Members of the Chamber of Commerce from São Tomé and Príncipe recently met in Príncipe to discuss the role of the private sector as the country prepares to join the ranks of the oil-producing countries of Africa.
The meeting, which took place at the Príncipe Cultural Center on 20th April, was attended by seven representatives of the national Chamber of Commerce and over 45 members of the Chamber of Commerce of the island of Príncipe.
During the event, the Vice Chair of the Príncipe’s Chamber of Commerce, a representative from the regional government and one from the National Petroleum Agency gave presentations.
The Vice Chair of Príncipe’s Chamber of Commerce spoke about the current situation of the private sector in the island of Príncipe and emphasised that there is lack of skilled human resources and capital, while on the other hand there is huge potential for growth in the agricultural and tourism sectors.
He was followed by a representative from the regional government, who highlighted that there is no population growth in Príncipe as the youth continue to migrate to the main island of Sao Tome seeking employment. However the fact that Príncipe recently became an Autonomous Region will enable its government to decide on its own economic and social policies, and therefore to address the island’s specific problems and challenges. He also stressed the potential for economic growth on the island, even though getting the necessary capital remains a challenge.
“There are quite of a lot of studies that have been conducted [on the impact oil can have on development] but this potential has not been realised yet,” said the representative of the National Petroleum Agency during his final presentation. He indicated that oil would increase business opportunities, for example in service related sectors such as transportation, communications, tourism and finance. But he also highlighted that since oil is a non-renewable resource that could be exhausted in a short time, the government needs to start discussing from the outset how to sustain the development of the country’s economy so that it will not collapse once oil deposits dwindle.
During the discussion that followed, there was shared perception that even though Príncipe is part of the nation of São Tomé and Príncipe, the island remains in reality isolated from the rest of the country due to lack of efficient transport links with the larger island of São Tomé.
The event’s participants formulated a list of recommendations on the future role of the private sector in the country, including the following:
- There is urgent need for apprenticeships and skills training in various areas in order to boost employment by growth in the service sector.
- Since the public has little access to information due to scarcity of media outlets, steps must be taken to open up the media to ensure people are informed on laws, regulations and developments related to oil exploration.
- As there is not enough capital in the country, it is critical to attract international investors who contribute to the diversification of the products and services, such as agriculture, farming, tourism and manufacturing.
- There should be a system to control and grade goods and services produced locally to maintain international standards and protect these products from unfair competition.
- The National Petroleum Agency in collaboration with the Government of São Tomé and Príncipe should raise awareness about the possibilities for private sector’s investment in the Autonomous Region of Príncipe.
This meeting was conducted as part of the USAID-funded project ‘Countering the Conflict Potential of Oil.’