Africa

Sao Tome and Principe Business

Business

São Tomé and Príncipe’s economic growth does not keep pace with the increase in population. Following the independence of Portugal in 1975, the cocoa plantations were nationalized, with declining productivity as a result of, among other things, about 3,000 Portuguese plantation owners, administrators left the country. Labor market turmoil, drought, soil depletion, plant diseases have contributed to the deteriorating economy. In the second half of the 00s, however, annual growth averaged over 5 percent.

Gross Domestic Product (GDP) of Sao Tome and Principe

Economy

Inflation rate 5.70%
Unemployment rate 12.2%
Gross domestic product (GDP) $ 686,000,000
GDP growth rate 3.90%
GDP per capita $ 3,200
GDP by sector
Agriculture 11.80%
Industry 14.80%
Service 73.40%
State budget
Revenue 42.96 million
Expenditure 59.61 million
Proportion of the population below the national poverty line 66.2%
Distribution of household income
Top 10% k. A.
Lower 10% k. A.
Industrial production growth rate 4.50%
Investment volume 34.5% of GDP
National debt 88.40% of GDP
Foreign exchange reserves $ 64,000,000
Tourism 2011
Number of visitors 12,000
Revenue $ 56,200,000

The most dominant agricultural crop is cocoa, which is also the country’s most important export product. Since the plantations for barley crops (in addition to cocoa are also grown coffee, coconuts and oil palm trees) occupy most of the arable land, the country must import most of its food needs.

The industry is undeveloped, and besides agriculture, fishing is an important source of income. As the country’s own fishing fleet is small, a large part of the state budget is financed through the sale of fishing rights to foreign fishing fleets. Oil has been found in the sea off the coast of São Tomé, but no recovery has yet begun. However, licensing money from foreign oil companies is already a significant source of income.

According to Countryaah, the most important trading partner is Portugal, which also accounts for most of the country’s extensive assistance.