The World Bank has announced that it will provide US$ 6 million in financial support for the Cape Verdean government's anti-poverty program. However, in evaluating the general situation in Cape Verde, the World Bank says it has registered an increase in income disparity in the country, and warns that growing urbanization is placing pressure on basic services such as water and electricity.

In the communiqué in which it announced its support for the program for the fight against poverty, the World Bank highlighted recent progress in Cape Verde's main economic and social indicators, but also stressed the "challenges" the country faces - in particular, the foreseeable difficulty in accessing external financing following Cape Verde's graduation at the beginning of the year from the category of Least Developed Country.

The World Bank also affirmed that "there could be a decrease" in remittances sent to the country by Cape Verdean émigrés "in the coming years as the difference in income [between Cape Verde and the émigrés' host countries] and ties with the diaspora go down."

"The country is highly dependent upon petroleum imports (even for the desalinization of water, which represented 75% of water production in 2003), which, within the context of the continued increase in prices, could bring with it a number of risks on the fiscal level," the World Bank warned.

The Bretton Woods institution also highlighted the increase in income disparity in Cape Verde, and warned that growing urbanization is placing pressure on Basic services such as water and electricity.

"The environment's capacity to withstand a large-scale expansion of tourism, industry and construction could be placed in check if it is not adequately managed," said the World Bank.

Poverty in Cape Verde dropped eight percentage points between 2001 and 2006, and the literacy rate reached 79% (97% among youths), while the life expectancy is 69, the third-highest in Africa.

The fourth Poverty Reduction Support Credit coincides with the final year of the implementation of the Growth and Poverty Reduction Strategy in the archipelago.

The support is founded in the promotion of good governance through reforms in the management of public expenses, capacity-building in public administration and decentralization.

Other objectives include the development of human capital, with a focus on health and the strengthening of the social security system.