Privatization of Cape Verde electricity sector

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.