Sao Tome and Principe

As a least-developed country (LDC), Sao Tome and Principe is a beneficiary of the EU's "Everything but Arms" (EBA) arrangement. The World Bank classifies Sao Tome and Principe as a lower middle-income economy with a per-capita income of $2,941 in 2023. Total EU imports from Sao Tome and Principe amounted to about €16.1 million in 2023, and preferential imports to €4.7 million.

What is the EBA?

The EBA arrangement covers all LDCs as classified by the United Nations. This arrangement enables duty-free and quota-free access for all products originating in LDCs except for arms and ammunition. Unlike beneficiaries of the Standard GSP and GSP+, LDCs are not excluded from the scheme if they benefit from other preferential arrangements or agreements with the EU.

Sao Tome and Principe flag

At a glance: EU preferential imports from EBA beneficiary countries (2023, € million)

group

0.2M (2023)

Population

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Semi-Presidential Republic

Government

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0.4% (2023)

GDP Growth

equalizer

21.3% (2023)

Inflation

money

$ 0.7B (2023)

GDP

Facts about Sao Tome and Principe's economy

Island Economy

Sao Tome and Principe is an island economy located off the western coast of Central Africa. The islands are covered by mountains and part of an extinct volcano-ridge.

Export Products

The main export articles of Sao Tome and Principe are cocoa beans and palm oil.

Trade Partners

The EU is by far the most important trading partner for Sao Tome and Principe, both considering it as an export market and as a source of imports. Togo ranks second in overall trade, accounting for approximately 10% of overall trade in 2023.

Economic Structure

Sao Tome and Principe can benefit from excellent climatic conditions for the cultivation of cocoa and coconut palms. These two commodities build the foundation of the economy. The industrial sector remains small and mostly focusses on the production of food and beverages, soap, and other consumer goods for the small domestic market.

Cocoa Production

The most important commodity for Sao Tome and Principe is cocoa. It accounted for more than 60% of the country’s exports in 2023.

Trade with the EU

Total trade with the EU summed up to €90 million in 2023, 39% of the country's total trade. 16% of exports went to the EU market and 53% of imports originated from the EU in 2023.

Sao Tome and Principe and the EU

Imports from Sao Tome and Principe by product section (2023, € million)

Imports from Sao Tome and Principe over time (€ million)

SAO TOME AND PRINCIPE AND THE EU GSP

Economic Impact

32%

Share of Sao Tome and Principe's exports to the EU that were eligible for EBA preferences in 2023.

91%

Sao Tome and Principe's preference utilisation rate in 2023.

98%

Share of zero-duty imports from Sao Tome and Principe. Most imports are duty-free under normal EU tariffs.

Preference utilisation and export diversification

EU imports from Sao Tome and Principe (€ million)

Preference utilisation (%) vs. total eligible imports (in € million)

With the main export product, cocoa, already benefitting from zero duties under the EU's normal tariffs, only a limited share of EU imports from Sao Tome and Principe is eligible for EBA preferences. Nevertheless, eligible imports have strongly increased since 2017. The preference utilisation rate also steadily increased from just above 50% in 2015 to more than 90% since 2020. This also applies to the main EBA-eligible export category, edible oils.

The largest product sections under EBA (€ million, 2023)

EU preferential imports from Sao Tome and Principe are dominated by vegetable oils, which accounted for almost 99% of total preferential imports from the country in 2023 - even higher than in the preceding years. The largest product category, food preparations, are duty free under the EU's normal tariffs and hence EBA preferences do not apply to them.

SUSTAINABLE DEVELOPMENT

The preferential access to the EU market granted by the EBA scheme is not bound to the ratification of international conventions. Nevertheless, Sao Tome and Principe has a high level of ratification of international conventions. The country has ratified 14 out of 15 fundamental conventions on human rights and labour standards listed in the GSP Regulation, as well as 11 out of the 12 conventions on environmental protection and good governance.

Core international conventions on human rights and labour standards

Ratified

  • International Convention on the Elimination of All Forms of Racial Discrimination (1969)
  • International Covenant on Civil and Political Rights (1976)
  • International Covenant on Economic Social and Cultural Rights (1976)
  • Convention on the Elimination of All Forms of Discrimination Against Women (1981)
  • Convention Against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment (1987)
  • Convention on the Rights of the Child (1990)
  • Convention concerning Forced or Compulsory Labour, No 29 (1930)
  • Convention concerning Freedom of Association and Protection of the Right to Organise, No 87 (1948)
  • Convention concerning the Application of the Principles of the Right to Organise and to Bargain Collectively, No 98 (1949)
  • Convention concerning Equal Remuneration of Men and Women Workers for Work of Equal Value, No 100 (1951)
  • Convention concerning the Abolition of Forced Labour, No 105 (1957)
  • Convention concerning Discrimination in Respect of Employment and Occupation, No 111 (1958)
  • Convention concerning Minimum Age for Admission to Employment, No 138 (1973)
  • Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, No 182 (1999)

Not Ratified

  • Convention on the Prevention and Punishment of the Crime of Genocide (1948)

Additional Conventions

  • Convention on International Trade in Endangered Species of Wild Fauna and Flora (1973)
  • Montreal Protocol on Substances that Deplete the Ozone Layer (1987)
  • Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (1989)
  • Convention on Biological Diversity (1992)
  • The United Nations Framework Convention on Climate Change (1992)
  • Stockholm Convention on Persistent Organic Pollutants (2001)
  • Kyoto Protocol to the United Nations Framework Convention on Climate Change (1998)
  • United Nations Single Convention on Narcotic Drugs (1961)
  • United Nations Convention on Psychotropic Substances (1971)
  • United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988)
  • United Nations Convention against Corruption (2004)

EU-Sao Tome and Principe Bilateral Development Cooperation

DG INTPA

Access all info about EU-São Tomé and Príncipe relations on the International Partnerships website.

Contact points