The three agreements were signed on December 5 on the sidelines of the São Tomé and Príncipe Investment Forum in Brussels.
The largest component is a $7.5 million grant for the third phase of the Fiscal Sustainability and Resilience Program Supplementary Financing. The programme, launched in December 2023, is a budget support operation that brings total financing under the facility to $20 million, to be disbursed directly into the national budget.
The programme focuses on fiscal sustainability and energy sector transition. Reforms include strengthening public procurement, improving customs administration and enhancing debt management.
In the energy sector, the programme supports better governance of the national utility, tariff adjustments to improve cost recovery and accelerated investment in renewable energy, aligned with the country’s National Development Plan. This phase is financed through the Nigeria Trust Fund, administered by the AfDB.
A second agreement supports climate resilience in agriculture and fisheries through the Co-Management of Climate Extremes for Agriculture and Fisheries Resilience Project. Backed by $18.9 million in total funding, including $10 million from the AfDB and $8.9 million from the Global Environment Facility, the project aims to strengthen value chains and protect livelihoods from droughts, floods and water scarcity. Implementation will focus on climate-smart technologies, capacity building and integrated project management.
The third agreement provides $1.4 million through a Project Preparation Facility for the Water-Energy-Food Security Nexus under the NEW-ERA initiative. Over two years, the facility will finance studies and master plans for integrated water resource management, including a multipurpose dam, a water treatment plant, climate resilience measures and a city-wide sanitation plan. The groundwork is intended to unlock future investments to improve access to potable water, boost food production and explore hydropower potential by 2030.
AfDB Country Manager for Angola and São Tomé and Príncipe Pietro Toigo said the agreements demonstrate the Bank’s commitment to providing long-term capital and risk mitigation as the country presents its National Development Plan to global investors.
As of November 30, 2025, the Bank’s active portfolio in São Tomé and Príncipe totals $89.4 million across 12 financing instruments. Agriculture accounts for 43% of the portfolio, followed by multisector operations at 23%, finance at 17%, energy at 15% and water at 2%.
–AfDB/ChannelAfrica–
