Development cooperation relations between the Grand Duchy of Luxembourg and the Republic of Cabo Verde were established in 1987 and the first General Cooperation Agreement was signed in 1993. Cabo Verde thus became a partner country of Luxembourg cooperation. Cooperation between the two countries was strengthened in 2002, with the signing of the first Indicative Cooperation Programme (ICP) for 2002 to 2005, with a total budget of MEUR 33.5. A year later, at the beginning of 2003, LuxDev, in agreement with the Ministry of Foreign and European Affairs, Defence, Cooperation and Foreign Trade (MFA), decided to open a regional office in Praia.
Initially, the office covered both Senegal and Cabo Verde, until a new regional office was opened in Dakar in 2006. From a modest structure when it opened, the Praia office has grown steadily (with 52 employees in 2024), in line with the increase in the volume of business in the country. The office acts as a link with the government, municipal authorities and technical partners. Since November 2003, the LuxDev office has occupied premises adjacent to the MFA office in Praia. This proximity between the two entities facilitates the exchange of information and good coordination of operations.
The partnership between Cabo Verde and Luxembourg is based on solid foundations, thanks in particular to the large Cape Verdean diaspora present in Luxembourg. Many professional networks and associations promote cultural, social and economic links between Luxembourg and Cabo Verde.
In 2005, the ICP II was signed for the period 2006 to 2010, with a total budget of MEUR 45. The priority sectors are education and vocational training, health, water and sanitation, and food aid.
In 2007, the MFA opened an embassy of the Grand Duchy of Luxembourg in Praia, and the second General Cooperation Agreement was signed the same year. Cabo Verde graduated from the group of least developed countries to the group of middle-income countries in 2008.
ICP III (2011-2015), signed in 2010, saw a significant increase in its portfolio to EUR 60m, while ICP IV (2016-2020) has an indicative budget of MEUR 45. In 2020, ICP V (2021-2025) was signed with an initial budget of MEUR 78. The priority sectors are: employment and employability, water and sanitation, local development, health, climate action and energy transition.
Cabo Verde has been selected as a pilot country to benefit from a pan-governmental approach that aims to maximise development synergies with other policy areas, including governance and climate action. This represents a major institutional innovation for Luxembourg's cooperation, in that, for the first time, the MFA is involving the Ministry of the Environment, Climate and Sustainable Development and the Ministry of Energy in the development and implementation of a single multiannual programme. Similarly, for the first time, ICP V uses the theory of change approach to draw up programmes, which are then broken down into theories of action.