Brussels: The African Development Bank Group and the Government of So Tom© and Prncipe have expanded their collaborative efforts with the signing of $18 million in new grant financing agreements. Signed at the So Tom© and Prncipe Investment Forum, these agreements are aimed at advancing projects in energy, climate-smart agriculture, and integrated water-energy-food security.
According to African Press Organization, the first agreement allocates $7.5 million towards the third phase of the Fiscal Sustainability and Resilience Program – Supplementary Financing (FSERP-SF). This initiative, part of a broader budget support operation launched in December 2023, aims to bolster fiscal sustainability and facilitate an energy sector transition, with funds being injected directly into the national budget. It focuses on crucial reforms in public procurement, customs, and debt management, alongside improvements in the governance of the national utility and adjustments to tariffs for cost recovery.
The second agreement directs resources from the Global Environment Funds into the Co-Management of Climate Extremes for Agriculture and Fisheries Resilience Project (PRIASA III). With a combined investment of $18.9 million, this project is designed to enhance agriculture and fisheries value chains and introduce climate-resilient technologies to protect livelihoods from environmental challenges like droughts and floods.
The third agreement involves a $1.4 million Project Preparation Facility for the Water-Energy-Food Security Nexus under the NEW-ERA initiative. This facility will support studies and master plans for integrated water resources management, including developments in multipurpose dam infrastructure, water treatment, and climate-resilience strategies over the next two years.
The African Development Bank’s commitment to So Tom© and Prncipe is underscored by its diverse portfolio, which as of November 2025, amounts to approximately $89.4 million. This portfolio emphasizes resilience, food security, energy transition, and macroeconomic reforms, with substantial investments in agriculture, multisector operations, and finance.