The African Development Bank Group and the Government of São Tomé and Príncipe have strengthened their development partnership with $18 million in new grant financing. Signed at the São Tomé and Príncipe Investment Forum in Brussels, the three agreements focus on energy, climate-smart agriculture, and integrated water-energy-food security.
The first agreement provides $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 total cumulative funding for the programme to $20 million, which will be disbursed directly into the national budget. The programme drives reforms in fiscal sustainability and the energy sector, including public procurement, customs, and debt management, while supporting the governance of the national utility, tariff adjustments for cost recovery, and an accelerated transition to renewable energy sources. This phase is financed by the Nigeria Trust Fund (NTF), administered by the African Development Bank.
The second agreement channels Global Environment Fund (GEF) resources into the Co-Management of Climate Extremes for Agriculture and Fisheries Resilience Project (PRIASA III). With a total investment of $18.9 million, including $10 million from AfDB and $8.9 million from GEF, the project aims to strengthen agriculture and fisheries value chains, deploy climate-resilient technologies, and safeguard livelihoods against droughts, floods, and water scarcity. Implementation will focus on enhancing value chains, reducing vulnerability through technology and capacity building, and ensuring effective project management for integrated climate adaptation.
The third agreement establishes a $1.4 million Project Preparation Facility (PPF) for the Water-Energy-Food Security Nexus under the NEW-ERA initiative. Over two years, the facility will develop studies and master plans for integrated water resources management, including multipurpose dam development, a water treatment plant, climate-resilience measures, and a city-wide sanitation plan. This groundwork aims to enable future investments that deliver universal access to potable water, explore hydropower potential, improve food production, create jobs, enhance ecosystem resilience, and strengthen governance and stakeholder capacity by 2030.
Pietro Toigo, African Development Bank Country Manager for Angola and São Tomé and Príncipe, emphasized that the agreements demonstrate the Bank’s support as a provider of patient capital and risk mitigation as the country presents its National Development Plan and seeks private sector investment.
As of 30 November 2025, the African Development Bank Group’s active portfolio in São Tomé and Príncipe totals approximately $89.4 million across 12 financing instruments, with an average project age of 4.2 years and a disbursement ratio of 49.5 percent. The portfolio prioritizes agriculture (43 percent), multisector operations (23 percent), finance (17 percent), energy (15 percent), and water (two percent), reflecting strong emphasis on resilience, food security, energy transition, macroeconomic reforms, and growing engagement in the green and blue economy and financial infrastructure.
