SAO TOME AND PRINCIPE, POLITICAL OUTLOOK AND BUSINESS IMPLICATION

Executive summary

The island is located off western coast in the central Africa, it is a country with a mixed economic system. In the early sixteenth century the country was colonized by the Portuguese and it is by then that slave trade was widely staged. However, in the early 1800’s century it became one of the world best Cocoa producers and by 2005 together with Nigeria, the country agreed to do a joint exploration of oil shores (Global Edge, 2016). Manuel Pindo da costa is the head of the state, the State allowed multi party’s election through constitutional amendments in the year 1990 (Global Edge, 2016). Additional, it declared the rule of only two terms in office for the president of the republic. Unfortunately, the country political and economic outlook looks very uncertain as this emanates from a number of factors present in the country.

Corporate default prospect stakes are high the business environment is surrounded by a lot of troublesome weaknesses which makes the viability of business environment lesser. Notably, the difficult in the business environment would make infiltration of mega business problematic. Similarly, the corporate availability of financial vital financial information is a rare thing and if available it is not what you can totally rely on (Global Edge, 2016). Apart from an impulsive collection of debt the country also experiences intercompany transaction due to the major risk surroundings it given the environment shaped by the political and economic risks. Sao Tome and Principe heavily depends on public aid whilst the economy entirely depends on fishing and agriculture. The banking sector is still weak and underdeveloped with non-performing rising up to 18% (Global Edge, 2016). Nonetheless, it has got substantial oil shores apart from the developed sector of tourism.

 

 

 

 

 

 

 

 

 

 

Reference

Global Edge. 2016. Retrieved from http://globaledge.msu.edu/countries/sao-tome-and-principe