The economy of São Tomé and Príncipe, while traditionally dependent on

cocoa Cocoa may refer to: Chocolate * Chocolate * ''Theobroma cacao'', the cocoa tree * Cocoa bean, seed of ''Theobroma cacao'' * Chocolate liquor, or cocoa liquor, pure, liquid chocolate extracted from the cocoa bean, including both cocoa butter and ...

, is experiencing considerable changes due to investment in the development of its oil industry in the oil-rich waters of the

Gulf of Guinea The Gulf of Guinea is the northeasternmost part of the tropical Atlantic Ocean from Cape Lopez in Gabon, north and west to Cape Palmas in Liberia. The intersection of the Equator and Prime Meridian (zero degrees latitude and longitude) is in ...

History

Under

Portuguese Portuguese may refer to: * anything of, from, or related to the country and nation of Portugal ** Portuguese cuisine, traditional foods ** Portuguese language, a Romance language *** Portuguese dialects, variants of the Portuguese language ** Portu ...

colonial rule, sugar plantations were set up, and the islands were used for the transshipment of slaves.

Oil reserves

Geologists estimate that the Gulf of Guinea zone (

Niger Delta province The Niger Delta Basin, also referred to as the Niger Delta province, is an extensional rift basin located in the Niger Delta and the Gulf of Guinea on the passive continental margin near the western coast of Nigeria with suspected or proven acc ...

) holds more than 10 billion barrels (1.6 km³) of oil, although no reserves have yet been proven. A joint oil project with

Nigeria Nigeria ( ), , ig, Naìjíríyà, yo, Nàìjíríà, pcm, Naijá , ff, Naajeeriya, kcg, Naijeriya officially the Federal Republic of Nigeria, is a country in West Africa. It is situated between the Sahel to the north and the Gulf o ...

in 2005 is likely to contribute $50 million of revenues to the government from the exploration licence signing fees. This represents four times government revenues in 2004. São Tomé is optimistic that significant petroleum discoveries under the exploration licence are forthcoming, though no crude oil nor natural gas has been found as of 2021.

Agriculture

Since the 1800s, the economy of São Tomé and Príncipe has been based on plantation agriculture. At the time of independence,

-owned plantations occupied 90% of the cultivated area. After independence, control of these plantations passed to various state-owned agricultural enterprises. The dominant crop on São Tomé is cocoa, representing about 95% of exports. Other export crops include copra, palm kernels, and coffee. Coffee Grower.jpg Sao Tome Monteforte Cocoa Beans Drying 2 (16062855549).jpg Coconut Picker.jpg Sao Tome Praia Inhame Harpooned Fish 5 (16248199912).jpg

Economic issues

The government has an economic program that is supported by the IMF, via its Extended Credit Facility arrangement.

Data

Gross domestic product Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is oft ...

: purchasing power parity - $316.9 million (2010 est.), $214 million (2003 est.) GDP - real growth rate: 6% (2010 est.), 5% (2004 est.) GDP - per capita: purchasing power parity - $1,800 (2010 est.), $1,200 (2003 est.) Unemployment rate: 12.2% in the formal business sector (2017 est.) Budget: *''revenues:'' $58 million *''expenditures:'' $114 million, including capital expenditures of $54 million (1993 est.) Industries: light construction, textiles, soap, beer;

fish processing The term fish processing refers to the processes associated with fish and fish products between the time fish are caught or harvested, and the time the final product is delivered to the customer. Although the term refers specifically to fish, in ...

; timber Agriculture - products:

, coconuts, palm kernels,

copra Copra (from ) is the dried, white flesh of the coconut from which coconut oil is extracted. Traditionally, the coconuts are sun-dried, especially for export, before the oil, also known as copra oil, is pressed out. The oil extracted from co ...

, cinnamon,

pepper Pepper or peppers may refer to: Food and spice * Piperaceae or the pepper family, a large family of flowering plant ** Black pepper * ''Capsicum'' or pepper, a genus of flowering plants in the nightshade family Solanaceae ** Bell pepper ** Chili ...

coffee Coffee is a drink prepared from roasted coffee beans. Darkly colored, bitter, and slightly acidic, coffee has a stimulating effect on humans, primarily due to its caffeine content. It is the most popular hot drink in the world. Seeds of ...

, bananas, papayas, beans;

poultry Poultry () are domesticated birds kept by humans for their eggs, their meat or their feathers. These birds are most typically members of the superorder Galloanserae (fowl), especially the order Galliformes (which includes chickens, quails, ...

;

fish Fish are aquatic, craniate, gill-bearing animals that lack limbs with digits. Included in this definition are the living hagfish, lampreys, and cartilaginous and bony fish as well as various extinct related groups. Approximately 95% of ...

Exports: $13 million (2010 est.) Exports - commodities:

80%,

, palm oil (2009) Exports - partners:

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...

32.99%,

Netherlands ) , anthem = ( en, "William of Nassau") , image_map = , map_caption = , subdivision_type = Sovereign state , subdivision_name = Kingdom of the Netherlands , established_title = Before independence , established_date = Spanish Netherl ...

26.93%,

Belgium Belgium, ; french: Belgique ; german: Belgien officially the Kingdom of Belgium, is a country in Northwestern Europe. The country is bordered by the Netherlands to the north, Germany to the east, Luxembourg to the southeast, France to th ...

21.04%,

Portugal Portugal, officially the Portuguese Republic ( pt, República Portuguesa, links=yes ), is a country whose mainland is located on the Iberian Peninsula of Southwestern Europe, and whose territory also includes the Atlantic archipelagos of ...

4.31% (2009) Imports: $127.7 million (2017 est.)

Petroleum Petroleum, also known as crude oil, or simply oil, is a naturally occurring yellowish-black liquid mixture of mainly hydrocarbons, and is found in geological formations. The name ''petroleum'' covers both naturally occurring unprocessed crud ...

- it needs to import all of its required petroleum

References

External links

São Tome and Principe latest trade data on ITC Trade MapAgência Nacional do Petróleo de São Tomé e PríncipeCIA - The World Factbook -- Sao Tome and Principe
https://theodora.com/wfbcurrent/sao_tome_and_principe/sao_tome_and_principe_economy.html {{DEFAULTSORT:Economy Of Sao Tome And Principe São Tomé and Príncipe