What has historically been INPS’s role in the development of the Cape Verdean society?

The Social Security Contribution Scheme has been crucial to Cape Verde’s socio-economic development. Social security is constitutionally recognised as a right and the institutionalisation of the Scheme in Cape Verde has contributed greatly to the well-being of workers, families and communities. It plays a key role in meeting the needs of people at a national level and is increasingly recognised by other international organisations. It has contributed to the eradication of poverty, improved access to medical care, and ensured decent working conditions. I would also say that INPS participation has helped stimulate domestic demand fostering human capital and productivity, and ultimately contributing to the sustainability of economic growth.

How does INPS support the country to create a sustainable economy?

The importance of social security, as a prerequisite and not a burden for sustainable growth, is something now widely recognised in social policies debates: countries with social security systems are in a much better position to deal with crises or instability.

INPS has contributed to the construction of human capital, the promotion of investments and the improved participation of workers in the labour market. It has also contributed to reducing income insecurity, particularly protecting against risks such as illness, disability and old age. Sustainable social security models are fundamental in improving productivity and aiding the transition from an informal to a formal economy. There is a real effort to create balance through the combination of macroeconomic employment, labour market and social security policies.

What are the biggest challenges the institution faces today?

Firstly, covering all those who need it. Secondly, providing adequate social and economic benefits. Then, ensuring sustainable financing. These challenges are intertwined and the key lies in good, participatory governance. Significant progress has been made, but the extension of social security will continue to be one of the greatest challenges to social cohesion in coming years. With regard to the challenge of sustainable financing, the debate most often revolves around social spending and financing. But it is beginning to be analysed from a different perspective, as investment in economic growth and social cohesion rather than a cost. I would say that the success of the various approaches depends greatly on the structure of the labour market, and the extent of the formal economy.

How does innovation affect INPS?

Innovation is a broad term, and a delicate balance needs to be struck between income to and outgoings from the scheme. Having said that, with investment in IT, in terms of modern infrastructure, consolidation of databases and the development of the Integrated Social Security System, INPS has promoted innovation in technology, services and, above all, organisation. This has allowed for a management tool with a unified presence throughout the country, integration with other state entities, ease of access to information and consequently improvement in quality. With this, we promote efficiency in the provision of services, favouring a balanced management and effective solutions that contribute to improve the day-to-day management.

What would be your advice to potential investors in Cape Verde?

Foreign investors must take into account the legislative framework, tax benefits and our strategic position, which combine to create a favourable environment for investment. Regarding INPS, they should bear in mind that the social security system is mandatory and that it is up to the employer to register with INPS and make the monthly payment; 24.5% of an employee’s gross salary – 16% from the employer and 8.5% from the employee.