AfDB and São Tomé and Príncipe Reinforce Partnership for Economic Diversification

The workshop concluded with a joint reaffirmation of the Bank–Government partnership as a driver of inclusive, sustainable, and diversified growth.

The African Development Bank Group (AfDB) and the Government of São Tomé and Príncipe have reaffirmed their joint commitment to accelerating economic diversification, improving project performance, and strengthening the country's development portfolio valued at €72 million. The renewed focus was announced during a Country Portfolio Performance Review (CPPR) workshop held recently in São Tomé.

Strengthening Development Cooperation and Investment

Speaking at the opening of the workshop, Gareth Guadalupe, Minister of State for the Economy and Finance, underscored the strategic importance of the Bank's partnership in driving national transformation.

"The African Development Bank's lending portfolio in São Tomé and Príncipe represents a vital tool for development," said Guadalupe. "We are committed to creating an investment environment backed by a robust legal framework to enhance the country's investment attractiveness and ensure the effective delivery of AfDB-supported projects."

The minister noted that the government's forthcoming National Development Plan (NDP) 2026–2030, expected to be approved by July 2025, will serve as the country's guiding strategy for aligning AfDB investments with national priorities. The plan aims to consolidate progress in infrastructure, agriculture, energy, and rural development — sectors that are central to São Tomé and Príncipe's sustainable growth ambitions.

A Comprehensive Partnership Portfolio

As of June 30, 2025, the AfDB's active portfolio in São Tomé and Príncipe comprised 10 operations spanning:

• Agriculture and rural development — enhancing food security, productivity, and value-chain competitiveness.

• Energy and infrastructure — improving access to reliable electricity and sustainable transport systems.

• Multi-sector finance — supporting private sector participation, public financial management, and institutional reforms.

The Bank's investments are also closely linked to regional integration efforts, particularly in the Gulf of Guinea, where São Tomé and Príncipe's strategic location positions it as a potential hub for trade and energy connectivity.

Government's Vision for Economic Diversification

Minister Guadalupe emphasized that economic diversification is central to the government's policy agenda. The upcoming NDP aims to strengthen resilience against external shocks and reduce dependency on imports by encouraging domestic value addition and export-oriented industries.

He also highlighted the need to align fiscal policy, governance reforms, and investment incentives with broader development goals, ensuring that AfDB-supported projects yield measurable social and economic benefits.

Ministers Nilton Garrido (Agriculture and Rural Development) and Nelson Cardoso (Infrastructure and Natural Resources) also participated in the discussions, demonstrating strong inter-ministerial coordination to ensure effective project delivery.

Enhancing Coordination and Private Sector Participation

Pietro Toigo, AfDB's Country Manager for Angola and São Tomé and Príncipe, reaffirmed the Bank's commitment to supporting the island nation's development agenda. He emphasized the need for improved coordination between government institutions, development partners, and project implementation agencies.

"To maximize impact, it is essential to establish a formal coordination platform led by the government. This will help optimize resources, avoid duplication, and achieve greater efficiency," Toigo stated.

He also underscored the importance of accelerating São Tomé and Príncipe's energy transition, encouraging private sector participation, and promoting inclusive growth. "The country has considerable assets — a young population, fertile agricultural potential, and a strategic location in the Gulf of Guinea. With the right investments and partnerships, São Tomé and Príncipe can build a more diversified and resilient economy," Toigo said.

Assessing and Improving Project Performance

The two-day CPPR workshop served as an interactive assessment platform to review the performance of AfDB-funded operations. Beyond traditional monitoring, the CPPR identifies systemic challenges in project execution, evaluates implementation bottlenecks, and proposes actionable measures to improve performance.

Participants included senior government officials, project coordinators, representatives from implementing agencies, and international partners such as the United Nations, World Bank, International Monetary Fund (IMF), and the European Union.

The review's findings will feed into a joint action plan to strengthen project management, enhance institutional capacity, and accelerate disbursements. Specific focus areas include improving the quality of infrastructure delivery, strengthening procurement systems, and ensuring that projects achieve tangible results for communities.

Driving Impact in Key Sectors

The AfDB's portfolio is already contributing to major development outcomes in São Tomé and Príncipe. In the agriculture sector, AfDB projects are improving access to irrigation, sustainable farming practices, and agro-processing opportunities, creating jobs and boosting rural livelihoods.

In the energy sector, ongoing projects are expanding access to clean and reliable electricity — a crucial step toward economic diversification and industrial development. Efforts are also being made to strengthen the financial sector, improve fiscal management, and promote gender inclusion through targeted training and entrepreneurship initiatives.

A Shared Vision for Sustainable Development

The workshop concluded with a joint reaffirmation of the Bank–Government partnership as a driver of inclusive, sustainable, and diversified growth. Both parties agreed to maintain regular dialogue and collaborative planning to ensure that future operations align with national development priorities and yield measurable impact.

"The African Development Bank remains a trusted partner in São Tomé and Príncipe's transformation journey," Guadalupe said. "Through this partnership, we can build a more resilient economy that delivers opportunities and prosperity for all."

The outcomes of the review will guide the next phase of AfDB's Country Strategy Paper (CSP) for São Tomé and Príncipe, which will prioritize green growth, infrastructure resilience, and private sector empowerment as the pillars of future cooperation.