Housing Finance in Sao Tome and Principe
Overview
This profile is also available in French here.
To download a pdf version of the full 2021 São Tomé and Príncipe country profile, click here.
The Democratic Republic of São Tomé and Príncipe (São Tomé and Príncipe) is Sub-Saharan Africa’s smallest country by land surface, consisting of two main islands and several islets, totalling 1 001km². São Tomé and Príncipe had an estimated population of 210 240 people in 2020. High levels of poverty and joblessness have resulted in a housing deficit of 60% although there are no details of a segment breakdown. The World Bank recorded in 2018 that 86% of the population lived in slums or inadequate housing. The country has a high debt level, with a low ratio of tax revenue to Gross Domestic Product (GDP), and as such relies heavily on external support. São Tomé and Príncipe, therefore, have a major housing crisis but do not have government funds to tackle the crisis.
The economy of São Tomé and Príncipe is based mainly on subsistence agriculture and fisheries and relies on foreign grants, which exceeded 10% of GDP in recent years. Exports of goods amounted to only 4% of GDP in 2019. The country is dependent on cocoa, tourism, and hospitality. Public debt rose to 104.9% of GDP in 2020 from 94.8% in 2019, with the current account deficit widening to 17.5% of GDP in 2020 from 16.6% in 2019 due to the reduction in tourism and cocoa receipts. The fiscal deficit was estimated to widen to 5% of GDP in 2020 from 2.4% in 2019 as a result of falling tax revenues. The economy contracted by an estimated 6.4% in 2020, after growing by 2.2% in 2018 and 1.3% in 2019. The contraction in output can be attributed to a sharp decline in the tourism and service sectors, and subdued aggregate demand, mainly due to the restrictions of the COVID-19 lockdown. Decreased demand in the tourism and service sectors also affected the transport, construction, and manufacturing sectors.
[1] Instituto Nacional de Estatistica. Main Indicators. https://www.ine.st/ (Accessed 22 August 2020).
Find out more information on the housing finance sector of Sao Tome and Principe, including key stakeholders, important policies and housing affordability:
- Overview
- Access to Finance
- Affordability
- Housing Supply
- Property Markets
- Policy and Legislation
- Opportunities
- Urban Informality
- Availability of data on housing finance
- Additional sources
- Websites
Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2021 edition, which has up-to-date profiles for 55 African countries.
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Sao Tome and Principe
Overview
The Democratic Republic of São Tomé and Príncipe (São Tomé and Príncipe) is Sub-Saharan Africa’s smallest country by land surface, consisting of two main islands and several islets, totalling 1 001km². São Tomé and Príncipe had an estimated population of 210 240 people in 2020. High levels of poverty and joblessness have resulted in a housing deficit of 60% although there are no details of a segment breakdown. The World Bank recorded in 2018 that 86% of the population lived in slums or inadequate housing. The country has a high debt level, with a low ratio of tax revenue to Gross Domestic Product (GDP), and as such relies heavily on external support. São Tomé and Príncipe, therefore, have a major housing crisis but do not have government funds to tackle the crisis.
The economy of São Tomé and Príncipe is based mainly on subsistence agriculture and fisheries and relies on foreign grants, which exceeded 10% of GDP in recent years. Exports of goods amounted to only 4% of GDP in 2019. The country is dependent on cocoa, tourism, and hospitality. Public debt rose to 104.9% of GDP in 2020 from 94.8% in 2019, with the current account deficit widening to 17.5% of GDP in 2020 from 16.6% in 2019 due to the reduction in tourism and cocoa receipts. The fiscal deficit was estimated to widen to 5% of GDP in 2020 from 2.4% in 2019 as a result of falling tax revenues. The economy contracted by an estimated 6.4% in 2020, after growing by 2.2% in 2018 and 1.3% in 2019. The contraction in output can be attributed to a sharp decline in the tourism and service sectors, and subdued aggregate demand, mainly due to the restrictions of the COVID-19 lockdown. Decreased demand in the tourism and service sectors also affected the transport, construction, and manufacturing sectors.
Annual inflation increased to 9.1% in 2020 from 7.7% in 2019 due to shortages of food and other essential goods caused by the impact of COVID-19 on the country. The economy is projected to grow by 2.1% in 2021 and 5.4% in 2022 as a result of increased export demand for cocoa, chocolate, and palm oil and the gradual resumption of tourism. However, the country is still likely to face a potentially longer shock from COVID-19 with growth prospects constrained by an increase in poverty due to job losses triggered by the pandemic. COVID-19 resulted in 8 000 new households falling into poverty in the country, in addition to the 24 000 households already below the poverty line. Real GDP growth in 2020 was initially estimated at a positive rate of 3%, but there are significant risks and uncertainties to this outlook due to the pandemic.
[1] Instituto Nacional de Estatistica. Main Indicators. https://www.ine.st/ (Accessed 22 August 2020).
[2] Instituto Nacional de Estatistica. Main Indicators. https://www.ine.st/ (Accessed 22 August 2020).
[3] IMF (2018). Country Report Democratic Republic of São Tomé and Príncipe. Country Report 18/322. https://www.imf.org/~/media/Files/Publications/CR/2018/cr18322.ashx (Accessed 21 August 2020). Pg. 18.
[4] IMF (2019). Request for a 40-Month Arrangement under the Extended Credit Facilit – Press Release; Staff Report; and Statement by the Executive Director for Democratic Republic of São Tomé and Príncipe. Country Report No. 19/315. https://www.imf.org/~/media/Files/Publications/CR/2019/1STPEA2019001.ashx (Accessed 21 August 2020). Pg. 9.
[5] IMF (2018). Article IV Consultation, Fifth Review under the Extended Credit Facility, Request For Waivers For Nonobservance of Performance Criteria, and Financing Assurances Review. Country Report No.18/251. https://www.imf.org/~/media/Files/Publications/CR/2018/cr18251.ashx (Accessed 21 August 2020). Pg. 8.
[6] IMF (2018). Article IV Consultation, Fifth Review under the Extended Credit Facility, Request For Waivers For Nonobservance of Performance Criteria, and Financing Assurances Review. IMF Country Report No.18/251. https://www.imf.org/~/media/Files/Publications/CR/2018/cr18251.ashx (Accessed 21 August 2020). Pg. 11.
[7] IMF (2019). Request for a 40-Month Arrangement under the Extended Credit Facility – Press Release; Staff Report; and Statement by the Executive Director for Democratic Republic of São Tomé and Príncipe. IMF Country Report No. 19/315. https://www.imf.org/~/media/Files/Publications/CR/2019/1STPEA2019001.ashx (Accessed 21 August 2020). Pg. 4.
[8] African Development Bank (2020). African Economic Outlook 2020 – Supplement https://www.afdb.org/en/documents/african-economic-outlook-2020-supplement (Accessed 15 August 2020). Pg. 94.
[9] IMF (2018). Country Report Democratic Republic of São Tomé and Príncipe. IMF Country Report 18/322. https://www.imf.org/~/media/Files/Publications/CR/2018/cr18322.ashx (Accessed 21 August 2020). Pg. 5.
[10] IMF (2018). Democratic Republic of São Tomé and Príncipe: Poverty Reduction Strategy Paper II, 2012-2016. https://tinyurl.com/y52jvru7 (Accessed 24 August 2020). Pgs. 81-82.
[11] Instituto Nacional de Estatistica Republica, Democratica de São Tomé e Principe (2012). Características e Condições de vida das famílias e da habitação. https://www.ine.st/index.php/publicacao/documentos/file/341-10-caracteristicas-e-condicoes-de-vida-das-familias-e-da-habitacao-recenseamento-2012 (Accessed 22 August 2020).
[12] IMF (2020). Request for Disbursement under the Rapid Credit Facility – Press Release; Staff Report; and Statement by the Executive Director for the Democratic Republic of São Tomé and Príncipe. IMF Country Report No. 20/139. https://www.imf.org/~/media/Files/Publications/CR/2020/English/1STPEA2020001.ashx (Accessed 21 August 2020). Pg. 3.
[13] African Development Bank. (2020). African Economic Outlook 2020 – Supplement https://www.afdb.org/en/documents/african-economic-outlook-2020-supplement (Accessed 15 August 2020). Pg.94.
[14] IMF (2020). Request for Disbursement under the Rapid Credit Facility – Press Release; Staff Report; and Statement by the Executive Director for the Democratic Republic of São Tomé and Príncipe. Country Report No. 20/139. https://www.imf.org/~/media/Files/Publications/CR/2020/English/1STPEA2020001.ashx (Accessed 21 August 2020). Pgs. 3-4.
[15] IMF (2018). Country Report Democratic Republic of São Tome and Príncipe. Country Report 18/322 November 2018. https://www.imf.org/~/media/Files/Publications/CR/2018/cr18322.ashx (Accessed 21 August 2020). Pg. 19.
[16] IMF (2020). Request for Disbursement under the Rapid Credit Facility – Press Release; Staff Report; and Statement by the Executive Director for the Democratic Republic of São Tomé and Príncipe. Country Report No. 20/139. https://www.imf.org/~/media/Files/Publications/CR/2020/English/1STPEA2020001.ashx (Accessed 21 August 2020). Pg. 23.
Access to Finance
The São Tomé and Príncipe Central Bank (Banco Central São Tomé e Principe) has a supervisory role over the national financial system and defines monetary and exchange rate policies in the country. The Central Bank is mandated to contribute to the economic and social development of the country through its intervention as monetary and exchange authority. It has licensed five commercial banks that provide banking services to the public. These are Energy Bank, Banco Internacional de São Tomé e Príncipe (BISTP), Ecobank São Tomé and Príncipe (Ecobank), Afriland First Bank São Tomé and Príncipe (Afriland) and Banque Gabonaise et Française Internationale (BGFI) Bank. A number of these banks are foreign run and headquartered outside São Tomé and Principe.
The uncertain macroeconomic conditions created by COVID-19 have affected the banking sector. Credit growth to the private sector began decelerating in March 2020 and reached approximately 0.1% by September 2020, compared to 5% at the end of 2019. Challenging economic conditions have begun affecting banks’ ability to secure incoming repayments and, by the end of September 2020, nonperforming loans (NPLs) rose to approximately 34% of total loans, compared to almost 27% in December 2019. Public sector debt is high, driven mainly by oil imports for power generation, accounting for 22% of total imports in 2020. According to the International Monetary Fund’s 2020 Debt Sustainability Analysis, the country is classified as being in debt distress due to prolonged unsettled external arrears, but public debt is deemed sustainable in the long term.
Public debt is projected to decrease to 100.2% of GDP in 2021 and 96.4% in 2022 due to ongoing investment in alternative power sources and fiscal reforms, which include stepping up reforms in the public utility company Empresa de Água e Electricidade to improve energy supply and contain losses. These reforms are fuelled by the need for permanent solutions for electricity shortages and the accelerating development of alternative sustainable energy sources. This would contribute to providing a reliable and cheaper electricity supply.
The introduction of a value-added tax of 15% in 2020 is estimated to improve revenue collection and bolster the fiscal position, which, in turn, will create fiscal space for investment in public infrastructure. To ensure adequate liquidity, in April 2020, the Central Bank reduced reserve requirements, lowered the discount rate for the liquidity facility, and suspended plans to issue certificates of deposit to control excess liquidity. In addition, the Central Bank encouraged banks to offer a six-month moratorium on loan repayments for non-delinquent borrowers affected by the pandemic. The introduction of a new payment system, capable of processing international credit cards, was scheduled for early 2021. A bureau for financial inclusion was recently established at the Central Bank. A working group, tasked with finalising a national strategy on financial inclusion has also been put in place.
The pandemic has frustrated efforts in liquidating two banks in the country, Banco Equador and Banco Privado, despite a commitment to do this by the end of 2021. Following an unsuccessful attempt to sell assets, the authorities have chosen to turn over Banco Equador’s assets to the court system. No sale has materialised for Banco Privado, which lost its licence for non-compliance with Central Bank’s directives and not for insolvency. If the sale is not concluded and no other solution is found, Banco Privado’s remaining assets will also have to be turned over to the court system. The pandemic has also resulted in another small bank, Energy Bank, having liquidity constraints. This bank has been placed under Central Bank temporary administration as of November 2020 and, if found not to be viable, will be placed in liquidation.
In 2019, credit to the economy by banks remained low as they were saddled with a large number of legacy Non-Performing Loans (NPLs), which comprised approximately 25% of total loans. This was exacerbated by a court system which impedes loan collection. In 2019 overdue credit was concentrated in three economic sectors namely trade, consumption and construction/housing. The lending market for housing developers and retail lenders is consequently poorly developed. In 2016, only 48% of the population had a savings account, 7% of small and medium-sized enterprises had a bank loan and less than 5% had access to consumer loans. The lending interest rate of commercial banks as of 2019 was 19.1% and the Central Bank interest rate was 9% at the end of 2019. Loan lengths vary significantly, from one year to 37 years. Interest rates earned on deposit accounts are relatively low, at below 4%, pointing at significant spreads. Credit to the construction sector is provided mainly by one bank, and to a large degree the same is true for lending to tourism and manufacturing. In 2018 most loans were to individuals (97%), although the value of loans to firms represents 71%.
São Tomé and Príncipe’s global rankings on the ability of businesses and citizens to get credit are mixed. According to the 2020 World Bank Doing Business report,São Tomé and Príncipe has a relatively strong score on the credit registry coverage at 21.5. However, there is no collateral registry nor priority for secured collateral holders in cases of insolvency. The country scores five on depth of information, but zero on credit bureau coverage. All indications are that little has been done to provide innovation to allow greater access to finance for poorer citizens, and access to credit is generally considered low. BISTP’s website provides information on mortgage products, specifically for acquisition, construction, recovery or expansion of housing and improvement works. BISTP can finance up to 100% of the value of construction works or purchase of a home with the option of financing up to 50% of the guarantee amount. The mortgage interest rate is set up to 8% a year or 5% with a financial guarantee or security. The repayment term can be up to a maximum period of 240 months (20 years).
[1] Banco Central Sao Tome e Principe. http://www.bcstp.st/Instituicoes-Financeiras-Detalhes?cod=BAN. (Accessed 23 August 2020).
[2] IMF (2020). First Review under the Extended Credit Facility and Request for Augmentation of Access, Rephasing of Access, and Financing Assurances Review – Press Release; Staff Report; and Statement by the Executive Director for the Democratic Republic of São Tomé and Príncipe. Country Report No. 20/232. https://www.imf.org/~/media/Files/Publications/CR/2020/English/1STPEA2020002.ashx (Accessed 23 August 2020). Pg. 14.
[3] IMF (2020). First Review under the Extended Credit Facility and Request for Augmentation of Access, Rephasing of Access, and Financing Assurances Review – Press Release; Staff Report; and Statement by the Executive Director for the Democratic Republic of São Tomé and Príncipe. Country Report No. 20/232. https://www.imf.org/~/media/Files/Publications/CR/2020/English/1STPEA2020002.ashx (Accessed 23 August 2020). Pg. 22.
[4] Banco Central Sao Tome e Principe (2019). http://www.bcstp.st/Upload/New_DOC/SB/Evolu%C3%A7%C3%A3o%20S.%20Banc%C3%A1rio%20Dez.19.pdf (Accessed 23 August 2020). Pg. 3.
[5] IMF (2020). Request for Disbursement under the Rapid Credit Facility – Press Release; Staff Report; and Statement by the Executive Director for the Democratic Republic of São Tomé and Príncipe. Country Report No. 20/139. https://www.imf.org/~/media/Files/Publications/CR/2020/English/1STPEA2020001.ashx (Accessed 21 August 2020). Pg. 3.
[6] IMF (2020). Request for Disbursement under the Rapid Credit Facility – Press Release; Staff Report; and Statement by the Executive Director for the Democratic Republic Of São Tomé and Príncipe. Country Report No. 20/139. https://www.imf.org/~/media/Files/Publications/CR/2020/English/1STPEA2020001.ashx (Accessed 21 August 2020). Pg. 3.
[7] Banco Central Sao Tome e Principe (2019). http://www.bcstp.st/Upload/New_DOC/SB/Evolu%C3%A7%C3%A3o%20S.%20Banc%C3%A1rio%20Dez.19.pdf (Accessed 23 August 2020) Pg. 8.
[8] World Bank (2016). Democratic Republic of São Tomé and Príncipe: Financial Sector Development Implementation Plan, 2017-2019. https://openknowledge.worldbank.org/handle/10986/25684 (Accessed 23 August 2020).
[9] World Bank. Data. Lending interest rate (%) – Sao Tome and Príncipe. https://data.worldbank.org/indicator/FR.INR.LEND?locations=ST (Accessed 23 August 2020).
[10]São Tomé and Príncipe Data Portal. Interest rates. http://saotome.opendataforafrica.org/ifhndxc/interest-rates (Accessed 23 August 2020).
[11] IMF (2018). Country Report Democratic Republic of São Tomé and Príncipe. Country Report 18/322 November 2018. https://www.imf.org/~/media/Files/Publications/CR/2018/cr18322.ashx (Accessed 23 August 2020) Pg. 43.
[12] World Bank (2020). Doing Business 2020. Economy Profile São Tomé and Príncipe. https://www.doingbusiness.org/content/dam/doingBusiness/country/s/sao-tome-and-principe/STP.pdf (Accessed 23 August 2020).
[13] IMF (2018). Article IV Consultation, Fifth Review under the Extended Credit Facility, Request For Waivers For Nonobservance of Performance Criteria, and Financing Assurances Review. Country Report No.18/251. https://www.imf.org/~/media/Files/Publications/CR/2018/cr18251.ashx (Accessed 21 August 2020). Pg. 17.
[14] Banco Central Sao Tome e Principe. Report Payment Systems 2018. http://www.bcstp.st/Upload/New_DOC/SP/RELAT%C3%93RIO%20SISTEMA%20DE%20PAGAMENTOS%202018.pdf (Accessed 23 August 2020). Pg. 6.
[15] Banco Internacional de São Tomé e Príncipe. Mortgage loans. https://www.bistp.st/inicio/particulares/creditos/habitacao/ (Accessed 23 August 2020).
Affordability
The country is ranked 135 out of 189 countries and territories in the United Nations Development Programme’s Human Development Index (HDI).37 Between 1990 and 2018, São Tomé and Principe’s HDI values increased from 0.437 to 0.609, an increase of 39.3%. Estimates based on surveys for 2014 to 2019 show that 66.2% of the population lives below the national poverty line. The unemployment rate remains relatively high at 8.9% (2017) and joblessness mainly affects youth aged between 15 and 24 years, urban areas and southern districts such as Caué and Lembá have higher levels of poverty. Given the restricted diversity of the economy, the government is the main formal employer.
The price of the cheapest, newly built house by a formal developer or contractor in an urban area is Db1 225 000 (US$58,801) and the size is 80m2. The typical monthly rental price for these houses built by a formal developer or contractor in an urban area is Db12 250 (US$588) and the construction labour cost per square meter for the cheapest, newly built house is Db6 125 (US$294). The total construction cost per square meter is Db4 900 (US$235). The minimum size of a residential plot in urban areas in square meters is 300m2. The typical annual rent per square meter for residential dwellings in the main urban center is Db4 410 (US$ 212).
[1] United Nations Development Programme (2019). Human Development Report. Human Development Index and its components. http://hdr.undp.org/en/content/table-1-human-development-index-and-its-components-1 (Accessed 24 August 2020).
[2] United Nations Development Programme (2019) Human Development Report. Sao Tome and Principe.
http://hdr.undp.org/sites/all/themes/hdr_theme/country-notes/STP.pdf (Accessed 24 August 2020).
[3] United Nations Development Programme (2019). Multidimensional Poverty Index: developing countries. http://hdr.undp.org/sites/default/files/2020_mpi_statistical_data_table_1_and_2_en.pdf (Accessed 24 August 2020). Pg. 45.
[4] Instituto Nacional de Estatistica. Main Indicators. https://www.ine.st/ (Accessed 2 August 2020).
[5] Instituto Nacional de Estatistica. Main Indicators. https://www.ine.st/ (Accessed 22 August 2020).
[6] Email correspondence with Artur Neves , Bwaso Imobiliária, 25 August 2020.
[7] Email correspondence with Artur Neves , Bwaso Imobiliária, 25 August 2020.
[8] Bwaso Imobiliária. Real estate in São Tomé e Príncipe. https://bwasoimoveis.net/ (Accessed 24 August 2020).
Housing Supply
São Tomé’s land tenure system is a mixture of private land ownership and usufruct – the latter being a right to use land without holding formal title. Most land – 86% – is state-owned.The country is divided into seven districts: Água Grande, Cantagalo, Caué, Lembá, Lobata and Mé-Zochi, located on São Tomé and the Autonomous Region of Príncipe district, on Príncipe. Each of the districts is its own administrative body.
Responsibility for the administration of urban land rests with the Ministry of Infrastructure, Natural Resources, and Environment. Not all privately held land plots in the largest business city are formally registered or mapped. According to the most recent census, conducted in 2012, most Sao Tomeans own their homes. Houses are primarily made from wood, with 64.8% using new wood for construction and 15.3% using reclaimed or salvaged wood. Over half the population does not have access to basic sanitation services and 16% of the population does not have access to basic water services.48 Water supply needs to be improved in rural areas, which suffer from water scarcity and poor sanitation infrastructure. Increased development has resulted in informal settlements without proper water, sanitation, and energy infrastructure being commonplace.
A China-financed social housing project, which stems from the reestablishment of diplomatic relations between the two countries in December 2016 is near completion. This involves the construction of social houses in all districts of the island of São Tomé and in the Autonomous Region of Príncipe, with the first 24 social housing apartments estimated to be ready by the end of 2021. This project included the construction of five buildings with three floors each. Laying the first stone of the houses took place in November 2019 in the city of Guadalupe, District of Lobata. It is projected that, by 2022, 200 social housing units for low-income users will have been built across the country. In addition to two buildings in Lobata, in the north of the island of São Tomé, another three will be built in the district of Cantagalo, in the south of the island, each with 12 apartments.
[1] Constitute Project (2020). São Tomé and Príncipe’s Constitution of 1975 with Amendments through 2003. https://constituteproject.org/constitution/Sao_Tome_and_Principe_2003.pdf?lang=en (Accessed 24 August 2020).
[2] Medafrica Times (2018) São Tomé and Príncipe gets $10 million boost from the World Bank. https://clubofmozambique.com/news/sao-tome-and-principe-gets-10-million-boost-from-the-world-bank/ (Accessed 24 August 2020).
[3] Permanent Secretariat of the Forum for Economic and Trade Co-operation between China and Portuguese speaking Countries (Macao) (2019). China to build public housing in São Tomé e Príncipe. https://www.forumchinaplp.org.mo/china-to-build-public-housing-in-sao-tome-e-principe/ (Accessed 24 August 2020).
[4] Macauhub (2019). China starts construction of social housing in São Tomé and Príncipe. 27 November 2019
https://macauhub.com.mo/2019/11/27/pt-china-inicia-construcao-de-habitacao-social-em-sao-tome-e-principe-2/ (Accessed 10 September 2020).
Property Markets
The 2020 World Bank’s Doing Business report places São Tomé and Príncipe at 170 out of 190 economies, the same position as 2019. São Tomé and Príncipe have a deed and title registry and it takes 52 days to register property in the country. It costs 10.2% of the property value to register the title.
Reform of housing provision and finance for the property market in the country is ongoing. The country uses a title registration system and the institution in charge of immovable property registration is the Conservatória do Registo Predial de São Tomé. However, the country does not have a comprehensive and functional electronic database for checking property loans, rentals, or sales. Transparency of data is also hindered by a lack of online access and there are no publicly available official statistics to track the number of property registrations and transactions. However, according to the World Bank, São Tomé and Príncipe in 2019 made enforcing contracts easier by adopting a new code of procedural costs that simplified and reduced court fees.
[1] World Bank (2020). Doing Business 2020. Economy Profile São Tomé e Príncipe. https://www.doingbusiness.org/content/dam/doingBusiness/country/s/sao-tome-and-principe/STP.pdf (Accessed 24 August 2020).
[2] World Bank (2019). Country Economic Memorandum for São Tomé and Príncipe Background Notes. http://documents.worldbank.org/curated/en/474701562909890340/pdf/Sao-Tome-and-Principe-Country-Economic-Memorandum-Background-Note-7-What-are-the-bottlenecks-on-land-governance-and-how-to-remove-them-to-support-tourism-and-agriculture-development.pdf (Accessed 24 August 2020).
[3] World Bank (2020). Doing Business 2020. Economy Profile São Tomé and Príncipe. https://www.doingbusiness.org/content/dam/doingBusiness/country/s/sao-tome-and-principe/STP.pdf (Accessed 24 August 2020). Pg. 25.
[4] World Bank (2019). Country Economic Memorandum for São Tomé and Príncipe Background Notes. http://documents.worldbank.org/curated/en/474701562909890340/pdf/Sao-Tome-and-Principe-Country-Economic-Memorandum-Background-Note-7-What-are-the-bottlenecks-on-land-governance-and-how-to-remove-them-to-support-tourism-and-agriculture-development.pdf (Accessed 24 August 2020).
[5]World Bank (2020). Doing Business 2020. Economy Profile São Tomé and Príncipe. https://www.doingbusiness.org/content/dam/doingBusiness/country/s/sao-tome-and-principe/STP.pdf (Accessed 24 August 2020). Pg. 26.
Policy and Legislation
The government has established a National Land Use Planning and Cartography Directorate, mainly responsible for managing and allocating land, managing natural and protected areas, ensuring sector land distribution, and planning major infrastructure by zone. The lack of digitised information is being tackled by implementing a digital Registry and Notary Information System. The lack of inter-operability of information systems between the cadastre, tax administration, and transport directorate is also being reformed, to avoid data duplication and support policy decisions.
The o dos Registos Predial e Notarial Lei nº 12/2018 e 14/2018 law requires that all property sale transactions are registered at the Conservatória do Registo Predial de São Tomé to make them opposable to third parties and registration is subject to a state guarantee according to Códigdo Registro Predial 1968 and Código dos Registos Predial e Notarial Lei nº 12/2018 e 14/2018. The Sao Tome First Instance Tribunal (Tribunal de Primeira Instancia de Sao Tome) is in charge of a case involving a land dispute between two local businesses over tenure rights. A title registration system is used and the institution in charge is the Conservatória do Registo Predial de São Tomé.
[1] African Development Bank (2016). São Tomé and Príncipe Study on the National Land Use Plan Appraisal Report, 2015. https://www.afdb.org/fileadmin/uploads/afdb/Documents/Project-and-Operations/SAO_PRINCIPE_AND_PRINCIPE_AR-_Study_on_the_National_Land_Use_Plan__APPROVED.pdf (Accessed 24 August 2020). Pg. 8.
[2] World Bank (2019). Country Economic Memorandum for São Tomé and Príncipe Background Notes. http://documents.worldbank.org/curated/en/474701562909890340/pdf/Sao-Tome-and-Principe-Country-Economic-Memorandum-Background-Note-7-What-are-the-bottlenecks-on-land-governance-and-how-to-remove-them-to-support-tourism-and-agriculture-development.pdf (Accessed 24 August 2020).
[3] World Bank (2019). Country Economic Memorandum for São Tomé and Príncipe Background Notes. http://documents.worldbank.org/curated/en/474701562909890340/pdf/Sao-Tome-and-Principe-Country-Economic-Memorandum-Background-Note-7-What-are-the-bottlenecks-on-land-governance-and-how-to-remove-them-to-support-tourism-and-agriculture-development.pdf (Accessed 24 August 2020).
Opportunities
Conditions for growth for small, vulnerable, and island-based economies like São Tomé and Príncipe are based on macroeconomic stability and tourism. The reform and development of these sectors are ongoing and should lead to greater economic growth if sustained. The strict measures put into place to curtail the impact of COVID-19 have led to significant losses in the tourism industry, which has been a primary driver of private sector growth in recent years and the source of a large share of the country’s formal employment opportunities. However, the government is pressing ahead with reforms that should facilitate private investment, help the development of the tourism sector, and promote more resilient and inclusive growth.
[1] African Development Bank. (2020). African Economic Outlook 2020 – Supplement https://www.afdb.org/en/documents/african-economic-outlook-2020-supplement (Accessed 15 August 2020). Pg. 94.
Urban Informality
The World Bank recorded in 2018 that 86% of the population lived in slums or inadequate housing. There is no information on how the country is addressing the inadequate housing issues other than through introducing structural and economic reforms to reduce debt and increase income through increased tax collection. Only once the economic situation has been improved can the São Tomé and Príncipe government commit to funding infrastructure and development to support housing, unless it is able to access additional external support
According to the World Bank, in 2020 São Tomé and Príncipe had an urbanisation rate of 2.9% and a population growth rate of 1.9%. UNICEF reported in 2020 that 42% of the urban population has access to a clean source of water (piped source) and that 48% of the urban population has access to sanitation.
Availability of data on housing finance
Banco Central Sao Tome e Principe, which serves in a supervisory role over the national financial system and defines monetary and exchange rate policies in the country, is a good source of information on the housing sector. It publishes statistics and information on the banking sector as well as annual reports. However, information on the mortgage products available is difficult to source and the role of regulatory authorities in monitoring the finance and housing sectors is weak. As a result, key statistical data is not available. A challenge of countries like São Tomé and Príncipe, where banks are mainly foreign-run, is obtaining detailed, disaggregated financial data on their businesses, within the host country itself. As a rule, they report on their total activities and not the country level.
The National Statistics Institute of the Democratic Republic of São Tomé and Príncipe is a source of housing data but most of the information on the website is not recent, with the most recent census information available dated 2012. It does publish other recent information such as population estimates.
Additional sources
Babb, S. (2018). Fiscal Futures & Credit Access in São Tomé and Príncipe. The Borgen Project Blog. https://borgenproject.org/fiscal-futures-credit-access-in-sao-tome-and-principe/
Websites
Banco Central Sao Tome e Principe http://www.bcstp.st/
National Statistics Institute of the Democratic Republic of São Tomé and Príncipe http://www.nber.org/
Energy Bank http://www.energybanksaotome.com/loans-services.html
BGFIBank https://sao.groupebgfibank.com/en/\
Afriland Bank https://afrilandfirstbankst.com/
Ecobank https://ecobank.com/personal-banking/everyday-banking
World Bank https://www.worldbank.org/en/country/saotome
Habitat World Map https://habitat-worldmap.org/en/pais/africa/sao-tome-and
