São Tomé and Príncipe Ensures Investment Protection and Incentives

The government of São Tomé and Príncipe has introduced a new law aimed at attracting foreign investment while ensuring the protection of investors’ rights. The law, which came into effect on [date], provides a comprehensive framework for private investment, outlining the guarantees and incentives available to investors.

Guarantees for Investors

• The law guarantees protection for companies and private investments, including respect for:
  • Professional secrecy
  • Banking secrecy
  • Commercial secrecy
  • In accordance with applicable laws
• Investors are entitled to directly import goods from abroad and export products without prejudice to customs and internal market protection rules

Industrial Property and Intellectual Creation

• The law guarantees the right to:
  • Industrial property
  • Intellectual creation
  • Possession, use, and titled enjoyment of land and other domain resources
  • Under the terms of the legislation in force
• Public non-interference in the management of private enterprises is guaranteed, except in cases explicitly provided for by law

Capital Transfers and Access to Facilities

• Investors are entitled to transfer profits and dividends abroad after implementing their investment projects and paying applicable taxes
• The law provides for the transfer of royalties or other income from remuneration of indirect investments associated with the transfer of technology

Duties of Investors

• Investors must comply with:
  • This law
  • Other applicable laws
  • Contractual commitments
• They must also respect deadlines set for capital importation and project implementation, promote training and development of the local workforce, and comply with tax obligations

Incentives and Benefits

• Investment projects carried out under this code benefit from investment tax incentives provided for in the Tax Benefits Code of São Tomé and Príncipe
• The law provides for irrevocable and cumulative incentives, ensuring that investors can enjoy these benefits for the duration of their projects

Investment Admissibility Process

• All private investment projects are subject to an administrative investment agreement, which serves as a single procedural regime
• The investment contract is of an administrative nature, outlining the terms and conditions of the project, including:
  • Objectives
  • Facilities
  • Tax benefits
  • Dispute resolution mechanisms

The new law aims to promote economic growth and development in São Tomé and Príncipe by providing a stable and attractive environment for foreign investors. With its comprehensive framework for private investment, the country is poised to become an attractive destination for businesses seeking to expand their operations in Africa.