Financial Crime World

São Tomé and Príncipe Struggles to Simplify Construction Permit Process

Ease of Dealing with Construction Permits Ranked 74th Globally

According to the World Bank’s Doing Business 2020 report, São Tomé and Príncipe ranks 74th globally in terms of ease of dealing with construction permits. The country scored 66.6 out of 100, well below the regional average of 58.5.

Challenges in Obtaining a Building Permit

Obtaining a building permit in São Tomé and Príncipe is a complex process that involves 16 procedures. It takes an average of 67 days and costs 2.2% of the warehouse value to complete. The report highlights several challenges that hinder the ease of doing business in the construction sector, including:

  • Limited Availability of Utility Networks: Investors often have to develop their own water supply and sewage system due to the limited availability of utility networks.
  • Unscheduled Inspections by Government Agencies: Unscheduled inspections can cause delays and uncertainty for developers.
  • Complexity of the Construction Permit Process: The complexity of the process is a major obstacle to economic growth in São Tomé and Príncipe.

Recommendations for Reform

The report recommends several reforms to simplify the construction permit process, including:

  • Streamlining Procedures: Reduce the number of procedures required to obtain a building permit.
  • Reducing Bureaucracy: Simplify administrative requirements and reduce red tape.
  • Increasing Transparency: Improve access to information about the construction permit process and reduce uncertainty.

Additionally, the report suggests improving access to utility networks and providing more incentives for investors.

Key Procedures

The following are some of the key procedures involved in obtaining a building permit:

  • Request Approval from the Directorate of Geographical and Cadastral Services: 14 days, STN 26,012
  • Obtain a Water Connection: 7 days, USD 124
  • Register the Building with the Fiscal Property Registry: 12 days, no charge

Ranking

São Tomé and Príncipe’s ranking in terms of ease of dealing with construction permits is as follows:

  • Global Ranking: 74th
  • Regional Average: 58.5
  • Global Average: 77.4