Cabo Verde Economy Profile - Doing Business 2020
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Doing Business 2020 Cabo Verde
Economy Profile
Cabo Verde
Page 1
Doing Business 2020 Cabo Verde
Economy Profile of Cabo Verde
Doing Business 2020 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety
mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and the
transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as well as postfiling
processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for
insolvency
Employing workers Flexibility in employment regulation and redundancy cost
Page 2Doing Business 2020 Cabo Verde
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and
regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life
cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative indicators on regulation for
starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across
borders, enforcing contracts and resolving insolvency. Doing Business also measures features of employing workers. Although Doing Business does not present rankings
of economies on the employing workers indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages
economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector
researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational studies, which exhaustively cover business regulation and reform in different cities and regions within a nation.
These studies provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected
cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked.
The first Doing Business study, published in 2003, covered 5 indicator sets and 133 economies. This year’s study covers 11 indicator sets and 190 economies. Most
indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013
(Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business also collected data
for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from
feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the
regulatory environment for business around the world.
To learn more about Doing Business please visit doingbusiness.org
Page 3Doing Business 2020 Cabo Verde
Ease of Doing Business in
Region Sub-Saharan Africa DB RANK DB SCORE
Cabo Verde
Income Category Lower middle income
Population 543,767 137 55.0
City Covered Praia
Rankings on Doing Business topics - Cabo Verde
50 52
69
87
109
121
144
154
170 168
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Topic Scores
84.5 74.6 54.7 68.8 35.0 24.0 74.8 69.1 64.8 0.0
Starting a Business (rank) 121 Getting Credit (rank) 144 Trading across Borders (rank) 109
Score of starting a business (0-100) 84.5 Score of getting credit (0-100) 35.0 Score of trading across borders (0-100) 69.1
Procedures (number) 9 Strength of legal rights index (0-12) 1 Time to export
Time (days) 9 Depth of credit information index (0-8) 6 Documentary compliance (hours) 24
Cost (number) 13 Credit registry coverage (% of adults) 20.0 Border compliance (hours) 72
Paid-in min. capital (% of income per capita) 0.0 Credit bureau coverage (% of adults) 0.0 Cost to export
Documentary compliance (USD) 125
Dealing with Construction Permits (rank) 50 Protecting Minority Investors (rank) 170 Border compliance (USD) 641
Score of dealing with construction permits (0-100) 74.6 Score of protecting minority investors (0-100) 24.0 Time to export
Procedures (number) 17 Extent of disclosure index (0-10) 1.0 Documentary compliance (hours) 24
Time (days) 101 Extent of director liability index (0-10) 5.0 Border compliance (hours) 60
Cost (% of warehouse value) 1.0 Ease of shareholder suits index (0-10) 6.0 Cost to export
Building quality control index (0-15) 11.0 Extent of shareholder rights index (0-6) 0.0 Documentary compliance (USD) 125
Extent of ownership and control index (0-7) 0.0 Border compliance (USD) 588
Getting Electricity (rank) 154 Extent of corporate transparency index (0-7) 0.0
Score of getting electricity (0-100) 54.7 Enforcing Contracts (rank) 52
Procedures (number) 6 Paying Taxes (rank) 87 Score of enforcing contracts (0-100) 64.8
Time (days) 81 Score of paying taxes (0-100) 74.8 Time (days) 425
Cost (% of income per capita) 1,309.8 Payments (number per year) 30 Cost (% of claim value) 19.8
Reliability of supply and transparency of tariff index (0-8) 1 Time (hours per year) 180 Quality of judicial processes index (0-18) 7.5
Total tax and contribution rate (% of profit) 37.5
Registering Property (rank) 69 Postfiling index (0-100) 80.7 Resolving Insolvency (rank) 168
Score of registering property (0-100) 68.8 Score of resolving insolvency (0-100) 0.0
Procedures (number) 6 Recovery rate (cents on the dollar) No
Time (days) 19 Practice
Cost (% of property value) 2.2 Time (years) No
Practice
Quality of the land administration index (0-30) 12.0
Cost (% of estate) No
Practice
Outcome (0 as piecemeal sale and 1 as 0
going concern)
Strength of insolvency framework index (0- No
16) Practice
Page 4Doing Business 2020 Cabo Verde
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and
formally operate in each economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to
10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of
operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one
company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their
scores for starting a business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate a company To make the data comparable across economies, several assumptions about the business and the
(number) procedures are used. It is assumed that any required information is readily available and that the
entrepreneur will pay no bribes.
• Preregistration (for example, name verification or reservation,
notarization)
The business:
• Registration in the economy’s largest business city -Is a limited liability company (or its legal equivalent). If there is more than one type of limited
• Postregistration (for example, social security registration, liability company in the economy, the limited liability form most common among domestic firms is
company seal) chosen. Information on the most common form is obtained from incorporation lawyers or the
statistical office.
• Obtaining approval from spouse to start a business or to leave
-Operates in the economy’s largest business city. For 11 economies the data are also collected for
the home to register the company
the second largest business city.
• Obtaining any gender specific document for company -Performs general industrial or commercial activities such as the production or sale to the public of
registration and operation or national identification card goods or services. The business does not perform foreign trade activities and does not handle
products subject to a special tax regime, for example, liquor or tobacco. It is not using heavily
Time required to complete each procedure (calendar days)
polluting production processes.
• Does not include time spent gathering information -Does not qualify for investment incentives or any special benefits.
-Is 100% domestically owned.
• Each procedure starts on a separate day (2 procedures cannot -Has five business owners, none of whom is a legal entity. One business owner holds 30% of the
start on the same day)
company shares, two owners have 20% of shares each, and two owners have 15% of shares
• Procedures fully completed online are recorded as ½ day each.
• Procedure is considered completed once final document is -Is managed by one local director.
received -Has between 10 and 50 employees one month after the commencement of operations, all of them
domestic nationals.
• No prior contact with officials -Has start-up capital of 10 times income per capita.
-Has an estimated turnover of at least 100 times income per capita.
Cost required to complete each procedure (% of income per
-Leases the commercial plant or offices and is not a proprietor of real estate.
capita)
-Has an annual lease for the office space equivalent to one income per capita.
• Official costs only, no bribes -Is in an office space of approximately 929 square meters (10,000 square feet).
-Has a company deed that is 10 pages long.
• No professional fees unless services required by law or
commonly used in practice
The owners:
Paid-in minimum capital (% of income per capita)
-Have reached the legal age of majority and are capable of making decisions as an adult. If there
• Funds deposited in a bank or with third party before registration is no legal age of majority, they are assumed to be 30 years old.
or up to 3 months after incorporation -Are in good health and have no criminal record.
-Are married, the marriage is monogamous and registered with the authorities.
-Where the answer differs according to the legal system applicable to the woman or man in
question (as may be the case in economies where there is legal plurality), the answer used will be
the one that applies to the majority of the population.
Page 5Doing Business 2020 Cabo Verde
Starting a Business - Cabo Verde
Standardized Company
Legal form Sociedade por Quotas de Responsabilidade Limitada (LDA)
Paid-in minimum capital requirement CVE 1
City Covered Praia
Indicator Cabo Verde Sub-Saharan OECD high Best Regulatory
Africa income Performance
Procedure – Men (number) 9 7.4 4.9 1 (2 Economies)
Time – Men (days) 9 21.5 9.2 0.5 (New Zealand)
Cost – Men (% of income per capita) 13.0 36.3 3.0 0.0 (2 Economies)
Procedure – Women (number) 9 7.5 4.9 1 (2 Economies)
Time – Women (days) 9 21.6 9.2 0.5 (New Zealand)
Cost – Women (% of income per capita) 13.0 36.3 3.0 0.0 (2 Economies)
Paid-in min. capital (% of income per capita) 0.0 9.3 7.6 0.0 (120 Economies)
Figure – Starting a Business in Cabo Verde – Score
52.9 91.5 93.5 100.0
Procedures Time Cost Paid-in min. capital
Figure – Starting a Business in Cabo Verde and comparator economies – Ranking and Score
DB 2020 Starting a Business Score
0 100
91.2: Senegal (Rank: 60)
84.6: Gambia, The (Rank: 119)
84.5: Cabo Verde (Rank: 121)
84.5: Guinea (Rank: 122)
80.1: Regional Average (Sub-Saharan Africa)
75.5: Guinea-Bissau (Rank: 161)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of
the scores for each of the component indicators.
Page 6Doing Business 2020 Cabo Verde
Figure – Starting a Business in Cabo Verde – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
9 10
8
Cost (% of income per capita)
8
7
6
Time (days)
6
5
4
4
3
2
2
1
0 0
1 2 3 4 5 *6 *7 *8 *9
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
reflected here, see the summary below.
Page 7Doing Business 2020 Cabo Verde
Details – Starting a Business in Cabo Verde – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Verify the availability and reserve the proposed company name 1 day CVE 600
Agency : Commercial Registry Department (Casa do Cidadão)
Business founders must provide the proposed company name and purpose in order to verify the
availability for the name. A research is completed at the Commercial Registry Department (Casa
do Cidadão), which then approves or rejects the proposed name. The firm registry is
computerized, allowing for a fast verification process.
A list of pre-approved names is also available at the Commercial Registry Department, although
entrepreneurs usually reserve their own proposed company names.
2 Deposit the initial capital in a bank 1 day no charge
Agency : Commercial Bank
The initial capital must be deposited in a bank. For companies not incorporated under the fast-
track plan "Empresa no Dia", the paid-in minimum amount must be deposited prior to registration.
According to article 277 of the Commercial Code (Código de Empresas Comerciais), proof of
deposit must be presented at the time of the application for registration of the company.
3 Register the company and obtain the publication of a notice of incorporation 1 day CVE 10,000 (registration
Agency : Commercial Registry Department (Casa do Cidadão) fee) + CVE 1,000
Once the entrepreneur goes to the Commercial Registry Department (Casa do Cidadão), the (chamber of commerce
company’s registration is completed through an internal online registration system. The fee)
incorporation notice is published in the Casa do Cidadão website and its cost is included in the
company registration fee. The tax identification number can be obtained automatically and it is
free of charge.
4 Request inspection and obtain municipal license 1 day CVE 30,000
Agency : Municipality
There are two types of licenses which may be required in Praia, according to the company's
activity: the municipal license and the license by activity. The municipal license is mandatory for all
businesses operating in Praia.
Since the approval of resolution n° 05/2019 in February 2019 — which simplifies the access and
exercise of commercial activity in the city of Praia — general businesses have been able to obtain
a license immediately.
The license is issued after entrepreneurs submit the communication of the beginning of activity
and all the required documents at the one-stop-shop (balcão único). The service then
automatically issues the license for the required activity
Among the required documents is the request for inspection of the commercial establishment,
which occurs within the first 15 days of the business' operations.
The status of the license can be checked online through the following web portal:
https://lojacmp.com/?secao=processo
5 Receive inspection of business premises 1 day no charge
Agency : Municipality
According to the deliberation nº 05/19 of February 2019, the municipal license is mandatory for all
business operating in Praia. Since the approval of said resolution, the license is granted at the
time of request and inspection is carried out within 10 days of entry into operation to verify
compliance to the norms.
6 Obtain and legalize the company books 3 days (simultaneous CVE 2,000
Agency : National Print (Imprensa Nacional) with previous procedure)
These books can be purchased at the “Imprensa Nacional” National Print for CVE 2,000. All pages
have to be signed and stamped by the local tax department.
7 Register workers with the Social Security Office (Instituto Nacional de Previdência Social) 1 day (simultaneous with no charge
Agency : Social Security office (Instituto Nacional de Previdência Social) previous procedure)
Business founders must register with Social Security. The (Instituto Nacional de Previdência
Social - INPS) provides a form must be submitted by the employer and / or the insured workers
within 30 days of the start of the activity, together with the workers' first sheet of ordinances and
salaries, photocopy of Identity Card; photography.
Registration at the Social Security Office (Instituto Nacional de Previdência Social - INPS) is free
of charge.
8 Register workers for accident insurance 1 day (simultaneous with no charge
Agency : Insurance company previous procedure)
Business founders must register workers with accident insurance at any insurance company.
Page 8Doing Business 2020 Cabo Verde
9 Notify the Labor Inspectorate of the start of operations 1 day (simultaneous with no charge
Agency : Labor Inspectorate (Inspecção-Geral do Trabalho) previous procedure)
Prior to the start of operations, business founder must submit a notification of commencement of
operations to the Labor Inspectorate (Inspecção-Geral do Trabalho), informing the company's
name, type of activity, address, names and address of each manager and director and the number
of employees. This notification has no cost and it is foreseen by Art. 16 of the Decree-Law
13/2012.
Takes place simultaneously with previous procedure.
Page 9Doing Business 2020 Cabo Verde
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications,
requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building
quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional
certification requirements. The most recent round of data collection was completed in May 2019. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction
company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining all necessary
clearances, licenses, permits and certificates
The construction company (BuildCo):
• Submitting all required notifications and receiving all necessary - Is a limited liability company (or its legal equivalent) and operates in the economy’s largest
inspections
business city. For 11 economies the data are also collected for the second largest business city.
• Obtaining utility connections for water and sewerage - Is 100% domestically and privately owned; has five owners, none of whom is a legal entity. Has a
licensed architect and a licensed engineer, both registered with the local association of architects
• Registering and selling the warehouse after its completion
or engineers. BuildCo is not assumed to have any other employees who are technical or licensed
Time required to complete each procedure (calendar days) experts, such as geological or topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse upon its
• Does not include time spent gathering information completion.
• Each procedure starts on a separate day—though procedures
that can be fully completed online are an exception to this rule The warehouse:
• Procedure is considered completed once final document is - Will be used for general storage activities, such as storage of books or stationery.
received - Will have two stories, both above ground, with a total constructed area of approximately 1,300.6
square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will be
• No prior contact with officials located on a land plot of approximately 929 square meters (10,000 square feet) that is 100%
owned by BuildCo, and the warehouse is valued at 50 times income per capita.
Cost required to complete each procedure (% of income per
- Will have complete architectural and technical plans prepared by a licensed architect. If
capita)
preparation of the plans requires such steps as obtaining further documentation or getting prior
• Official costs only, no bribes approvals from external agencies, these are counted as procedures.
- Will take 30 weeks to construct (excluding all delays due to administrative and regulatory
Building quality control index (0-15) requirements).
• Quality of building regulations (0-2)
The water and sewerage connections:
• Quality control before construction (0-1)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water
• Quality control during construction (0-3) delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage
• Quality control after construction (0-3) infrastructure, a septic tank in the smallest size available will be installed or built.
- Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow
• Liability and insurance regimes (0-2) of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and
• Professional certifications (0-4) a peak wastewater flow of 1,136 liters (300 gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the year; will be 1
inch in diameter for the water connection and 4 inches in diameter for the sewerage connection.
Page 10Doing Business 2020 Cabo Verde
Dealing with Construction Permits - Cabo Verde
Standardized Warehouse
Estimated value of warehouse CVE 16,706,910.20
City Covered Praia
Indicator Cabo Verde Sub-Saharan OECD high Best Regulatory
Africa income Performance
Procedures (number) 17 15.1 12.7 None in 2018/19
Time (days) 101 145.4 152.3 None in 2018/19
Cost (% of warehouse value) 1.0 8.9 1.5 None in 2018/19
Building quality control index (0-15) 11.0 8.9 11.6 15.0 (6 Economies)
Figure – Dealing with Construction Permits in Cabo Verde – Score
52.0 78.4 94.9 73.3
Procedures Time Cost Building quality control index
Figure – Dealing with Construction Permits in Cabo Verde and comparator economies – Ranking and Score
DB 2020 Dealing with Construction Permits Score
0 100
74.6: Cabo Verde (Rank: 50)
65.9: Guinea (Rank: 116)
62.1: Senegal (Rank: 131)
59.4: Gambia, The (Rank: 145)
58.5: Regional Average (Sub-Saharan Africa)
45.2: Guinea-Bissau (Rank: 177)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores
are the simple average of the scores for each of the component indicators.
Page 11Doing Business 2020 Cabo Verde
Figure – Dealing with Construction Permits in Cabo Verde – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
100 0.5
Cost (% of warehouse value)
80 0.4
Time (days)
60 0.3
40 0.2
20 0.1
0 0
1 2 3 4 5 6 7 8 9 10 11 12 * 13 14 15 * 16 * 17
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
reflected here, see the summary below.
Page 12Doing Business 2020 Cabo Verde
Figure – Dealing with Construction Permits in Cabo Verde and comparator economies – Measure of Quality
14
12.0
12 11.0
10.0
10
Index score
8.9
8 7.0
6
4 3.5
2
0
Cabo Gambia, Guinea Guinea-Bissau Senegal Sub-Saharan
Verde The Africa
Details – Dealing with Construction Permits in Cabo Verde – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain Plot Certificate (certidão matricial) 7 days CVE 1,243
Agency : Municipality (Camara Municipal do Praia)
A plot/cadaster certificate (Certidão Matricial) must be obtained at the Municipality in order to
obtain a property title (Certidão Predial) from the property registry.
2 Request and obtain property title from Property Registry 7 days no charge
Agency : Property Registry
BuildCo. can request the property title, which is a requirement to request the plot map from the
municipality.
3 Request plot map from Municipality 15 days CVE 2,000
Agency : Municipality
The plot map must be recent (no older than one year). To produce the plot map, the Municipality
must send an expert to the actual plot. The following documents need to be submitted: location
plan (updated after 1 year), zone number, owner, and number of floors to be built. The plot map
will show any traffic impact such as parking spaces needed.
The Municipality issues this permit only if all tax charges have been paid. To prove that all taxes
have been paid, BuildCo presents its IUP (Imposto Único sobre o Património) payment receipt.
The IUP is a receipt for transfer of property, obtained when purchasing the property.
The entrepreneur requests the plot map and the Municipality sends an inspector to the site. After
the inspection, the Municipality issues a second plot map that must be signed by the Secretary
Director, after which BuildCo pays the fee and obtains the plot map.
4 Receive inspection from Municipality to obtain plot map 1 day no charge
Agency : Municipality
For new plot maps that are not digitally mapped an inspection from the Municipality is required to
confirm the measurements and ensure that there are no clandestine constructions on the plot.
5 Submit and obtain approval of architectural plans from Municipality 15 days CVE 20,000
Agency : Municipality
The architectural plans can be completed by any registered architect. There is no requirement to
hire an architect with any special license to draw the plans. After the architectural plans are
completed, the architect usually submits two copies in paper and one copy in .DWG format or
PDF to the City Hall for approval, along with the plot map and a statement from the architect who
produced the plans.
The plans are reviewed by different municipal departments. After the plans are approved, the
company must collect them at the City Hall and pay the approval fee, which varies by type of
project. From October 2012, there is an official 15-day time limit for the Municipality to approve the
architectural plans. A municipal inspection is necessary for enabling this procedure.
Costs for the approval of the architectural plans depend on the area and the number of floors.
6 Submit structural plans to Municipality 1 day CVE 20,000
Agency : Municipality
The company must submit the plans along with an affidavit from the responsible engineer. The
approval of the structural plans is tacit and no further review takes place by the municipal
authorities.
7 Request and obtain building permit 14 days CVE 75,000
Agency : Municipality
The company must submit a form requesting the permit along with proof of its license showing
that it is authorized to carry out the type of project in the request. The same form can be used for
a new construction or for an extension of an existing permit. This form includes the dates of
approval of architectural and structural plans, the information about the land owner, and the
information about the responsible architect or engineer. The fee is based on the construction
project's size, traffic impact, and duration (3, 6, or 12 months).
Page 13Doing Business 2020 Cabo Verde
8 Receive a pre-construction visit 1 day no charge
Agency : Municipality
An officer from the Municipality visits the plot and marks the location of the construction before the
work starts. It may take up to 30 days for the Municipality to conduct the inspection, as there is a
limit to the number of site inspections that can be done per week. BuildCo will receive an "Auto de
consignação da obra" which authorizes it to begin the construction project.
9 Receive a random inspection by Municipality 1 day no charge
Agency : Municipality
During construction, there are two types of inspection to check for: (1) the building permit was
granted and (2) construction is being carried out according to the plan. Although the first type is
almost always done once, the second type hardly ever occurs barring a problem with construction.
Likewise, the Labor Inspectorate inspects only after an accident happens. BuildCo. can receive
the inspection once the pre-inspection visit has been conducted.
10 Notify the Municipality about completion of construction and request occupancy permit 1 day CVE 2,000
Agency : Municipality
BuildCo must notify the Municiaplity about the completion of construction and formally request a
"certificado de habitabildade". If any changes are made to the initial approved plans, BuildCo
submits a request with the re-drawn plans. The Municipality should set a final inspection date.
11 Receive final inspection from Municipality 1 day no charge
Agency : Municipality
During the final inspection over the course of a few hours, the entire building -plumbing, wood
work, etc- is checked to ensure that it was completed according to the plan. The inspection is
carried out by engineers and architects employed by the municipality.
12 Obtain occupancy permit 22 days no charge
Agency : Municipality
An occupancy permit is required before BuildCo can request the utility connections. BuildCo. can
receive the occupancy permit once the municipal inspection has been conducted.
Request water and sewage connection 1 day CVE 50,000
13 Agency : ADS
At this stage, BuildCo submits the water and sewage plans for approval. If the warehouse is not
far from one of the water mains, the connection is made free of charge, and the user pays only for
consumption. Normally, the company builds the connection up to the point at which it becomes
free of charge (to save time and money). To get connected, the applicant must submit the
certificate of occupancy. However, in practice, consumers are connected without the occupancy
permit.
14 Receive water and sewage inspection 1 day no charge
Agency : ADS
Electra officers conduct an inspection for the connection to water and sewage
15 Obtain water and sewage connection 14 days no charge
Agency : AGS
BuildCo. receives connection to water and sewage
Register the building with the Property Registry (certidão predial) 2 days CVE 176
16 Agency : Property Registry
BuildCo must register the building with the Property Registry if it wants to sell the property.
Register the building at the Municipality (certidão matricial) 7 days CVE 1,243
17 Agency : Municipality
BuildCo submits an application stating that there is a new building on the land so that the
certificate can be updated.
Takes place simultaneously with previous procedure.
Page 14Doing Business 2020 Cabo Verde
Details – Dealing with Construction Permits in Cabo Verde – Measure of Quality
Answer Score
Building quality control index (0-15) 11.0
Quality of building regulations index (0-2) 1.0
How accessible are building laws and regulations in your economy? (0-1) Available online; Free 1.0
of charge.
Which requirements for obtaining a building permit are clearly specified in the building regulations or on any List of required 0.0
accessible website, brochure or pamphlet? (0-1) documents.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in compliance with existing Licensed architect. 1.0
building regulations? (0-1)
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by in- 1.0
house engineer;
Unscheduled
inspections.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance with the approved Yes, final inspection 2.0
plans and regulations? (0-2) is done by
government agency.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 2.0
Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use Architect or engineer; 1.0
(Latent Defect Liability or Decennial Liability)? (0-1) Professional in
charge of the
supervision;
Construction
company.
Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or Architect or engineer; 1.0
problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) Professional in
charge of the
supervision.
Professional certifications index (0-4) 2.0
What are the qualification requirements for the professional responsible for verifying that the architectural plans University degree in 1.0
or drawings are in compliance with existing building regulations? (0-2) architecture or
engineering; Being a
registered architect or
engineer.
What are the qualification requirements for the professional who supervises the construction on the ground? (0- University degree in 1.0
2) engineering,
construction or
construction
management; Being
a registered architect
or engineer.
Page 15Doing Business 2020 Cabo Verde
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally,
the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data
collection for the project was completed in May 2019. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection (number) To make the data comparable across economies, several assumptions about the warehouse, the
electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining all necessary
clearances and permits
The warehouse:
• Completing all required notifications and receiving all necessary - Is owned by a local entrepreneur and is used for storage of goods.
inspections
- Is located in the economy’s largest business city. For 11 economies the data are also collected for
• Obtaining external installation works and possibly purchasing the second largest business city.
material for these works - Is located in an area where similar warehouses are typically located and is in an area with no
physical constraints. For example, the property is not near a railway.
• Concluding any necessary supply contract and obtaining final
supply - Is a new construction and is being connected to electricity for the first time.
- Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square
Time required to complete each procedure (calendar days) feet). The plot of land on which it is built is 929 square meters (10,000 square feet).
• Is at least 1 calendar day The electricity connection:
• Each procedure starts on a separate day - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-
• Does not include time spent gathering information kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW).
- Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution
• Reflects the time spent in practice, with little follow-up and no network and is either overhead or underground, whichever is more common in the area where the
prior contact with officials
warehouse is located and requires works that involve the crossing of a 10-meter road (such as by
excavation or overhead lines) but are all carried out on public land. There is no crossing of other
Cost required to complete each procedure (% of income per
owners’ private property because the warehouse has access to a road.
capita)
- Does not require work to install the internal wiring of the warehouse. This has already been
• Official costs only, no bribes completed up to and including the customer’s service panel or switchboard and the meter base.
• Value added tax excluded
The monthly consumption:
The reliability of supply and transparency of tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours
• Duration and frequency of power outages (0–3) a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts
• Tools to monitor power outages (0–1) (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours
(kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier.
• Regulatory monitoring of utilities’ performance (0–1) - Tariffs effective in January of the current year are used for calculation of the price of electricity for
the warehouse. Although January has 31 days, for calculation purposes only 30 days are used.
• Financial deterrents limiting outages (0–1)
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial warehouse in case
study
*Note: Doing Business measures the price of electricity, but it is
not included in the ease of doing business score nor in the ranking
on the ease of getting electricity.
Page 16Doing Business 2020 Cabo Verde
Getting Electricity - Cabo Verde
Standardized Connection
Name of utility Empresa de Electricidade E Agua (Electra)
Price of electricity (US cents per kWh) 26.3
City Covered Praia
Indicator Cabo Verde Sub-Saharan OECD high Best Regulatory
Africa income Performance
Procedures (number) 6 5.2 4.4 3 (28 Economies)
Time (days) 81 109.6 74.8 18 (3 Economies)
Cost (% of income per capita) 1309.8 3,187.5 61.0 0.0 (3 Economies)
Reliability of supply and transparency of tariff index (0-8) 1 1.6 7.4 8 (26 Economies)
Figure – Getting Electricity in Cabo Verde – Score
50.0 72.6 83.8 12.5
Procedures Time Cost Reliability of supply and transparency of tariff index
Figure – Getting Electricity in Cabo Verde and comparator economies – Ranking and Score
DB 2020 Getting Electricity Score
0 100
65.2: Senegal (Rank: 119)
55.3: Guinea (Rank: 150)
54.7: Cabo Verde (Rank: 154)
50.4: Regional Average (Sub-Saharan Africa)
49.6: Gambia, The (Rank: 165)
29.7: Guinea-Bissau (Rank: 182)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the
scores for all the component indicators except the price of electricity.
Figure – Getting Electricity in Cabo Verde – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
80 1200
70
Cost (% of income per capita)
1000
60
800
Time (days)
50
40 600
30
400
20
200
10
0 0
1 2 3 *4 *5 6
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
Page 17Doing Business 2020 Cabo Verde
reflected here, see the summary below.
Figure – Getting Electricity in Cabo Verde and comparator economies – Measure of Quality
6
5
5
Index score
4
3
2 1.6
1
1
0 0 0
0
Cabo Gambia, Guinea Guinea-Bissau Senegal Sub-Saharan
Verde The Africa
Page 18Doing Business 2020 Cabo Verde
Details – Getting Electricity in Cabo Verde – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application to Electra and await for a site inspection 10 calendar days CVE 0
Agency : Empresa de Electricidade e Água (Electra)
Applications must be submitted in person. Documents to be submitted are location plans,
electrical plans of the internal wiring of the warehouse for approval by the utility, NIF (tax number)
and the terms of responsibility of the electrician who did the internal wiring. This electrician has to
be registered with Electra. An electrical description and design with information on the machines
that will be used and how much power they will require must also be submitted.
2 Receive site inspection and await for the report and approval of the connection from 4 calendar days CVE 0
Electra
Agency : Empresa de Electricidade e Água (Electra)
After submitting the documents, there is an external inspection to prepare an estimate. Each
neighborhood has an inspection once per week, so the waiting time for inspection can take
several days. Access to the inspection site has to be provided.
3 Have electrical contractor build transformer post 60 calendar days USD 33,075
Agency : Electrical Contractor
The private electrical contractors buys the material and builds the transformer post. A transformer
post has to be installed in the nearest tension.
4 Receive external connection works by Electra 7 calendar days CVE 1,146,000
Agency : Empresa de Electricidade e Água (Electra)
The customer must request and obtain the external connection works between the building and
the power grid. These are carried out by Electra.
The utility will also obtain an excavation permit from the Municipality (autorização para
excavação), in order to complete the works crossing a public road. The cost of the permit is
charged per meter and it is limited to CVE 6,000.
5 Receive internal wiring inspection by Electra 1 calendar day CVE 0
Agency : Empresa de Electricidade e Água (Electra)
Electra inspects the internal wiring of the warehouse to verify that it complies with the norms.
6 Sign contract with Electra and receive inspection of transformer post and final connection 7 calendar days CVE 27,300
Agency : Empresa de Electricidade e Água (Electra)
The customer signs the supply contract with the utility. A representative from Electra installs the
meter and carries out the final connection. The meter will be installed at the same time as when
the final connection is done and by the same department of the utility. It would be installed on the
transformer post. Electricity starts flowing as soon as the installation of the meter is finished.
Takes place simultaneously with previous procedure.
Page 19Doing Business 2020 Cabo Verde
Details – Getting Electricity in Cabo Verde – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 1
Total duration and frequency of outages per customer a year (0-3) 0
System average interruption duration index (SAIDI) 18.3
System average interruption frequency index (SAIFI) 13.1
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 0.0
Mechanisms for monitoring outages (0-1) 0
Does the distribution utility use automated tools to monitor outages? No
Mechanisms for restoring service (0-1) 0
Does the distribution utility use automated tools to restore service? No
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply? Yes
Financial deterrents aimed at limiting outages (0-1) 0
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages exceed a certain cap? No
Communication of tariffs and tariff changes (0-1) 0
Are effective tariffs available online? Yes
Link to the website, if available online http://www.electra.cv/inde
x.php/2014-05-20-16-30-
16/2014-06-08-00-47-
39/tarifas ;
http://www.consumidor.ar
me.cv/index.php/destaque
s/167-arme-atualiza-
tarifas-de-eletricidade-e-
agua-para-electra-e-aeb
Are customers notified of a change in tariff ahead of the billing cycle? No
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 20Doing Business 2020 Cabo Verde
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a
building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality
of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access
to property rights. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on immovable property To make the data comparable across economies, several assumptions about the parties to the
(number) transaction, the property and the procedures are used.
• Preregistration procedures (for example, checking for liens, The parties (buyer and seller):
notarizing sales agreement, paying property transfer taxes)
- Are limited liability companies (or the legal equivalent).
• Registration procedures in the economy's largest business city. - Are located in the periurban (that is, on the outskirts of the city but still within its official limits)
• Postregistration procedures (for example, filling title with area of the economy’s largest business city. For 11 economies the data are also collected for the
municipality) second largest business city.
- Are 100% domestically and privately owned.
Time required to complete each procedure (calendar days) - Perform general commercial activities.
• Does not include time spent gathering information
The property (fully owned by the seller):
• Each procedure starts on a separate day - though procedures
- Has a value of 50 times income per capita, which equals the sale price.
that can be fully completed online are an exception to this rule
- Is fully owned by the seller.
• Procedure is considered completed once final document is - Has no mortgages attached and has been under the same ownership for the past 10 years.
received - Is registered in the land registry or cadastre, or both, and is free of title disputes.
• No prior contact with officials - Is located in a periurban commercial zone (that is, on the outskirts of the city but still within its
official limits), and no rezoning is required.
Cost required to complete each procedure (% of property - Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two-
value) story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse
is 10 years old, is in good condition, has no heating system and complies with all safety standards,
• Official costs only (such as administrative fees, duties and building codes and legal requirements. The property, consisting of land and building, will be
taxes).
transferred in its entirety.
• Value Added Tax, Capital Gains Tax and illicit payments are - Will not be subject to renovations or additional construction following the purchase.
excluded - Has no trees, natural water sources, natural reserves or historical monuments of any kind.
- Will not be used for special purposes, and no special permits, such as for residential use,
Quality of land administration index (0-30) industrial plants, waste storage or certain types of agricultural activities, are required.
• Reliability of infrastructure index (0-8) - Has no occupants, and no other party holds a legal interest in it.
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 21Doing Business 2020 Cabo Verde
Registering Property - Cabo Verde
Indicator Cabo Verde Sub-Saharan OECD high Best Regulatory
Africa income Performance
Procedures (number) 6 6.1 4.7 1 (5 Economies)
Time (days) 19 51.6 23.6 1 (2 Economies)
Cost (% of property value) 2.2 7.3 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 12.0 9.0 23.2 None in 2018/19
Figure – Registering Property in Cabo Verde – Score
58.3 91.4 85.5 40.0
Procedures Time Cost Quality of the land administration index
Figure – Registering Property in Cabo Verde and comparator economies – Ranking and Score
DB 2020 Registering Property Score
0 100
68.8: Cabo Verde (Rank: 69)
58.3: Senegal (Rank: 116)
56.9: Guinea (Rank: 122)
54.5: Guinea-Bissau (Rank: 132)
53.6: Regional Average (Sub-Saharan Africa)
50.9: Gambia, The (Rank: 143)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of
the scores for each of the component indicators.
Page 22Doing Business 2020 Cabo Verde
Figure – Registering Property in Cabo Verde – Procedure, Time and Cost
Time (days) Cost (% of property value)
1.6
18
1.4
16
Cost (% of property value)
14 1.2
12
Time (days)
1
10
0.8
8
0.6
6
0.4
4
2 0.2
0 0
1 *2 3 4 5 6
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
reflected here, see the summary below.
Page 23Doing Business 2020 Cabo Verde
Figure – Registering Property in Cabo Verde and comparator economies – Measure of Quality
14
12.0
12
9.5 10.0
10
Index score
9.0
8
6.5
6
4 3.0
2
0
Cabo Gambia, Guinea Guinea-Bissau Senegal Sub-Saharan
Verde The Africa
Details – Registering Property in Cabo Verde – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain Property Tax Certificate (Certidão Matricial) at the Municipality 7 days CVE 1,243
Agency : Municipality (Camara Municipal do Praia)
It is necessary to obtain the "Certidão Matricial" (Tax Information Certificate) which includes the
value of the property plus information on who owns the property. This search is usually carried out
by a lawyer.
2 Obtain Ownership Certificate (Certidão Predial) at the Land Registry 2 days no charge
Agency : Land Registry (Conservatoria do Registo Predial)
The lawyer conducts a search at the Land Registry to obtain the Land Registry Certificate
(Certidão do Registo Predial) confirming that the seller is the owner of the Property, and has
exclusive legal rights to sell the property. This certificate will also show any charges against the
Property. The certificate is valid for 1 year.
3 Parties sign the Promissory Contract of Sale and Purchase 2 days CVE 70,000
Agency : Lawyer's office
Although the sale and purchase agreement can be prepared by anyone, the parties normally
contract a lawyer to draft it. Both parties sign the promissory contract (Contrato Promessa de
Compra e Venda), thus committing to the transaction. This agreement will provide the terms of the
sale, property details and price. Normally the buyer pays a deposit of 10% to 30% of the price
value when signing this contract.
4 Sign the transfer deed 5 days CVE 15,958
Agency : Notary
The execution of the public deed can be completed in front of any Notary of Cabo Verde. To
proceed with the execution, it will be necessary for each company to provide a copy of the
minutes of the meeting where the company decided to buy/sell the Property. According to Decreto
Lei nº 70/2009, de 30 de Dezembro, Section II, Notariado, Article 20 and in section III, Registro
Predial, Article 21, the notary cost and the registration fees (related to the Stamp Duty or "Imposto
do Selo") were both reduced from a percentage to a fixed rate.
5 Pay property transfer tax (IUP) and register the new owner at the Municipality. 1 day CVE 251,603.65; (1.5% of
Agency : Municipality (Camara Municipal do Praia) property value for IUP +
The Property Transfer Tax ("Imposto Unico do Patrimonio or IUP") should be paid within 30 days CVE 1,000 (Municipality
after the signature of the public deed. It is necessary to submit the IUP receipt to register the deed registration fee))
at the Land Registry.
6 Register the new public deed at the property registry (certidão do Registro Predial) 4 days CVE 24,150
Agency : Land Registry (Conservatoria do Registo Predial)
There is no provisional registration unless there is some problem with the property, but in general,
that does not happen. Registration is mandatory according to Art. 9 of Decreto Lei 10/2010.
Takes place simultaneously with previous procedure.
Page 24Doing Business 2020 Cabo Verde
Details – Registering Property in Cabo Verde – Measure of Quality
Answer Score
Quality of the land administration index (0-30) 12.0
Reliability of infrastructure index (0-8) 3.0
Type of land registration system in the economy: Title Registration
System
What is the institution in charge of immovable property registration? Conservatoria do
registo predial de
Praia
In what format are past and newly issued land records kept at the immovable property registry of the largest Computer/Scanned 1.0
business city of the economy —in a paper format or in a computerized format (scanned or fully digital)?
Is there a comprehensive and functional electronic database for checking for encumbrances (liens, mortgages, Yes 1.0
restrictions and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Camara Municipal de
Cabo Verde
In what format are past and newly issued cadastral plans kept at the mapping agency of the largest business Paper 0.0
city of the economy—in a paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for recording boundaries, checking plans and providing cadastral information Yes 1.0
(geographic information system)?
Is the information recorded by the immovable property registration agency and the cadastral or mapping agency Separate databases 0.0
kept in a single database, in different but linked databases or in separate databases?
Do the immovable property registration agency and cadastral or mapping agency use the same identification No 0.0
number for properties?
Transparency of information index (0–6) 4.0
Who is able to obtain information on land ownership at the agency in charge of immovable property registration Freely accessible by 1.0
in the largest business city? anyone
Is the list of documents that are required to complete any type of property transaction made publicly available– Yes, online 0.5
and if so, how?
Link for online access: http://www.rni.cv/cate
gory/cidadaos/registo
-predial/
Is the applicable fee schedule for any type of property transaction at the agency in charge of immovable property Yes, online 0.5
registration in the largest business city made publicly available–and if so, how?
Link for online access: http://www.rni.cv/cate
gory/cidadaos/registo
-predial/
http://www.rni.cv/dow
nload/tabelas-
emolumentares/
Does the agency in charge of immovable property registration agency formally commit to deliver a legally Yes, online 0.5
binding document that proves property ownership within a specific timeframe –and if so, how does it
communicate the service standard?
Link for online access: http://www.rni.cv/visa
o-geral-2/ (Tempo
médio de espera)
Is there a specific and independent mechanism for filing complaints about a problem that occurred at the agency No 0.0
in charge of immovable property registration?
Contact information:
Are there publicly available official statistics tracking the number of transactions at the immovable property Yes 0.5
registration agency?
Number of property transfers in the largest business city in 2018: 10474.0
Who is able to consult maps of land plots in the largest business city? Freely accessible by 0.5
anyone
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