S&P Global Ratings affirmed Cape Verde's B+/B sovereign rating with a positive outlook on August 7, 2026, months after upgrading it from B in February on the strength of tourism, remittances and reserves above €1 billion.
Simultaneously, regulator ARME extended tariff relief through December: a 70% discount on the August electricity increase for regular customers and a full 100% discount for social-tariff beneficiaries, costing the government an estimated €1.18 million in July alone.
The IMF, meanwhile, has called Cape Verde's debt sustainable but vulnerable, with high risk of overall debt distress, and recommended tariffs be set at cost-recovery levels — advice the government is currently declining to follow.
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