Cape Verdean Public Companies Reduce Quarterly Losses to 2.2 ME

According to the SEE Performance Report, published by the State Enterprise Sector Monitoring Unit (UASE) and released by Cape Verde’s Ministry of Finance, for the second quarter of 2022, these companies recorded from April to June a total negative net result of over €2.2 million (247.1 million escudos), improving (83.8%) performance compared to the €13.8 million (1,527 million escudos) of losses in the same period of 2021.

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Six companies alone contributed 53.1% of Cape Verde’s SEE turnover in the second quarter of 2022

The business volume of these 33 companies, either wholly owned or state-owned, in areas such as transport, services, and media, among others, amounted in the same three months to more than €102 million (11,242 million escudos), equivalent to 21.3% of Cape Verde’s Gross Domestic Product (GDP).

This is an increase of 24% compared to more than €82.2 million (9,063 million escudos) in the second quarter of 2021, and a performance that “confirms the recovery of the economy after the impacts of the recent crises, however, still affected by the effects of the war in Ukraine, which has worsened the price of raw materials, energy, and basic necessities.

Of the total 33 companies, ASA (airport management), Electra (production and distribution of electricity and water), Emprofac (import of medicines), Enapor (port concessionaire), the state-owned real estate company IFH and Transportes Aereos de Cabo Verde (TACV), recorded a 31.9% increase in turnover, totaling €54.1 million (5,967 million escudos). These six companies alone contributed 53.1% of Cape Verde’s SEE turnover in the second quarter of 2022.

In 2020, the turnover of the Cape Verdean SEE was over €290.5 million (31,747 million escudos), equivalent to 19.1% of GDP, and in the previous year, still without the effects of the covid-19 pandemic, it amounted to over €399.4 million (43,660 million escudos), then representing 22.4% of GDP.

Overall, the 33 companies in Cape Verde’s SEE showed negative net results of more than €25.5 million( PTE 2,783 million) in 2021, when in 2020 they were also negative, by almost €34.7 million (PTE 3,795 million), and in the previous year also losses, but of €26.2 million (PTE 2,867 million).

The Cape Verdean SEE has seven companies linked to industry, agriculture, and fisheries, six in energy and water, five in the communications sector, five in transport, four in the financial and real estate area, three in the area of information and communication technologies, and another three in tourism and related areas, but the current government has an ongoing program of privatizations and concessions for some of these companies.

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(Featured image by  jorono via Pixabay)

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First published in Africa 21 Digital, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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