Sao Tome and Principe
Introduction Key Economic Facts Risk Assessment (Provided by Coface) Sao Tome and Principe is an island nation in the Gulf of Income Level (by per capita Lower Middle Income Country rating: D - A high-risk political and economic Guinea off the western coast of Central Africa. The two main GNI): situation and an often very difficult business environment islands are mountainous and form part of a chain of extinct Level of Development: Developing can have a very significant impact on corporate payment volcanoes. The government system is a GDP, PPP (current international $0.89 billion (2019) republic; the chief of state is the president, $): behavior. Corporate default probability is very high. and the head of government is the prime GDP growth (annual %): 1.30% (2019) Business Climate rating: D - The business environment is minister. Sao Tome and Principe has a GDP per capita, PPP (current $4,145.23 (2019) very difficult. Corporate financial information is rarely mixed economic system in which there is international $): available and when available usually unreliable. The legal a variety of private freedom, combined with centralized External debt stocks, total $251,643,225.50 (2019) system makes debt collection very unpredictable. The economic planning and government regulation. Sao Tome (DOD, current US$): and Principe is a member of the Economic Community of Manufacturing, value added (% 6.07% (2019) institutional framework has very serious weaknesses. Central African States of GDP): Intercompany transactions can thus be very difficult to (ECCAS). Current account balance (BoP, -$0.09 billion (2019) manage in the highly risky environments rated D. current US$): Strengths Inflation, consumer prices 7.86% (2018) (annual %): • Prospects for expansion of the tourism sector Labor force, total: 73,407 (2020) • Support from international donors Unemployment, total (% of 13.67% (2020) • Strong ties to Portugal and Portuguese-speaking total labor force) (modeled ILO estimate): countries (Angola, Brazil) Location: Middle Africa Imports of goods and services $0.17 billion (2014) • Dobra pegged to the euro Capital City: Sao Tome(GMT) (current US$): Weaknesses Chief of State: President Evaristo Carvalho Exports of goods and services $0.04 billion (2014) • Heavily dependent on international public aid (current US$): Head of Govt.: Prime Minister Jorge Bom Jesus • Low government revenue: 15% of GDP Currency: Dobra (STD) GDP Composition % Agriculture Services Industry Manufacturing • Economy still dominated by agriculture and fishing Major Languages:
Portuguese 98.4% (official), Forro 36.2%, Cabo Verdian 8.5%, French • Poor business climate 73 6.8%, Angolar 6.6%, English 4.9%, • Lack of infrastructure and weak legal and regulatory Lunguie 1%, other (including sign 12 12 language) 2.4% (2012 est.)
6 environment constrain the operating environmentPrimary Religions:
Catholic 55.7%, Adventist 4.1%, *Although Manufacturing is included in the Industry figures, it is also separately • High export and import costs due to remote island Assembly of God 3.4%, New reported because it plays a critical role in economy. location Apostolic 2.9%, Mana 2.3%, Universal Rankings Kingdom of God 2%, Jehovah's • Underdeveloped and weak banking sector (non- Witness 1.2%, other 6.2%, none Index Rank performing loans exceed 25% of the portfolio) 21.2%, unspecified 1% (2012 Corruption Perceptions Index 64 / 180 est.)
• High level of public debt Index of Economic Freedom 133 / 179 Calling Code: 239 International Logistics Performance Index (LPI) 89 / 160 U.S. Embassy Voltage: 220 Open Budget Index 80 / 115 U.S. Embassy Libreville Key Websites Sablière B.P. 4000 Libreville, Gabon Main Government Page: parlamento.st Phone: (241) 01-45-71-00 https://ga.usembassy.govCountry Memo Provided by: globalEDGE.msu.edu and EXPORT.GOV