Can Cape Verde Compete with Nigeria and Ghana as West Africa’s Next Tech Powerhouse?

Cape Verde is making an ambitious push to become a leading digital hub in West Africa, challenging regional giants Nigeria and Ghana. At the center of this effort is the $45 million TechPark CV, located just outside the capital, Praia. The government envisions this tech park as a launchpad for startups, a magnet for global tech investment, and a showcase of how a small, stable nation can move quickly in the digital economy.

For a country of just over half a million people and a national budget under $1 billion, this investment is bold. But Pedro Lopes, Cape Verde’s Secretary of State for the Digital Economy, says that’s exactly the point: “We don’t aim to follow the tech narrative in West Africa. We want to reshape it.”

Building a Digital Island

Cape Verde’s strategy is multi-pronged. Over $100 million has been invested in digital infrastructure in the past two years, including a state-of-the-art submarine cable and 14,530 kilometers of fiber connectivity across the islands. The government is also investing in people through coding academies, English-language tech training, and engaging the diaspora to create a pipeline of local and international talent.

Lopes, one of Africa’s youngest digital economy ministers, was appointed at 31 and brings a youth-driven approach to the role. “It’s time to stop calling Africa the continent of the future,” he says. “For our youth, the future is now.”

Competing with the Giants

While Nigeria and Ghana have established themselves as West Africa’s tech leaders—Nigeria’s fintech sector alone attracted over $180 million in 2024, and Ghana is a preferred testing ground for digital health and agritech—Cape Verde’s startup ecosystem is still in its early stages. There are just over 100 registered startups, mostly focused on serving the domestic market or the diaspora.

Yet, Cape Verde sees its small size as an advantage. The country ranks 35th globally in the World Bank’s 2023 Government Effectiveness Index, ahead of regional peers. TechPark CV is designed as a free zone for digital firms, offering fiscal incentives and streamlined regulations. Portuguese cybersecurity firm VisionWare, one of the park’s anchor tenants, has already hired over 50 local engineers earning globally competitive wages.

Lopes is quick to dismiss concerns that these incentives could turn Cape Verde into a tax haven. “These setups come with safeguards: local hiring targets, R&D requirements, and training obligations. We don’t want capital shelters. We want builders.”

Aiming for Brain Gain

Part of Cape Verde’s plan is to reverse brain drain by building remote work infrastructure and offering incentives for investors. The government is also targeting second- and third-generation Cape Verdeans raised abroad, encouraging them to return and contribute their skills.

Education is a key pillar. The government is increasing investment in STEM education and requiring companies in the tech park to support skills transfer and training. “In Africa, we often ignore Research and Development (R&D). That must change,” Lopes says.

With a median age of 25 and one of the highest literacy rates in sub-Saharan Africa, Cape Verde sees its youthful population as a major asset. However, challenges like high youth unemployment, limited risk capital, and a small domestic market remain.

Inclusive Growth and Global Partnerships

Cape Verde is working to ensure the digital boom benefits everyone, not just a select few. The government is expanding innovation hubs beyond Praia and São Vicente to other islands, aiming for widespread digital inclusion. The country’s internet penetration rate is 75%, higher than Nigeria’s 48.15% and Ghana’s 69.8%. Initiatives like Connect Cabo Verde are making affordable internet more accessible in schools and public spaces.

Strategic partnerships with Microsoft, Starlink, and the African Development Bank are bringing in funding and expertise. Starlink’s satellite internet is connecting remote areas, while Microsoft’s digital development program supports local ambitions.

Small Scale, Big Agility

Cape Verde can’t match Nigeria or Ghana in scale—Nigeria’s tech sector contributed an estimated 21% to GDP in 2023, while Ghana’s digital economy grew about 12% annually. But Lopes argues that Cape Verde’s small size allows for faster decision-making and a more supportive regulatory environment. Startups can even get direct access to top government officials, including the Prime Minister.

Tapping into the Diaspora

Cape Verde is actively encouraging its large diaspora to return, bringing skills, experience, and new ideas. Tax breaks and other incentives are designed to make coming home attractive. Lopes envisions TechPark CV as a crossroads for talent from Africa, Europe, and the Americas.

Looking Ahead

Lopes acknowledges the risks—empty buildings if a vibrant startup scene doesn’t materialize, and the challenge of telling Cape Verde’s story to the world. But with strong partnerships, a clear vision, and youthful energy, Cape Verde’s digital transformation could set a new standard for West Africa.

“Infrastructure is just the start,” Lopes says. “What really matters is building a vibrant ecosystem—a place where startups can grow, people take risks, and innovation becomes part of everyday life.”

Through programs like Cabo Verde Digital, which supports around 100 early-stage startups annually with grants, mentoring, and resources, the country is fostering a culture where failure is seen as a step toward bigger dreams.

While Nigeria and Ghana remain the region’s tech heavyweights, Cape Verde is betting that agility, inclusion, and a long-term vision can help it carve out a unique role in West Africa’s digital future. As Lopes puts it, “If we get this right, we’ll not only redefine Cape Verde’s future—we’ll help reshape the narrative for the entire continent.”