AfDB and São Tomé and Príncipe Boost €72M Portfolio to Drive Economic Diversification
The African Development Bank (AfDB) and the government of São Tomé and Príncipe have intensified efforts to strengthen the Bank’s €72 million country portfolio, aiming to accelerate economic diversification and sustainable growth.
Speaking at a recent Country Portfolio Performance Review (CPPR) workshop, Minister of State for the Economy and Finance, Gareth Guadalupe, described the AfDB’s lending portfolio as “a vital tool for development.” He added: “We are committed to creating an investment environment backed by a robust legal framework to enhance the country’s investment climate.”
Minister Guadalupe highlighted that the forthcoming National Development Plan will serve as a strategic blueprint, aligning Bank investments with national priorities to ensure maximum synergy and efficiency.
The AfDB currently supports ten operations in São Tomé and Príncipe, spanning agriculture and rural development, multi-sector finance, and energy. Ministers Nilton Garrido (Agriculture and Rural Development) and Nelson Cardoso (Infrastructure and Natural Resources) joined Guadalupe at the workshop, underlining the government’s determination to accelerate project delivery and economic impact.
The two-day workshop focused on improving the Bank’s operational effectiveness in the country, particularly in supporting economic diversification and inclusive growth. Other attendees included senior government officials, implementing agencies, project coordinators, and development partners from the United Nations, International Monetary Fund, World Bank, and European Union.
Guadalupe confirmed that the National Development Plan for 2026–2030 was being finalised, with approval expected by the end of July 2025. The plan will guide the strategic role of the AfDB in the nation’s economic transformation.
Pietro Toigo, AfDB Country Manager for Angola and São Tomé and Príncipe, emphasised the importance of a formal government-led coordination platform to optimise resources and improve efficiency. He also urged accelerated efforts towards the energy transition and greater private sector engagement to foster a diversified economy.
Despite geopolitical headwinds, Toigo expressed confidence in the country’s growth prospects, noting that “São Tomé and Príncipe has considerable assets, with a young population and a strategic geographical location in the Gulf of Guinea.”
The CPPR, an interactive assessment tool, goes beyond traditional monitoring by identifying systemic challenges in portfolio management, tracking project execution quality, and generating actionable intelligence for future country assistance strategies. Its findings will guide targeted action plans to strengthen delivery mechanisms, enhance coordination among development partners, and ensure that investments translate into tangible improvements in agriculture, energy access, financial inclusion, and rural livelihoods.
