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Country overview: Sao Tome and Principe is a small island situated in the Equatorial Atlantic and in the Gulf of Guinea of West Coast of Central Africa. It gained its independence from Portugal on 12 July 1965. Its capital is Sao Tome with 6 Administrative districts. It is a semi- Presidential Republic with President sitting as the Head of State and Prime Minister as the Head of Government. It runs a unicameral legislative structure. Portuguese is the official languages and a predominantly Christian country. It practices a mixed legal system based on Portuguese model and customary law. It has an area size of 964 sq km.
Demographic Information: Sao Tome and Principe has an estimated population of 0.21 million comprising mostly of younger population (less than 25 years) which makes up about 61.4% of the population, those in the age bracket of 25-64 years makes up about 35.8% of the population and above 65 years age group makes up about 2.8% of the population. Average population density is estimated at 228 inhabitants/km2. In terms of human development indicators, it has a life expectancy of 67.8 years (Women) and 64.9 years (Men). It achieved universal primary education with an 106.79% Primary enrolment rate in 2017 and overall literacy rate of 92.8% as at 2018.
Broad Economic Overview: Sao Tome and Principe economy is dependent on cocoa representing about 66% of agricultural export. Other export crops include palm kernels, copra and coffee. Tourism, which contributes 32.9% to GDP, is currently one of the main sources of foreign exchange receipts. Sao Tome offers niche tourism products thanks to its lush forests, spectacular waterfalls, aesthetic coastline, and long sandy beaches. The country’s territorial waters in the oil rich Gulf of Guinea offers potential for development petroleum resources. This is being jointly developed in a 60-40 split with Nigeria following a 2001 treaty with Nigeria. It managed to achieve a compounded annual GDP growth of 4.3% over the past 5 years. Its currency is Dobra which is pegged to the Euro. Main exports are cocoa, coffee, coconuts, palm kernel, bananas, fish, copra etc. Major imports include foodstuffs, petroleum products, machinery and electrical equipment’s etc.
Investment Opportunities: In recent years, Sao Tome & Principe government has taken pro-active measures to reduce tariffs, improve the investment environment and establish free trade zones to attract foreign investment. It focuses on investment in infrastructure such as ports and electricity. Sao Tome and Principe is building up its services industries, especially tourism with the aim of diversifying its economy away from Agriculture. Tourism is expected to benefit from the Tourism Development Strategy launched in January 2018 and the new e-Visa system. Investment opportunities are available in the following sectors: agriculture, livestock, marine resources, hydrocarbon etc
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