Washington, DC — Rebel soldiers, believed to be led by Major Fernando "Cobo" Pereira, in the tiny African country of Sao Tome and Principe toppled the government in a coup at dawn on Wednesday, July 16. The rebels seized government leaders including Prime Minister Maria das Neves, Natural Resources Minister Joaquim Rafael Branco, Defense Minister Fernando Daqua and National Assembly President Dionisio Dias. Sao Tome and Principe President Fradique de Menezes was out of the country at the time of the coup.

The Corporate Council on Africa (CCA) President Stephen Hayes condemned the coup, stating, "The news of a coup in Sao Tome and Principe is extremely disheartening and discouraging to all those who hope for transition to democracy on the continent of Africa. We hope that the U.S. Government "It has been shown time and again that military takeovers of governments lead to further instability, the violation of human rights and greater economic disparity. This military intervention in Sao Tome and Principe will in no way improve conditions in this country," commented Mr. Hayes. This coup sends every wrong message to potential investors in not only Sao Tome but all of Africa."

Portugal, Nigeria and Mozambique immediately denounced the takeover, appealing for a prompt restoration of the elected government.

Sao Tome and Principe is an island located in western Africa in the Gulf of Guinea. Total population is less than 175,000. The country is one of the poorest in the world. However, it has offshore oil reserves that could produce billions of barrels in the near future, with production expected to begin in 2006/7.

CCA, established in 1993, is a nonpartisan 501 (c) (3) membership organization of over 160 U.S. companies dedicated to strengthening the commercial relationship between the U.S. and Africa. CCA members represent nearly 85 percent of total U.S. private sector investments in Africa. CCA's website is at www.africacncl.org