Overview of best prospect sectors, major infrastructure projects, significant government procurements and business opportunities.
After several false starts, STP may finally join the ranks of oil producing countries in the medium term. U.S. Company Kosmos Energy began seismic surveys of countries economic exclusive zone (EEZ) offshore blocks in 2016, and in 2018, BP joined Kosmos in acquiring rights to two additional blocks. Kosmos may drill its first exploratory well in coming years; if successful, the company does not expect to be producing oil until for at least another five years. In 2019, in partnership with Angolan Sonangol, the French Total Petroleum also acquired a 55% interest in oil block 1 located in the STP EZZ.
Tourism is one of the island nation’s most promising sectors, with the potential for attracting foreign investment.
A plan to introduce local capacity for international credit and debit card processing by late 2021 with support of the African Development Bank (AfDB) may create opportunity opportunities in the finance, tourism, and other economic sectors.
The liberalization of the telecommunications market and the power sector may provide opportunities for investment.
STP has a 160.000 km2 EEZ not only rich in oil but also fish resources. Considering this potential, in early 2018, STP announced a plan to construct a fishing port maximize the potential of country´s fishing resources. The Government also seeks to take advantage of STP’s geostrategic location to attract investment for the development of a deep-water port to facilitate the connection to Central Africa and to the world. The extension and modernization of the international airport is also on the Government agenda.
Recent Millennium Challenge Account (MCC)-driven reforms of the business climate and tax and customs regimes have increased the attractiveness of STP as an investment destination.
Despite recent declines in agriculture sector, with support of international buyers, a number of small cooperatives have successfully developed in upscale niche market for organic cocoa, pepper, coffee and vanilla, demonstrating the private sector’s drive to organize itself and invest.
