Business in Sao Tome and Principe

EENI- School of International Business

Subject: Doing Business in Sao Tome and Principe. Syllabus:

1. Introduction to the Democratic Republic of Sao Tome and Principe (Central Africa)
2. The Economy of Sao Tome and Principe
3. The International Trade of Sao Tome
4. Business Opportunities in Sao Tome and Principe
5. Introduction to Portuguese
6. Access to the Sao Tome market
7. Business Plan for Sao Tome and Principe

The purposes of the subject “Foreign Trade and Doing Business in São Tomé and Príncipe” are the following:

1. To learn to do business in São Tomé and Príncipe
2. To evaluate the business opportunities in São Tomé and Príncipe
3. To know São Tomé and Príncipe's Trade Agreements
4. To analyse the trade relationships of São Tomé and Príncipe with the country of the student
5. To learn how to develop a business plan for the São Tomé and Príncipe

Sample of the subject - Doing Business in Sao Tome and Principe:

Description of the Subject (Doing Business in Sao Tome and Principe).

Sao Tome and Principe: A “tourist country” and exporter of cocoa.

1. Sao Tome and Principe is an insular country
2. Neighbouring countries (by sea): Gabon, Cameroon, and Equatorial Guinea
3. Population: 200,000
4. The capital of Sao Tome and Principe: São Tomé (137,500 people)
5. Literacy rate: 70 %
6. The official language is Portuguese
7. Area: 1,000 square kilometres
8. Religion: 80% of the population is Christian (Catholicism)
9. The Government: Republic. Multiparty Democracy
10. Climate: tropical
11. Independence of Sao Tome and Principe: 1975 (Portugal)

Sao Tome and Principe belongs to the Central African Economic Area of the African Civilisation.

The economy of Sao Tome and Principe:

1. Tourism and agriculture represent the largest export sectors of Sao Tome and Principe
2. The Government has created new incentives for the promotion of free trade zones
3. GDP growth: 4% (middle-income country)
   1. 20 % agriculture and forestry
   2. 19 % industrial sector
   3. 61 % services
4. Inflation: 7.9
5. Unemployment: 55%
6. National Currency: Dobras (STD)
7. Cash Crops: Cocoa, coffee, coconut, and pepper
8. Top export product: cocoa (95% of the total exports)
9. Top trading partners: The European Union (60 % with Portugal) and Angola
10. Trade with the Economic Community of Central African States: only 2% of the total trade of Sao Tome
11. Potential sectors: tourism, energy, Petrol, construction, finances, telecommunications, health, and education
12. Political stability
13. Lack of physical infrastructure
14. Weak judicial system
15. The industry of Sao Tome is limited to the transformation of export agricultural products (90% of the export earnings are derived from cocoa monocultures)
16. Copra, palm kernel, and coffee are also exported
17. The State plantations occupy 80% of the crop area of Santo Tomé.

The entry into force of the Agreement on Economic Cooperation between Sao Tome and Principe and Portugal is one of the measures announced by the Central Bank of Sao Tome.

Sao Tome and Principe has preferential access to:

1. Economic Community of Central African States (ECCAS)
2. African Growth and Opportunity Act (AGOA)
3. Africa-European Union Strategic Partnership (Cotonou)

Sao Tome and Principe is a member of:

1. African Development Bank
2. New Partnership for Africa's Development (NEPAD)
3. Economic Commission for Africa (ECA)
4. African Union (AU)
5. Afro-Arab Cooperation - Arab Bank for Economic Development in Africa (BADEA)
6. Community of Portuguese Speaking Countries
7. Africa-South America Summit (ASA)
8. World Bank (WB), United Nations (UN), International Monetary Fund (IMF), World Trade Organisation (WTO)