 | Sao Tome and Principe |
THE PROPOSAL
The Government of Sao Tome and Principe aims to transition to the blue economy, specifically in fishing and aquaculture sectors, as part of an effort to achieve food security. It also aims to promote renewable energy, eco-tourism, and improve maritime transport and market security.
The Hand-in-Hand Initiative supports the Government to develop a transition strategy toward the blue economy. It has identified priority investment projects, and assessed their economic and environmental impacts. The three main strategic areas for the blue economy:
- Promote "Blue Cabotage" (transportation of people and goods from port to port along the coast)
- Improve tourism and the coastal environment
- Modernize coastal artisanal fishing fleet
"BLUE ECONOMY" INVESTMENT OPPORTUNITIES
Promote Blue Cabotage (or transport of people and goods in coastal waters)
The goal is to create a cabotage system around the country, taking advantage of existing quays if possible and reducing carbon print as much as possible. Six multipurpose cabotage ports will be built, with five in Sao Tome and one in Principe, requiring an investment of €16 million.
This effort would benefit 50,000 families and create 48 jobs, which would help generate an additional 60 jobs. The net resent value is estimated to be €4.6 million and the internal rate of return 17%.
Improve Tourism and Coastal Environment
The Government aims to boost tourism's contribution to the economy to reach 73% of GDP by 2025. As tourism is expected to rise again, it is necessary to improve the coastal area's -- including sandy beaches popular with tourists -- conditions and sustainable management. This would also contribute toward the country's efforts for biodiversity preservation and climate change adaptation.
An investment of €6 million would make it possible to upgrade infrastructure to this end. The net present value is expected to be €450,000, and the internal rate of return 14%. This would benefit 25,000 people and more than 1,000 fishermen.
Modernize Artisanal Fishing Fleet
The fishing fleet in the country comprises 2,237 boats, 90% of which are in fragile and unsafe condition. There is little access to resources to upgrade the boats or acquire new ones that are safer. The Government has prioritized fleet modernization, along with fishing capacity management, which would help the country manage fisheries more sustainably.
An investment of €2 million is sought, which would benefit 600 to 900 fishermen. The net present value of this effort is estimated to be €6,000, and the internal rate of return 30%.
