São Tomé and Príncipe Roundup: IMF's least indebted country, EU support

EU’s 56 million euros support

The European Union has committed over 5.6 million euros to support São Tomé's State Budget until 2026, with a focus on justice reform, climate action, and civil society assistance. The official announcement was made in São Tomé's capital by the new EU ambassador for São Tomé and Príncipe and the Economic Community of Central African States (CEEAC), Cecile Abadie, Jornal Transparencia reports. Abadie outlined the phased funding for bilateral partnerships, underscoring additional opportunities for cooperation through regional support. "We have projects in important sectors, in particular in the field of Justice, which is a priority that we are already following and will continue to monitor in the future, we are also present in the field of human development, we follow the efforts of reforms in the areas of water and sanitation, and also in the management of public finances, there will also be continuity there," said Abadie.

AfDB’s $17.4 million grant

The African Development Bank Group approves a $17.4 million grant for São Tomé and Príncipe to enhance the national budget and elevate public service delivery, addressing economic challenges and energy sector reforms post-external shocks. The grant, divided equally over fiscal years 2023 and 2024, supports the Fiscal Sustainability and Economic Resilience Program (FSERP) and the Institutional Support Project for Customs Administration and Public Expenditure Management (ISP-CAPEM), Jornal Transparencia has reported. The Bank's representative in São Tomé and Príncipe Pietro Toigo said, "After supporting the response to the COVID-19 pandemic with a historic budget support operation in 2020, this operation aims to stabilize the economy from its aftershocks and, fundamentally, initiate a set of reforms so that São Tomé and Príncipe achieves energy sovereignty." The reforms aim to facilitate the transition to renewable energy and reduce dependence on imported fossil fuels.

Campaign for birth registration

São Tomé's Ministry of Justice launched a campaign for birth registration and nationality granting, targeting citizens over 14 years and addressing undocumented individuals in the archipelago. The six-month cost-free campaign encourages registration at the central and district offices, with the possibility of extending it to those outside the country in a second phase, STP-Press reports. “We discovered that many citizens do not have any registration when they use our services,” said the chief conservator of the Civil Registry.

São Tomé and Príncipe least indebted country

São Tomé and Príncipe leads the list of the five least indebted African countries to the IMF, with a debt of $24,816,432, considered the most moderate on the continent. The IMF report highlights Djibouti, Lesotho, Guinea-Bissau, and Cape Verde in subsequent positions,  Tela Non reports. While emphasizing global debt dependence, the IMF warns of countries facing shocks requiring substantial support. Prime Minister Patrice Trovoada acknowledges ongoing negotiations with the IMF for a credit facility agreement. The International Monetary Fund warns that “debt dependence has never been stronger on a global scale, as countries face a series of shocks, often requiring substantial support.”

Gaps in data collection

São Tomé and Príncipe faces challenges in collecting data on migrant protection, as highlighted by the UN Committee for the Protection of the Rights of All Migrant Workers. The committee encourages local authorities to produce information on foreigners and São Toméans abroad, expressing concern about insufficient data on foreign migrant workers, working conditions, and statistics, Tela Non has reported. The country is urged to establish a system for collecting information on national and migrant workers, especially those in irregular situations, with a focus on recording employment conditions.