Equatorial Guinea provides Sao Tome and Principe with US$2 million in budget aid

9 March 2012

Equatorial Guinea has provided Sao Tome and Principe with financial aid of US$2 million to support the country’s state budget, Sao Tome’s Minister for Planning and Development said Thursday.

Agostinho Fernandes said that the donation followed an agreement signed Wednesday by the two countries at the end of an official visit by Sao Tome’s president, Manuel Pinto da Costa to Malabo, the capital of Equatorial Guinea.

According to the minister for Planning and Development 93 percent of the State Budget, estimated at over US$153 million, is guaranteed by foreign aid.

“This is budgetary aid for Sao Tome in that it will pay for some projects that are part of the Sao Tome and Principe development plan,” said the minister, who accompanied the head of State on the visit to Equatorial Guinea at the invitation of his counterpart, Teodoro Obiang Nguema.

As well as a general cooperation agreement covering the economic, transport and fishing sectors, Equatorial Guinea and Sao Tome and Principe also have a joint area for oil exploration, similar to the one Sao Tome has with Nigeria. (macauhub)