UNDERSTANDING THE INVESTMENT LANDSCAPE OF THIS EMERGING MARKET
BY DISNEY RAMOS
São Tomé and Príncipe is a vibrant twin-island nation located in the Gulf of Guinea, off the coast of Central Africa. The country offers profitable investment opportunities in key priority sectors including tourism, transport and logistics, agriculture and fisheries, and renewable energy. The government is committed to protecting the interests of foreign investors while fostering a conducive business environment. Here are reasons why investors seeking opportunities in emerging markets should consider investing in São Tomé and Príncipe:
Strategic Location: São Tomé and Príncipe is ideally situated between Africa, Europe, and the Americas, making it a potential gateway for trade and commerce across these regions. It is just a six-hour flight from Lisbon, Portugal, and only about two hours from more than 10 countries in West and Central Africa, including Angola, Nigeria, Côte d’Ivoire, Cameroon, and Ghana, providing access to a market of over 500 million potential consumers.
Business-Friendly Policies and Government Support: São Tomé and Príncipe has been working to improve its business environment by simplifying regulations, offering incentives for foreign investors, and creating a more transparent economic framework. The country recently launched strategic initiatives, including tax breaks and preferential terms, to attract investors in priority sectors such as infrastructure, agriculture, tourism, and renewable energy. It also provides strong protection for foreign investors, ensuring a secure and stable investment domain.
Political Stability and Low Crime Rate: São Tomé and Príncipe has maintained strong democratic institutions for decades and has enjoyed relative political stability since gaining independence in 1975. The country is known for being a peaceful society, having been ranked 5th in Africa for absence of violence by the World Bank. It boasts the lowest crime rate in Africa, providing a safe and favorable environment for residents, visitors and investors.
Free Trade Agreements: As a member of the African, Caribbean, and Pacific (ACP) group, São Tomé and Príncipe has access to various free trade agreements with the European Union, which can facilitate business and trade opportunities for foreign investors. The country is also a beneficiary of the African Growth and Opportunity Act (AGOA), which grants eligible sub-Saharan African nations duty-free access to the U.S. market. With the African Continental Free Trade Agreement, investors in São Tomé and Príncipe can leverage expanded market access, enabling them to export goods and services to the wider African market of 1.4 billion consumers.
Improving Infrastructure: Despite being a small island nation, São Tomé and Príncipe has developed a transport and communications infrastructure that exceeds the average standard in Africa. This includes three seaports, two airports, and a subsea cable that ensures fast and reliable internet connectivity across the country.
Investing in São Tomé and Príncipe presents significant potential for strong returns, backed by rich natural resources, political stability, and a rapidly developing infrastructure. By investing in priority sectors and other key projects, investors can play a crucial role in shaping the future of this promising twin-island nation. Under the leadership of Prime Minister Patrice Trovoada, São Tomé and Príncipe will continue to pursue an open and transparent business environment to position the country as a prime destination for foreign direct investment.
Dr. Disney Ramos is the Minister of Economy of São Tomé and Príncipe.
