World Bank provides financial aid to Sao Tome and Principe

29 March 2011

Sao Tome, Sao Tome and Principe, 29 March – The World Bank has granted US$6.2 million in financial aid to Sao Tome and Principe to boost the Sao Tome State Budget in 2011 and 2012, World Bank representative Monica Sawyer said in Sao Tome Monday.

Sawyer announced the move at a session to present a strategic plan drawn up by the World Bank with a view to, “transforming Sao Tome and Principe into Africa’s next economic miracle,” through a programme to reduce poverty and for sustainable economic growth.

The World Bank representative said that paying out the funds depended on the conclusion of some macro-economic reforms to be put in place in the next two months by the Sao Tome and Principe government.

“It is now up to the government of Sao Tome to conclude some action in the area of tax reforms,” Sawyer said, noting the need to “improve the investment climate and strengthen the financial system.”

Of the funding available, the World Bank representative estimated that a financial package of US$4.2 million would be used for the current year, approval of which is due between May and July, with the remaining US$2 million earmarked to cover the 2012 budget.

As well as the funding provided for Sao Tome’s budget, the World Bank also co-finances a programme of improvement of telecommunications for the 2011-2014 period estimated at around US$13.2 million, as well as an environmental and fishing project costing US$4.1 million. (macauhub)