The African Development Bank Group (AfDB) and the Government of São Tomé and Príncipe have deepened their development partnership with $18 million in new grant financing. The agreements were signed last Thursday at the São Tomé and Príncipe Investment Forum in Brussels and will support 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. The programme focuses on reforms in fiscal sustainability and energy sector transition, including public procurement, customs, debt management, and accelerated transition to renewable energy sources.
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). 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 while deploying climate-resilient technologies.
The third agreement is for a $1.4 million Project Preparation Facility (PPF) under the NEW-ERA initiative. Over two years, it will develop critical studies and master plans for integrated water resources management, including multipurpose dams, water treatment plants, climate-resilience measures, and city-wide sanitation planning.
African Development Bank’s Country Manager for Angola and São Tomé and Príncipe, Pietro Toigo, said:
“As São Tomé and Principe presents to the global community its National Development Plan and approaches investors to power its private sector, these three financing agreements are a clear sign that the African Development Bank stands with the country as a provider of patient capital and risk mitigation.”
As of 30 November 2025, the African Development Bank Group’s active portfolio in São Tomé and Príncipe totals about $89.4 million across 12 financing instruments. The sectoral distribution is led by agriculture (43%), followed by multisector operations (23%), finance (17%), energy (15%), and water (2%).
