Project Promoter: APCI, Government of São Tomé and Príncipe
Sector: Agribusiness  Subsector: Fisheries and Aquaculture
Location: São Tomé Island, Gulf of Guinea
Country of Deal: São Tomé and Príncipe

Project Description

São Tomé and Príncipe produces some of the world’s finest cocoa due to its ideal growing conditions, including fertile land and a favorable climate. The country is rich in natural resources and strategically located in the Gulf of Guinea, with its Exclusive Economic Zone (EEZ) being 160 times larger than its land area. The fisheries sector is a key growth driver as the nation shifts towards a blue economy, focusing particularly on fishing and aquaculture. This transition is central to the country’s efforts to achieve food security and unlock the full potential of its marine resources.

Export potential is strongest in the cocoa value chain, the palm oil industry, and several emerging non-traditional agricultural exports. Its proximity and access to the growing African, Asian and European presents opportunities for the country to provide goods and services across the region, expanding the country’s export base.

Market Opportunity

The fisheries sector plays a crucial role in São Tomé and Príncipe’s economy, employing over 6,900 people in artisanal fishing and related trades. While the country has a catch capacity of 29,000 tonnes, current annual catches account for less than 25% of this potential, presenting a substantial opportunity for growth. With an estimated market size ranging from $60 million to $200 million, the sector is well-positioned to meet the rising demand for sustainably sourced seafood. Furthermore, trade agreements like AGOA and the African Continental Free Trade Area (AfCFTA provide access to lucrative international markets, further enhancing export potential.

Investment Required

São Tomé is seeking investments to establish fish and seafood processing plant, enhance value-added production for chocolate and cocoa products, and boost agro-processing of natural fruits and vegetables. Investors can expect internal rates of return (IRR) between 12% and 24%, driven by the country’s strategic location and commitment to sustainability. The agricultural sector also offers promising investment opportunities, with potential returns of over 15%, particularly in key crops such as cocoa, palm oil, and local horticulture.

Government Incentives

• Reduced income tax rate of 10% for resident and non-resident businesses involved in new ventures or expansions in the sector.

• Import duty exemptions for goods and equipment for new activities or expansions

• Accelerated depreciation on investment assets in the fisheries sector.

• Access 50% tax deduction on amount invested in specialized equipment

Investment Type

Public Private Partnership

 

For more information about this project, please contact CITD-Miami: info@citdmiami.org