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São Tomé and Príncipe - online guide 

Sao Tome and Principe Factsheet Economy Overview

Economy Overview (December 2025)

GDP (nominal & PPP), GDP per capita, growth rate

- Nominal GDP (2023–2024 est.): US$679–764 million

- PPP GDP (2024 est.): ~US$1.0 billion

- GDP per capita (nominal): US$3,167–3,400

- GDP per capita (PPP): ~US$4,238

- Real GDP growth: 1.1–1.7% (2024); projected 2.1–2.9% (2025-year average 2019–2024 ≈ 1.3–1.4%)

Currency and exchange rate regime

- Currency: São Tomé and Príncipe dobra (STN)

- Exchange rate regime: Fixed peg to the euro at 1 EUR = 24.5 STN (since 2010) – provides long-term stability but limits independent monetary policy.

Main economic sectors and contribution to GDP

- Services: 72–76% (tourism alone ≈11% of GDP and 10% of gross value added)

- Industry: 13% (light manufacturing, fishing, small-scale hydropower)

- Agriculture, forestry & fishing: 11–14% (cocoa remains dominant despite small share of GDP)

Exports and imports

- Exports (2023–2024): ~US$50–60 million – Cocoa: 54–90% of total commodity exports (high-quality "fine & flavour") – Palm oil (rising), coffee, pepper, copra

- Imports: ~US$200–250 million (food ≈50% of needs, fuel 100%)

- Trade balance: Chronic deficit (≈14–20% of GDP); current account deficit 4–11% of GDP in 2024

Public debt, inflation, poverty

- Public & publicly guaranteed debt: 43.6–45.7% of GDP (2024; sharp decline from 97.7% in 2019)

- Inflation: 21.3% (end-2023) → 16.1% (2024) → projected ~10% (2025)

- Poverty: National rate 66.7% (2017, latest comprehensive); extreme poverty 15.6%; Gini 40.7–50 (high inequality)

Development status (SIDS, former LDC)

Small Island Developing State (SIDS) – highly vulnerable to climate change, external shocks, and high transport costs.

Graduated from UN Least Developed Country (LDC) status in December 2024 – now classified as lower-middle-income.

Benefits from EU "Everything But Arms" and US AGOA trade preferences (being phased out post-graduation).

No standing army; one of the highest literacy rates in sub-Saharan Africa (92.8–95%).

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Key Economic Sectors in Detail

Tourism

- Strategic priority, contributing 11% to GDP and 10% to gross value added (GVA) in 2024 (first Tourism Satellite Accounts validated October 2025 via UNECA project).

- Visitor profile: 96% international tourists; average stay 18 days; 41,000 arrivals in 2024 (record high, up from 34,900 in 2019; 40% post-COVID rebound).

- Spending: 2.85 billion dobras in 2024, creating net positive balance of payments.

- Focus: Eco-tourism, luxury resorts, biodiversity (UNESCO Biosphere Reserve since 2025), pristine beaches, hiking; small-scale operators (eco-lodges, diving, kayaking, tours).

- Infrastructure: Portuguese/South African/international luxury chains; growing local guesthouses.

- Incentives: Accelerated depreciation, 10% reduced corporate tax (standard 25%), 100% import duty exemptions for equipment; national consensus (October 2025) for multisectoral governance, Tourism Statistics Steering Committee.

- Challenges/Opportunities: Data-driven policies target 73% GDP contribution by 2030; integrate sustainability, employment, investment.

Agriculture & Cocoa

- Critical sector: 11–14% of GDP; ~80% export earnings; >60% employment; commitment to 100% organic production.

- Cocoa dominance: Primary export (54–90% of commodity exports; ~3,000–5,000 tons annually, 2025 est.); high-quality "fine and flavour" Amelonado variety (SST), world's largest per capita producer.

- Other crops: Palm oil (rising, overtook cocoa in 2021 exports), coffee, pepper, vanilla, coconuts/copra; integrated agroforestry with bananas, breadfruit, taro for food security.

- Sustainability: 2024 FAO GIAHS designation for Cocoa Agroforestry System; TRI project (GEF/FAO, 2019–2025) restores >8,000 ha degraded forests, supports 3,500+ farmers (esp. women) with agroforestry, organic/fair-trade certifications; >240,980 seedlings planted.

- Cooperatives: CECAB, CECAQ-11 boost quality/income; 2025 experimental chocolate lab for value addition; EU/IFAD initiatives enhance traceability, market access amid price volatility.

- Challenges/Opportunities: Climate change, land degradation; niche markets, sustainable practices as model for tropical agriculture.

Fisheries
  • Vital for food security: >50% animal protein; artisanal focus on small pelagics (sardines); total domestic captures ~15,000 tons (2021), catch capacity ~29,000 tons/year.
  • Employment: ~30,000 jobs (fishers/traders); key revenue after cocoa for low-income families; 2,237 boats (90% fragile/unsafe).
  • Structure: Exclusively artisanal (canoes); industrial via foreign vessels under agreements (e.g., EU SFPA).
  • 2025 Updates: New EU protocol (Oct 2025–2029) allows 6,500 tons/year tuna/migratory species by EU fleets; €825,000 annual EU support (€500,000 for management/control/surveillance, artisanal fishing, communities); €85/ton licensing fee.
  • Initiatives: FAO/FISH4ACP enhances productivity/processing/marketing, reduces environmental impact; fleet modernization for safety/sustainability; AfDB $8.9M GEF grant (Oct 2025) for PRIASA III (climate resilience in fisheries/agriculture).
  • Conservation: 8 new marine protected areas (~93 km²) approved Sep 2025; blue economy transition targets aquaculture.
  • Challenges/Opportunities: Isolation limits exports; FiTI Candidate (since Dec 2023), second report due Dec 2025 for transparency.

Energy

- Access: 60–70% population; reliability issues; 90–95% diesel-based (100% imported fuel); ~5% renewables (hydro).

- Targets: 50% renewable penetration by 2030 (NREAP 2021); updated NDC (2025) aims for 49 MW RE capacity (from 26 MW), integrating mitigation/adaptation in blue economy sectors.

- Key Projects: 11 MWp solar PV + 8 MWh BESS lease (2026); site prep for 20 MWp solar (Água Casada, 2025); Bombaim River hydro data system (2025); self-generation regulations (2026); National Solar Thermal Strategy/Action Plan validated Apr 2025 (UNIDO/UPM) for hot water/cooking.

- Solar Thermal: First National Strategy/Action Plan (validated Apr 2025, UNIDO/UPM) promotes hot water/cooking solutions; GCF project builds capacity for RE/EE investments.

- Challenges/Opportunities: High costs, import reliance; UNIDO/GEF/World Bank support for policy (no comprehensive energy policy yet); green stimulus post-COVID emphasizes RE/EE for resilience; incentives for renewables (e.g., duty exemptions on equipment).

Oil & Gas (Exploration)
  • Status: Frontier market; no commercial production; revenues from licenses/bonuses only; EEZ (160,000 km²) + JDZ with Nigeria (40% STP/60% Nigeria); success rate <15%.
  • 2025 Updates: Petrobras acquired 27.5% in Block 4 (Sep; Shell operator 30%, Galp 27.5%, ANP-STP 15%); drilling starts Jul–Aug in STP blocks; Petrobras now in 4 blocks (since Feb 2024 acquisitions in 10/13/11).
  • Other Activity: TotalEnergies large stake in adjacent block (2024); Kosmos/BP seismic; Shell/Galp JV in Block 4; ANP encourages bids for competitiveness.
  • Framework: ANP regulates; PSC model (83% gov't share); EITI implementation for transparency; JDZ stalled (no viable finds).
  • Challenges/Opportunities: Low success rate; environmental risks in biodiversity hotspot; potential in Muni Basin; aligns with diversification.

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