Caixa Económica Cabo Verde Backs IFH Social Housing Loan

In Short

Cabo Verde has approved a new state guarantee for IFH to secure bank financing for social housing in Tarrafal de Santiago.

What Happened

Cabo Verde’s Council of Ministers approved Resolution No. 99/2026 on August 25, 2026. The decision allows the Directorate General of the Treasury to cancel an earlier state guarantee granted to Imobiliária, Fundiária e Habitat, S.A. (IFH) under Resolution No. 100/2024.

It also authorises a new state guarantee for a fresh loan that IFH will contract with Caixa Económica de Cabo Verde. A state guarantee is when the government promises to repay the bank if the borrower cannot, which can make it easier to get credit or negotiate terms.

The financing approved by CECV totals 51,282,649 Cape Verdean escudos. The loan carries a 5% interest rate and a 216-month term, which is 18 years.

The funds are earmarked for the construction of 18 social housing units in Achada Tomás, in the municipality of Tarrafal de Santiago.

Why It Matters

Public guarantees are one of the main ways governments support long-term lending for projects like housing, where repayment periods are long and risks can look higher to banks.

For lenders, the guarantee reduces credit risk and can support more predictable lending for public interest infrastructure. For IFH, it provides a clearer path to funding delivery timelines for the homes.

For Cabo Verde’s wider housing market, the move signals that the state is still willing to use its balance sheet to support social housing projects, even if it means reshaping older guarantees into new loan structures. How often this tool is used, and on what terms, will matter for future public finance capacity and debt exposure.