INTEGRATING LOCAL SMEs IN THE TOURISM INDUSTRY IN CABO VERDE, SÃO TOMÉ AND PRÍNCIPE, AND THE GAMBIA © 2025 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the use of or failure to use the information, methods, processes, or conclusions set forth. 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Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522- 2625; e-mail: pubrights@worldbank.org. Photography: © Louise Twining-Ward / World Bank. Further permission required for reuse. Table List List ACKNOWLEDGMENTS ACRONYMS Executive Summary Executive Summary • • • Table 1. Key Recommendations to Support SMEs’ Growth and Access to Finance Introduction Introduction Section 1 Tourism SME landscape and Access to Finance in Cabo Verde, São Tomé and Príncipe, and The Gambia Figure 1. Tourism inflow and ratio of tourists per inhabitants (2019) 900 000 819 000 1.80 800 000 1.60 Ratio tourists/inhabitants 1.64 700 000 1.40 Nº of tourists arrivals 620 000 600 000 1.20 500 000 1.00 400 000 0.80 300 000 0.60 200 000 0.40 35 000 100 000 0.20 0.25 - 0.16 0.00 Cabo Verde São Tomé and Principe The Gambia Total arrivals 2019 Ratio tourists/inhabitant • • • Figure 2. SMEs per 1,000 inhabitants 25.0 21.7 20.0 16.8 Nº of SMEs 15.0 10.0 4.4 5.0 0.0 Cabo Verde São Tomé and Principe The Gambia • • • Figure 3. Credits to private sector (Millions of US$) 1 400.0 1 200.0 Millions US$ 1 000.0 800.0 600.0 400.0 200.0 - 2018 2019 2020 2021 2022 Cabo Verde São Tomé and Principe The Gambia • • • Section 2 Commonalities and Differences in Access to Finance in each Country 2.1 The tourism value chain Figure 4. Tourism value chain model • • 2.2 Access to finance 2.2.1 Factors on the demand side Table 2. Main barriers to enter the tourism market by local SMEs in each country Figure 5. Gross Domestic Savings (percent of GDP) Figure 6. Comparative Competitiveness Analysis: Cabo Verde, The Gambia, Mauritius, and Senegal Cabo Verde The Gambia Mauritius Senegal 1-Institutions 140 12-Innovation 120 2-Infrastructure 100 80 3-Macroeconomic 11-Enterprise sophistication 60 Environment 40 20 4-Health and Primary 10-Market size 0 Education 5-Higher Education and 9-Technological Readiness Training 8-Financial market 6-Goods Market Efficiency development 7-Labour Market Efficiency 2.2.2 Factors on the supply side Figure 7. Commercial Bank Branches per 100,000 Adults Figure 8. Spreads and Lending Interest Rates Figure 9. Factors Affecting Access to Finance by SMEs 2.3 Gender and access to finance • • • 2.4 Circular economy and sustainability • • • Section 3 Addressing SME Access to Finance Section 4 Tourism Gap Analysis and Market Sizing 4.1 Key lessons learned 4.2 Recommendations Table 3. 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Gender, inequality and poverty in Cabo Verde: A Background Note for the Poverty Assessment. Washington, D.C.: World Bank Group. World Economic Forum. (2022). Global Gender Gap Report, https://www3.weforum.org/docs/WEF_GGGR_2022.pdf WEBSITES (consulted between May 20th-30th, 2023) • Central Bank of Cabo Verde: https://www.bcv.cv/pt/Paginas/Homepage.aspx • Central Bank of São Tomé and Príncipe: https://bcstp.st/ • Condor Ferries: https://www.condorferries.co.uk/solo-travel-statistics • National Institute of Statistics, Cabo Verde: https://ine.cv/ • National Institute of Statistics, São Tomé and Príncipe: https://www.ine.st/ • The Gambia Bureau of Statistics: https://www.gbosdata.org/ • World Bank (projects in The Gambia): https://projects.worldbank.org/en/projects- operations/projects-list?os=0&qterm=gambia • World Bank Open Data: https://data.worldbank.org/ Annexes Annex 1. Methodology • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •