Capital
São Tomé

Geographical Location
The islands state of Sao Tome and Principe is one of the smallest country in Africa. It is located in the Gulf of Guinea just north of Equator and 300 kms west of Gabon. It comprises two islands - São Tomé (859 sq Kms) Príncipe (142 sq Kms) and some uninhabited rocky islets, off of the northwestern coast of Gabon.

Economy
This small poor island economy has become increasingly dependent on cocoa since independence over 20 years ago. However, cocoa production has substantially declined because of drought and mismanagement. The resulting shortage of cocoa for export has created a persistent balance-of-payments problem.

Domestic food-crop production is inadequate to meet local consumption, so the country imports some of its food (70%). Efforts have been made by the government in recent years to expand food production, and several projects have been undertaken, largely financed by foreign donors.

Sao Tome has to import all fuels, most manufactured goods, consumer goods, and a significant amount of food.

Over the years, it has been unable to service its external debt and has had to depend on concessional aid and debt rescheduling.

The scenic islands have potential for tourism, and the government is attempting to improve its rudimentary tourist industry infrastructure. The government also has attempted to reduce price controls and subsidies, but economic growth has remained sluggish.

Sao Tome is also optimistic that significant petroleum discoveries are forthcoming in its territorial waters in the oil-rich waters of the Gulf of Guinea. Corruption scandals continue to weaken the economy.

In 2003, the government agreed a Joint Development Zone over the area which gives Sao Tome 40% of revenues.

Natural Resources
Major natural resources: Fish, Hydropower.

Industry
The industrial production represents 19% of GDP.

Agriculture and Fishing
The dominant crop on São Tomé is still dominated by the export of cocoa which represents 95% of exports by value. São Tomé has to import all fuels, most manufactured goods, consumer goods, and a significant amount of food.

Other than agriculture, the main economic activities are fishing and a small industrial sector engaged in processing local agricultural products and producing a few basic consumer goods.

The agriculture sectro represents 20% of GDP.

Major products: Cocoa, Coconuts, Palm kernels, Copra, Cinnamon, Pepper, Coffee, Bananas, Papayas, Beans, Poultry, Fish.

Tourism
Tourism is a new field for investment. Considerable potential exists for development of a tourist industry, and the government has taken steps to expand facilities in recent years.

The island’s tourism potential is beginning to show some development, with tourists from Portugal, Gabon and Angola. In 2000, the country received more than 7.100 tourists.

Transportation
The road network is 380 kilometres, of which 250 kilometres is paved. There are two airports and two ports. S. Tomé International Airport has the capacity to handle the arrival of the larger type of aircraft. The S. Tomé Airport Company was established in October 2003, composed of investors from Portugal, S. Tomé and France.

Highways
total: 380 km
paved: 250 km

Waterways
total: 9 ships
Ports and harbors: Santo Antonio, São Tomé

Air
Airports: 2 - with paved runways: total: 2 (1,524 to 2,437 m: 1; 914 to 1,523 m: 1 (2002 )

Foreign Trade
Major exports commodities: cocoa (80%), copra, coffee, palm oil (2004)

Major Imports commodities: Machinery and electrical equipment, food products, petroleum products. (2004)

Major trading partners: Netherlands, Canada, Germany, Philippines, Belgium, France, UK, Portugal, Italy. (2003)

The most important trading partners are the EC staes and Angola. Portugal (60%) remains one of São Tomé's major trading partners, particularly as a source of imports. Food, manufactured articles, machinery, and transportation equipment are imported primarily from the EU.

Climate
Sao Tome and Principe has a tropical climate characterized by hot and humid conditions that are influenced and modified by the mountainous topography.

Service
The government sector accounts for about 11% of employment and represents about 63% (2003) of GDP. By increasing tourism, the service sector can be expanded singnificantly.

Annual Indicators

Foreign Trade (2005)

Mainland China-Sao Tome & Principle Bilateral Trade (US$ 10,000)

* China’s export value to Sao Tome & Principle
** China’s import value from Sao Tome & Principl

Its closest friendship are with the other Portuguese-Speaking African countries and with Portugal itself, the main trading partner. Significantly, Sao Tome recognized Taiwan in 1997. Relations with China are poor as a result.

Source:
BBC news – country profile São Tomé e Principe
China Statistical Yearbook 2006
The Economist Intelligence Unit – Country Profile, Country Report
Instituto Nacional de Estatística de São Tomé e Principe
Macao Ecnomic Services
Macao Statistics and Census
Ministry of Foreign Affairs of the People’s Republic of China
The World Bank
The World Economic Factbook 2005/2006
The World Factbook