Country Economic Memorandum for Sao Tome and Principe - Background Note 6 : Stock Take on Business Environment Reform in São Tomé and Príncipe
The importance of a good regulatory and institutional environment for business creation and growth is well established. Good regulations and a level playing field are particularly important to maximize opportunities for private investment in small...
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Online Access: | http://documents.worldbank.org/curated/en/343921562909179755/Country-Economic-Memorandum-Background-Note-6-Stock-take-on-business-environment-reform-in-São-Tomé-and-Príncipe http://hdl.handle.net/10986/32139 |
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okr-10986-321392021-05-25T09:26:21Z Country Economic Memorandum for Sao Tome and Principe - Background Note 6 : Stock Take on Business Environment Reform in São Tomé and Príncipe Uriz, Zenaida PRIVATE SECTOR DEVELOPMENT BUSINESS ENVIRONMENT REGULATORY REFORM PUBLIC SECTOR REFORM MICROENTERPRISES FOREIGN DIRECT INVESTMENT TRADE FACILITATION EXPORT COMPETITIVENESS CONTRACT LAW The importance of a good regulatory and institutional environment for business creation and growth is well established. Good regulations and a level playing field are particularly important to maximize opportunities for private investment in small island states like São Tomé and Príncipe, which tends to be constrained by the lack of economies of scale and distance to markets. Burdensome regulations can hamper the competitiveness of export-oriented sectors, which are essential for São Tomé and Príncipe’s sustainable growth and job creation. Moreover, sectors that depend on natural or cultural assets, such as tourism, require good quality regulations and planning to protect those assets. Improving the regulatory environment is an important factor, together with better skills, connectivity, and infrastructure, to strengthen the competitiveness of São Tomé and Príncipe’s economy. Accurate data on the size and composition of the private sector in Sao Tome and Príncipe is lacking, but existing information shows that it is dominated by microenterprises in commerce and services. The ongoing enterprise survey will provide insights on the characteristics and main challenges of São Tomé and Príncipe’s firms, while an updated business census, which is planned with support from the World Bank, will give a broader view of the private sector. Data from the National Statistics Institute (INE) shows that there are only 14 companies with more than 100 employees, including the utilities and transport sector SOEs, and 80 percent of firms for which data is available have less than five employees. Most firms are concentrated in the commerce, construction, and tourism sectors. While additional analysis will be necessary to identify the factors contributing to the small size and sophistication of SãoTomé and Príncipe’s firms, the regulatory environment may be among them as it affects entry and operating costs, access to finance, and ability to resolve commercial disputes. 2019-07-29T21:07:59Z 2019-07-29T21:07:59Z 2019-06-26 Report http://documents.worldbank.org/curated/en/343921562909179755/Country-Economic-Memorandum-Background-Note-6-Stock-take-on-business-environment-reform-in-São-Tomé-and-Príncipe http://hdl.handle.net/10986/32139 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Country Economic Memorandum Africa Sao Tome and Principe |
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institution_category |
Foreign Institution |
institution |
Digital Repositories |
building |
World Bank Open Knowledge Repository |
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World Bank |
language |
English |
topic |
PRIVATE SECTOR DEVELOPMENT BUSINESS ENVIRONMENT REGULATORY REFORM PUBLIC SECTOR REFORM MICROENTERPRISES FOREIGN DIRECT INVESTMENT TRADE FACILITATION EXPORT COMPETITIVENESS CONTRACT LAW |
spellingShingle |
PRIVATE SECTOR DEVELOPMENT BUSINESS ENVIRONMENT REGULATORY REFORM PUBLIC SECTOR REFORM MICROENTERPRISES FOREIGN DIRECT INVESTMENT TRADE FACILITATION EXPORT COMPETITIVENESS CONTRACT LAW Uriz, Zenaida Country Economic Memorandum for Sao Tome and Principe - Background Note 6 : Stock Take on Business Environment Reform in São Tomé and Príncipe |
geographic_facet |
Africa Sao Tome and Principe |
description |
The importance of a good regulatory and
institutional environment for business creation and growth
is well established. Good regulations and a level playing
field are particularly important to maximize opportunities
for private investment in small island states like São Tomé
and Príncipe, which tends to be constrained by the lack of
economies of scale and distance to markets. Burdensome
regulations can hamper the competitiveness of
export-oriented sectors, which are essential for São Tomé
and Príncipe’s sustainable growth and job creation.
Moreover, sectors that depend on natural or cultural assets,
such as tourism, require good quality regulations and
planning to protect those assets. Improving the regulatory
environment is an important factor, together with better
skills, connectivity, and infrastructure, to strengthen the
competitiveness of São Tomé and Príncipe’s economy. Accurate
data on the size and composition of the private sector in
Sao Tome and Príncipe is lacking, but existing information
shows that it is dominated by microenterprises in commerce
and services. The ongoing enterprise survey will provide
insights on the characteristics and main challenges of São
Tomé and Príncipe’s firms, while an updated business census,
which is planned with support from the World Bank, will give
a broader view of the private sector. Data from the National
Statistics Institute (INE) shows that there are only 14
companies with more than 100 employees, including the
utilities and transport sector SOEs, and 80 percent of firms
for which data is available have less than five employees.
Most firms are concentrated in the commerce, construction,
and tourism sectors. While additional analysis will be
necessary to identify the factors contributing to the small
size and sophistication of SãoTomé and Príncipe’s firms, the
regulatory environment may be among them as it affects entry
and operating costs, access to finance, and ability to
resolve commercial disputes. |
format |
Report |
author |
Uriz, Zenaida |
author_facet |
Uriz, Zenaida |
author_sort |
Uriz, Zenaida |
title |
Country Economic Memorandum for Sao Tome and Principe - Background Note 6 : Stock Take on Business Environment Reform in São Tomé and Príncipe |
title_short |
Country Economic Memorandum for Sao Tome and Principe - Background Note 6 : Stock Take on Business Environment Reform in São Tomé and Príncipe |
title_full |
Country Economic Memorandum for Sao Tome and Principe - Background Note 6 : Stock Take on Business Environment Reform in São Tomé and Príncipe |
title_fullStr |
Country Economic Memorandum for Sao Tome and Principe - Background Note 6 : Stock Take on Business Environment Reform in São Tomé and Príncipe |
title_full_unstemmed |
Country Economic Memorandum for Sao Tome and Principe - Background Note 6 : Stock Take on Business Environment Reform in São Tomé and Príncipe |
title_sort |
country economic memorandum for sao tome and principe - background note 6 : stock take on business environment reform in são tomé and príncipe |
publisher |
World Bank, Washington, DC |
publishDate |
2019 |
url |
http://documents.worldbank.org/curated/en/343921562909179755/Country-Economic-Memorandum-Background-Note-6-Stock-take-on-business-environment-reform-in-São-Tomé-and-Príncipe http://hdl.handle.net/10986/32139 |
_version_ |
1764475860191019008 |