Sao Tome and Principe

Introduction

Introduction

São Tomé and Príncipe , officially the Democratic Republic of São Tomé and Príncipe, is a Portuguese-speaking island nation in the Gulf of Guinea, off the western equatorial coast of Central Africa. It consists of two archipelagos around the two main islands: São Tomé and Príncipe, located about 140 kilometres (87 miles) apart and about 250 and 225 kilometres (155 and 140 miles), respectively, off the northwestern coast of Gabon.

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 has 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.


Understand

This small poor island economy has become increasingly dependent on cocoa since independence in 1975. 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. São Tomé has to import all fuels, most manufactured goods, consumer goods, and a substantial amount of food. Over the years, it has been unable to service its foreign debt and has had to depend on concessional aid and debt rescheduling. São Tomé benefited from $200 million in debt relief in December 2000 under the Highly Indebted Poor Countries (HIPC) program. São Tomé's success in implementing structural reforms has been rewarded by international donors, which pledged increased assistance in 2001. 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. São Tomé is also optimistic that substantial 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.


Geography

The islands of São Tomé and Príncipe, situated in the equatorial Atlantic and Gulf of Guinea about 300 and 250 kilometres (190 and 160 mi), respectively, off the northwest coast of Gabon, constitute Africa's second smallest country. Both are part of the Cameroon volcanic mountain line, which also includes the islands of Annobón to the southwest, Bioko to the northeast (both part of Equatorial Guinea), and Mount Cameroon on the coast of Gulf of Guinea.

São Tomé is 50 km (30 mi) long and 30 km (20 mi) wide and the more mountainous of the two islands. Its peaks reach 2,024 m (6,640 ft) – Pico de São Tomé. Príncipe is about 30 km (20 mi) long and 6 km (4 mi) wide. Its peaks reach 948 m (3,110 ft) – Pico de Príncipe. Swift streams radiating down the mountains through lush forest and cropland to the sea cross both islands. The equator lies immediately south of São Tomé Island, passing through an islet Ilhéu das Rolas.

The Pico Cão Grande (Great Dog Peak) is a landmark volcanic plug peak, located at 0°7′0″N 6°34′00″E in southern São Tomé. It rises over 300 m (1,000 ft) above the surrounding terrain and the summit is 663 m (2,175 ft) above sea level.

Climate

At sea level, the climate is tropical—hot and humid with average yearly temperatures of about 27 °C (80.6 °F) and little daily variation. The temperature rarely rises beyond 32 °C (89.6 °F). At the interior's higher altitudes, the average yearly temperature is 20 °C (68 °F), and nights are generally cool. Annual rainfall varies from 5,000 mm (196.85 in) on the southwestern slopes to 1,000 mm (39.37 in) in the northern lowlands. The rainy season runs from October to May.

The equator lies immediately south of São Tomé Island, passing through an islet named Ilhéu das Rolas.

Wildlife

São Tomé and Príncipe does not have a large number of native mammals (although the São Tomé shrew and several bat species are endemic). The islands are home to a larger number of endemic birds and plants, including the world's smallest ibis (the São Tomé ibis), the world's largest sunbird (the giant sunbird), the rare São Tomé fiscal, and several giant species of Begonia. São Tomé and Principe is an important marine turtle nesting site, including the hawksbill turtles (Eretmochelys imbricata).


Demographics

The first ever census was carried out in 2011 with the help of the National Statistic Institute (INE) of Cape Verde.

The total population is estimated at 163,784 by the government agency. According to estimate around 157,500 live on São Tomé and 6,000 on Príncipe.

All are descended from people from different countries taken to the islands by the Portuguese from 1470 onwards. In the 1970s, there were two significant population movements—the exodus of most of the 4,000 Portuguese residents and the influx of several hundred São Tomé refugees from Angola.

Ethnic groups

Distinct ethnic groups on São Tomé and Príncipe include:

  • Mestiços, or mixed-blood, descendants of Portuguese colonists and African slaves brought to the islands during the early years of settlement from Benin, Gabon, the Republic of the Congo, the Democratic Republic of the Congo, and Angola (these people also are known as filhos da terra or "children of the land").
  • Angolares, reputedly descendants of Angolan slaves who survived a 1540 shipwreck and now earn their livelihood fishing.
  • Forros, descendants of freed slaves when slavery was abolished.
  • Serviçais, contract laborers from Angola, Mozambique, and Cape Verde, living temporarily on the islands.
  • Tongas, children of serviçais born on the islands.
  • Europeans, primarily Portuguese.
  • Asians, mostly Chinese minority, including Macanese people of mixed Portuguese and Chinese descent from Macau.

Religion

Almost all residents belong to the Roman Catholic, Evangelical Protestant, or Seventh-day Adventist churches, which in turn retain close ties with churches in Portugal. There is a small but growing Muslim population.


Economy

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 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 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.

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