The African Development Bank (AfDB) and the government of São Tomé and Príncipe have signed three new grant agreements worth $18 million to deepen cooperation on energy, agriculture and climate resilience.
The agreements were signed on Thursday at the São Tomé and Príncipe Investment Forum in Brussels, the bank said in a statement.
Under the first deal, AfDB will provide $7.5 million in supplementary budget support for the third phase of the Fiscal Sustainability and Resilience Programme, bringing total disbursements under the programme to $20 million.
The programme targets reforms in fiscal management and the energy sector, including public procurement, customs administration and debt management, alongside governance improvements at the national power utility.
It also supports tariff reforms and a faster shift toward renewable energy, in line with the country’s national development priorities.
The third phase of the programme is financed by the Nigeria Trust Fund, which is administered by AfDB.
A second agreement channels Global Environment Facility funding into a project aimed at strengthening agriculture and fisheries value chains while improving resilience to climate shocks.
The climate programme, known as PRIASA III, focuses on protecting livelihoods from droughts, floods and water scarcity through climate-smart technologies.
With total funding of $18.9 million from AfDB and the Global Environment Facility, the project will be implemented through agriculture, fisheries and capacity-building components.
AfDB said the new grants support integrated water, energy, food security and reinforce its strategy on climate action and inclusive growth.