The current World Bank portfolio, funded by the International Development Association (IDA), has 12 projects with a total net commitment of $246.6 million.
Sao Tome and Principe is a small, lower-middle-income island nation with a population of around 240,000 and an area of 960 square kilometers. Despite its rich biodiversity and potential for nature-based tourism, STP faces structural challenges typical of small, remote islands. Limited land and population constrain economic diversification, while geographic isolation raises trade costs and vulnerability to external and climate shocks.
The business environment suffers from weak infrastructure, particularly costly and unreliable electricity, fragile institutions, limited connectivity, and climate risks. Public finances are strained by high service delivery costs, low domestic revenue, and declining official development assistance (ODA).
Risks include delays in energy reforms, weak social protection, reduced donor support, commodity price volatility, and climate shocks.