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Saint Helena's economy is driven by a combination of public sector employment, tourism, and fishing, with a growing focus on diversification and sustainable development.
Quick Facts
Economic Overview
Saint Helena's economy is classified as a Lower-Middle income economy, with a relatively small and isolated market. The island's development level is limited by its remote location, lack of natural resources, and limited infrastructure. The economy has historically been driven by the public sector, with the UK government providing significant financial support. However, in recent years, there has been a shift towards diversification and sustainable development, with a focus on tourism, fishing, and entrepreneurship. The island's economy is also heavily reliant on imports, with the majority of goods being shipped from the UK or other countries.
The island's economic trajectory is expected to be shaped by its strategic location in the South Atlantic, with potential opportunities for growth in areas such as tourism, fishing, and logistics. However, the economy also faces significant challenges, including a lack of skilled labor, limited infrastructure, and vulnerability to external shocks. The Saint Helena government is working to address these challenges through a range of initiatives, including investment in education and training, infrastructure development, and support for entrepreneurship and innovation.
The economy of Saint Helena is also influenced by its relationship with the UK, which provides significant financial support and guidance. The island is working to develop its own economic institutions and capacity, with the aim of reducing its dependence on UK funding and achieving greater economic self-sufficiency. This will require careful planning and management, as well as a commitment to sustainable development and environmental protection.
Key Industries
| Industry | Contribution | Details |
|---|---|---|
| Tourism | 25% | Tourism is a growing sector, with visitors attracted to the island's natural beauty, historic sites, and unique culture |
| Fishing | 20% | The fishing industry is an important source of employment and income, with a focus on sustainable and responsible fishing practices |
| Public Administration | 30% | The public sector is the largest employer on the island, with a range of government agencies and departments |
| Services | 15% | The services sector includes a range of businesses, including retail, hospitality, and finance |
| Agriculture | 10% | Agriculture is a small but significant sector, with a focus on subsistence farming and local food production |
Trade Profile
Top Exports:
- Fish and seafood: The island's fishing industry is a significant contributor to exports, with a focus on high-quality and sustainable products
- Tourism services: The tourism sector is a growing source of export earnings, with visitors attracted to the island's unique culture and natural beauty
- Canned goods: The island's canning factory produces a range of goods, including fish, meat, and vegetables
- Crafts and souvenirs: Local artisans produce a range of crafts and souvenirs, including textiles, woodcarvings, and jewelry
- Coffee and tea: The island's coffee and tea plantations produce high-quality products, which are exported to a range of countries
Top Imports:
- Food and beverages: The island relies heavily on imports for food and beverages, with a focus on staples such as rice, flour, and sugar
- Fuel and petroleum products: The island's remote location means that fuel and petroleum products must be imported, which can be expensive and logistically challenging
- Machinery and equipment: The island imports a range of machinery and equipment, including vehicles, generators, and construction equipment
- Electronics and appliances: The island's residents rely on imports for electronics and appliances, including computers, televisions, and refrigerators
- Building materials: The island imports building materials, including cement, steel, and timber, which are used for construction and infrastructure development
Key Trading Partners:
- United Kingdom: The UK is the island's largest trading partner, with significant imports and exports
- South Africa: South Africa is an important trading partner, with a range of goods and services being imported and exported
- Brazil: Brazil is also a significant trading partner, with a focus on imports of food and beverages
Infrastructure
- The island's transport network includes a range of roads, including the main road that connects Jamestown to the airport and other settlements
- The island's energy sector is primarily based on diesel-generated power, with a focus on reducing reliance on fossil fuels and increasing the use of renewable energy
- Internet and mobile penetration is relatively low, with a focus on improving connectivity and access to digital services
- The island's port, Jamestown Wharf, is an important facility for imports and exports, with a range of cargo and passenger services
- The island's airport, which was opened in 2017, provides a range of passenger and cargo services, including flights to and from South Africa and the UK
Economic Outlook
The economic outlook for Saint Helena is positive, with a focus on diversification and sustainable development. The island's government is working to support entrepreneurship and innovation, with a range of initiatives aimed at stimulating economic growth and reducing dependence on UK funding. The tourism sector is expected to continue to grow, with a focus on high-quality and sustainable tourism products. The fishing industry is also expected to remain an important contributor to the economy, with a focus on sustainable and responsible fishing practices.
The island's economic development priorities include investment in education and training, infrastructure development, and support for entrepreneurship and innovation. The government is also working to improve the business environment, with a focus on reducing bureaucracy and increasing access to finance. Major projects and reforms include the development of a new economic strategy, which will provide a framework for economic development over the next decade. The island is also working to improve its connectivity, with a focus on digital infrastructure and access to international markets. Overall, the economic outlook for Saint Helena is positive, with a focus on sustainable development and economic growth.