Promoter: APCI, Government of São Tomé and Príncipe
Sector: Renewable Energy
Location: São Tomé Island, Gulf of Guinea
Country of Deal: São Tomé and Príncipe

Project Description

The Government of São Tomé and Príncipe is focused on attracting increased investment in the power sector through a comprehensive Renewable Energy Development Initiative (REDI). This initiative aims to enhance the reliability and sustainability of the nation’s energy supply while raising the renewable energy share in the country’s energy mix to 50% by 2050. As part of this effort, the government has proposed a strategy to electrify off-grid load centers, combining multiple energy solutions from solar, wind, mini-hydropower, and biomass energy sources. This presents a range of opportunities for foreign investors and private sector entities, offering potential in renewable energy projects, infrastructure development, and sustainable energy solutions.

Market Opportunity

São Tomé and Príncipe’s abundant sunshine, strong tidal winds, and high hydroelectric potential from its rivers and streams position the country as an ideal candidate for renewable energy generation. With an average of 4.32 hours of sunlight per day across the country, São Tomé is well-placed to benefit from technological advancements in renewable energy. This offers a significant opportunity to reduce reliance on imported fossil fuels, enhance electricity access, and promote sustainable development. By harnessing its natural resources, the country can not only meet its energy needs but also support a greener, more resilient future.

Investment Required

This project presents an investment opportunity to develop critical renewable energy infrastructure in São Tomé and Príncipe, including solar photovoltaic plants, mini-hydropower projects, and biomass facilities. With the country’s commitment to increasing its renewable energy share and improving energy security, investors can expect strong returns as São Tomé transitions toward sustainable energy solutions.

Government Incentives

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

• Exemption from import duties on renewable energy equipment.

• Accelerated depreciation for investment assets, enhancing financial returns.

• Grants up to 50% tax deduction for specialized equipment purchases.

• Comprehensive legal framework “The Regulatory Framework of the Electricity Sector” (RJSE) designed to liberalize the energy sector and facilitate the growth of renewable energy production.

Investment Type

Public Private Partnership

 

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