Invest in São Tomé and Príncipe - Facts & Figures

Invest in São Tomé and Príncipe: Your Gateway to Central Africa's Untapped Potential

September 2025 Edition | Brought to you by STP Investor Insights & SaoTomeExpert.pt

Dear Investors,

Welcome to this month's spotlight on emerging markets! As the world eyes Africa's dynamic growth, São Tomé and Príncipe (STP) stands out as a hidden gem in the Gulf of Guinea. With stable democracy, strategic location, and bold reforms, this archipelago nation is positioning itself as a logistics hub and investment hotspot. In this newsletter, we'll dive into STP's economic fundamentals, infrastructure strengths, trade dynamics, and high-potential opportunities—backed by fresh 2025 data. Whether you're in oil, tourism, or infrastructure, STP offers compelling returns with low entry barriers. Let's explore why now is the time to invest.

Key Facts:

STP is a stable, democratic nation with a rich trade history, located just 300 km from mainland Africa (Gabon) and under 6 hours by flight from Lisbon, Portugal, or 2 hours from major West and Central African cities. Its two main islands—São Tomé (capital and largest city) and Príncipe (with Santo António as its capital)—span 859 km² and 142 km², respectively.

Population: 232,000 (2023 estimate), growing steadily in a youthful demographic.

Official Language: Portuguese, facilitating ties with Europe and Lusophone Africa.

GDP: $670 million (nominal), with per capita at $2,900—projected to rise to $3,570 by end-2025 amid reforms.

Endowed with natural resources, STP's Exclusive Economic Zone (EEZ) is 160,000 km²—160 times its land area—rich in hydrocarbons and fisheries. An international subsea cable linking France to South Africa enhances digital connectivity. Politically, it's the only "Free" country in Central Africa per Freedom House, ranking 4th in Africa on the Index of Economic Freedom (score 60.4 in 2025) and 6th on the Legatum Prosperity Index.

If you're intrigued, reach out to us or click here for more details.

Economic Overview: Resilience and Growth Ahead

STP boasts stable macroeconomic fundamentals, with over three decades of consistent growth. Recent data shows resilience: GDP expanded 2.4% in 2024 despite global headwinds, projected to accelerate to 3.1% in 2025 and 3.6% in 2026, fueled by tourism recovery, infrastructure projects, and oil/gas investments. The fixed exchange rate (1 EUR = STN 24.5) provides currency stability, pegged to the euro for low inflation risks.

Offshore assets in the Nigeria-São Tomé Joint Development Zone (34,000 km²) hold substantial hydrocarbon potential, which could generate revenues for national infrastructure. With 3.3 million hectares of arable land, 2.2 million barrels of daily oil production potential, 2.9 million km² of forest, and 3 million tonnes of lithium reserves, STP is primed for resource-led growth.

Infrastructure and Logistics: Competitive Edge in Central Africa

STP's infrastructure ranks competitively in Central Africa, per the Mo Ibrahim Foundation: 2nd in roads, 3rd in mobile communications, 3rd in regional trade integration, and 4th overall. Its 280 m/km² coast/area ratio supports port expansion, with three seaports diversifying for local and international trade. Two airports facilitate business travel and cargo to West/Central Africa. A 1,238-vessel merchant fleet (by flag) underscores maritime strength.

Merchandise trade hit $254 million in 2022, with exports at $29.8 million (top: cocoa beans $13.2M, palm oil $7.15M, gas turbines $2.23M) and imports $224 million (refined petroleum $54M, special ships $10M). Transport services comprise 46% of commercial imports, signaling logistics demand. As STP integrates into global networks, investors can capitalize on modernization.

Regional Market Opportunities: Tapping into Central Africa's Boom

Central Africa's economy, valued at $270 billion in 2023, is forecast to grow to $361 billion by 2028 (+6% CAGR), driven by commodities. Population will rise from 197 million to 229 million (+3% annually), creating vast consumer markets. STP, like Mauritius in East Africa, can emerge as Central Africa's stable trade hub—democratic, economically free, and strategically placed. Unlock maritime wealth via the EEZ's oil/fisheries, with private operators filling logistics gaps.

Prime Investment Opportunities and Regulatory Support

The government envisions STP as a Gulf of Guinea maritime hub, offering high-value projects:

Construction/operation of a deep-water port on São Tomé.

Airport enlargement/modernization/management.

Civil construction of roads/bridges.

Naval repair/maintenance for offshore/shipping.

Port bunkering/handling services.

Law No. 06/2018 on Public-Private Partnerships (PPPs) provides security, transparency, and risk-sharing for these ventures, covering infrastructure creation/rehabilitation.

Tax incentives sweeten the deal:

Income Tax: 25% reduced to 10% for new activities.

Import Duty Exemption: 0% on goods/equipment for launches/expansions.

Accelerated Depreciation: Double rates for tourism, education, health, tech, exports.

Deductions: 50% on specialized equipment (first 5 years); full on Santomean worker training.

Priority sectors (agriculture, tourism) qualify for reduced rates. The new Citizenship by Investment program (launched August 2025) offers citizenship for $90,000 donation, granting visa-free travel to 57 countries and residency perks—ideal for investors.

How APCI Can Help You Get Started

The Promotion, Commerce, and Investment Agency (APCI) is your one-stop shop at Viriato da Cruz Street, São Tomé. They provide:

Customized project services and incentive applications.

Coordination with government for accelerated approvals.

Policy advocacy for investor-friendly reforms.

Ready to invest? Contact APCI or click here for tailored advice.

Stay tuned for next month's deep dive on African tech hubs. Invest smart—invest in STP!

Disclaimer: Data sourced from official reports; consult professionals for personalized advice.### Invest in São Tomé and Príncipe: Your Gateway to Central Africa's Untapped Potential