The Cape Verdean government announced increased financial support for businesses and informal sector operators on the three islands affected by the storm that caused nine deaths in August, according to a resolution from the Council of Ministers published this Wednesday (3).
According to Lusa, the reinforcement follows a “detailed assessment of on-the-ground damage and dialogue with business owners, allowing the government to adjust measures and increase support, especially for large companies, while maintaining improved credit lines for all affected operators,” the Official Gazette reads.
The assessment conducted by local authorities identified partial or total destruction of facilities of formally registered businesses, mostly micro, small, and medium enterprises, as well as loss or damage to tools, equipment, machinery, furniture, and other items used in economic activities, following the storm that struck São Vicente, Santo Antão, and São Nicolau on August 11.
Total or partial losses of raw materials and goods were also recorded, along with severe interruptions or declines in business activity, affecting payments to workers, suppliers, and social security contributions.
As a result, the government decided to provide higher grants for large affected companies, ranging from €13,600 to €90,900, with the possibility of tax credit up to nearly €181,300 in cases of greater losses. For micro, small, and medium enterprises, as well as informal sector operators, previously announced supports in August remain, including non-repayable grants and emergency credit lines guaranteed by the state, with interest subsidized by 50% (maximum limit 2.5%), grace periods of up to six months, and repayment over up to 60 months.
For informal operators, including market vendors and small farmers, the government created a non-repayable grant of approximately €453. Formal micro-entrepreneurs are entitled to around €1,360. Small businesses may receive up to €4,550, while medium enterprises can receive compensation ranging from €4,550 to €10,900, depending on verified losses. In cases of significant business activity disruption, the state may cover, fully or partially, workers’ social security contributions, including under the Special Unified Taxation (TEU) regime applicable to micro and small enterprises.
These measures, which also include support for families, will be funded by the National Emergency Fund and the Emergency Sovereign Fund, created in 2019.
On Tuesday (2), Prime Minister Ulisses Correia e Silva, who concluded a three-day visit to São Vicente on Wednesday, stated that a complex in Ribeira de Julião had already received the first 36 families out of a total of 73 to be relocated.
The storm flooded neighborhoods, destroyed roads, bridges, and commercial establishments, disrupted electricity supply, and caused nine deaths on São Vicente, with two people still missing.
Following the event, the government declared a six-month state of emergency in São Vicente, Porto Novo (Santo Antão), and the municipalities of São Nicolau.
Source: Diário Económico
