São Tomé and Príncipe – Nexus Water Energy Resilience and Agriculture Project Preparation – Project Appraisal Report
São Tomé and Príncipe: Nexus Water–Energy Resilience and Agriculture Project Preparation Report Highlights Development Challenges
The African Development Bank (AfDB) has released the Project Appraisal Report for the Nexus Water–Energy Resilience and Agriculture (NEW-ERA) Project Preparation in São Tomé and Príncipe, outlining a strategic initiative to strengthen climate resilience and integrated resource management in the island nation.
The project preparation phase is supported through a Project Preparation Facility (PPF) designed to finance feasibility studies, master plans and technical assessments for large-scale investments in water, energy and agriculture systems. The preparatory work aims to lay the groundwork for future infrastructure such as multipurpose dams, water treatment facilities and improved irrigation networks.
According to the appraisal report, agriculture remains a critical pillar of the country’s economy, contributing about 12.4% of GDP and 23% of export earnings in 2022. However, the sector faces multiple structural constraints including low productivity, limited access to improved inputs, weak value chains, and insufficient storage and processing infrastructure. Climate variability—particularly floods and droughts—has further increased the vulnerability of farming systems.
The report also highlights challenges in the energy sector, where around 95% of electricity generation relies on imported fossil fuels, resulting in high production costs and unreliable supply due to aging infrastructure and limited maintenance capacity. In addition, water supply remains inconsistent, with many communities lacking reliable 24-hour access to safe drinking water and modern sanitation systems.
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Through the NEW-ERA initiative, the AfDB and the government aim to develop an integrated water-energy-food security nexus, supporting climate-resilient infrastructure, improved governance, and sustainable resource management aligned with the country’s Vision 2030 development strategy.
The project preparation phase is expected to guide future investments that will enhance food production, expand renewable energy potential, strengthen water security, and create new economic opportunities while improving resilience to climate change.
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