The cost of essential goods and services in Cape Verde exceeds the national minimum wage, according to data released on Monday (30) by the Association for Consumer Protection (Adeco), which highlights disparities between islands and incomes insufficient to cover these expenses.
“There is a disparity in essential consumption needs among the different islands, taking into account factors such as communication, housing, food, electricity, and gas that make up the index,” but, overall, the data indicates that “there is an income deficit in the country to cover families’ essential consumption,” stated Adeco President Nelson Faria at a press conference on the island of São Vicente.
The association updated the Essential Consumption Index (ICE) in São Vicente and Sal, and has now expanded the analysis to include the Cape Verdean capital, on the island of Santiago, the country’s most populous island.
In São Vicente, the second most populous island, the index stands at 225 euros per person, marking a 1.7% increase from the last update.
In Sal, the country’s main tourist destination, the figure rises to 316 euros, while in the city of Praia, recently included in the monitoring, the indicator stood at 3300 euros this month, a slight decrease of 0.9% compared to January, when this process began.
The data also shows that food is the largest component of household budgets, approaching or even exceeding the national minimum wage.
In Sal, for example, the average monthly cost of food is around 165 euros, while in São Vicente it is about 138 euros and in Praia 138 euros.
Currently, the national minimum wage is 154 euros in the private sector and 172 euros in the public sector. In this context, the president of Adeco advocates for measures to align incomes with the cost of living, in order to ensure access to essential goods, highlighting the discrepancy between wages and expenses.
The association noted that the situation reflects an income shortfall that undermines families’ ability to meet their basic needs, advocating for structural measures, including wage reviews and policies to adjust for inflation.
The data also shows that food is the largest component of household budgets, approaching or even exceeding the national minimum wage.
In Sal, for example, the average monthly cost of food is around 165 euros, while in São Vicente it is about 138 euros and in Praia 138 euros.
Currently, the national minimum wage is 154 euros in the private sector and 172 euros in the public sector. In this context, the president of Adeco advocates for measures to align incomes with the cost of living, in order to ensure access to essential goods, highlighting the discrepancy between wages and expenses.
The association noted that the situation reflects an income shortfall that undermines families’ ability to meet their basic needs, advocating for structural measures, including wage reviews and policies to adjust for inflation.
“We call for the establishment of a minimum wage that comes close to covering essential consumption needs and that also takes into account the need to keep pace with inflation. Over the past five years, up to 2025, households have seen a loss of purchasing power of around 15%. We have not seen income increases to offset this,” he said.
Furthermore, “we may face new inflationary pressure stemming from the war in the Middle East. Measures will be necessary to ensure that consumers have a minimum purchasing power to meet their essential needs,” he emphasized.
The index now released is expected to be extended to other regions of the country.
In January, the government announced the creation of a tripartite commission to prepare for an increase in the national minimum wage to 226 euros by 2027, involving trade unions and other institutions, including municipalities.
Source: Lusa
