Economy of São Tomé and Príncipe

The economy of São Tomé and Príncipe, while traditionally dependent on cocoa, is experiencing considerable changes due to investment in the development of its oil industry in the oil-rich waters of the Gulf of Guinea.

Economy of São Tomé and Príncipe
A market place located in the capital city of São Tomé
CurrencySão Tomé and Príncipe Dobra (now STN, was STD)
Statistics
GDP $351.1 million (PPP) (2016 est.)
Rank: 217 (2012 est.)
GDP growth
 4.0% (2016 est.)
GDP per capita
$3,024 (PPP) (2018)[1]
5.8% (2017 est.)
Labour force
52,490 (2007 est.)
Labour force by occupation
Population mainly engaged in subsistence agriculture and fishing
Main industries
light construction, textiles, soap, beer, fish processing, timber
162nd (2017)[2]
External
Exports $11.7 million (2012 est.)
Export goods
cocoa, copra, coffee, palm oil
Main export partners
 Netherlands 32.7%
 Belgium 21.4%
 Spain 10.8%
 Nigeria 5.7%
 United States 5.0% (2012 est.)[3]
Imports $121.6 million (2012 est.)
Import goods
machinery, electrical equipment, petroleum products, food
Main import partners
 Portugal 63.0%
 Gabon 6.0% (2012 est.)[4]
$299.5 million (31 December 2012 est.)
Public finances
83.5% of GDP (2012 est.)
Revenues$105.5 million (2012 est.)
Expenses$131.8 million (2012 est.)
Foreign reserves
 $51.58 million (31 December 2012 est.)
Main data source: CIA World Fact Book
All values, unless otherwise stated, are in US dollars.

History

Under Portuguese colonial rule, sugar plantations were set up, and the islands were used for the transshipment of slaves.[5]

Oil reserves

Geologists estimate that the Gulf of Guinea zone (Niger Delta province) holds more than 10 billion barrels (1.6 km³) of oil, although no reserves have yet been proven. A joint oil project with Nigeria in 2005 is likely to contribute $50 million of revenues to the government from the exploration licence signing fees. This represents four times government revenues in 2004. São Tomé is optimistic that significant petroleum discoveries under the exploration licence are forthcoming.

In 2006, the first tests in the deep-water block struck oil, but not in commercially viable quantities.[6]

Agriculture

Since the 1800s, the economy of São Tomé and Príncipe has been based on plantation agriculture. At the time of independence, Portuguese-owned plantations occupied 90% of the cultivated area. After independence, control of these plantations passed to various state-owned agricultural enterprises. The dominant crop on São Tomé is cocoa, representing about 95% of exports. Other export crops include copra, palm kernels, and coffee.

Economic issues

The government has an economic program that is supported by the IMF, via its Extended Credit Facility arrangement.[7]

Data

Gross domestic product: purchasing power parity - $316.9 million (2010 est.), $214 million (2003 est.)

GDP - real growth rate: 6% (2010 est.), 5% (2004 est.)

GDP - per capita: purchasing power parity - $1,800 (2010 est.), $1,200 (2003 est.)

Unemployment rate: 50% in the formal business sector (1998 est.)

Budget:

  • revenues: $58 million
  • expenditures: $114 million, including capital expenditures of $54 million (1993 est.)

Industries: light construction, textiles, soap, beer; fish processing; timber

Agriculture - products: cocoa, coconuts, palm kernels, copra, cinnamon, pepper, coffee, bananas, papayas, beans; poultry; fish

Exports: $13 million (2010 est.)

Exports - commodities: cocoa 80%, copra, coffee, palm oil (2009)

Exports - partners: United Kingdom 32.99%, Netherlands 26.93%, Belgium 21.04%, Portugal 4.31% (2009)

Imports: $99 million (2010 est.)

Petroleum - it needs to import all of its required petroleum[8]

See also

References
  1. "Human Development Report 2019: São Tomé and Príncipe" (PDF). United Nations Development Programme. p. 3. Retrieved 27 March 2020.
  2. "Ease of Doing Business in São Tomé and Príncipe". Doingbusiness.org. Retrieved 2017-01-25.
  3. "Export Partners of São Tomé and Príncipe". CIA World Factbook. 2012. Retrieved 2013-07-28.
  4. "Import Partners of São Tomé and Príncipe". CIA World Factbook. 2012. Retrieved 2013-07-28.
  5. "Sao Tome and Principe profile". BBC. 27 June 2012. Retrieved 21 November 2012.
  6. Rice, Xan (2006) The oil boom that never was. The Guardian Weekly 25.07.08, p. 40.
  7. "IMF Concludes Visit to the Democratic Republic of São Tomé and Príncipe". Press Release No. 13/32. International Monetary Fund. 1 February 2013. Retrieved 5 February 2013.
  8. "Petroleum (Thousand Barrels per Day)". São Tomé and Principe: Country Analysis Brief. U.S. Energy Information Administration. Retrieved 5 February 2013.
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