On the 18th of January 2023, Decree-Law n.º 5/2023, of 17th January, came into force, which regulates the bases for the concession of the public service for internal regular air transport of passengers, cargo and mail, as well as  the basis of public service obligations.

The aforementioned legal diploma provides for the possibility, through a tender and the consequent conclusion of a concession contract, for one or more air carriers to operate regularly on a route, on a set or on all national internal routes, as well as the possibility of concession under a of exclusivity when the public interest and/or the costs and benefits justify it.

All certified and validly licensed air carriers operating or intending to operate on Cape Verde’s internal air routes are subject to the aforementioned legal diploma.

Moreover, under the terms of the same legal diploma, a number of aspects are regulated, including:

• The possibility of remuneration for the concession, either through financial compensation to the concessionaire, or through payment of an income to the granting entity;
• Compulsory civil liability insurance; insurance relating to concession risks; civil liability insurance to cover material and bodily damage caused to third parties; etc.

Finally, with regard to public service obligations, the Decree-Law in question provides for the possibility of imposing the blockade up to seventy-two hours before departure of the flight, to and from Santiago and São Vicente, a maximum of three places for the transport of patients evacuated by medical order.

Concession, Suspension and Revocation of the Certificate of Emigrant Investor

The Regulatory Decree no. 1/2023, of 16 January 2023, entered into force on 18 January 2023, regulating the administrative procedure for the concession, suspension and revocation of the certificate of emigrant investor.

The referred diploma arises by force of the provisions of paragraphs 4 and 6 of article 20 of Law no. 73/IX/2020, of 2 March, which establishes the norms that regulate direct investment by emigrants in Cape Verde.

According to the above mentioned Decree-Regulation, it is the responsibility of the service responsible for the execution of the Government policies regarding the Cape Verdean communities established abroad to issue the certificate of the emigrant investor.

It is worth highlighting that if the emigrant investor no longer meets the requirements for obtaining the status of emigrant investor, this same service may suspend the certificate until the causes that generated the suspension are resolved.

Besides that, the mentioned Regulating Decree establishes as one of the causes for revoking the certificate the erroneous or false information provided at the moment of submission of the certificate request.

Furthermore, under the terms of the same legal diploma, the said certificate is valid for a period of five (5) years, renewable for an equal period if the bearer still meets the necessary requirements for that renewal.

Finally, the above-mentioned diploma approves the model of the certificate of the emigrant investor.

Carla Monteiro, OneLegal Partner

With the objective of guaranteeing the sustainability, quality and competitiveness of tourism, eliminating clandestine and unfair competition experienced within this sector, so that the business environment is more attractive for enhancing Cape Verde’s tourism, in short, in order to consolidate Cape Verde as a tourist destination, Decree-Law no. 45/2022 (DL) was created.

The Decree-Law came into force on 8 October 2022, and it establishes the legal regime for the installation, management and operation of tourist accommodation projects.

The present legal diploma allows tourism agents and service providers to use the expression Morabeza – a typical Cape Verdean Creole word – as a tool to approach tourists and to demonstrate the kindness and hospitality of the Cape Verdean communities.

According to this DL, every action and/or initiative, promoted by tourism agents, whether welcoming, hosting or any other form that demonstrates hospitality, must be balanced so that the culture, language, habits and traditions of the host communities and tourists can be respected.

According to the same, any action or initiative of this nature must be exercised in harmony with the right to rest, well-being and raising the quality of life of the communities hosting tourism.

As regards the rights of tourists, they must be protected from all misleading information and advertising, in addition to the right to receive from the tourist accommodation establishment, in advance, objective, reliable and comprehensible information about the contracting of the services they offer, as well as the final prices, while, as a duty, they are required to comply with the rules of respect, politeness, coexistence, dress and hygiene so that they can properly use the tourist establishments and services, in addition to the duty to respect the traditions and social practices of the people in the host communities.

Its precepts state that any tourist activity that promotes child labour, sexual exploitation and in general any form of exploitation of the human being is prohibited, which shows a clear superior interest and respect for human rights.

It is also noted that all and any form of promotion, tolerance to any form of discrimination on the grounds of race, sex, gender, religious and ideological conviction, age and sexual orientation is also prohibited, under penalty of administrative, criminal or civil liability, as the case may be.

It also imposes a prohibition on refusing access to tourist resorts on the grounds listed above, among others. 

This DL also foresees the need for each tourist accommodation project to have a declaration of interest for tourism, as a way of recognizing its importance, as this declaration is the first procedural step in the licensing of the activity. The installation of these tourist developments is preceded by the issuing of a tourism installation license.

This Decree Law proceeds to classify these tourist resorts by category, with a view to attributing, confirming, or altering the typology, and when applicable, the group and category of the same.

In terms of monitoring, it is up to the competent authorities for tourism, the environment, local authorities and cultural heritage to ensure compliance with this legislation.

The administrative offences provided for in this statute are punishable by fines of up to PTE 300,000 (three hundred thousand escudos), if the offender is a natural person, or up to PTE 1,000,000 (one million escudos), if the offender is a legal person, in addition to the possibility of some accessory penalties.

The Decree-Law in question revoked Decree-Law No 35/2014 of 17 July, which establishes the Tourism Activity Exercise Regime in Rural Areas and Rural Zones, and Decree-Law No 4/94 of 14 March, which regulates aspects on the Installation of Hotel Establishments, Classification, Opening, Discipline and Operation.

By way of Resolution 8/2017, of August 3rd, 2017, the Cape Verde government launched an ambitious program for privatisations, concessions and public-private partnerships, which includes the electricity sector.

In this context, Decree-Law 52/2021, of July 21st, 2021, set in motion the privatization of the electricity state-owned company ELECTRA, S.A.. This will involve the split of ELECTRA S.A. into two companies, one for generation and the other for distribution of electricity, and the subsequent sale to a strategic partner, employees, immigrants and small investors. The two companies to be privatized (designated as “Empresa de Produção de Electricidade de Cabo Verde – EPEC S.A” and “Empresa de Distribuição de Eletricidade de Cabo Verde – EDEC S.A.,”) will be responsible for thermal power generation and distribution, respectively.

The process of splitting ELECTRA S.A. is set out in Decree-Law 34/2022, of July 27th, 2022, and will follow general commercial law. This is an opportunity for national and international electricity players to take the role of strategic operator of these companies.