The Support programme for vocational training, employment and employability supports the institutional response to Storm Erin in São Vicente

Storm Erin, which recently hit the islands of São Vicente, São Nicolau and Santo Antão, caused considerable damage to local businesses and the region's socio-economic fabric. In this context, Luxembourg is providing urgent support for the economic recovery of small and medium-sized enterprises through a package of emergency measures adopted by the government of Cabo Verde and implemented by Pró Empresa, a partner of the Support programme for vocational training, employment and employability carried out by LuxDev.

Given the extent of the damage caused by Storm Erin, the post-tropical save support measures package (11 August 2025) was launched. It includes:

• emergency solidarity income: CVE 30,000 per month for three months for those most affected;
• direct subsidies to informal operators, micro, small and medium-sized enterprises;
• special credit lines:
  • Linha Lavanta: up to CVE 5 million for medium-sized enterprises (interest rate up to 5.5% per annum);
  • Stimula Empreenda+: up to CVE 1.5 million (interest rate 5.5% per annum);
  • technical support and capacity building: advice and training to increase the resilience of businesses.

Within this framework, the Support programme for vocational training, employment and employability has committed EUR 400,000 to strengthen the guarantee fund managed by Pró Empresa. Thanks to this risk-sharing mechanism with financial institutions, nearly CVE 120 million (approximately EUR 1.09 million) in loans will be made available to local businesses on more favourable terms.

Individual loans will range from CVE 1.5 million to CVE 5 million (between EUR 13,600 and EUR 45,300).

According to provisional figures from the National Institute of Statistics, 2,216 businesses were affected by this extreme weather event. Behind each of these businesses are not only the entrepreneurs themselves, but also their employees, the families dependent on their income and the communities that benefit from the goods and services these companies provide.

The sectors affected include commerce, agriculture and livestock, agri-food, artisanal and semi-industrial fishing, as well as catering and local services. These activities are essential for employment, food supply and social stability on the affected islands.

The Support programme for vocational training, employment and employability is co-financed by the Grand Duchy of Luxembourg and Cabo Verde and implemented by LuxDev, the Luxembourg Development Cooperation Agency.