São Tomé and Príncipe’s Economy and Digital Landscape

Overview of São Tomé and Príncipe’s Geography and General Economic Structure

Geography and Demographic Profile

São Tomé and Príncipe is a small island nation in the Gulf of Guinea, off the western coast of Central Africa. The country consists of two main islands – São Tomé (the larger, where the capital city São Tomé is located) and Príncipe (smaller and more sparsely populated) – with a combined land area of just over 1,000 km². The terrain is volcanic and mountainous, covered in lush rainforests, which contributes to its rich biodiversity. As of early 2025, the population is approximately 238,000 people, making it one of Africa’s least populous countries. The population has been growing modestly (around 2% per year) and is fairly young, though emigration rates have increased in recent years. About 75% of inhabitants live in urban areas (primarily around the capital and coastal towns), while 25% reside in rural communities. Portuguese is the official language (reflecting its colonial heritage as a former Portuguese colony), and the country has been independent since 1975. Politically, São Tomé and Príncipe is a stable multi-party democracy with a semi-presidential system. In December 2024, the nation achieved a milestone by graduating from Least Developed Country (LDC) status, underscoring developmental progress even as challenges remain.

Economic Indicators and Structure

São Tomé and Príncipe is classified as a lower-middle-income economy, though it remains one of the smallest and most fragile economies in Africa. In 2023, the country’s Gross Domestic Product (GDP) was roughly $0.68 billion USD, which translates to a GDP per capita of about $2,900–3,200. Economic growth has been sluggish in recent years – GDP grew only 0.4% in 2023 and an estimated 0.9% in 2024, reflecting the impacts of macroeconomic imbalances and the COVID-19 pandemic’s aftermath. High inflation (averaging ~21% in 2023, easing to 14–15% in 2024) has eroded purchasing power, partly due to supply constraints and currency pressures. The local currency is the São Tomé and Príncipe Dobra (STN), which has been pegged to the Euro under a stability agreement; however, domestic price levels have fluctuated significantly. Poverty and unemployment remain critical issues: around 45% of the population lives below the international poverty line (using lower-middle income country threshold), and opportunities for formal employment are limited. Income inequality is moderate to high (with a Gini index around 40), reflecting disparities between the urban elite and rural poor. As a very small island economy, São Tomé and Príncipe faces inherent structural challenges – the small domestic market and remote location limit economies of scale, and the country is heavily reliant on imports and external assistance.

The overall economic structure is narrow and undiversified. Services make up the largest share of GDP (over half), followed by agriculture, while a very small industrial base contributes the rest. The public sector (government services and administration) is a significant part of the economy, often funded by external grants and loans. The business environment has notable constraints such as high operating costs (especially for energy and utilities), costly and unreliable electricity supply, limited transportation links, and bureaucratic hurdles. Still, the government is aiming to shift from an aid-dependent model to one driven by private-sector growth and investment in human capital and infrastructure. The country’s recent graduation from LDC status means preferential aid and trade terms will wind down over time, adding urgency to improve competitiveness and self-sufficiency.

Key Sectors: Agriculture, Tourism, and Services

Agriculture has historically been the backbone of São Tomé and Príncipe’s economy and remains crucial for exports and rural livelihoods. The country has fertile volcanic soils and a tropical climate ideal for certain cash crops. Cocoa is by far the dominant crop and export: it typically accounts for around 60–80% of export earnings in recent years. São Tomé was once a leading cocoa producer (dating back to colonial plantations), and cocoa beans (including organic and fair-trade cocoa) continue to be the primary export commodity. Other agricultural products include palm oil (and palm kernels), which has grown to roughly one-third of export value, as well as coffee, pepper, and vanilla in smaller volumes. Most farming is small-scale and many households engage in subsistence agriculture cultivating staples (cassava, plantains, breadfruit) for local consumption. The government has promoted diversification into value-added agro-processing (such as niche chocolate or spice production) but with limited success so far. Agricultural output is vulnerable to climate factors (heavy rains, droughts) and price fluctuations on the world market.

Tourism is an emerging sector that the government considers a priority for economic diversification. The islands boast pristine beaches, endemic wildlife (especially birds), rainforests, and a peaceful atmosphere, which give São Tomé and Príncipe appeal as an eco-tourism and adventure travel destination. Over the decade prior to 2020, international tourist arrivals rose from only about 8,000 per year to nearly 35,000 in 2019, reflecting growing global awareness and some investment in hospitality infrastructure. The pandemic caused a sharp 70% drop in visitors in 2020, but the industry has been rebounding: tourism recovered significantly in 2022–2024 as travel restrictions eased. In 2024, tourism export revenues nearly doubled compared to the pandemic lows, helping spur a modest economic uptick. There are a handful of upscale resorts (including foreign-operated boutique hotels and ecolodges, e.g. by Portuguese and South African investors) and an increasing number of locally owned guesthouses/B&Bs. Tourism contributes to foreign exchange earnings and job creation in services like lodging, dining, tour operations, and transportation. However, the sector’s scale remains small – infrastructure such as international flights (currently limited routes primarily via Lisbon and some African hubs), internal transport, and leisure facilities is underdeveloped. The government offers incentives for tourism investment and has identified sub-sectors like eco-tourism, sport fishing, diving, and cultural heritage tours as “best prospects” for growth.

Services and Other Industries: Beyond tourism and agriculture, the rest of the economy is composed of services (retail trade, government, banking, telecommunications) and a minimal industrial base. Manufacturing and industry in São Tomé and Príncipe are very limited – mostly small-scale units producing basic consumer goods for the local market. These include processing of foods (a brewery, a few bakeries, soap making, small cocoa processing into chocolate, etc.), beverages, and construction materials. There is no significant mining or heavy industry. A notable gap is the absence of a domestic petroleum industry: while oil exploration in offshore blocks (often in joint development with Nigeria) has been explored for years, to date the country has not begun any commercial oil production. Thus, fuel needs are fully imported, and hopes that oil discoveries would transform the economy have not materialized as of 2025. The fisheries sector has potential – the islands are surrounded by rich fishing grounds – but currently is mostly artisanal; efforts to develop industrial fishing or fish processing for export have been modest.

Government and public services form a large portion of formal employment. Public expenditure (frequently donor-funded) drives many projects, and the public wage bill is a major component of the economy. In recent years, public finances have been under pressure: with external grants declining, the government faces fiscal constraints in maintaining services and infrastructure projects. An IMF-supported reform program is underway to stabilize finances – aiming to raise domestic revenues, control debt, and prioritize spending on social services and infrastructure.

Trade Composition and Partners

São Tomé and Príncipe runs a chronic trade deficit, importing far more than it exports. Imports in 2023 totaled around $183 million, whereas exports were only about $16–20 million in goods – a stark imbalance made sustainable only by external aid, loans, remittances, and some tourism receipts. The country depends heavily on imports for virtually all manufactured goods, fuel, machinery, vehicles, and food staples like rice. Key import categories include refined petroleum and fuels (which alone can account for roughly 25–30% of import value), electrical machinery and equipment, construction materials, and packaged foods and beverages. On the export side, cocoa beans dominate (by value), followed by palm oil. Minor export products include pepper, coffee, coconut products, and a small amount of processed cocoa (chocolate) or other artisanal goods.

Given its historical and linguistic ties, it is no surprise that the European Union (EU) is São Tomé and Príncipe’s largest trading partner. The EU (notably Portugal) is the biggest source of imports and a major export market for cocoa. In 2023, about 53% of São Tomé’s imports came from EU countries. Portugal alone accounts for roughly one-third of import value (supplying everything from foodstuffs to machinery and fuel). Other significant import partners included Togo (around 10–15% of imports, often acting as a regional transit hub for goods and fuel), Angola (oil products and miscellaneous goods, about 14%), and suppliers like China, Brazil, and Japan for various consumer and capital goods. On the export side, the EU buys about 16% of São Tomé’s exports (EU buyers purchase cocoa under duty-free access initiatives), but regional neighbors also play a role. For instance, some export of palm oil or re-export of goods involves Togo and Gabon. Overall, the EU accounts for close to 40% of the country’s total trade (imports+exports). São Tomé and Príncipe benefits from trade preference schemes – until its recent LDC graduation it had duty-free access to EU markets under the Everything But Arms (EBA) initiative, and it may transition to other preferential regimes in coming years.

The massive trade deficit is partly offset by services (tourism revenue), foreign aid (grants) and development loans, and remittances from the diaspora. The improvement in cocoa prices and a rebound in tourism in 2024 helped narrow the trade gap somewhat. Additionally, prudent macro policies and support from partners (IMF, World Bank, African Development Bank, and bilateral donors like Portugal) have helped maintain a manageable balance of payments. The country does not have a stock exchange or significant foreign investment outside a few sectors (tourism and telecoms); attracting foreign direct investment is a goal, but the small market size is a deterrent for many investors.

In summary, São Tomé and Príncipe’s general economy is small, import-dependent, and undiversified, with agriculture (cocoa) and emerging tourism as pillars, and a dominant public sector. Its geography confers both opportunities (niche tourism, agriculture) and challenges (remoteness, high logistics costs). Economic policy is focused on stabilizing finances and fostering conditions for private sector growth, while recent gains in digital infrastructure and connectivity (as discussed next) are hoped to spur new avenues for development in the internet age.

Internet Access and Digital Infrastructure

Internet Penetration and Usage

Internet access in São Tomé and Príncipe has expanded significantly over the past decade, transforming from a luxury into an essential service for many citizens. As of early 2025, an estimated 146,000 people in the country were using the internet, representing about 61.5% of the population. This marks a dramatic increase from just a few years prior (for example, internet penetration was around 33% in 2020). The rise can be attributed to improvements in telecommunications infrastructure, greater availability of mobile internet, and more affordable data services. However, despite crossing the 60% penetration threshold, a substantial portion of the populace – particularly in poorer and more remote communities – still lacks regular internet access, reflecting a digital divide based on income and geography.

The vast majority of Santomeans access the internet through mobile devices, primarily smartphones. Fixed broadband connections (e.g. home DSL or fiber lines) are scarce, with less than 2% of households having a fixed internet subscription. Instead, mobile broadband via cellular networks is the main on-ramp to the online world. People commonly use internet bundles on their phones for social media, messaging, and light web browsing. Data usage remains somewhat limited by cost: although prices have decreased recently, internet service is still relatively expensive given local incomes. For instance, a 1 GB prepaid mobile data package costs around 9 USD (according to recent benchmarks), which can be prohibitive for low-income users. As a result, many users consume the internet sparingly – relying on offline Wi-Fi spots when available (such as at work, schools, or internet cafés) or using zero-rated services where offered.

Urban areas, especially the capital city and district centers, account for the bulk of internet users. In the city of São Tomé, it is now common to see youth and professionals engaged on social media and using online services. In contrast, rural villages and the island of Príncipe have lower connectivity rates, though they too have seen improvements recently (with community Wi-Fi initiatives and extended mobile coverage). Literacy in Portuguese enables most of the population to navigate the web and social platforms, though digital literacy (the skills to use computers and beyond basic phone apps) is still developing. The government, with donor support, has run some digital literacy and inclusion programs, such as introducing ICT in schools and setting up public internet access points in certain districts.

It’s important to note that “internet access” may not always mean high-speed or continuous access. Many users have only intermittent connectivity or slower speeds. Prior to recent upgrades, connection speeds in São Tomé and Príncipe were often sluggish – akin to basic 3G or even EDGE in some areas – and network congestion was common. But the next section’s improvements in infrastructure, especially the launch of newer mobile networks, are aiming to change this scenario and provide more reliable broadband connectivity across the islands.

Telecommunications Infrastructure: Mobile Networks and Broadband

São Tomé and Príncipe’s telecom infrastructure has evolved from a single, state-run system in the early 2000s to a more modern, if still limited, network today. The country’s international connectivity received a major boost in 2012 when it was connected to the ACE submarine fiber-optic cable (Africa Coast to Europe). Before that, the islands relied on satellite links for global internet bandwidth, which were costly and slow. The ACE cable landing greatly increased available bandwidth and reduced latency, enabling telecom operators to improve internet services and lower prices. São Tomé is now linked via undersea cable to the global internet (with a landing station managed by the local consortium STP Cabo), while a secondary satellite backup remains for redundancy.

On the mobile network side, São Tomé and Príncipe has two main telecommunications operators: Companhia Santomense de Telecomunicações (CST) and Unitel STP. CST is the historical incumbent operator – it was once a state monopoly, now a joint venture with foreign investment (Portugal’s Visabeira Group holds a 51% stake, and the government holds 49%). CST provides mobile, fixed line, and internet services and has the widest coverage. Unitel STP is a newer entrant (backed by Angola’s Unitel, a major telecom firm in that region) which began operations in the last decade, introducing competition to the market. The regulatory body overseeing telecom is the Autoridade Geral de Regulação (AGER), which has pushed for sector liberalization and improved service quality.

Mobile coverage is now relatively extensive given the small size of the country. Virtually all populated areas have basic voice coverage (2G/GSM), and as of 2023, 3G data coverage reached around 90+% of the population. Until recently, internet access on phones was mostly via 3G UMTS networks, with typical download speeds of only a few Mbps or less. Recognizing the need for faster connectivity, the telecom sector made a leap in 2023 by introducing 4G LTE services. In May 2023, Unitel STP launched the country’s first commercial 4G network after receiving AGER’s approval. A few months later, in August 2023, CST rolled out its own 4G network, investing around €2.3 million (approximately $2.5 million) in the upgrade. CST’s 4G launch was a significant event – the company deployed 102 LTE antennas across 34 sites, reportedly achieving over 90% population coverage on both São Tomé and Príncipe islands. This rapid deployment means most citizens in urban and semi-urban locales can now access mobile broadband speeds that are up to ten times faster than the old 3G network (theoretical speeds up to 150 Mbps per cell tower, though typical user experiences are lower).

The arrival of 4G has begun to improve the user experience: smoother video streaming, more reliable video calls, and faster downloads are becoming possible, especially during off-peak times. It also opens opportunities for businesses to use cloud services, VoIP, and other bandwidth-heavy applications that were previously impractical. By late 2024, both operators were advertising new data plans and internet packages catering to 4G users – with higher data caps at lower cost per megabyte than earlier plans – aiming to attract more customers to broadband services. The competition between CST and Unitel STP is gradually benefiting consumers via better services and price options, although CST still retains the majority market share (around 90% of subscribers as of a few years ago, though Unitel is chipping away at that monopoly).

When it comes to fixed-line infrastructure, it remains underdeveloped. There are only a few thousand fixed telephone lines in use (roughly 1 line per 100 people) and a similar number of fixed broadband subscriptions. CST operates the fixed network, and some businesses or institutions have DSL or fiber connections in the capital. For instance, government offices, banks, and the university might have dedicated broadband. A small number of WiMAX or fixed wireless broadband offerings have existed to serve corporate clients or wealthy households. Overall, however, the future of internet expansion clearly lies with wireless/mobile solutions, given the geography and cost constraints of wiring the islands.

Submarine Cable and Backbone: Internally, CST has been working on strengthening the backbone that connects São Tomé and Príncipe islands. One notable project is the plan to install a 1.5 Gbps microwave radio link between the two islands, which will triple the inter-island network capacity. This high-capacity link (one of the longest overwater microwave links in the world) will ensure that Principe’s residents enjoy similar connectivity quality as those on São Tomé, by relieving the current bandwidth bottleneck. On São Tomé island itself, fiber-optic cables connect major cell towers and switch centers, while more remote cell sites use microwave relays.

Looking ahead, 5G technology is not yet available in São Tomé and Príncipe, and it remains a distant prospect in the short term. As of 2025, the priority is consolidating 4G coverage and uptake. The global trend towards 5G has not left the country unnoticed – AGER and the operators have expressed interest in future 5G trials – but given the very recent investment in 4G and the small market size, it’s likely that 5G rollout (especially expensive mmWave or standalone 5G networks) will be at least a few years away. The focus now is to maximize current networks: improving 4G speeds and reliability, and eventually using technologies like LTE-Advanced or low-band 5G for broader coverage when economically feasible.

Public and Private Digital Initiatives; Regulatory Environment and Rural Access

The government of São Tomé and Príncipe recognizes that improving digital infrastructure is key to economic development and has partnered with international organizations to pursue this goal. In 2022, the World Bank approved a “Digital São Tomé and Príncipe Project” aimed at accelerating the country’s digital transformation. This multi-faceted project supports: (1) modernization of the legal and regulatory framework for telecommunications and the digital economy, (2) development of critical digital public platforms, and (3) promotion of digital skills and inclusion. Under this initiative, São Tomé and Príncipe has been updating its telecom laws to encourage competition and innovation (for example, ensuring open access to the ACE submarine cable, setting standards for quality of service, and regulating spectrum for new services). The regulator AGER has been strengthening its capacity to enforce consumer protections and fair pricing in the telecom sector.

One major government effort is the introduction of a national digital identification (e-ID) system. With support from the World Bank project, a pilot digital ID platform is being developed, alongside an authentication system and an interoperability framework that will allow various government agencies to integrate their services. This digital ID could, in the near future, enable citizens to access e-government services securely, sign documents digitally, and verify their identity online. The ultimate aim is to bring public services “closer to the citizen” – for instance, enabling online applications for documents, remote access to health or education records, and more efficient administration. Though in early stages, these initiatives demonstrate the public sector’s commitment to leveraging digital tools for governance.

Additionally, São Tomé and Príncipe is part of the Smart Africa Alliance, and in 2025 it joined an alliance project to harmonize e-commerce and digital payment policies across several African countries. Such participation should help the country align its regulations with international best practices, making it easier to attract digital businesses and to ensure safety and trust in online transactions (more on e-commerce in Section 4).

Rural connectivity has been a persistent challenge, but progress is visible. The expansion of the mobile network (notably the new 4G sites) has brought internet access to many villages that previously had only voice service. For example, communities on Príncipe and remote districts on São Tomé now have mobile data coverage that allows at least basic internet (via 3G or 4G). The government, through universal access programs, has encouraged operators to cover less profitable areas, sometimes using incentives or infrastructure-sharing mandates. CST’s mention that its 4G network became “the largest in São Tomé and Príncipe, covering 90% of the population” implies that most populated localities, barring a few extremely remote settlements, are within signal range. The remaining gaps in coverage are likely in rugged interior pockets or very isolated islets. Plans to use satellite broadband for the most remote spots (such as via emerging low-earth orbit satellite internet constellations) have been discussed, but not yet implemented, given budget constraints.

Public Wi-Fi hotspots have been set up in certain areas as well. Some town centers, plazas, or university campuses offer free or subsidized Wi-Fi connectivity as part of initiatives by NGOs or the telecom firms. For instance, one might find Wi-Fi at the national library or a community center, allowing students and others without mobile data plans to get online. These efforts contribute to digital inclusion, ensuring that even those who cannot afford personal internet can access online information and services when needed.

The electrical infrastructure is also tied to digital development: frequent power outages in the past hindered telecom reliability (as cell towers would go down or ISP equipment would reset). Recently, improvements in electricity generation – including new solar and diesel generation capacity – have reduced blackouts in the capital, which in turn benefits the uptime of networks. Telecom operators have also equipped cell sites with backup generators or batteries to keep signals live during grid downtime. As reliable electricity spreads, so does the confidence in continuous connectivity.

In terms of regulation, São Tomé and Príncipe’s regime supports an open internet. There are no known heavy internet censorship or restrictions; citizens freely use social media and VoIP apps. The regulator and government have focused more on expanding access than on limiting content. However, they are conscious of cybersecurity and online fraud issues. Steps are being taken to draft cybersecurity legislation and establish a national computer emergency response team (CERT) to handle threats like malware or scams, which become more relevant as more people come online.

Overall, the digital infrastructure landscape in São Tomé and Príncipe in 2025 is one of significant but recent progress. The combination of a nearly country-wide mobile broadband network, an undersea fiber link to global networks, and active government initiatives provides a foundation for the digital economy. The country has gone from very limited connectivity a decade ago to majority internet access today. Still, quality of service and equitable access remain areas for improvement. The coming years will likely see efforts to leverage this infrastructure – for instance, rolling out e-government services, encouraging ICT startups, and possibly exploring technologies like 5G and fiber-to-the-home in high-demand areas – to ensure the digital revolution benefits the broader economy and society.

Digital Services, Online Platforms, and National Domain Usage

Popular Online Platforms and Social Media Usage

Given the rising internet penetration, São Tomé and Príncipe’s population has eagerly adopted popular online platforms, albeit at levels proportional to the country’s small size and connectivity limits. Social media in particular has a strong presence in daily life for those with internet access. As of January 2025, there were roughly 68,800 social media user accounts attributed to users in São Tomé and Príncipe, equivalent to about 29% of the population. This suggests that nearly half of all internet users in the country are active on social platforms (with many having accounts on multiple services). Social media usage skews toward younger people and urban residents, though it’s increasingly common across different demographics for news and communication.

Facebook is the dominant social network in São Tomé and Príncipe. In fact, the number of Facebook users reported (around 68,000 in early 2025) is essentially on par with the total social media users, indicating Facebook’s near-ubiquity among the connected population. Facebook’s appeal lies in its multi-functional nature: it serves as a space for personal connection with friends and family (including diaspora relatives abroad), a source of news via shared articles, and a marketplace of ideas and goods through Facebook Groups. Many local communities have Facebook groups where members discuss everything from local politics to items for sale. For the majority of local businesses and organizations, a Facebook page is the default online presence (more so than a dedicated website, which many cannot afford or maintain). WhatsApp, while not a traditional “social network” for public posting, is extremely popular as well. The app is used widely for messaging and group chats; many small businesses use WhatsApp to take orders or communicate with clients, and families rely on it for cheap international messaging. (Precise user numbers for WhatsApp aren’t published, but anecdotal evidence suggests it’s installed on virtually all smartphones in the country.)

Other social platforms have smaller but growing footprints. Instagram had about 9,000 users locally in early 2025. Instagram’s user base tends to be younger (teens and young adults) and those interested in photography, fashion, and lifestyle content. Some local influencers and entrepreneurs (like boutique owners or artists) maintain active Instagram profiles to showcase their products or talents. TikTok has seen a surge in interest recently: with an estimated 48,000 users age 18+ in São Tomé and Príncipe, TikTok is likely the second most used social app after Facebook/WhatsApp. Short video content resonates especially with youth, who create and share clips of dancing, humor, and daily island life. Despite limited bandwidth, many manage to engage in TikTok by saving videos offline or using it over Wi-Fi.

Professional networking via LinkedIn is niche but notable given the size of the formal sector – about 14,000 people in the country are registered as LinkedIn “members.” This relatively high figure (for a workforce that is not very large) might include Santomeans living abroad or foreign professionals who have ties to the country. LinkedIn is used by the educated workforce (government officials, bankers, consultants) and indicates an awareness of international professional networks.

Other platforms such as Twitter (X) and YouTube have smaller followings. Twitter is not widely used by the general public, though a handful of journalists, tech-savvy individuals, and politicians use it to follow global news or make occasional posts. YouTube is popular as a content consumption platform – people do watch music videos (local and international) and entertainment content – but few Santomeans are content creators on YouTube due to the high data costs of uploading videos and the small audience. Still, local TV stations and independent creators have begun uploading content online to reach wider audiences.

The way Santomeans use these platforms often reflects the local context: Facebook and WhatsApp serve as primary news sources, since traditional media options are limited (the country has one government TV channel and a few radio stations; internet users often rely on social media to read news from international sources or local Facebook pages that act as news blogs). Social commerce is also common – instead of sophisticated e-commerce sites, sellers post pictures of products (clothing, electronics, homemade food items) on Facebook or Instagram and coordinate sales via messaging apps. This informal digital marketplace is an important facet of the small but growing online commercial activity.

Notably, language plays a role: being a Lusophone country, much of the content shared is in Portuguese. Users follow not only local pages but also Portuguese or Brazilian pages for entertainment and news. However, English-speaking global content is also consumed, especially by younger, educated Santomeans who may follow international celebrities or YouTube channels.

Government and Commercial Web Presence (Use of .st Domain)

The country code top-level domain (ccTLD) for São Tomé and Príncipe is .st. Introduced in 1997, the .st domain has become a point of national digital identity. Domestically, government institutions and some businesses use the .st domain for their websites, though usage is still relatively limited due to the small number of local sites overall. Internationally, .st has been marketed and used outside the country as well (given its attractive abbreviation, it’s sometimes adopted for domains meaning “street” or other creative endings – for example, the Washington Post famously uses wapo.st for link shorteners). This open registration policy brings some revenue and global visibility to the .st registry.

Within São Tomé and Príncipe, the government maintains several official websites under .gov.st. For instance, the main government portal might be something like gov.st (or a dedicated site for the Prime Minister’s office and ministries). Ministries such as Finance, Education, Tourism, etc., typically have websites providing information on policies, public tenders, statistics, and contact information. However, the effectiveness of these sites varies – some are updated regularly, others are quite sparse. The government has acknowledged the need to improve its online presence as part of e-government initiatives. One positive development has been the creation of a centralized e-government portal (under development), which will act as a one-stop site for accessing different public services and information.

Commercial use of .st by local companies is growing slowly. Traditional businesses like hotels, banks, and airlines often invest in a proper website. For example, notable hotels (including the foreign-operated resorts and local lodges) have websites often with .st domains (e.g., a resort might use hotelname.st or sometimes .com). Banks in São Tomé (like Banco Internacional de São Tomé e Príncipe) have secure websites offering information on accounts and some online banking features for customers. These local sites aim to establish credibility and provide basic online services (such as showing account balances or allowing hotel booking inquiries).

That said, many small enterprises still do not have standalone websites due to cost and maintenance issues. They rely on social media pages for their online presence as mentioned. But there are some notable local web portals and services that utilize .st. For example, news sites or online magazines run by local media or independent journalists often use .st domains to publish articles. A site like STP Digital (stpdigital.st) – hypothetically – might serve as a local news and opinion platform discussing politics and tech, leveraging the country domain. Additionally, NGOs and community organizations register .org.st addresses for their web pages to share their projects and reports.

The .st domain registry is managed by an entity (formerly Technisys, now often in partnership with foreign registrars). It operates on a first-come, first-served basis with no residency requirement, which is why .st has found foreign takers. This has the side effect that some globally popular sites or tech-savvy individuals register .st domains for unrelated purposes (like short.li.st for a link-shortening service or novelty domain hacks). While this doesn’t directly impact local internet users, it does put São Tomé’s domain on the map internationally.

For Santomeans, using the national domain is a matter of pride and branding when possible. The government encourages local entities to use .st to build a sense of national online identity. However, lack of local web development expertise is a constraint – there are only a handful of web developers and IT companies in the country (most businesses that want a website have to get help from either the telecom company or freelancers, sometimes even hiring talent from Portugal or elsewhere to set up a site). As digital skills grow domestically, we can expect a richer local web ecosystem under the .st domain.

Government e-services remain limited but are poised to expand. A few services have gone online: for example, taxpayers can download tax forms or read tax regulations on the Finance Ministry’s site; the National Statistics office might publish census or economic data on a .st web portal; and the election commission posts results and information on an official site during election cycles. With the ongoing digital government projects, one can anticipate services like online business registration, electronic visa applications for tourists, and perhaps an online land registry or civil registry search in the future – all accessed via .st domains tied to the responsible agencies.

In summary, the .st domain usage domestically is growing gradually from government outward. While it hasn’t reached a point where every shop and school has its own site, a digital footprint is emerging for key institutions and sectors, anchored by the national domain. For local internet users, this means more information and services are available in Portuguese and relevant to their needs, rather than having to rely solely on foreign websites.

Local Tech Firms, Startups, and Online Service Providers

São Tomé and Príncipe’s tech ecosystem is nascent but slowly developing with a handful of local tech firms and a budding startup culture. The market size is small, which limits the scale of digital businesses, yet a few entrepreneurs and organizations are striving to bring innovative online services to the country.

One notable initiative is S.T.P. Digital, a local tech startup and innovation hub (often cited as one of the top startups in the country). STP Digital and similar ventures focus on providing IT solutions, such as web development, software services, and digital marketing, to local clients. These companies operate as service providers for businesses that want to digitalize – for instance, building a website for a hotel, creating a small e-commerce site for a retailer, or setting up a point-of-sale software for shops. Because skilled programmers and IT professionals are few, these firms often play multiple roles (consultants, developers, trainers). Cserve Technologies is an example of a small IT firm that has branded itself as a leading software development company in São Tomé, offering services like website design and networking solutions to both domestic and international clients.

The government and international partners have been trying to foster a startup ecosystem. There is at least one business incubator – for example, the “Startup São Tomé” hub (sometimes referred to as SOW Hub) – which provides co-working space, mentorship, and support for aspiring entrepreneurs. This incubator, powered by a local association (Represe) and connected to the AfriLabs network, aims to cultivate innovative small businesses, especially those leveraging technology. Areas of interest for startups include agritech (improving agriculture with data), fintech (mobile payment solutions in the banking-limited environment), and tourism tech (like digital tour booking platforms). While no Santomean startup has yet achieved international renown, these grassroots developments signal a growing interest in technology entrepreneurship among the youth.

Online service providers in the country are emerging to fill gaps in the market. For instance, with the growth of internet access, a few local e-commerce marketplaces or classified advertisement platforms have been set up (even if on a small scale). A simple classifieds website might allow people to list items for sale or services offered, essentially a local version of Craigslist. Some entrepreneurs tried to launch a marketplace for local products – such as crafts, clothing, or specialty foods – targeting both local buyers and the Santomean diaspora abroad who might want to purchase hometown products online. Logistics for these are challenging (postal services are slow), so many operate more as “online showcase and reservation” rather than full e-commerce (the actual exchange happens offline when the buyer and seller meet, or via custom arrangements for shipping).

In terms of digital services, the banking sector has begun to offer online banking and mobile banking apps. The largest bank, Banco Internacional (BISTP), introduced a mobile banking application where customers can check balances, transfer money between accounts, and receive notifications. Additionally, telecom-led mobile money services are on the horizon. As of 2025, full-fledged mobile money (where one can send money or pay merchants via a phone wallet) is not yet mainstream, but the legal framework was recently established to allow it. Both CST and Unitel STP have indicated plans to launch mobile wallet services in collaboration with banks. For example, one might soon see a service where airtime agents also serve as mobile money agents, letting people cash-in or cash-out electronic money. This could revolutionize how people pay bills or send remittances within the country, especially connecting the unbanked population to digital finance. A company called GTI (Global Technology Integration) Switch has advertised solutions in São Tomé to enable mobile phone-based payments, hinting that such platforms might soon be operational.

Another digital service domain is education and training. There are local providers starting to offer online courses or IT training. Some are small academies offering coding workshops to youth, sometimes in partnership with foreign NGOs. The Smart Africa Digital Academy has a presence, offering free digital skills courses accessible online, which Santomeans can utilize to improve their tech proficiency.

In the media sphere, beyond the state TV and radio, a few online radio streams and YouTube-based channels run by locals have appeared. These offer alternative media content, talk shows, or music streaming targeting younger audiences who prefer consuming content on phones.

It’s worth noting that because the domestic market is tiny, several local tech firms also aim to service clients abroad (for example, doing outsourcing work or servicing Lusophone African markets like Angola or Mozambique remotely). The time zone and language can be advantages for remote IT work with Europe or Brazil. However, limited human capital and infrastructure mean this is still on a small scale.

In summary, São Tomé and Príncipe’s digital service landscape in 2025 includes a few key players and a spirit of entrepreneurship that is crucial for building a digital economy. While there is no “Silicon Valley” on the islands, the groundwork is being laid by small startups, supported by incubators and international organizations, and by existing firms (telecoms, banks) extending their services online. As more of the population comes online and trusts digital services, these local providers will be poised to grow and fill the unique needs of Santomean consumers and businesses.

E-Commerce and Digital Marketing in São Tomé and Príncipe

E-Commerce Adoption and Digital Payments

E-commerce in São Tomé and Príncipe is at an early stage of development, reflecting both the opportunities and constraints of the local market. In a nation where most commerce still happens in cash at physical stalls or shops, online shopping is not yet a routine activity for the average consumer. That said, a small but growing segment of the population – mainly urban, middle-class Santomeans and expatriates – has begun to engage in e-commerce, especially for specific use cases like travel, electronics, and specialty goods.

One of the most common forms of e-commerce is online travel booking. Given the importance of tourism, hotels and airlines are some of the earliest adopters of online transactions. Both international and local travelers use websites to book accommodations in São Tomé and Príncipe. Platforms like Booking.com and Expedia list hotels in São Tomé, and some hotels also allow direct booking via their .st websites. While this mostly brings foreign money in, it also acclimatizes local businesses to online payment processing and reservation management.

For residents, purchasing goods online is limited by a few factors: lack of local online retailers, limited international shipping, low credit card penetration, and trust issues. At present, there are no major local online retail marketplaces comparable to Amazon or Jumia (a large African e-commerce operator) operating in São Tomé and Príncipe – the market is likely too small to attract such players yet. However, individuals do occasionally order from abroad. For example, some Santomeans order electronics or fashion items from Portuguese or global e-commerce sites; they might use freight forwarders or wait for someone traveling to bring the items, since direct shipping can be expensive and slow. The national postal service exists but is not known for speed; DHL and other couriers operate but costs are high, so only high-value items tend to be ordered from overseas.

Local entrepreneurs have attempted to start small e-commerce ventures. One model is the Facebook/Instagram shop approach: sellers post products on social media and customers make orders through DMs or WhatsApp. Payment in these cases is usually cash on delivery or via mobile transfer (if available). For instance, a local bakery might advertise a special cake on Facebook and take orders online, then deliver in-person and collect payment. A few dedicated e-commerce websites have appeared – for example, an online grocery service was piloted where customers could select grocery items on a website and have them delivered to their home. These services remain limited in coverage and user adoption, often serving a niche of busy professionals in the capital. The success of such ventures hinges on solving logistics on the island (which lacks formal address systems in some areas and where traffic infrastructure is modest but generally okay given short distances).

A critical component for e-commerce growth is the availability of digital payment systems. Historically, São Tomé and Príncipe has been a cash-based economy. Credit card usage is low; only a few thousand credit cards might be in circulation, used mostly by elites or expats, and accepted at upscale hotels, airlines, or a handful of stores. However, change is underway on the payments front. The Central Bank, with African Development Bank support, is upgrading the national payment infrastructure, including implementing a modern Real-Time Gross Settlement (RTGS) system and encouraging retail payment innovations. A new law on payment systems was passed to allow non-bank players (like telecom operators) to offer payment services. This lays the groundwork for mobile money – a game-changer experienced by other African nations – to take off in STP. By 2025, it’s expected that either CST or Unitel (or both) will launch mobile money wallets, where people can store e-money on their phone, buy airtime, pay utility bills, and transfer funds peer-to-peer. Even before full deployment, banks have introduced some mobile banking via USSD codes for basic phones, enabling checks on balances or simple transfers without internet.

Digital payments are also facilitated by point-of-sale (POS) devices installed in more merchants. Some supermarkets, gas stations, and restaurants in São Tomé city now accept debit cards (often local debit cards linked to bank accounts). If the number of POS terminals increases and if mobile money agents spread, consumers will gain confidence in cashless transactions, which in turn makes e-commerce more feasible (since one barrier is “how do I pay online if I have no card?” – mobile money could allow paying an online merchant by phone).

It’s noteworthy that remittances from abroad are a significant inflow for São Tomé families. Traditionally, these come via money transfer operators (like Western Union) or informal channels. With digital finance improvements, there is potential for more digital remittance solutions – for example, relatives abroad could send money directly into a mobile wallet if that ecosystem matures. Some global fintech services (like Revolut or crypto-based transfers) have started eyeing the country, but these are not mainstream yet.

In summary, consumer behavior is just beginning to shift towards online commerce. Trust is a major factor – many are not yet comfortable ordering unseen goods or paying in advance. As positive experiences accumulate (e.g., someone successfully orders a new smartphone online and it arrives safely, or a person pays for a service via mobile phone and it’s convenient), the momentum for e-commerce will build. Government and private sector leaders see e-commerce as a means to reduce the geographic isolation of the islands, enabling local businesses to reach markets beyond their immediate vicinity and consumers to access products not available locally.

Local Online Businesses and Business Models

Given the current stage of e-commerce, the key online businesses in São Tomé and Príncipe revolve around a few sectors: travel/hospitality, retail goods (on a small scale), and services.

• Travel and Hospitality Online Businesses: As mentioned, hotels have online booking engines and there are local tour operators that allow reservations via email or their website. Some examples include small eco-resorts that have beautiful websites showcasing their rooms and allowing interested visitors to send booking requests online. Similarly, the national airline (STP Airways) and regional airlines that fly to São Tomé offer online ticket booking, which locals with payment means do utilize (or at least they use the sites to research schedules and prices, then purchase via travel agents or airline offices).

• Retail and Marketplace Models: A couple of local entrepreneurs have launched what could be considered online marketplaces. One model is a multi-vendor Facebook group or page where various sellers advertise under one umbrella. Another is a website listing multiple product categories (electronics, fashion, groceries) and the site operator sources these items on demand. For example, a site might show smartphones for sale; when a customer orders, the operator procures it (possibly from an importer in-country or by ordering from abroad) and then delivers to the customer. This model is more of a hybrid “concierge” service rather than maintaining a large inventory, given low demand. A startup might also try a subscription model for certain goods – say, an online vegetable box delivery where customers subscribe weekly and pay on delivery.

• Food Delivery and On-Demand Services: In capital cities of many countries, food delivery apps are common; in São Tomé, this concept is just emerging. There isn’t a sophisticated app-based service yet, but informally, some restaurants have set up WhatsApp numbers for delivery orders. A tech-minded team could potentially formalize this into an app or website that aggregates menus of a few restaurants and dispatches couriers. Likewise, there’s room for on-demand services like taxi-hailing via phone. Currently, people call known taxi drivers, but an online listing or simple ride-hailing app has been contemplated by local developers.

• Logistics and Delivery Services: Recognizing the logistics challenge, a few local courier companies have started offering better package delivery within the country. These act as the “last mile” solution for any e-commerce. They might be spinoffs of existing businesses (for example, the postal service or an entrepreneur with a van fleet starting a delivery service). They often coordinate via phone and are in early days of using tracking systems. For e-commerce to thrive, these logistic services are crucial – and we see initial investments here.

• Content and Media Monetization: Some local content creators and media outlets are trying online monetization models. A news website might sell digital advertising space to local businesses (e.g., a banner ad for a bank or telecom company on a popular news blog). Influencers on Instagram or Facebook who have amassed a few thousand followers can be seen promoting products like local beauty brands or events, effectively engaging in influencer marketing (more on this in the next section). While tiny in scale, it’s a nascent online business model – individuals monetizing their social media presence.

• Services like Freelancing Platforms: A few professionals use global platforms to sell their services online (for instance, a Santomean graphic designer might take on freelance gigs via websites like Fiverr or Upwork, serving clients abroad without leaving home). This isn’t an organized “business” in the local economy statistics, but it’s a way the internet is providing income streams. If connectivity remains stable and skills improve, more citizens could tap into remote work opportunities.

The business models that succeed in São Tomé and Príncipe’s digital space tend to be lean and adapted to local realities. Trust-building is crucial (often cash-on-delivery or pay-on-delivery is offered to reassure customers). Partnerships are also key – for example, a nascent online shop might partner with a well-known supermarket to source goods, leveraging the supermarket’s inventory and brand while providing the digital interface to customers. Another example is banks partnering with mobile operators for mobile money, sharing revenue and customer networks.

It’s also worth noting that many e-commerce or tech initiatives in STP start with pilot programs often supported by development agencies. For instance, an NGO might fund a platform that connects fishermen to buyers via SMS, or a UN project might help farmers access price information online. While not “businesses” per se, some of these pilots pave the way for sustainable services if they prove useful and can transition to a private or cooperative model.

Logistics challenges remain one of the biggest hurdles. Being an island nation, any item not locally available has to be shipped by air or sea. Sea freight is infrequent and slow (and requires customs clearance that can be cumbersome), while air freight is costly. Therefore, any e-commerce that relies on foreign goods tends to have high prices or long wait times, dampening consumer enthusiasm. A possible workaround is focusing on digital goods and services – for instance, selling software, music, e-books, or tourism experiences online doesn’t involve physical delivery. However, those markets are still extremely small locally.

In conclusion, local online business models in São Tomé and Príncipe are characterized by their hybrid nature – blending online and offline elements to make up for infrastructure gaps. Many transactions that start online still finish offline (with an in-person delivery or payment), but the online component is growing in importance for discovery, comparison, and ordering. The entrepreneurs in this space are essentially pioneers building the e-commerce habit in the population one step at a time.

Digital Marketing Trends and Strategies

As businesses and organizations in São Tomé and Príncipe embrace the internet, digital marketing has become an essential tool to reach the local audience. Traditional marketing channels like radio, print, and outdoor billboards are still used (given the small geography, a billboard in downtown São Tomé or a radio ad on the national station can reach a lot of people), but increasingly, companies are turning to social media marketing, influencer partnerships, and mobile outreach to connect with consumers in a more targeted way.

Social Media Marketing: The high usage of Facebook makes it the primary platform for digital advertising. Many businesses maintain active Facebook pages where they post updates, promotions, and customer engagement content. For example, a local telecom operator (CST or Unitel) will advertise new data bundle promotions on Facebook, using attractive graphics and occasionally boosting these posts as paid ads to ensure wide reach. Because Facebook allows targeting by location, Santomean companies can effectively ensure their ads are seen only by people within São Tomé and Príncipe, making advertising budgets efficient even if small. The same goes for events – concert organizers or holiday events promoters create Facebook events and spread the word online, often supplementing with some paid promotion.

Influencer Marketing: With the emergence of local social media figures, some brands have started leveraging influencer marketing. An influencer in the STP context might be a popular radio DJ who has thousands of Instagram followers, or a beauty pageant winner, or a musician. These individuals often collaborate with businesses by posting about a product or service. For instance, a hotel could invite a well-known local blogger for a weekend stay in exchange for them posting beautiful pictures and reviews of the hotel on Instagram. Or a telecom company might sponsor a music video of a local artist, subtly featuring their branding, knowing that the video will circulate on YouTube and Facebook among the youth. The scale is modest, but these tactics are increasingly recognized as effective, especially to capture the younger demographic who may not pay as much attention to newspaper ads or official announcements.

Mobile SMS and Messaging: In a country where not everyone has mobile internet but almost everyone has a mobile phone, SMS marketing remains relevant. Banks send SMS alerts of new services; retail shops might send out bulk SMS announcements of a big sale or holiday discounts. During election campaigns or public health campaigns, SMS blasts are used to disseminate messages widely. Some companies also utilize WhatsApp for marketing, albeit carefully to avoid being spammy – for example, a travel agency might create a WhatsApp broadcast list for clients who opt-in to receive flight deals or tour offers.

Email Marketing: Email has a limited role in consumer marketing in São Tomé, primarily because personal email usage is not as ingrained as social media. However, in the business-to-business (B2B) and professional context, email newsletters or marketing do occur. Hotels or tour operators, for instance, maintain mailing lists of past international visitors to send them promotions encouraging repeat visits. Locally, larger businesses use email to reach partners or educated customers (for example, an announcement of a new banking service might be emailed to account holders who have provided email contacts).

Content Localization and Language: Businesses have learned to craft marketing content in Portuguese, and often infuse it with local cultural touchstones (like Creole phrases or references to national symbols) for greater resonance. For international-facing digital marketing (like tourism promotion), they produce content in English, Portuguese, and sometimes French, ensuring they tap into multiple audiences.

Metrics and Digital Ad Spend: Although exact figures are not public, the share of advertising budget that companies allocate to digital has been rising each year. Telecom companies, banks, and tourism outfits lead in digital ad spend. They use metrics like Facebook page insights and Google Analytics to gauge engagement because formal market research is limited. The feedback loop on social media (likes, comments, shares) provides valuable insight into consumer preferences that businesses never had before. For example, if a post about a new product gets lots of questions, the company knows there’s interest and can respond or adjust their offering.

Challenges in Digital Marketing: One challenge is that many older or rural consumers might not be reached by online campaigns. So marketers often adopt a multichannel approach – combining radio spots with Facebook posts, for instance. Another issue is the low bandwidth in the past, which meant video marketing was underutilized; now with 4G, short video ads or live streams are becoming viable. We have started seeing businesses doing Facebook Live sessions – a car dealership might livestream a showcase of a new vehicle model, or an NGO might livestream parts of a community event – engaging those who cannot attend in person.

Government and Social Campaigns: The government and NGOs also use digital marketing techniques for public service messages. A recent example is health authorities using Facebook and WhatsApp to disseminate information about vaccination campaigns or COVID-19 measures, which proved effective in reaching tech-savvy citizens quickly. Politicians, on their part, are increasingly active on social media for image-building and campaigning; having a Facebook page for a political candidate is now standard, posting speeches, and interacting with citizens online to gather support.

Emerging Trends: Looking forward, as more Santomeans come online, one can expect:

• Video content growth: possibly short video ads on platforms or more local YouTube content that carries advertising.

• Search engine marketing: Currently, few local businesses worry about Google search ads or optimization, but as the local web content grows, appearing in search results (for instance, a tourist searching “fishing trips in São Tomé”) will be more crucial.

• Collaboration across Lusophone markets: Some digital campaigns might piggyback on Portuguese or Angolan content. For example, a Portuguese brand running a campaign might include São Tomé in the targeting, or local influencers might collaborate with Portuguese-speaking influencers abroad to widen their appeal.

In essence, digital marketing in São Tomé and Príncipe is growing in sophistication. It has moved past just having a Facebook page to more strategic use of online channels. Companies are learning to engage customers in two-way communication online, something traditional media didn’t allow. And because the internet user base is relatively concentrated, successful digital marketers find that a well-crafted social media campaign can create a real word-of-mouth buzz in the small community, bridging online and offline reputation. For businesses aiming to thrive in São Tomé’s evolving market, mastering digital outreach – whether through a trending hashtag on Twitter (rare, but it happens) or a viral WhatsApp video – is becoming as important as having a good storefront or office. In a country forging its path in the digital economy, those who adapt to modern marketing channels stand to build strong brand loyalty among the new generation of connected consumers.

Conclusion:
São Tomé and Príncipe’s economy is gradually transforming in the digital era. While it remains a small island economy heavily reliant on traditional sectors and external support, the advent of improved internet access and digital infrastructure is opening new horizons. The country now boasts majority internet penetration, a nationwide 4G mobile network, and an active social media scene – foundations that were hardly imaginable a decade ago. These advancements support business innovation, from modest e-commerce ventures delivering goods in the capital to entrepreneurs developing local digital content and services. The government’s embrace of digital initiatives, like e-governance and streamlined telecom regulations, indicates a vision of leveraging technology to overcome insularity and scale limitations.

For business readers, São Tomé and Príncipe presents a case of a frontier market where digital leapfrogging is possible: mobile connectivity is bringing thousands of unbanked citizens into potential online consumers; social networks are doubling as marketplaces in lieu of large retail chains; and even without a huge economy of scale, targeted digital strategies can yield high impact in a tight-knit population. Challenges such as infrastructural reliability, limited human capital in tech, and logistical bottlenecks will need continued attention. Yet, the trajectory is positive – with verified growth in internet usage, budding e-commerce activity, and companies starting to invest more in their online presence.

Official statistics from 2024–2025 underscore both the progress and the work ahead: over 60% of Santomeans now use the internet and nearly 30% engage on social media; the nation’s GDP is slowly growing again post-pandemic, aided by a tourism upswing and improved trade balance; inflation is being tamed, and importantly, São Tomé and Príncipe has stepped up from the ranks of least developed countries. All these indicators create an environment ripe for further digital economic development. In the coming years, success for São Tomé and Príncipe will mean converting its digital infrastructure gains into broad-based economic benefits – increasing efficiency in industries like agriculture and tourism, enabling remote education and telemedicine, encouraging digital entrepreneurship, and connecting its people and products with the global market despite geographical remoteness. The ongoing commitment of both public and private sectors to digital transformation, as detailed in this report, will be crucial in driving São Tomé and Príncipe’s next chapter of sustainable growth in the internet age.