Sao Tome and Principe, with a population of 227,380, ranks 169th globally, just behind Barbados. Located in Africa, it covers 960 sq. km, ranking 165th, below Hong Kong SAR, China.
Sao Tome and Principe, with a GDP of 542,686,976.46 USD in 2022, holds the 182nd rank globally. It follows Dominica, which has a GDP of 607,440,740.74 USD. In terms of GDP per capita, Sao Tome and Principe ranks 141st with 2,386.70 USD.
It is surpassed by India, with a GDP per capita of 2,410.89 USD. Despite its challenges, Sao Tome and Principe continues to strive for economic growth and development in the global landscape.
What are the economic activities of Sao Tome and Principe?
- Primary activities: 11.8% of GDP.
- Secondary activities: 14.8% of GDP.
- Tertiary activities: 73.4% of GDP.
Primary Sector of Sao Tome and Principe
Sao Tome and Principe’s primary sector, mainly focused on agriculture, thrives due to its tropical climate and abundant natural resources. With 43.75% of the country’s land dedicated to agriculture, its main products include plantains, oil palm fruit, taro, bananas, fruits, cocoa beans, coconuts, yams, cassava, and carrots/turnips.
Despite contributing 11.8% to the GDP, agriculture plays a crucial role in the country’s economy. The diverse range of crops and animal products highlights the sector’s significance, providing sustenance and livelihoods for many in Sao Tome and Principe.
The geological diversity of Sao Tome and Principe contributes to its rich natural resources. The primary sector thrives on abundant fish stocks and vast hydropower potential, driving the economy through sustainable exploitation of these resources.
Secondary Sector of Sao Tome and Principe
What is the secondary sector or what are secondary activities?
The secondary sector involves industries that transform raw materials from primary activities into finished products for consumption. In Sao Tome and Principe, main industrial products include light construction materials, textiles, soap, beer, fish processing, and timber. These goods are manufactured for domestic consumption and export, contributing to the country’s industrial sector.
In 2023, Sao Tome and Principe’s manufactures exports accounted for only 1.46% of the total exports, indicating their relatively minor role in the country’s economy.
Tertiary sector of Sao Tome and Principe
What is the tertiary sector or what are tertiary activities?
The tertiary sector, also known as the service sector, encompasses the ‘soft’ parts of the economy where individuals offer knowledge and time to enhance productivity, performance, and meet needs through intangible goods like attention, advice, and expertise. In Sao Tome and Principe, the main tertiary activities include healthcare and medical care, education and training, banking and finance, communication and information exchange, tourism and hospitality, transportation and logistics, and telecommunications.
Specifically, Sao Tome and Principe’s economy heavily relies on tourism, contributing significantly to its GDP. With around 30,000 annual arrivals, popular destinations like Roca Agostinho Neto and Pico de Sao Tome attract visitors seeking natural beauty and cultural experiences. Tourism plays a pivotal role in the nation’s economic growth and development.
Another example of tertiary economic activity is the mobile cellular sector, which boasts approximately 197,000 subscriptions, facilitating communication and supporting the growth of technological activities across various industries.
International Trade of Sao Tome and Principe
Import Activities of Sao Tome and Principe
Import activities in Sao Tome and Principe are crucial, accounting for 33.82% of GDP in 2023, totaling $183,563,238.11.
Sao Tome and Principe primarily imports refined petroleum, ships, electric generating sets, rice, and cars. Its main import partners are Portugal (35%), Angola (18%), Togo (13%), China (6%), and Italy (5%).
Exports Activities of Sao Tome and Principe
In Sao Tome and Principe, total exports in 2023 amounted to 16,554,568.871. With exports accounting for 3.05% of GDP, the importance of export activities is relatively low, indicating a minor contribution to the country’s economic output.
Sao Tome and Principe’s export activities focus on cocoa beans, palm oil, gas turbines, integrated circuits, and coconut oil. The country’s main export partners are the Netherlands (26%), France (11%), Belgium (11%), Portugal (8%), and Angola (6%).
Sao Tome and Principe economy challenges in 2024
Sao Tome and Principe faces challenges in 2024 with falling cocoa production, high debt, and a struggling tourism sector due to COVID-19. The government’s joint oil venture with Nigeria offers hope, but mismanagement and drought hinder economic growth.
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