The Sao Tome and Principe provides ample opportunities in a stable, politically peaceful nation with a pro-business government, particularly in sectors like tourism, agriculture, fisheries, and renewable energy. The country is implementing reforms to improve its business environment, including modernizing infrastructure and simplifying regulations, with guarantees of equal treatment for foreign and domestic investors.
São Tomé and Príncipe has taken positive steps to improve its investment climate and to make the country a more attractive destination for foreign direct investment (FDI), including by working to combat corruption and create an open and transparent business environment.
Here are some of the solid reasons to invest in Sao Tome and Principe.
- Strategic location: Situated in the Gulf of Guinea, it can serve as a gateway to other African markets.
- Economic sectors: High potential exists for investment in sustainable tourism, agriculture, fisheries, and renewable energy projects.
- Government support: The government is actively working to improve the investment climate by modernizing infrastructure, streamlining procedures, and eliminating former public monopolies.
- Legal framework: The country guarantees equal treatment for domestic and foreign investors and has a modern legal framework for property and notarial acts.
- Sustainable development focus: There is a strong emphasis on sustainable growth, making it an ideal destination for eco-conscious investors.
- Citizenship by Investment: The government has a citizenship by investment program that allows investors to contribute to the country’s National Transformation Fund, supporting sustainable development and social advancement.
- Infrastructure: The country faces infrastructure challenges, such as poor road conditions and unreliable power, although there are active efforts to improve them.
- Real Estate Market: Low entry real estate market with opportunity for capital appreciation and rental gains (from commercial, hotels, resorts and residential)
- Banking – São Tomé and Príncipe has five private commercial banks, with bank ownership and management. The Banco Internacional de São Tomé and Príncipe (BISTP) is believed to be the largest bank in terms of assets, with just over $140 million in net assets at the end of 2023, as per its 2023 annual report dated April 2024.
- Tax Free – The country levies moderate personal (0–25%) and corporate (25%) tax rates, and no wealth, inheritance or capital gains tax. There is no foreign income tax, unless you spend more than 183 days per year within the country.