São Tomé and Príncipe Sets Course for Economic Recovery with African Development Bank Support
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In the face of mounting economic challenges, São Tomé and Príncipe is launching an ambitious plan for economic recovery focused on resilience, sustainable growth, and improved livelihoods for its population. The country’s government, in partnership with the African Development Bank (AfDB), is advancing a series of targeted reforms and investment initiatives aimed at stabilizing the economy, revitalizing key sectors, and strengthening the country’s foundations for inclusive development.
A major boost to this recovery agenda came in June 2024, when the AfDB approved a $7.9 million grant designed to help São Tomé and Príncipe address urgent post-pandemic economic vulnerabilities. This financial support will be channelled into the country’s Economic Governance and Investment Reforms Support Programme (PARGIRE), which focuses on restoring macroeconomic stability, fostering private sector-led growth, and reinforcing food security and basic public services.
At the heart of the government’s plan is a commitment to implement structural reforms that improve governance, boost transparency, and increase fiscal discipline. The PARGIRE program is set to modernize the management of public finances and enhance the effectiveness of government spending, with a particular focus on social sectors and vulnerable groups. These reforms are expected to create a more enabling environment for business and investment, unlocking São Tomé and Príncipe’s potential as a growing destination for international capital.
A critical component of the recovery effort is the drive to strengthen the agricultural sector, which employs a significant portion of the population and is essential to food security and export earnings. The AfDB grant will support initiatives to improve agricultural productivity, promote agribusiness development, and build climate resilience in rural communities. By investing in value chains such as cocoa and coffee, the government aims to diversify exports and generate new income streams for smallholder farmers.
São Tomé and Príncipe’s recovery strategy also emphasizes the importance of infrastructure and human capital. The AfDB’s support will fund improvements to health, education, and basic services, ensuring that gains in economic stability translate into tangible benefits for the country’s people. Investments in transport, water, and sanitation infrastructure are expected to stimulate local economies, reduce poverty, and foster more balanced regional development.
This comprehensive approach—anchored in sound governance, sustainable agriculture, and inclusive social policies—underscores São Tomé and Príncipe’s determination to not only recover from recent shocks, but also to build a more robust and diversified economy. With the backing of international partners like the African Development Bank, the country is well-positioned to chart a path toward renewed growth and shared prosperity.
