Law No. 104/VIII/2016, of 6 January 2016, set forth the principles and rules applicable to the Public Business Sector, including the general bases for State-owned companies’ by-laws, revoking Law No. 47/VII/2009, of 7 December 2009, which established the legal framework for the State Business Sector.

According to the new law, the Public Business Sector comprises the State Business Sector, made up of State-owned companies and those in which the State has a stake, and the Local Business Sector.

It is also worth noting that State-owned companies will henceforth be classified in different categories according to the following criteria: (a) turnover; (b) average number of employees; (c) net assets; (d) level of competition in the relevant business; and (e) the technological development of the relevant entity. Lastly, one should also highlight that the new law provides that companies in the Public Business Sector are subject to the general competition rules in force in Cape Verde.

The new law will come into force on 5 February 2016.

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