The African Development Bank Group (AfDB) and the Government of São Tomé and Príncipe have signed three grant agreements worth $18 million to strengthen energy supply, climate-smart agriculture and integrated water-energy-food security, with implications for small businesses and livelihoods.
The agreements were signed at the São Tomé and Príncipe Investment Forum in Brussels, deepening the Bank’s development partnership with the island nation.
Under the first agreement, AfDB approved $7.5 million for the third phase of the Fiscal Sustainability and Resilience Programme – Supplementary Financing (FSERP-SF). The budget support brings total financing for the programme to $20 million, to be disbursed directly into the national budget.
The programme focuses on fiscal sustainability and energy sector transition, including reforms in public procurement, customs and debt management. It also supports governance improvements in the national utility, tariff adjustments for cost recovery and faster adoption of renewable energy, helping to stabilise power supply for SMEs. The Nigeria Trust Fund, administered by AfDB, is financing this phase.
The second agreement supports the Co-Management of Climate Extremes for Agriculture and Fisheries Resilience Project (PRIASA III), funded through the Global Environment Facility. With a total investment of $18.9 million, the project aims to strengthen agriculture and fisheries value chains and deploy climate-resilient technologies to protect small-scale farmers, fishers and agribusinesses from droughts, floods and water scarcity.
The third agreement provides $1.4 million for a Project Preparation Facility under the NEW-ERA Water-Energy-Food Security Nexus initiative. Over two years, the facility will prepare studies and master plans for integrated water resources management, including a multipurpose dam, water treatment systems, sanitation planning and climate-resilience measures.
The AfDB said the project will lay the foundation for future investments to expand access to potable water, support food production, explore hydropower potential and create jobs by 2030.
AfDB Country Manager for Angola and São Tomé and Príncipe, Pietro Toigo, said the agreements demonstrate the Bank’s commitment to supporting the country with long-term capital and risk mitigation as it seeks to attract private sector investment.
As of November 2025, AfDB’s active portfolio in São Tomé and Príncipe stands at about $89.4 million, with strong focus on agriculture, energy transition, resilience and macroeconomic reforms, sectors critical to SME growth and job creation.
