Research and consulting in São Tomé and Príncipe

Country overview:

IOA has provided research consulting services involving every aspect of business, economic, political and societal life in São Tomé and Príncipe. Our researchers have found the economy remains as it was during colonial times: based on plantation agricultural output. Despite the islands’ distance from the African mainland and the Portuguese language barrier, tourism to the tropical nation has a promising future.

A mixed economy has resulted from government controls and central economic planning, while economic freedoms are available to investors within these controls. The islands’ main exports are also mixed: manufactured industrial products like aircraft parts, gas turbines and iron parts are exported alongside agricultural items palm oil and cocoa beans.

Key opportunities in São Tomé and Príncipe:

Economic growth in recent years has been boosted by the construction and manufacturing sectors, as well as investment in services
Tourism is a major foreign exchange earner and has good growth potential
Perennial agricultural exports cocoa and palm oil are being augmented by spices and brand-name organic products

Key concerns/risks in São Tomé and Príncipe:

The country’s distance from the West African mainland has raised transportation and importation costs
IOA analysts have found that cocoa and other commodities that are the country’s main export revenue earners are vulnerable to global price fluctuations
Poverty rates are alarmingly high, and government expenditures funded by foreign aid has been the main economic engine in recent years

Find out about how IOA can help you with research and consulting services in São Tomé and Príncipe

Tips on doing business in São Tomé and Príncipe:

Starting a business:

Sao Tome & Principe ownership’s rules around business and real estate are broadly in line with those of other countries in the region. In terms of property, foreigners are more limited: they can buy and sell structures, but cannot own the underlying land, which is leased. By contrast, foreigners have no restrictions on starting, owning or operating businesses, with the exception of some paramilitary and banking functions reserved for the state
Businesses can be registered through the GUE – Guichê Único para Empresas (Single Window) an office attached to the national Ministry of Justice, Public Administration, and Parliamentary Affairs

Doing business:

The local authorities offer a variety of incentives to prospective foreign investors. These include tax deductions on corporate and withholding taxes as well as deductions or exemptions on export and import tariffs. Additional incentives also apply for firms willing to train local staff members. The country has made strides in recent years in diversifying the economy beyond subsistence agriculture, particularly in tourism, but remains quite poor and underdeveloped
Businesses operating in the region would have to contend with limited infrastructure, a small local consumer base, acute logistics challenges and a shortage of essential services, including financing
(Read more at: https://www.state.gov/reports/2023-investment-climate-statements/sao-tome-and-principe/)

Culture and society:

Portuguese and Portuguese derived Creole languages make up the primary mode of communication on the islands and it is generally advised to work through an interpreter as English is far from universally spoken
As a tropical location, the islands are vulnerable to intense rainy seasons and it is best to visit during one of the two dry seasons, either between June and September, or between December and February to avoid being caught in storms