CFPs: Promoting Financial Integrity, Economic Justice and Domestic Resource Mobilisation in Cape Verde
In Cape Verde, as in many developing countries, financial integrity, economic justice and the mobilisation of domestic resources are fundamental pillars for sustainable and inclusive growth. Lack of access to adequate financial services, corruption and tax evasion undermine the country's ability to finance its development and reduce poverty. In this context, CFPs (Certified Financial Planners) play a crucial role in promoting ethical financial practices, empowering the population and strengthening the national economy.
The Crucial Role of CFPs in the Cape Verdean Economy
Certified Financial Planners (CFPs) are qualified professionals who offer comprehensive and personalised financial advice. Their work goes beyond simple investment management; they help individuals and families plan their financial future, manage their debts, save for retirement and protect their assets. In Cape Verde, where financial literacy is still a challenge, CFPs can play a key role in educating the population and promoting healthy financial habits.
The Importance of Financial Literacy
Financial literacy is the ability to understand and use financial concepts and tools effectively. A financially literate population is better able to make informed decisions about their money, avoid excessive debt and invest in their future. CFPs can contribute to increasing financial literacy in Cape Verde by:
- Workshops and educational seminars
- Individualised financial advice
- Creation of information materials in Cape Verdean Creole
Combating Corruption and Tax Evasion
Corruption and tax evasion are major obstacles to Cape Verde's economic development. CFPs, by adhering to a strict code of ethics and promoting transparency in their practices, can help combat these illicit practices. They can also help companies and individuals fulfil their tax obligations, contributing to an increase in public revenue.
Economic Justice and Financial Inclusion
Economic justice means ensuring that all citizens have access to economic opportunities and a fair distribution of wealth. Financial inclusion, in turn, refers to the availability and accessibility of financial services for everyone, regardless of their income level or geographical location. CFPs can promote economic justice and financial inclusion in Cape Verde by:
- Financial counselling accessible to people on low incomes
- Promotion of inclusive financial products, such as microcredit and microinsurance
- Support for entrepreneurship and the creation of small businesses
Case Study: Microfinance and the Role of CFPs
A concrete example of how CFPs can contribute to economic justice is by supporting microfinance institutions. By offering financial counselling to the clients of these institutions, CFPs can help them manage their loans effectively, invest in their businesses and improve their living conditions. A recent study showed that access to microcredit, combined with financial counselling, can significantly increase the income of low-income families in Cape Verde.
Mobilising Domestic Resources for Development
The mobilisation of domestic resources is essential to finance Cape Verde's long-term development. Excessive dependence on foreign aid can make the country vulnerable to external shocks and limit its autonomy. CFPs can contribute to the mobilisation of domestic resources through:
- Promoting savings and investment in Cape Verde
- Advising on investments in strategic sectors of the national economy
- Support for the development of local capital markets
Relevant statistics
According to data from the Bank of Cape Verde, the national savings rate is still relatively low compared to other countries in the region. Increasing the savings rate and directing resources towards productive investments is key to boosting economic growth and reducing external dependence. CFPs can play a crucial role in this process, encouraging the population to save and invest intelligently.
Conclusion
CFPs play a vital role in promoting financial integrity, economic justice and the mobilisation of domestic resources in Cape Verde. By educating the population about finance, fighting corruption and tax evasion, promoting financial inclusion and incentivising savings and investment, CFPs contribute to a more prosperous and equitable future for all Cape Verdeans. It is essential that the government, financial institutions and civil society support and promote the development of the CFP profession in Cape Verde.
If you feel inspired to make a difference and contribute to a fairer and more prosperous financial future for Cape Verde, consider becoming a CFP!
The deadline for registering for the next certification programme is: 7th May 2025.
Submit your proposal now and contribute to global financial integrity! [Learn more](https://grants.mfa.no/#call/4083/details)
