( CNN ) -- A $ 5 million prize for excellence in African leadership was awarded to former Cape Verde President Pedro Verona Pires in London on Monday . Pires was recognized for helping transform the government and economy of Cape Verde , according to the Mo Ibrahim Prize Committee . `` The Prize Committee has been greatly impressed by President Pedro Pires 's vision in transforming Cape Verde into a model of democracy , stability and increased prosperity , '' said committee chairman Salim Ahmed Salim . Under Pires ' presidency , Cape Verde became the second African country to graduate from the United Nations ' list of least developed countries . Launched in 2007 , the Mo Ibrahim Prize for Achievement in African Leadership is awarded to candidates who demonstrate `` good governance and great leadership '' during their time in office , according to a statement from the Mo Ibrahim Foundation . Democratically elected African presidents and prime ministers who have left office within the last three years are eligible for the prize . In the last two years , the London-based foundation has decided not to award the prize because the committee could not select a winner . The $ 5 million prize is distributed over 10 years . Winners also receive an additional $ 200,000 a year for life . The seven-member Ibrahim Prize Committee is chaired by Salim , the former Prime Minister of Tanzania , and includes global figures such as Graca Machel , wife of Nelson Mandela , and Mary Robinson , former president of Ireland and former U.N. high commissioner for human rights . Previous winners of the award include Botswana ex-President Festus Mogae in 2008 and Mozambique ex-President Joaquim Chissano in 2007 . Ibrahim , a Sudanese-born telecommunications businessman and billionaire , created the foundation bearing his name in 2006 . The foundation uses 88 criteria to rate the governing of African countries . According to the 2011 index , the top-governed African nations are Mauritius , Cape Verde , Botswana , Seychelles and South Africa .
Mo Ibrahim Prize winners receive $ 5 million and $ 200,000 a year for life . Committee : Pedro Verona Pires reformed Cape Verde 's government and economy . Pires is the first winner in three years .