Economy of São Tomé and Príncipe

Economy of São Tomé and Príncipe
	A market place located in the capital city of São Tomé
Currency	São Tomé and Príncipe Dobra (now STN, was STD)
Statistics
GDP	$686 million (PPP) (2017 est.); Rank: 208 (2012 est.)
GDP growth	3.9% (2017 est.)
GDP per capita	$3,024 (PPP) (2018)
Inflation (CPI)	5.8% (2017 est.)
Labour force	52,490 (2007 est.)
Labour force by occupation	Population mainly engaged in subsistence agriculture and fishing
Main industries	light construction, textiles, soap, beer, fish processing, timber
External
Exports	$11.7 million (2012 est.)
Export goods	cocoa, copra, coffee, palm oil
Main export partners	Netherlands 32.7% ; Belgium 21.4% ; Spain 10.8% ; Nigeria 5.7% ; United States 5.0% (2012 est.)
Imports	$121.6 million (2012 est.)
Import goods	machinery, electrical equipment, petroleum products, food
Main import partners	Portugal 63.0% ; Gabon 6.0% (2012 est.)
Gross external debt	$299.5 million (31 December 2012 est.)
Public finances
Government debt	83.5% of GDP (2012 est.)
Revenues	$105.5 million (2012 est.)
Expenses	$131.8 million (2012 est.)
Foreign reserves	$51.58 million (31 December 2012 est.)
	All values, unless otherwise stated, are in US dollars.

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.

History

Under Portuguese colonial rule, sugar plantations were set up, and the islands were used for the transshipment of slaves.^[4]

Oil reserves

Geologists estimate that the Gulf of Guinea zone (Niger Delta province) holds more than 10 billion barrels (1.6 km³) of oil, although no reserves have yet been proven. A joint oil project with Nigeria in 2005 is likely to contribute^[when?] $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.^[5]

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.^[6]