To support STP’s digital transformation agenda, the Digital Sao Tome and Principe Project financed the revision of the country’s legal and regulatory framework for telecommunications, developed and began implementing the National Cybersecurity Strategy and Action Plan, built the capacity of the National Agency for the Protection of Personal Data (including digitalization of its information management and processes), upgraded the national data center, and strengthened the Ministry of Justice’s civil registry and ID management systems. Critically, the project has defined the technical specifications of the future submarine cable to Principe and is currently working on defining the financing and transactional design of the infrastructure. It is also working on implementing an interoperability platform for the government, digitalizing high-impact public services, introducing a digital ID and authentication layer, and establishing a CERT to help defend the country against cyber-attacks.
To support financial stability and strengthen tax administration, the Institutional Capacity Building Project financed an asset quality review of the banks in STP and financed the development of the value-added tax (VAT) system. As of December 2023, all four commercial banks licensed by the central bank were in compliance with capital and provisioning requirements, having corrected the deficiencies identified in the asset quality review. The aggregate non-performing loan ratio of the banking sector substantially reduced, following write-offs of impaired loans. The project has also financed necessary investments in a new IT system and in building the capacity of the tax authorities to manage the VAT system introduced in mid-2023: VAT collection in 2023 represented about 1% of GDP and more than 1,300 VAT taxpayers have been registered in the system.
Increasing reliable access to electricity - Sustainable power generation has been one of the chief challenges of STP. Through $28 million in financing from IDA, the STP Power Sector Recovery Project aims to increase the generation of renewable energy and improve the reliability of the electricity supply.
The preparatory phases of the project related to the rehabilitation of the Contador Hydroelectric Plant and network and metering improvements are nearing completion. Several major studies have now been concluded, including the design study of the Contador Hydropower Plant’s rehabilitation, which looked at innovative solutions to increase the capacity and availability of electricity services, as well as a Least Cost Power Development Plan (LCPDP). Studies have shown the need for additional financing to make the plant more sustainable and keep it in line with STP’s current and future needs for electricity.
Helping coastal communities fight climate change - On average, around 30,000 people—13% of the population—are affected by flooding each year in STP. A wide range of adaptation options, which include protection, accommodation, and relocation, were implemented to reduce exposure to flooding in 12 coastal communities. The West Africa Coastal Areas Resilience Investment Project (WACA) benefits STP and six other countries in the region. Since the completion of construction in most of those communities, households that used to be affected by floods during heavy rains or storms report that their houses and property (including animals, canoes, and stocks of wood) are now protected, with flooding making less impact and floods lasting for a shorter time. Learn more about WACA beneficiaries in STP.
The STP Coastal Areas Resilience and Sustainable Tourism Project or WACA+ aims to enhance the resilience of coastal communities and boost sustainable tourism. With a total cost of 20 million ($14.4m from IDA and $4m from the PROBLUE Trust Fund), the project was approved in June 2024, and will be implemented until June 2029. It focuses on mitigating climate change impacts and leveraging tourism for economic growth. The project focuses on enhancing coastal community resilience to climate change through infrastructure improvements like sea walls and mangrove restoration, boosting sustainable tourism by developing eco-friendly infrastructure and promoting community-based initiatives to create economic opportunities while preserving the environment. It will also aim to build local institutional capacity through training, technical assistance, and regulatory framework development to ensure effective and sustainable project implementation.
Since 2020, the Girls Empowerment and Quality Education for All (PEREQT) Project has supported Sao Tome and Principe’s efforts to equip girls with life skills and improve student learning outcomes for all. As of July 2024, results achieved in the following areas comprise:
- 1,316 students participated in one of the 75 adolescent clubs established in 15 secondary schools, created to promote the acquisition of life skills and strengthen sexual and reproductive health education
- Rehabilitation of WASH facilities has started in seven out of the fifteen selected schools
- The country conducted its first international learning assessment. Students in grades 2 and 6 were assessed, with results published and disseminated.
The Social Protection and Skills Development (PPSDC) Project, closing in December 2024, provided youth with market-relevant training in tourism and entrepreneurship, while also reaching women and safety net program beneficiaries. A hotel and tourism school has been established and has held training sessions since March 2023. Additionally, 43 secondary school teachers have been trained as entrepreneurship trainers, and 7,500 students have been trained in entrepreneurship. An agreement was established with the Instituto Superior de Educação e Comunicação (ISEC) to ensure the sustainability of the entrepreneurship training program.
Health - The Social Protection COVID-19 Response and Recovery Project supported Sao Tome and Principe’s efforts to prevent, detect, and respond to the threat posed by COVID-19 and to strengthen national health systems for public health preparedness by providing support in the following areas:
- supporting the government’s goal to vaccinate 70% of the country’s population free of cost.
- Strengthening multi-sector, national institutions, platforms for policy development, and the coordination of prevention and preparedness, including the One Health approach.
- As of January 2023, the country had vaccinated 89.5% of its target population (from the age of 12) with at least one dose and 73.2% with two doses of the COVID-19 vaccines.
The Social Protection COVID-19 Response and Recovery Project focused on (i) strengthening the operational capabilities of the government to deliver social protection programs; (ii) supporting the Vulnerable Family Program (VFP)-COVID-19 for six months to mitigate the effects of COVID-19 (covering 16,000 households); and (iii) supporting the scale-up of the regular VFP. The VFP is a conditional cash transfer program targeting poor households, mainly those headed by women, that have at least one child below the age of 18 attending school. In 2023, the VFP expanded its coverage from 2,543 to 2,830 household beneficiaries, with 99% of these beneficiaries being female-headed households. Plans are underway to extend the VFP to 5,000 households in 2024, representing 30% of households in the bottom 40%.
Transport Sector Development and Coastal Protection - The Transport Development and Coastal Protection Project’s road rehabilitation component, linking Sao Tome to the City of Guadalupe, is complete. The work included upgrading the drainage system along the road length. The project also supported project affected people with training for women traders and the building of facilities for those working as car washers and clothing washers. The World Bank supports statistical capacity-building activities in STP through the components of three projects, worth a total of over $7.5 million: the STP Institutional Capacity Building Project (PRCI), approved in 2018 and closing in late 2024); the Digital Sao Tome and Principe Project (approved in 2022); and the Southern African Development Community Regional Statistical Project (SADC), (approved in 2023).
Key outputs from the PRCI project include: the 2018 household survey and resulting poverty and welfare measurements; the 2020 Enterprise Census; a renovation of the National Institute of Statistics’ headquarters and improvements in communication and information technologies; significant investments in staff capacity, including encouraging the acquisition of degrees in statistics and demography; and improvements to the national accounts’ methodology.
Statistical Capacity Building - The World Bank supports statistical capacity-building activities in STP through the components of three projects, worth a total of over $7.5 million: the STP Institutional Capacity Building Project (PRCI), approved in 2018 and closing in June 2025); the Digital Sao Tome and Principe Project (approved in 2022); and the Southern African Development Community Regional Statistical Project (SADC) (approved in 2023).
Key outputs from the PRCI project include: the 2018 household survey and resulting poverty and welfare measurements; the 2020 Enterprise Census; a renovation of the National Institute of Statistics’ headquarters and improvements in communication and information technologies; significant investments in staff capacity, including encouraging the acquisition of degrees in statistics and demography; and improvements to the national accounts’ methodology.
Last Updated: Oct 09, 2024
