 inhabitants (half of whom are under 23 years old, and a third of whom are preteens....so it's a micro-market and very young). The average wage is around $150-200 per month. So products and services have to have a maximum price of $5 otherwise you will have very few clients. There is a tiny middle-to-upper class consisting mostly of professionals and their family units. To put it into perspective, a qualified professional will earn about $400-600 per month. CFOs in the largest companies (of which there are maybe 2 dozen) will earn  around$1000/month. In other words, the local market is mostly poor people with limited means. A product or service that would have broad appeal in the local market would be a low-priced commodity ... but there could be considerable competition if you choose products or services that are already being provided.

On the other hand, the tourism market sees about 800,000 new visitors every year. They are mostly Europeans. They earn the average wage of workers in Europe, which is considerably higher than local wages and they come with money to spend on themselves and their families to enjoy a nice vacation. And they are mostly adults. As you can imagine, they expect to pay prices similar to what they find in Europe or higher (in a tourist trap). A local waiter will rush to give table service to a tourist because they know they will receive a tip from foreigners that is probably more than half or as much as their daly wage.

With this background in mind, I will now answer your questions about potential business ideas:

(1) Exporting fish from CV to Nigeria
No chance. The licenses for fishing in the national waters of CV are only given to local fishermen and they can barely meet the local deand for fish as fish a staple in the CV diet. Licenses have been given to EU and Chinese operators for fishing in the extended waters. Those accords were exclusive and cost the EU governments several millions of euros. The most common fish that is caught and processed on board is tuna. You cannot get a license as you are not a local citizen. Even if you could pay local artisan fishermen, it would be highly inefficient and it's unclear that you would be allowed to export fish out of the country without a very expensive license.

(2) Food truck business in CV
This is a total non-starter. There are massive numbers of food vendors in trucks, stalls and on foot selling food throughout the city. They earn about $5-10 a day selling low cost food items (at about $0.10-$0.50 per item). It is the most common economic activity in the informal sector. There is no way to out-earn this army of informal people hunting their daily income.

(3) Exporting Herbs from CV or Importing Herbal alcoholic beverage into CV
CV has a very dry climate. There are only a few inches of rain per year. There are few varietoes of herbs grown here. You will find a lot more herbs in Nigeria than you could possibly find here. The most popular alcoholic beverages are beer/wine (mostly imported from Portugal), and grougue (a type of rum) along with its derivatives. Beyond that would require a substantial cultural change in the local population. They don't really welcome new things into the gastronomic arena. You'd have to do a lot of surveys and consumer testing to understand if such new alcoholic beverages will be accepted. There is already precendent for other types of alcoholic such as beer and fruit juice mixes but they are rarely purchased.

(4) Starting an Electrical automobile workshop in CV..
You'd be facing massive competition from all the informal auto mechanics.

(5) Establish a restaurant with west African menu
This is a good idea. There is one that was started in the capital by a couple of professionals from Mali and Senegal. The daily special was a different dish from a different West African country each day. I ate there myself. It was excellent. The restaurant was quite popular and always full. But the clients were mainly professionals at the foreign institutions such as the EU, the UN, ECOWAS, the foreign embassies and government officials, and West African businesspeople and professionals (since there are many in the capital). There were few if any typical local clients as the prices were out of reach. This couple demonstrated that there is a small subset of local residents (mostly foreigners) who are receptive to differentiated gastronomic niches. But this underscored that the restaurant was serving a very small target market in the capital. It would have been considerably more successful if this restaurant concept were launched in the tourist island of Sal. Eventually, this couple decided to move the restaurant to Sal, but they left Cape Verde for other job opportunities.

If you are looking for excellent business opportunites in Cape Verde, you will either need to target the hundreds of thousands of well-heeled tourists on the islands which they frequent the most, or serve the local population with appealing low-cost, differentiated products and services for which there are few competitors or where there are substantial barriers for new competitors. Such opportunities exist but they are not the ones you imagined.

Regards,

Angelo

Sappy123 wrote:

Having lived in Asia and doing Agro business as well.. And back to Nigeria to establish a Farm.. Now I want to relocate to Cape Verde.. To start up a different business.. I seriously do not know which business to do with not too much funds, I have thought of (1) exporting fish from CV to Nigeria, (2) food truck business in CV. (3) Exporting Herbs from CV or Importing Herbal alcoholic beverage into CV,(4) starting an Electrical automobile workshop in CV.. (5) establish a restaurant with west African menu.. In all these 5 business ideas please l need information on them, the pros and nos in regard to CV.. What is obtainable and wats is not.. The viability of each business and its growth in regard to CV populace.. I will be very happy to get a favorable response from the forum.. Thanks to all in anticipation.

Thanks CVangelo

Your reply has been very informative and helpful to the ideas l wrote.. Well to be more clear on one aspect in the area of food truck.. Let it not be a misunderstanding of the idea.. I dnt really mean it to be food cart or food stuff.. No its already cooked food.. More like a mobile restaurant or fast food as one may understand, well that is that..

Then in the area of a restaurant which I love to cook.. I have always wished to own a restaurant.. But then I like to invest and move on to the next, sal must be a nice place to mention and I guess has more population than any other place in CV. so technically it will certainly be a business hub. I can settle for a restaurant.. As I see it.. But then again let me indulge you... Now. As to housing.. I have searched the Internet and even called some real estate agents in CV to know and make arrangements for proper housing or at least see a website for local renting other than hotel rentals of long stay and short stay.. Cos certainly if am investing in CV, I can't afford to live in a hotel and same time running a business.. So housing is very important to me. If possible you have websites where I can take a peek.. That will be helpful.

Then secondly,Electricity is most important as l know many African countries have this problem of power outage.. What is the availability of Energy and thirdly as I speak English while its a Portuguese speaking country.. What chances are there for the growth and survival of such businesses owned by foreigner..

I didn't really mean it to be food cart or food stuff.. No its already cooked food.. More like a mobile restaurant or fast food as one may understand.

I stand by my comments about the food truck/fast food/mobie restaurant idea. Such a concept is not a good business idea. Selling food, whether to order or precooked, is the single biggest economic activity in the informal market. Thousands of people do this to earn a daily living. There is no way to compete and gain an outsized market share. It is simply a way to make a minimal living. Restaurants and other food-based businesses are only viable as a money making ventures if they are participating in the tourism sector.

Now. As to housing.. I have searched the Internet and even called some real estate agents in CV to know and make arrangements for proper housing or at least see a website for local renting other than hotel rentals of long stay and short stay.. Cos certainly if am investing in CV, I can't afford to live in a hotel and same time running a business.. So housing is very important to me. If possible you have websites where I can take a peek.. That will be helpful.

The websites showing housing in CV are designed to attract foreigners such as yourself who do not know the reality of Cape Verde. They advertise apartments at 50% to 100% over the actual market rate for housing and try to get you to agree to a contract and make the first payment sight unseen. Do not speak to "real estate agents" ... if they know you are a foreigner, they automatically double the market prices because  they know you have no information to validate the prices they tell you. To find an apartment at normal local market prices, you must be here in person. Apartments are not advertised online by the owners who actually have apartments available to rent. You simply have to walk around in the area you desire to live and you will see most of the available apartments because they will have a sign on the door or window indicating they are available. You also need to know the going rates so that you are not duped into paying double the market prices for rent.

Then secondly,Electricity is most important as l know many African countries have this problem of power outage.. What is the availability of Energy

Power outages are no longer a problem in Cape Verde as they were more than a decade ago. Today, electricity is readily available as the government has expanded capacity over the past decade, from both traditional and renewable sources, and have also allowed private suppliers of energy to enter the markets on all islands.

... thirdly as I speak English while its a Portuguese speaking country.. What chances are there for the growth and survival of such businesses owned by foreigner.

English is widely spoken in the tourists islands of Sal and Boavista. Most of the clients would be English-speaking tourists who dwarf the local population of these islands. French is also spoken by quite a number of tourists. (I did not explicitly mention it earlier but with the global coronavirus pandemic, there are curretly no tourists in Cape Verde ... now is not the time to launch a new business in the tourism sector. There is no definitive date by which the tourism sector is expected to recover because there are too many unknowns about the pandemic). On all of the other islands, no English is spoken so you would need to learn Portuguese or the local language OR you would have to hire someone who speaks the local language to manage your business on a day-to-day basis.

One last thing. Cape Verde is currently in a massive recession precipitated by the pandemic. Yet, there are certain substantial business opportunities that are arising even now. Interestingly, there are no locals who are able to take advantage because they lack the financial resources to capitalize on these opportunities. In addition, since there are no foreigners visiting at the moment, foreign investors are also missing out on these opportunities.

Regards,

Angelo

Sappy123 wrote:

Thanks CVangelo

Your reply has been very informative and helpful to the ideas l wrote.. Well to be more clear on one aspect in the area of food truck.. Let it not be a misunderstanding of the idea.. I dnt really mean it to be food cart or food stuff.. No its already cooked food.. More like a mobile restaurant or fast food as one may understand, well that is that..

Then in the area of a restaurant which I love to cook.. I have always wished to own a restaurant.. But then I like to invest and move on to the next, sal must be a nice place to mention and I guess has more population than any other place in CV. so technically it will certainly be a business hub. I can settle for a restaurant.. As I see it.. But then again let me indulge you... Now. As to housing.. I have searched the Internet and even called some real estate agents in CV to know and make arrangements for proper housing or at least see a website for local renting other than hotel rentals of long stay and short stay.. Cos certainly if am investing in CV, I can't afford to live in a hotel and same time running a business.. So housing is very important to me. If possible you have websites where I can take a peek.. That will be helpful.

Then secondly,Electricity is most important as l know many African countries have this problem of power outage.. What is the availability of Energy and thirdly as I speak English while its a Portuguese speaking country.. What chances are there for the growth and survival of such businesses owned by foreigner..

explicit replies. thank you for your education. can you please educate us on some of the new springing up businesses in CV?

1. I am an English teacher from Ghana with a bachelors degree in English. what are the chances of me getting a teaching appointment in CV?

Lastly how much does an average single room cost to rent in CV?

Hello,

Thanks for your questions. Here are my thoughts.

Can you please educate us on some of the new springing up businesses in CV?

I can give you a general idea of what kinds of businesses will likely generate substantial revenues in future, while keeping in mind that the timing of significant success is dependent on the coronavirus pandemic and when it can be brought under control:

1.  Cape Verde has a very young population. Besides going to the beach or parties, there are not many options for wholesome family entertainment. So, amusement parks and gaming arcades will be well received. Of course, there are certain types that will meet with far more success than others. But it is necessary to know the local youth culture to understand which types are likely to be most successful in terms of attracting paying customers.

2. Young Cape Verdean women always take care of ther appearance. Even now that money is scarce, most women of every age and social class who goes out in public has well manicured nails and nicely done hair. So cosmetics and hair products present a great opportunty. However, the products and services must be differentiated from what is available in the mass market.

3. Young men and women love shoes. All the sellers of used clothing focus on clothing, and few focus on shoes. Shoes are almost an afterthought, but the youths are heavily interested in shoes. An entrepreneur who can focus on offering a differentiated and attractive style of footwear can do extremely well in the local market.

4. Information. There is a dearth of information that is sorely needed by locals, tourists and new residents (foreigners who come to CV and locals who move to a new island). Information is power, and technology platforms can bring suppliers and consumers of information together for a small user fee paid to the platform operator. But it must be done in a certain way which fits the local cultural and economic norms for local participants and international norms for foreigners. Otherwise the platform will not work. Such a platform can also be a source for advertsing revenue.

5. Highly differentiated food and restaurant offerings targeted at specific segments of the local market. In addition, as I explained previously, the local market has a certain price level that you must not exceed. And the offering must be absolutely unique yet highly desireable for the locals. It cannot be "new" food because the locals do not experiment with food, or it takes a really long time for "new" food to become integrated into the local palete. For success, it has to be something they already know (from international markets) but yet is not widely available here. If it is already widely available, it will be a losing proposition. On the other hand, any type of differentiated restaurant, bar or culinary experience in Sal will be a hit when tourists return.

Each of these ideas is very well defined. As you might imagine, I do not want to present every detail that defines these opportunities as I would essentially have to share the business canvas on this forum. I am not prepared to do so without receiving a fee for all the historical work I've done study, research and define these opportunities.

I am an English teacher from Ghana with a bachelors degree in English. what are the chances of me getting a teaching appointment in CV?

There is no chance that you will get a teaching appointment at a public school in CV, unless you can speak Portuguese. School teachers at all levels MUST be certified by the Ministry of Education which requires that you are fluent in Portuguese, pass certain tests and get selected. There are many Portuguese-speaking Englsih teachers in CV. The local university offers a degree in English. The graduates go on to teach English, offer translation and interpretation services, or go on to jobs in government or private industry where they require proficiency in English. I myself have hired graduating students from the English program at UNICV for certain projects sponsored by foreign investor clients. You could not compete against such candidates for teaching jobs.

There are also no private schools aimed at the local students which will employ you without proficiency in Portuguese as you will never be able to effectively communicate with local students.

However, there are dozens of foreign expats especially in Sal and Boavista who have been clamoring for years for a English-language private school to which they can send their English-speaking children (of primary and seconady school age) to be educated in English. No one has stepped up to take advantage of this opportunity. Of course, at this moment, this is not a current opportunity as most of the foreigners left when tourism came to a halt. But now is the time to plan such a prject for implementation when foreign expats and investors return in large numbers to Cape Verde.

Lastly how much does an average single room cost to rent in CV?

Single bedroom flat with bathroom and kitchen will rent for 15.000-20.000 escudos in Praia, the capital. The higher price will give you more amenities and a better neighborhood. In São Vicente the range is wider ... it will start below 15.000 and go higher than 20.000 escudos depending on neighborhood and age/style of the building. If you want a private room with a shared bathroom or kitchen (very poor area), you will pay 10.000 escudos or less. In Sal and Boavista, rents are higher because they were driven up by foreigners .... and they have not declined even though the demand is very low.

If you walk around and let everyone know that you are a foreigner or new arrival in CV, expect to pay at least 50% more than the prices I noted above. Local business owners take advantage of foreigners as they believe foreigners are very wealthy (from their perspective) and can easily afford higher prices for everything.

Best regards,

Angelo

Rizlabantin wrote:

explicit replies. thank you for your education. can you please educate us on some of the new springing up businesses in CV?

1. I am an English teacher from Ghana with a bachelors degree in English. what are the chances of me getting a teaching appointment in CV?

Lastly how much does an average single room cost to rent in CV?

Angelo,
   thank you so much and ,may the Lord bless your kindness