NEWS

The African Development Bank Group and the Government of São Tomé and Príncipe have deepened their development partnership with $18 million in new grant financing.

Signed on Thursday at the São Tomé and Príncipe Investment Forum in Brussels, the three agreements will support energy, climate-smart agriculture, and integrated water-energy-food security.

The first agreement delivers $7.5 million for the third phase of the Fiscal Sustainability and Resilience Program -Supplementary Financing (FSERP-SF) - part of a budget support operation, launched in December 2023. This brings the cumulative value to  $20 million to be disbursed directly into the national budget.

The programme drives reforms across two pillars: fiscal sustainability and energy sector transition. Under the programme, the Government of São Tomé and Principe committed to critical reforms to the public procurement system, customs, and debt management. 

On energy transition - a top priority in the country’s National Development Plan - the programme finances improved governance of the national utility, tariff adjustments for cost recovery, and an accelerated transition to renewable energy sources. This policy framework complements investment in energy transformation in generation and distribution infrastructure. The Nigeria Trust Fund (NTF), administered by the African Development Bank, finances this third phase.

The second financing agreement channels the Global Environment Fund’s (GEF) resources into the Co-Management of Climate Extremes for Agriculture and Fisheries Resilience Project (PRIASA III). The goal is to strengthen agriculture and fisheries value chains while deploying climate-resilient technologies to safeguard livelihoods against droughts, floods, and water scarcity.

With a total investment of $18.9 million, including $10 million in AfDB financing and $8.9 million from GEF, the project will be implemented through three components: enhancing value chains and socio-economic benefits, reducing vulnerability through climate-smart technologies and capacity building, and ensuring effective project management for integrated climate adaptation in agriculture and fisheries.

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