Country Details

No Stock Exchange

In July 2009, the government of São Tomé and Príncipe signed a loan deal with Portugal, its one-time colonial mother country. The agreement was intended to tie the dobra to the euro. Portugal will provide as much as 25 million euro in a move endorsed by the European Commission. São Tomé and Príncipe claimed that linking the dobra to the euro would "guarantee stability" in the country. It is also expected to attract foreign investment. Officials spent one year negotiating the accord, which took effect in January 2010. The agreement follows a similar one which Portugal signed ten years previously with Cape Verde.

The islands were uninhabited until their discovery by Portuguese explorers in the 15th century. Gradually colonized and settled by Portugal throughout the 16th century, they collectively served as a vital commercial and trade center for the Atlantic slave trade. The rich volcanic soil and close proximity to the equator made São Tomé and Príncipe ideal for sugar cultivation, followed later by cash crops such as coffee and cocoa; the lucrative plantation economy was heavily dependent upon imported African slaves. Cycles of social unrest and economic instability throughout the 19th and 20th centuries culminated in peaceful independence in 1975. São Tomé and Príncipe have since remained one of Africa's most stable and democratic countries. With a population of 192,993 (2013 Census), São Tomé and Príncipe is the second-smallest African country after Seychelles, as well as the smallest Portuguese-speaking country. Its people are predominantly of African and mestiço descent, with most adhering to Roman Catholicism. The legacy of Portuguese rule is also visible in the country's culture, customs, and music, which fuse European and African influences.

Since the 19th century, 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 main crop on São Tomé is cocoa, representing about 95% of agricultural exports. Other export crops include copra, palm kernels, and coffee.

Domestic food-crop production is inadequate to meet local consumption, so the country imports most of its food. In 1997 it was estimated that approximately 90 percent of the country's food needs are met through imports. 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.

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 scenic islands have the potential for tourism, and the government is attempting to improve its rudimentary tourist industry infrastructure. The government sector accounts for about 11% of employment.

Following independence, the country had a centrally directed economy with most means of production owned and controlled by the state. The original constitution guaranteed a mixed economy, with privately owned cooperatives combined with publicly owned property and means of production.

In the 1980s and 1990s, the economy of São Tomé encountered major difficulties. Economic growth stagnated, and cocoa exports dropped in both value and volume, creating large balance-of-payments deficits. Efforts to redistribute plantation land resulted in decreased cocoa production. At the same time, the international price of cocoa slumped.

In response to its economic downturn, the government undertook a series of far-reaching economic reforms. In 1987, the government implemented an International Monetary Fund (IMF) structural adjustment program and invited greater private participation in the management of the parastatals, as well as in the agricultural, commercial, banking, and tourism sectors. The focus of economic reform since the early 1990s has been widespread privatization, especially of the state-run agricultural and industrial sectors.

The São Toméan Government has traditionally obtained foreign assistance from various donors, including the UN Development Programme, the World Bank, the European Union (EU), Portugal, Taiwan, and the African Development Bank. In April 2000, in association with the Banco Central de São Tomé e Príncipe, the IMF approved a poverty reduction and growth facility for São Tomé aimed at reducing inflation to 3% for 2001, raising ideal growth to 4%, and reducing the fiscal deficit.

In late 2000, São Tomé qualified for significant debt reduction under the IMF–World Bank's Heavily Indebted Poor Countries (HIPC) initiative. The reduction is being reevaluated by the IMF, due to the attempted coup d'état in July 2003 and subsequent emergency spending. Following the truce, the IMF decided to send a mission to São Tomé to evaluate the macroeconomic state of the country. This evaluation is ongoing, reportedly pending oil legislation to determine how the government will manage incoming oil revenues which are still poorly defined but in any case expected to change the economic situation dramatically. In parallel, some efforts have been made to incentivize private tourism initiatives, but their scope remains limited. São Tomé also hosts a broadcasting station of the American International Broadcasting Bureau (IBB) for the Voice of America located at Pinheira.

Portugal 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. São Tomé and Príncipe was ranked the 174th safest investment destination in the world in the March 2011 Euromoney Country Risk rankings.

Famous people

The dobra is the currency of São Tomé and Príncipe. It is abbreviated Db and is divided into 100 cêntimos, although inflation has rendered the cêntimo obsolete. The dobra was introduced in 1977, replacing the escudo at par.

São Tomé and Príncipe signed a deal with Portugal in 2009, linking the dobra with the euro. The exchange rate was fixed at 1 EUR = 24500 STD on 1 January 2010.

In 1977, coins were introduced for 50 cêntimos, 1, 2, 5, 10 and 20 dobras. Except for the brass 50 cêntimos and 1 dobra, these coins were struck in cupro-nickel, as was the 50 dobras introduced in 1990. These coins depicted a combination of food produce and local flora and fauna. These coins, although seldom seen in circulation today due to chronic inflation have never been demonetized and can still be used as tender.

In 1997, a new coin series with larger denominations were introduced consisting of 100, 250, 500, 1000 and 2000 dobras. Of these, the 100 and 250 dobras are round, the largest of the three are equilaterally curved heptagonal. These coins were all struck in nickel-plated steel and depict wildlife-related themes.

All circulating coins bear the country's coat of arms on the obverse, with the text "Aumentemos a Produção" and the valuation on the reverse. On 30 September 1977, notes were introduced for 50, 100, 500 and 1000 dobras by the Banco Nacional de São Tomé e Príncipe.[2] In 1996, 5000, 10,000, 20,000 and 50,000 dobras notes were introduced, with the lowest denomination notes from the previous series being replaced by coins in 1997. A new issue was released in 2006 with upgraded security features.

In December 2008, the 100,000 dobras note was introduced as continuous inflation deemed the new denomination necessary. The note has been very well received and accepted by the general public. All notes bear the portrait of Rei Amador on the obverse, however, on the 100,000 dobras note is the printed portrait of Francisco José Tenreiro.