The economy of São Tomé and Príncipe, while traditionally dependent on cocoa, 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 (French language, French: ''Golfe de Guinée''; Spanish language, Spanish: ''Golfo de Guinea''; Portuguese language, Portuguese: ''Golfo da Guiné'') is the northeasternmost part of the tropical Atlantic Ocean from Cape Lopez i ...

History

Under Portuguese 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 Niger, officially the Republic of the Niger, is a landlocked country in West Africa. It is a unitary state bordered by Libya to the north-east, Chad to the east, Nigeria to the south, Benin and Burkina Faso to the south-west, Mali to the we ...

) 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, officially the Federal Republic of Nigeria, is a country in West Africa. It is situated between the Sahel to the north and the Gulf of Guinea in the Atlantic Ocean to the south. It covers an area of . With Demographics of Nigeria, ...

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, Portuguese-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 The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution funded by 191 member countries, with headquarters in Washington, D.C. It is regarded as the global lender of la ...

, via its Extended Credit Facility arrangement.

Data

Gross domestic product Gross domestic product (GDP) is a monetary measure of the total market value of all the final goods and services produced and rendered in a specific time period by a country or countries. GDP is often used to measure the economic performanc ...

purchasing power parity Purchasing power parity (PPP) is a measure of the price of specific goods in different countries and is used to compare the absolute purchasing power of the countries' currency, currencies. PPP is effectively the ratio of the price of a market bask ...

– $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: cocoa,

coconut The coconut tree (''Cocos nucifera'') is a member of the palm tree family (biology), family (Arecaceae) and the only living species of the genus ''Cocos''. The term "coconut" (or the archaic "cocoanut") can refer to the whole coconut palm, ...

s, 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 ...

cinnamon Cinnamon is a spice obtained from the inner bark of several tree species from the genus ''Cinnamomum''. Cinnamon is used mainly as an aromatic condiment and flavouring additive in a wide variety of cuisines, sweet and savoury dishes, biscuits, b ...

, pepper,

coffee Coffee is a beverage brewed from roasted, ground coffee beans. Darkly colored, bitter, and slightly acidic, coffee has a stimulating effect on humans, primarily due to its caffeine content, but decaffeinated coffee is also commercially a ...

banana A banana is an elongated, edible fruit – botanically a berry – produced by several kinds of large treelike herbaceous flowering plants in the genus '' Musa''. In some countries, cooking bananas are called plantains, distinguishing the ...

papaya The papaya (, ), papaw, () or pawpaw () is the plant species ''Carica papaya'', one of the 21 accepted species in the genus '' Carica'' of the family Caricaceae, and also the name of its fruit. It was first domesticated in Mesoamerica, within ...

bean A bean is the seed of some plants in the legume family (Fabaceae) used as a vegetable for human consumption or animal feed. The seeds are often preserved through drying (a ''pulse''), but fresh beans are also sold. Dried beans are traditi ...

poultry Poultry () are domesticated birds kept by humans for the purpose of harvesting animal products such as meat, Eggs as food, eggs or feathers. The practice of animal husbandry, raising poultry is known as poultry farming. These birds are most typ ...

;

fish A fish (: fish or fishes) is an aquatic animal, aquatic, Anamniotes, anamniotic, gill-bearing vertebrate animal with swimming fish fin, fins and craniate, a hard skull, but lacking limb (anatomy), limbs with digit (anatomy), digits. Fish can ...

Exports: $13 million (2010 est.) Exports – commodities: cocoa 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 Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...

32.99%,

Netherlands , Terminology of the Low Countries, informally Holland, is a country in Northwestern Europe, with Caribbean Netherlands, overseas territories in the Caribbean. It is the largest of the four constituent countries of the Kingdom of the Nether ...

26.93%,

Belgium Belgium, officially the Kingdom of Belgium, is a country in Northwestern Europe. Situated in a coastal lowland region known as the Low Countries, it is bordered by the Netherlands to the north, Germany to the east, Luxembourg to the southeas ...

21.04%,

Portugal Portugal, officially the Portuguese Republic, is a country on the Iberian Peninsula in Southwestern Europe. Featuring Cabo da Roca, the westernmost point in continental Europe, Portugal borders Spain to its north and east, with which it share ...

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 chemical mixture found in geological formations, consisting mainly of hydrocarbons. The term ''petroleum'' refers both to naturally occurring un ...

– 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 São Tomé and Príncipe, officially the Democratic Republic of São Tomé and Príncipe, is an island country in the Gulf of Guinea, off the western equatorial coast of Central Africa. It consists of two archipelagos around the two main isla ...