Region: Western Africa

Capital: São Tomé

Population: 206,178 (July 2008 est.)

Surface area: 1,001 sq km

Currency: dobra (STD)

GDP per capita: Purchasing power parity US $1,600 (2007 est.)

Background:
Discovered and claimed by Portugal in the late 15th century, the islands' sugar-based economy gave way to coffee and cocoa in the 19th century - all grown with plantation slave labor, a form of which lingered into the 20th century. While independence was achieved in 1975, democratic reforms were not instituted until the late 1980s. The country held its first free elections in 1991, but frequent internal wrangling between the various political parties precipitated repeated changes in leadership and two failed coup attempts in 1995 and 2003. The recent discovery of oil in the Gulf of Guinea promises to attract increased attention to the small island nation.

Economy – overview:
This small, poor island economy has become increasingly dependent on cocoa since independence in 1975. Cocoa production has substantially declined in recent years because of drought and mismanagement. Sao Tome has to import all fuels, most manufactured goods, consumer goods, and a substantial amount of food. Over the years, it has had difficulty servicing its external debt and has relied heavily on concessional aid and debt rescheduling. Sao Tome benefited from $200 million in debt relief in December 2000 under the Highly Indebted Poor Countries (HIPC) program, which helped bring down the country's $300 million debt burden. In August 2005, Sao Tome signed on to a new 3-year IMF Poverty Reduction and Growth Facility (PRGF) program worth $4.3 million. Considerable potential exists for development of a tourist industry, and the government has taken steps to expand facilities in recent years. The government also has attempted to reduce price controls and subsidies. Sao Tome is optimistic about the development of petroleum resources in its territorial waters in the oil-rich Gulf of Guinea, which are being jointly developed in a 60-40 split with Nigeria. The first production licenses were sold in 2004, though a dispute over licensing with Nigeria delayed Sao Tome's receipt of more than $20 million in signing bonuses for almost a year. Real GDP growth exceeded 6% in 2007, as a result of increases in public expenditures and oil-related capital investment.

Major Export Commodities: cocoa 80%, copra, coffee, palm oil

Remittances: Not available

Human Development Index 2007/2008 ranking: 123 out of 177

Official Development Assistance and Major Development Partners: Net ODA in 2006 was US $18.26 million. Major development partners include Portugal, the European Community, France, and the IDA.

Total External Debt: US $318 million (2002)

United Nations Membership date: 16 September 1975

New York Mission:
Permanent Mission of Sao Tome and Principe to the United Nations
400 Park Avenue, 7th Floor
New York, N.Y. 10022
Telephone: (212) 317-0533
Fax: (212) 317-0580

Sources:

CIA World Factbook. Central Intelligence Agency. www.cia.gov 

World Development Indicators. World Bank www.worldbank.org

Development, Recipient Aid Charts. Organization for Economic Co-operation and Development. www.oecd.org

Human Development Report 2007/2008.United Nations Development Programme. www.undp.org

Updated June 2008