The economy is based on the export of agricultural products: cocoa, palm oil, bananas, coffee and coconuts. This concentration on cash crops, especially cocoa (most of which is exported) means that the country has to import most of its food. It also means the country’s economy is overly dependent on favourable weather conditions and world commodity prices: by and large these have not been kind to São Tomé e Príncipe’s economy in recent years. After the failure to develop an indigenous fishing industry in the 1980s, fishing rights were sold under licence to foreign fleets. Manufacturing industry is confined to a few food-processing plants and factories producing consumer goods for local consumption. A free trade zone has now been established on Príncipe island in an effort to boost the export economy. Since the late-1990s, economic policy has concentrated on promotion of the private sector and the removal of trade barriers. This has been carried out under the auspices of an IMF Structural Adjustment Programme. The country has also benefited from the IMF’s Heavily Indebted Poor Countries Programme, which has eliminated a large slice of the foreign debt; nonetheless, the government still considers elimination of its debt a high priority. It will be able to do this once revenues begin to flow from the oil and gas fields recently discovered (and as yet unexploited) in São Tomé’s territorial waters. Exploration bids submitted in 2003 have already resulted in a windfall for the government amounting to hundreds of millions of dollars. With its economy due for a radical transformation, the government is planning to construct a deepwater port and has suggested to the USA that it might consider establishing a naval base (not least to protect the oilfields). The government also hopes to promote the currently minute tourism industry. Economic performance in recent years has been improving and is expected to get even better as revenue from oil starts to come in. Portugal and Angola supply most of the country’s imports; The Netherlands is the main export market. São Tomé e Príncipe is a member of the African Development Bank and the CEEAC trade bloc.
Office hours: Mon-Fri 0800-1200 and 1500-1800, Sat 0800-1200.

Ministry of Foreign Affairs and Co-operation
Avenue 12 July, CP 111, São Tomé
Tel: (2) 22662. Fax: (2) 22597.