THE STABLISHMENT OF FREE TRADE ACTIVITIES IN S. TOME AND PRÍNCIPE
The archipelago of Sao Tome and Principe (both island equally) have geographic and geologic conditions, which, when associates to the rich flora and fauna provide the whole country an important base for exploration activities such as Tourism, Services and Commerce.
Any sector of economic activity needs investments. In the absence of financial means to make the necessary investments, one of the options can be met by recurring to the private sector. Which can be seen around the world, private have played a vital role toward the increase of world GDP.
In this way, if the state possesses the potential business base -mentioned above, all it has to do is to create institutional pre-requisite and a viable business environment in order to promote the attraction of private investments.
Of the three institutional pre-requisite, one has already been guaranteed enactment of the legal framework which regulate the exercise of entrepreneurial activities. A second one, we consider to be the establishment of certain statutory framework to make the investor feel that viable business environment is being pursuit by the implementation favourable conditions to the return of the capital invested.
These conditions of incentives are taxes. Nothing can be better than statue of Free Trade Regime to guarantee the investors a higher level of percentage for the return of their investments.
In this context, the Government has already drawn 3 types of Free and Offshore activities through the AZF where investments are totally private.
- FREE TRADE ZONE OF SAO TOME’S AIRPORT
It is a place for commercial and services activities which will have infrastructures to support the International Airport of Sao Tome and will consist of 20 hectares of surface. The concessionary of this Free Trade Zone is the Sociedade de Desenvolvimento de S. Tomé, S.A (SDSTP)
- FREE TRADE ZONE AT BAÍA DAS AGULHAS, PRÍNCIPE
A place for service rendering to the oil production activities and maritime navigation in the Golf of Guinea which will occupy 500 hectares of surface. It is expected to become operational within two and a half years. The concessionary of this Free Trade Zone is the Sociedade de Gestão de Operações Logísticas de S. Tomé e Príncipe (GEOLOG – SA).
- OFFSHORE BUSINESS CENTER
Will perform the activities of registering offshore companies and the sheltering of offshore financial businesses that has a potential of transforming S.Tome and Principe into an alternative to the traditional fiscal paradises.