The World Bank said Monday in Washington that it would fund the Cape Verdean government's program to combat poverty with US$6 million.

In a statement the World Bank noted the progress seen in the archipelago’s main economic and social indicators, but highlighted the “challenges” it also faced, particularly the forecast difficulties in gaining access to external financing, after the country’s graduation to the status of a medium income country.

“The country is highly dependent on oil imports (including those used for desalination of water, which accounted for 75 percent of the country’s water production in 2003), which in the context of continued price rises could lead to some fiscal risks,” the World Bank said.

The bank noted that the archipelago was also witnessing an increase in income inequality and that growing urbanization was putting pressure on basic services, such as water and electricity.

Cape Verde is one of the few African countries to be in line to meet the United Nations Millennium Objectives.

Between 2001 and 2006, poverty rates fell by 8 percentage points, the literacy rate reached 79 percent (97 percent amongst young people) and average life expectancy (69 years) is the third longest in Africa.

Source: Macauhub