Nigeria and Sao Tome and Principe (STP) signed an economic treaty in February 2001 for a Joint Development Zone (JDZ).
The JDZ is reputed to- be the on1y functional zone in Africa and one of the few- active ones in the world.
A fall out of the treaty is the establishment of the Nigeria-Sao Tome and Principe Joint Development Authority (NSTP-JDA).
The authority has been promoting partnership through the JDZ as well as providing a platform for increased economic relations between the two countries.
Article 7 of the Treaty relates to the exploration and exploitation of petroleum and other natural resources in the overlapping maritime boundary of both countries.
The Treaty enables them to get the full benefits of the shared economic resources in the area. STP, a country of two small islands of about 1,001 square km, has a population of around 150 000. It gained independence from Portugal on July 12, 1975.
It lies at Nigeria’s extreme southern maritime border, and is about an hour and 50 minutes flight time from Abuja and two hours by sea from Calabar.
Until recently, the NSTP-JDA has focused more on the joint petroleum resources in the zone.
However, that. seems to be changing as the JDA now tries to exploit other areas of economic development.
It was against this background that a large delegation of Nigerian business community recently paid a three-day visit to STP for the second investment forum between both countries.
Explaining the interface, Malam Umar Jadda, the JDA’s Assistant Director, Commercial and Investment Department, said: ‘‘The idea of the investment forum was conceived on our a and wide interpretation of our mandate under the Treaty.
According to him, this includes any gainful activity that will further cement the relationship between the two countries and enhance the economy well-being of the citizens. “In this regard we do not allow ourselves to be confined to petroleum and operations Alone”, Jadda said.
STP’s President Fradique Menezes set the forum’s tone and character when he called for speedy and increased economic relations between his country and Nigeria.
‘‘I am pleased to see the Chinese and Taiwanese business delegation here. The first forum produced nothing to date.
“We hope we have friends in Abuja that the JDA could bring for more meaning partnership and investment until something fruitful happens ‘September, 1 will be seven years in office as President. My predecessor worked oil protect in the JDZ for three years, nothing happened.”
He advised the participants not to be very specific on things they wished to do, especially on oil prospecting and exploration, nor give the impression that STP had a lot of petroleum potential.
“This notion has been counter-productive to us because the international community cannot give us grants or debt relief, thinking we have money.
“This business forum must, therefore, be concise to the point to produce tangible results.
“We must have good business relations; it is necessary. There may not be a written agreement, but let us forge greater relations to improve the lot of our people, he said.
Menezes urged the delegates to ensure that the result of the forum was “completely different from the past and exhaust other opportunities in the JDZ, including the non-hydrocarbon resources”.
The challenge passed by Menezes to the NSTP-JDA seems to have drawn a lesson from Nigeria’s mono-economy structure.
For him, emphasis must be shifted from hydro carbons to other natural resources that abound in the joint economic zone.
To deepen the interest of potential investors, the JDA sets out to explain the operations of the JDZ.
An official of the JDA, Mr. Chindo Uche-Okeke, outlined the non-hydrocarbon resources in the zone to include fish, shrimps, lobsters, crabs, octopus, corals and sea plants. He said that the zone was also rich in mineral resources, including diamond, gold, manganese/poly-metallic noodles, nickel, copper, cobalt, sand and gravel.
“There is increased demand for smoked fish by the European Union (EU), North America and Japanese markets, all of which are known as the ethnic markets.
“There is markets for canned tuna in the U.S., EU and Japan.
“Canned fish will continue to play an important market role, especially in developing countries where refrigeration facilities necessary for the distirbution of fish and frozen fish do not exist,” Okeke-Uche said.outlined the resources.
Mr Carlos Nova, STP’s Director of Tourism, said his country was willing to partner with Nigerian investors to develop its thriving tourism industry.
He said that the STP tourism market, which contributes about six per cent of the country’s GDP, had yet to be determined and therefore, needed to be marketed have quality beaches, outstanding landscapes, various species of flora and established patrimony and well protected environment.
‘‘The lifestyle of our people is unique. We do not have much land available and there is limited public and private sector investment,’’ he said.
Nova urged tha Nigerian business community to take advantage of the huge fishery potential in STP saying ‘‘there is no signtficant investment in industriai fishing in STP. ‘we have to think about developing this sector.
We need to develop both artisan and commercial fishing and incr produ in: our common development areas.
we need to look for partners. You are the ideal partners because you also come from the region (Gulf of Guinea). We need to develop our fishing fleet, capture the various species and develop our fishing potential.
“The government on both sides, fishermen, shipowners, investors and other stakeholders should collaborate to develop this sector. You are our potential investors, he said.
On tourism, Nova noted that the industry transcended beaches and transportation.
We host about 200 tourists everyday. But, however, some of- the tourism sites and infrastructure need rehabilitation,’’ he said.
The director said the STP’s tourism potential, if properly harnessed, could yield more revenue to the government th-an oil and gas, mining and- production as well as raw materials and manufacturing.
“We see tourism in STP as an alternative to sustainable development.
“Available statistics show that the sector h-as increased by 60 per cent and we have drawn up plans to further develop the potential through a strategic plan prepared in 2000.
Nova said the plan was hinged on a six-point agenda with a feedback mechanism to determine the sector status, set targets and outline attainment of each stage. He said STP ensured that its investment in tourism, was- safe and added that the country valued its manpower by providing training and retraining so as to maintain standards and promote tourism at any destination.
Mr. Angelo Bonfim, the Legal Adviser to Menezes, said an investment bill had been forwarded to the country s National Assembly to encourage expatriate involvement in enterprises.
According to him, the bill covers oil and gas operations, exploration and exp]oitation, sets regulations for the industry, ‘ ‘but does not cover what happens when the oil leaves
The bill spells out modalities for business registration, partnerships, land and property acquisition.
acceptable level of capital involvement and application processes. Bofim said that STP’s investment code provided for incentives, guarantees, breaches, penalties, appeal and settlement of disputes.
Our legal system encourages arbitration, and oil and gas companies are advised to seek arbitration.’’
He said that all sectors of STP’s economy were open to foreign investment, but noted that foreigners were not allowed to buy land from private owners, but from the government which controls 90 per cent of available land.
‘‘You can buy the property on the land and not the land; everything belongs to the state. If we find oil or any resource on your property, the government will exploit it for the state and compensate the property owner,’’ he said.
Bonfim stressed that the banking sector, issuers of bonds, hydrocarbon upstream industry, production of weapons and ammunition, trade zones and customs were excluded sectors. He, however, advised prospective investors to study the code and use the services of local lawyers to guide them on how to register and operate their businesses successfully. Nigeria had something to showcase at the investment forum. Its investment economic and investment potentialities.
But how can Nigeria convince investors from Sao Tome and Principe to sink their money in the national economy?
Otunba olusegun Runsewe, Director-General, Nigerian Tourism Development corporation, pushed for increased investment in Nigeria’s vast tourism sector.
Represented by Mrs. Fibi Ikilama, an Assistant Director, he said that Nigeria held enormous potential as a foremost tourist destination in Africa.
“Investment opportunities abound in the various sub-sectors of the tourism industry such as eco-tourism, beach tourism, heritage and cultural tourism, conference tourism, sports tourism and religious tourism, among others.
In what follows, attention will be paid to these sub-sectors with a view to identifying the investment opportunities they offer.
“Nigerian people are known to be one of the most hospitable, most visitor friendly, most tolerant and most resilient in the world,’’ he said.
He said that Nigeria’s beauty, richness, population, cultural diversity and the hospitality of the people made the country the centre of cultural renaissance and truly the Heart of Africa.
‘‘With her exotic fauna and flora, wildlife and alluring festivals and cultural events. Nigeria is, indeed, a tourist destination of choice in Africa,’’ he said. Runsewe urged investors to take advantage of this unique opportunity and the investment
incentives offered by the Nigerian government to invest in the rich and diverse sector.
For the Nigerian Ambassador to STP, Dr Thomas Dogonyaro, the first JDA investment forum yielded fruits.
He outlined the benefits to include the presence of some Nigerian businesses in Sao Tome, including the opening of an Oceanic Bank subsidiary, and increased enquiries by other investors.
‘NICON Insurance has also obtained a licence to operate here, got an office and imported furniture.
The delay in its take-off resulted from a change in management; otherwise, they would have started operation.
“Progress is on but it is slow; this can be interpreted from the level of understanding of STP on the investment level.
“The government is just articulating and promulgating a set of rules for ‘investment,” Dogonyaro said.
He said that the caution on the part of STP entrepreneurs over external investment was responsible for the slow progress.
“The understanding comes more from expectations from the petroleum sector. People here expect to see many oil companies or oil servicing companies, but it takes a longer time to prospect and drill oil,’’ Dogonyaro said.
The ambassador said there was also no formal trade between both countries, excep-t for some informal trading activities involving Nigerians who come by vessels or occasional flights to the two archipelagos.
He expressed regret that the Nigeria-Sao Tome and Principe Bilateral Trade Agreement signed ‘in 1978, was moribund, but said that it was being renegotiated to put a proper framework in place for effective relations.
Dr jorges Santos, the chairman of the JDA Board, urged prospective investors to take advantaqe of the two investment fora to build bridges and form partnerships that would actualise the ideals and visions of the JDA Treaty.
Such bridges, he explained, should translate to concrete investments in the relevant sectors of the JDZ.
The fora should equally harness the vast resources available in the zone for the benefit of the two countries, according to analysts.
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