CAPE VERDE: INFORMATION ON CHINESE ENGAGEMENT

UNCLAS PRAIA 000072

SENSITIVE
SIPDIS

DEPARTMENT FOR AF/RSA MAZEL, GRIESMER, BOWLES

E.O. 12958: N/A
TAGS: PREL EAID CN CV
SUBJECT: CAPE VERDE: INFORMATION ON CHINESE ENGAGEMENT

REF: STATE 10152


1. (SBU) SUMMARY: Two primary types of Chinese commercial
engagement are widespread in Cape Verde: Chinese small-scale
retailers and high-profile Chinese economic development
projects. With the former, the retailers have made largely
economic contributions to the local market, and on the larger
projects, there appears to be a concerted effort to make inroads
into specific markets, such as construction. Post does not
report any significant collaboration with the Chinese Embassy in
Cape Verde, but would welcome opportunities to cooperate on
health, development, and construction projects in the future.
End summary.

OVERALL CHINESE ENGAGEMENT IN CAPE VERDE
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2. (U) As with much of Africa, the Chinese have been active in
Cape Verde over the past five years. The majority of this
activity has been in the commercial realm and the most visible
impact of Chinese engagement in Cape Verde is in the
proliferation of shops owned and/or managed by the Chinese.
While this visible presence of Chinese immigrants is most
frequently discussed among Cape Verdeans and in the local media,
there are also several major investments and infrastructure
projects executed in Cape Verde that have received less
attention.


3. (SBU) The Chinese government was among the first in the world
to establish an embassy in Cape Verde after the country's
independence in 1975. The first Chinese shop in Cape Verde
opened in Praia in 1995, within two years, there was
Chinese-owned retail presence on all nine islands of the
archipelago. Despite this ongoing growth in the retail area, we
have not seen any evidence of close cooperation between
retailers and the Chinese Embassy in Praia.


4. (U) Since the last sub-regional dialogue meeting in October
2008, China has funded two major construction/development
projects in Cape Verde. The first was a dam project on the
island of Santiago and the second was to make port improvements
and expand the fisheries space in the city of Mindelo on the
island of Sao Vicente. A recent Chinese media article also
reported that China was planning to extend a credit line worth
USD 1 million line to Cape Verde's real estate agency
(Imobiliaria Fundiaria e Habitat (IFH)) in order to fund the
GOCV's cost-controlled "Housing for All" program.

EXAMPLES OF U.S.-CHINA COLLABORATION
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5. (SBU) At this time, Post has no cooperation projects with the
Chinese to report. In fact, during a recent outbreak of dengue
fever in Cape Verde, the Chinese Embassy officials made a point
of saying they were only willing to offer bilateral assistance
during the donor's coordination meeting. A few months later,
upon learning that the United States made a contribution towards
vector control through the WHO, the Chinese Ambassador in Praia
announced a pledge for the same amount and reiterated that the
assistance would be bilateral. This encounter left us with the
impression that the Chinese mission on the ground will probably
continue to operate independently absent direction from Beijing.

POTENTIAL AREAS FOR U.S.-CHINA COLLABORATION
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6. (U) Post does not have specific projects to propose in
collaboration with China, however the mission has obvious
influence in construction, infrastructure, and commercial
ventures that could be leveraged trilaterally. Post also views
an opportunity to coordinate with the Chinese mission on health
and development issues in the future.

BROWN