The African Development Bank Group has signed three grant agreements worth $18 million with the Government of São Tomé and Príncipe, targeting energy supply, climate-smart agriculture, and integrated water-energy-food security. The agreements are expected to improve operating conditions for micro, small, and medium-sized enterprises by addressing infrastructure gaps that directly affect productivity and livelihoods.
The agreements were signed on the sidelines of the São Tomé and Príncipe Investment Forum in Brussels, reinforcing the Bank’s long-standing partnership with the country. The move signals renewed momentum around economic reforms aimed at stabilising the business environment and reducing structural constraints faced by MSMEs across key sectors.
A $7.5 million grant was approved for the third phase of the Fiscal Sustainability and Resilience Programme, bringing total funding to $20 million. The programme focuses on macroeconomic stability, public finance reforms, and energy sector restructuring. Planned improvements in electricity governance, tariff adjustments, and renewable energy adoption are expected to stabilise power supply, a major challenge for small manufacturers, service providers, and agro-processors.
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Another agreement supports the PRIASA III project, which strengthens agriculture and fisheries value chains through climate-resilient technologies. The initiative is designed to protect small-scale farmers, fishers, and agribusiness operators from climate shocks such as floods and droughts, helping to stabilise food production, rural incomes, and MSME supply chains.
The third agreement provides $1.4 million for project preparation under the NEW-ERA Water-Energy-Food Security Nexus initiative. The facility will fund technical studies and master plans for water management, sanitation, and climate resilience infrastructure. These investments are expected to unlock future financing, create jobs, and expand opportunities for local enterprises by 2030.
The African Development Bank stated that its active portfolio in São Tomé and Príncipe now stands at about $89.4 million, with strong focus on energy transition, agriculture, climate resilience, and macroeconomic reform. These sectors remain critical to MSME growth, private sector participation, and inclusive economic development across the island nation.
