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Through Portugal and Western Hemisphere

Portuguese administration

The first successful settlement of São Tomé was established in 1493 by Álvaro Caminha, who received the land as a grant from the crown. Príncipe was settled in 1500 under a similar arrangement. Attracting settlers proved difficult, however, and most of the earliest inhabitants were "undesirables" sent from Portugal, mostly forcibly deported Jews. In time, these settlers found the excellent volcanic soil of the region suitable for agriculture, especially the growing of sugar.

The cultivation of sugar was a labor-intensive process, and the Portuguese began to import large numbers of slaves from the African mainland. By the mid-16th century, the Portuguese settlers had turned the islands into Africa's foremost exporter of sugar. São Tomé and Príncipe were taken over and administered by the Portuguese crown in 1522 and 1573, respectively.

However, superior sugar colonies in the Western Hemisphere had begun to hurt the islands. The large slave population also proved difficult to control with Portugal unable to invest many resources in the effort. As well, the Dutch captured and occupied São Tomé for seven years in 1641, razing over 70 sugar mills. Sugar cultivation thus declined over the next 100 years, and by the mid-17th century, the economy of São Tomé had changed. It was now primarily a transit point for ships engaged in the slave trade between the West and continental Africa.

In the early 19th century, two new cash crops, coffee and cocoa, were introduced. The rich volcanic soils proved well suited to the new cash crop industry, and soon extensive plantations (roças), owned by Portuguese companies or absentee landlords, occupied almost all of the good farmland. By 1908, São Tomé had become the world's largest producer of cocoa, which still is the country's most important crop.

The roças system, which gave the plantation managers a high degree of authority, led to abuses against the African farm workers. Although Portugal officially abolished slavery in 1876, the practice of forced paid labor continued. In the early 20th century, an internationally publicized controversy arose over charges that Angolan contract workers were being subjected to forced labor and unsatisfactory working conditions. During the Great Depression, worker exploitation worsened.

Sporadic labor unrest and dissatisfaction continued well into the 20th century, culminating in an outbreak of riots in 1953 in which several hundred African laborers were killed in a clash with their Portuguese rulers, now known as the Batepá Massacre which remains a major event in the colonial history of the islands; its anniversary is officially observed by the government.

During the 1967–70 Nigerian Civil War, São Tomé served as the major base of operations for the Biafran airlift. The airlift was an international humanitarian relief effort (the largest civilian airlift to date) that transported food and medicine to eastern Nigeria. It is estimated to have saved more than a million lives.

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