São Tomé and Principe Makes Strides in Fight Against Corruption with US Aid
A Collaborative Effort to Promote Economic Growth and Reduce Corruption
In 2006, the Millennium Challenge Corporation (MCC) selected São Tomé and Principe to participate in its Threshold Program, a initiative aimed at promoting economic growth and reducing corruption. At the time, the country was struggling to meet the MCC’s eligibility criteria, particularly in the areas of fiscal policy, trade policy, and control of corruption.
Strengthening Tax Compliance and Enforcement
The three-year program, which concluded in 2011, focused on strengthening tax compliance and enforcement, modernizing customs procedures, and improving the business environment. The U.S. Treasury Department’s Office of Technical Assistance implemented the program on behalf of the MCC, working closely with the Ministry of Public Finance to achieve its targets.
- A new tax administration information technology infrastructure was established, allowing for more efficient and transparent tax collection.
- Staff and taxpayers received training on new tax laws, while auditors implemented optimized policies and procedures for conducting audits.
Modernizing Customs Procedures
On the customs side, São Tomé and Principe upgraded its technology infrastructure to participate in the international ASYCUDA customs information system, joining the World Customs Organization in the process. The country also implemented landmark new customs legislation, streamlining business start-up processes and creating a “one-stop shop” for registration.
Achievements and Impact
The program’s success is attributed to the collaborative effort between the U.S. Treasury Department, the Ministry of Public Finance, and numerous implementing partners. The achievements have contributed significantly to São Tomé and Principe’s efforts to reduce corruption and improve its overall business environment, making it an attractive destination for investors and a model for other developing countries in the region.
By reducing corruption and improving its business environment, São Tomé and Principe is poised to attract more foreign investment and stimulate economic growth, ultimately benefiting its citizens and contributing to regional development.