Cabo Verde’s Deputy Prime Minister and Finance Minister, Olavo Correia, on Monday 29 July, in Praia, will head the launch of the first capital-mounting operation of Pró Capital, according to official information.
Pró Capital is a publicly owned venture capital company that aims to boost the creation and development of Cape Verdean companies, with the aim of holding interests in companies with strong growth and development potential.
As part of the system to finance the country’s economy, with a financial allocation of 550 million escudos (US$5.5 million), the company’s objective is to finance the activities of micro, small and medium enterprises, up to a maximum of 49% of the capital, through a venture capital scheme.
The chairman of Pró Capital’s board of directors, Adalgisa Vaz, who was sworn in on 16 April, said at the time that her team’s role is also to promote and simplify the concept of venture capital.
Minister Olavo Correia said at the time that it will be the banking system that assesses the risk of the projects, “not the government,” and once the assessment is made the state can either take a stake of providing guarantees.
Venture capital is a type of financing that provides companies with stable financial means to manage their development plans and is one of the main sources of funding for young enterprises, business initiatives and risky investments with high-potential returns.