São Tomé and Príncipe: Enhancing Financial Compliance

Introduction

The government of São Tomé and Príncipe has taken significant steps to modernize its payment system, introducing platforms for Visa and MasterCard in May 2021. This move aims to increase accessibility and efficiency in financial transactions.

Payment Methods in São Tomé and Príncipe

• Payment methods in the country typically involve irrevocable letters of credit.
• Investors can explore other trade finance options by consulting the Trade Finance Guide.

Banking System in São Tomé and Príncipe

Central Bank

The Banco Central de São Tomé e Príncipe (BCSTP) is the sole central bank in the country, responsible for overseeing the national financial system.

Commercial Banks

There are four commercial banks operating in São Tomé and Príncipe:

• Banco Internacional de São Tomé e Príncipe (BISTP): A joint venture between the Government of STP, Caixa Geral de Depositos from Portugal, and an Angolan bank.
• Gabonese Investment Bank (BGFI): Started operations in STP in March 2012.

Supervision

All commercial banks are supervised by the BCSTP, which has declared three commercial banks insolvent:

• Banco Equator in 2016
• Banco Privado de São Tomé in 2018
• Energy Bank in 2022

National Currency and Exchange Rates

The local currency is the dobra (STD), pegged to the Euro at an exchange rate of 1 Euro to 24.50 STD since January 2010. One U.S. dollar is equivalent to about 23.70 STD.

Repatriation of Capital

Repatriation of capital is possible with prior authorization from the government, which works closely with the BCSTP to ensure that increased foreign exchange inflows translate into greater access to raw materials for businesses.

Banking Relationships with the United States

There are no U.S. banks operating in São Tomé and Príncipe. However, Portuguese banks are used for transferring funds between the two countries.