2030 TRANSFORMATION AGENDA

SÃO TOME AND PRINCIPE

INTERNATIONAL CONFERENCE

FOR

DEVELOPMENT PARTNERS

15TH OCTOBER 2015. Londres

TABLE OF CONTENTS

ACRONYMS AND ABBREVIATIONS ................................................................................. 3

INTRODUCTION .................................................................................................................... 3

1.SUMMARY PRESENTATION OF THE COUNTRY ...................................................... 5

1.1 Geographical, climate and population ................................................................. 5
1.2 Histoire ..................................................................................................................... 7
1.3. Political Developments ............................................................................................. 7

2. EVOLUTION OF ECONOMIC AND SOCIAL DEVELOPMENT .................................. 9

2.1. Recent economic development ............................................................................ 9
2.1 Recent developments in key social indicators ................................................. 12

3. MAJOR CHALLENGES FACING THE ECONOMIC AND SOCIAL DEVELOPMENT

OF STP .................................................................................................................................. 15

4. OUTLINES OF THE TRANSFORMATION AGENDA AND THE IMPLEMENTING

REFORMS ............................................................................................................................. 17
4.1 Outlines of the Transformation Agenda ............................................................ 17
4.2. Key-Reforms ............................................................................................................ 18
4.2.1 Accelerating and sustaining growth through the creating-employment ........ 18
4.2.1 Strengthening social cohesion and external credibility ........................... 20

5. ARTICULATING THE SUSTAINABLE DEVELOPMENT GOALS (SDG) ............... 25

6.PORTFOLIO OF PRIORITY PROJECTS FOR THE IMPLEMENTATION OF THE STP AGENDA FOR
TRANSFORMATION BY 2030................................................................................................................... 28

6.1 Structuring public-private partnership projects .............................................................. 29

6.2. Priority Public Investment Programme, 2016-2019.............................................................. 29
7. 2030-VISION’S RISKS AND ITS FIRST IMPLEMENTING PLAN, SEQUENCING
AND TRACKING .......................................................................................................... 31
7.1 Risks ....................................................................................................................... 31
7.2. Sequencing ............................................................................................................ 32
7.3. Monitoring .............................................................................................................. 33
CONCLUSION ...................................................................................................................... 34

PROJECT LIST..................................................................................................................... 35

1
ACRONYMS AND ABBREVIATIONS

AGR : Income-generating activities

ODA : Official development assistance
BAD : African Development Bank
EPC : Cost of basic needs
DHD : Sustainable human development
EX : Exports
FEC : Extended credit facility
IMF : International monetary fund
MDRI : Multilateral debt relief Initiative
FDI : Foreign direct investment
HDI : Human development index
IM : imports
INE : Establishes national statistics
IOF : Survey on household living conditions
Km : Kilometer
M : Million
UN : United Nations
SDG : Sustainable Development Goals
MDG : Millennium Development Goals
United Nations: Organization of United Nations
PAP : Priority action Plan
SIDS : Small Island developing States
GDP : Product gross domestic
PIP : Public investment Programme
LDC : Least developed countries
UNDP : United Nations Development Programme
HIPC : Heavily indebted poor countries
TFP : Technical and financial partners
STD : Dobras (currency of São Tomé)
STP : Sao Tome and Principe
TNS : Net enrolment rate
EU : European Union
USD : $ of the United States of America
VAN : Net present value
HIV/AIDS : The Human Immunodeficiency Virus / Acquired
Immunodeficiency Syndrome

INTRODUCTION

All the prospective specialists agree that Africa is, by excellence, the “Continent of
the future” and that it should contribute substantially to global growth in the coming
decades.

3
Within this active Africa, the Gulf of Guinea countries (Angola, Benin, Cameroon,
Côte d'Ivoire, Gabon, Ghana, Equatorial Guinea, Nigeria, Republic of the Congo,
Democratic Republic of the Congo, Sao Tome and Principe and Togo) play a
leading role, due to their considerable natural resources: almost 5% of global oil
reserves proved in 2012 and important potentials in off-shore, resources in gas,
rubber, cocoa, timber, coffee, bauxite, cobalt, copper, diamond, gold,... their
important demographic weight, makes it a huge market over 350 million
consumers, and the youthfulness of their population (more than 60% of under 25s)
1
.

This role should be more accurate for these countries, the most part of them having
recently make progress both in terms of the political and social stability and
regional integration as well as fighting against maritime piracy, and improving
economic and financial governance and the environment business. They also
provided ongoing efforts for the promotion of the social sectors, including
education, health and social protection, which contribute mainly to the construction
of younger generations enabling them to face the various challenges of
development.

Sao Tome and Principe aims to leverage comparative gain from this sub-regional
dynamics, breaking definitively with attitudes that prevailed in the past and
leveraging, optimally, the strengths and comparative advantages. It should be a
paradigm shift for a new development strategy that will make the country, by 2030,
an emerging State that offers its citizens a dignified and decent life conditions,
which will be a focus of economic dynamism in the sub-region and the continent.

To this end, Government of STP developed, as part of a consultation process

which has mobilized citizens and all stakeholders in development of the country, an
ambitious and realistic Vision, by 2030. This vision must respond to the aspirations
of citizens, through the transformation of the country into a hub of maritime and air
services, but also financial, health services, education and tourism for the Gulf
of Guinea. This transformation will be operated through the realization of a port
of trans-shipment in deep water and a large airport, the construction of a free
zone and the use of opportunities to caring ICT infrastructure performance. The
vision will be available in multi-year development programmes’ basis.

To share this vision, and the outline of its first implementing multi-year
programme, with potential investors and development partners of the country,
the STP Government organizes, on 14 and 15 October 2015, in London, the

1In 2013, the sub-region, except Equatorial Guinea, had exported the 160 billion USD (i.e.: petroleum 23, gas 20,
rubber 6, cocoa beans 5). Source: Trading Economics, 2013; atlas.media.eu, quoted by McKinsey & Company.

4
first International Conference of Investors and partners of Sao Tome and
Principe, STeP IN 2015.

Keeping in mind this aware, the present document is structured around seven
parts:
 The first part made a summary presentation of the country;
 The second describes, briefly, its recently economic and social
developments recent;
 The third part lists the major challenges facing the country;

 The fourth recalls the outline of the strategic vision by 2030, or

Transformation Agenda and highlights the reforms already initiated or in
preparation, whose implementation will, progressively, these challenges;

 The fifth part is the articulation between the Transformation Agenda and
the Sustainable Development Goal (SDG), adopted by the international
community in September 2015, within the Post-2015’Agenda;
 The VI part presents the first outline of the projects priority portfolio 2016-
2018, representing the financial translation of the first plan of the
implementing Transformation Agenda. Its inception Outcome should be
strong and determined to boost the process of transformation of the
country. The mobilization of external financing will translate the
commitment of the country’ partners community in order to mitigate
these risks, breaking definitively with the fragility and stand,
permanently, on the trail of the economic emergence, as the guarantor
of social cohesion, political stability and the achievement of the SDG;
 Finally, the 7th part enumerates the risks associated to the Vision and its
first implementing plan, recalls the measures, initiated or to be launched
by the Government to prevent the occurrence of these risks or mitigate,
maximum effects and presents the sequencing of the implementing
Transformation Country Agenda and its monitoring and evaluation
system.

1. SUMMARY PRESENTATION OF THE COUNTRY

1.1 Geography, climate and population

The Democratic Republic of Sao Tome and Principe is an archipelago in the

heart of the Gulf of Guinea, formed by two main islands, volcanic and
mountainous, and located on the Equator, about 300 km west of Gabon, in

5
West Africa. It is one of the smallest countries in Africa, with an area of 1001
km2.

As a tropical country, São Tomé and Príncipe, the climate is hot and humid. The
rainy season is eight (8) months, from October to May.

According to the official data of the national Institute of statistics (INE), the total
population of the country would be 194.006 by 2015. Slightly more than 50% of
the population are female, and those less than 25 years old represent about
62%. The rate of natural increase of the population was 2.76% in 2014. Chart 1
below shows the pyramid of the population by sex and age groups.

Source : Evolution of population of the Democratic Republic of São Tomé and Príncipe, 1950-2050, Idrissa Sanoussi,
UNDP, São Tomé, 2015

6
 1.2 History

São Tomé Island was discovered on December 21, 1470 by two Portuguese
navigators, Pedro Escobar and João de Santarém, at the service of a wealthy
merchant, João Gomes.

Until then uninhabited, its population begun in 1493 by convicted Portuguese,

apparently sent to have a chance of redemption, but actually to get rid of them
and have docile labor on these new lands. The populations of the coastal areas
of the Gulf of Guinea, reduced to slavery, are also transferred to the island, as
well as 2,000 Spanish orphaned Jewish children whose parents had fled the
Spain during the inquisition. Portuguese and settlers soldiers came,
subsequently, and added to these three population groups.

In the middle of the 16th century, São Tomé was one of the world's leading
producers of sugar cane, operating as a step in the traffic of slaves between
Africa and the Brazil. During the two following centuries, particularly in 1585, the
islands faced to many revolts of slaves, diseases in plantations, and piracy, due
to the emigration of most settlers to Brazil.

Whith the independence of Brazil in 1822, many Portuguese settlers left the
Brazil to join Sao Tome and Principe, motivated by the large plantations
activities. They brought with them the riches of the new world and the cocoa
plants as Ornamentals.

In the middle of the 20th century, revolts broke out, followed by repression, and
the plantations rust quickly.

São Tomé and Príncipe was proclaimed it’s independence on July 12th, 1975.

1.3. Political Development

During the first fifteen years of the independance, the country has experienced
a political system of Marxist obedience, system backed by a single party that
drew its legitimacy from its struggle for independence.

On September 10, 1990, and with the favor of the winds of democratization
blowing on Africa and the world, a new constitution, inspired by the Portuguese
system and enshrining the multiparty and a semi-presidential system in which
the Prime Minister is the head of Government was enacted. Since then, the
country knows regularly peaceful alternation in power, often with, the
parliamentary coalitions and periods of cohabitation at the top of the Executive.

7
This quarter of a century of rooting and consolidation of the democratic system
has helped Sao Tome and Principe to be one of the few African countries
ranked according to the index of freedom and political governance. Thus,
according to the ranking 2015 of the Freedom House, the country had, in 2014,
an index of 2, and an overall score of 34/40, while the classification, in the same
year, from the Mo Ibrahim Foundation, put it in 12th place out of 52 African
countries.

The Government resulting from the elections of 12 October 2014, backed by a

parliamentary majority of 60% of the seats is determined, under the leadership
of the Prime Minister, Mr. Patrice Emery Trovoada, to build on this very
favorable political context and on the real opportunities of internationalization of
the economy, a process of transformation of saotomean economy guaranteeing
social progress of population in a sustainable way.

8
 2 EVOLUTION OF ECONOMIC AND SOCIAL DEVELOPMENT

2.1. Recent economic development

Saotomean economy, as for those Small Island Developing States (SIDS), is

strongly constrained by the insular nature of the country, its fragility, as well as
by the resources’ constraints and the weakness of the absorption capacity. This
results in an extreme vulnerability to external shocks and a strong dependence
on official assistance (ODA), which funds more than 90% of investment
spending (averaging 93.6% over the period 2012-2015). Tertiary sector, largely
informal, represents nearly 60% of GDP, and employs 60% of the active
population, while the primary and secondary sectors contribute, each in the
amount of 20% of GDP, according to the most recent data.

ODA oscillates seesaw from 2010 to 2013. In 2011, the country has received an
estimated $ 72.4 million total of ODA. After a decline in 2012, the level
increased slightly to 52 million in 2013. (See table below).

Table 1: Net ODA received by São Tomé and Principe between 2010 and
2013 in millions of US dollars

2010 2011 2012 2013

STP 49,3 72,4 48,8 51,8
Source : Site Web OCDE 2015

Since the achievement of the completion point of the HIPC Initiative in

December 2007, saotomean authorities are implementing with the support of
their development partners, policies aimed to stabilizing the macroeconomic
framework, promoting growth and reducing poverty.

Economically, these policies have given pretty good results having allowed the
country to climb, from 2010, in the lower tranche of middle-income countries,
with a per capita income estimated 1,410 USD in 2014. They enabled the
country conclude, last July, a three-year program with the IMF, supported by
easy Credit extended (FEC) of more than-, 2 M USD.

Over the period 2010-2014, the growth was sustained, with a 4.5% average
annual rate, driven particularly by increase in foreign direct investment, the
launch of new projects funded by donors and the improvement of the tourism
receipts. Thanks to the pegging of national currency to the Euro, the inflation
has been progressively controlled, being its rate reduced by 13% in 2010 to

9
6.4% in 2014. By 2015, the rate of growth and inflation should settle
respectively 4% and 5.8%, according to the IMF projections.

Despite the significant progress made in recent years in terms of the

containment of expenditure, the overall fiscal balance, core commitments, has
deteriorated, falling from a surplus of 14.2% of GDP in 2008 to a deficit of
17.4% in 2011 and 10.9% in 2012. After an improvement in 2013 (surplus of
1.9% of GDP), deficit balance still maintains (5.5% of GDP in 2014 and a
projection of 8.8% in 2015, according to the IMF data). This is particularly due to
the weakness of the capacity of tax services, translated into a potential tax
mobilization, both in terms of expansion of the base and tax collection.

The low diversification of the saotomean economy and its high sensitivity to the
demand and the global prices for cocoa make the balance of the current
account, excluding official transfers, structurally deficit. It remains fairly
consistent, even if it experiences a slight and almost steady decline (-43,6% of
GDP in 2010,-39,7 in 2012, - 36.6% in 2014). By 2015, it is projected to 28.5%,
according to the most recent data from the IMF.

Meanwhile, the capital expenditures decreased by 27% of the GDP in 2012 to

12.4% in 2013 and 12.7% in 2014. This decrease is explained by the low
absorptive capacity of the country (the implementation rate of public investment
expenditure was only 35% in 2014 and varied significantly according to
ministerial departments, due to the structural weaknesses of most
administrations in charge of the planning and monitoring of projects at the
sectoral level. According to the IMF projections, they should increase
significantly by 2015 to 21.7% of GDP under the combined effect of an increase
of public investment and those from the private sector.

The chart below traces the evolution of FDI over the period of 2000-2013. It can
be observed that these FDI grew at an average annual rate of 15.5% between
these two years, but irregularly. Thus, between 2000 and 2004 the level of FDI
remained rather modest, fluctuating between 3 and 4 million USD, and it was
until 2005 it accelerated, reaching an optimum of 79 million USD in 2008. This
optimum can be explained by inculding investment in tourism, with the
construction of the Pestana. In 2009, the level of FDI fell less than 20 million
USD, before increasing to more than double to reach nearly 51 million USD in
2010 and down in 32 million USD in 2011 then 23 million USD in 2012 in 2012.

10
Source: UNCTAD site Web 2015

The external debt of the country, which was unsustainable - with a NAV
representing 349% of GDP in 2002 - was quite significantly reduced after the
HIPC and MDRI Initiatives. In 2014, according to IMF data, the GDP was
estimated up to 31.5% of and 5% for exports of goods and non-factor services.
Domestic debt, for its part, represented, at December 31, 2014, a little more
than 35 billions of STD, around 0.6% of GDP.

The international gross reservations of exchange remained relatively modest

and covering, in 2014, 3.9 months of imports of goods and non factor services
(3.5 and 3.4 months respectively in 2012 and 2013 and 4 months in 2015),
according to data from the IMF.

Table 2: Evolution of the main economic indicators between 2010 and

2015

2010 2011 2012 2013 2014 2015*

Growth rate (in %) 4,5 4,9 4,5 4 4,5 5
Rate of Inflation (in %) 12,9 11,9 10,6 8,1 7 5,8
Overall fiscal balance (in % of GDP) -11 -17,4 -10,9 1,9 -5,5 -6
Balance of current payments (in % of GDP) -43,6 -42,5 -39,4 -38,3 -36,6 -28,5
VAN external debt (in % of GDP) 33,7 33,6 30,7 27 30,1 32,5
Servicing the external debt (in % EX) 6,6 8 7,3 9,5 5 4,8
International Exchange Reserves (in
months of IM) 4,5 4,8 3,5 3,4 3,9 4
Source : IMF Country Report No. 15/196, July 2015, Press Release No. 13/533, December 19,2013 and World Back
database.
* : Projections

Due to its fragility and the high incidence of the poverty, São Tome and Principe
continues to benefit from substantial external assistance, both multilateral
(World Bank, ADB, EU, IMF, agencies of the UN system) and bilateral

11
(Portugal, Taiwan, Brazil, Nigeria, and Angola including), as much more than
the hopes aroused by the discovery, in the 2000s, of oilfields are taking too long
to materialize, resulting in a growing disappointment of the population who
aspires, legitimately, to better conditions of life.

2.1 Recent developments in key social indicators

The social situation in Sao Tome and Principe remains quite worrying with
regard to most of the different indicators of human development. Thus, the
country was ranked on 144th place out of 187 countries, in 2014, in the category
of countries with a low HDI.

The poverty Profile published in December 2012 by the UNDP and the national
Institute of statistics (INE) and developed on the basis of the Survey on the
living conditions of households (IOF), the most recent benchmark survey,
established on 66.2% the rate of prevalence of poverty in Sao Tome and
Principe. The poverty line retained was set at a per-head spending less than
approximately 30.071 STD, or approximately € 1.22, in accordance with the
new approach, called absolute approach, used to measure the impact of
poverty and based on the methodology of the cost of basic needs (EPC), which
are vital food and non-food needs.

Poverty affects relatively more women (71.3%) than males (63.4%), and seems
negatively correlated with the level of education. It is also highly correlated with
the situation in employment, its prevalence being far more modest among the
employed than in the inactive and the unemployed, the latter constituting the
poorest socio-economic group. In employment, the workers the most vulnerable
to poverty are independent agricultural private sector workers (68.4%) and non-
agricultural private (67.7%), while other workers recorded poverty rates below
60% and the workers of the services and the processing sector are less
exposed to poverty. The average size of poor households is 5.3 individuals,
while that of non-poor households is only 3.3 people.

The analysis of inequality index shows that the poorest 20 per cent accumulate
nothing more than 7.9% of the national total income while the richest 20%
account for 41% of this income.

In 2010, the net participation rate was estimated at 77.3% and unemployment,
although relatively not very reliable because of the preponderance of service
sector - largely informal and where prevail the logic of solidarity and mutual
assistance that mask underemployment and very precarious and non-decent
employment -, was established at 11.1 % for those more than 15 years old. It

12
was estimated at 23% for youth aged 15 to 24 and was significantly greater in
girls (25.3%) than boys (21.4%).

The chart 3 below shows unemployment rate by age, sex and poverty status.

Chart 3: Unemployment rates (%) of individuals 15 years and over by age

groups according to gender and the status of poverty in 2010

Pauvres Non pauvres Homme Femme

35,0

30,0
Taux de chômage (%)

25,0

20,0

15,0

10,0

5,0

0,0
ns

ns

ns

ns

ns

ns

ns

ns

ns

ns

ns

s
an
a

a
19

24

29

34

39

44

49

54

59

64

69

70
-

>=
15

20

25

30

35

40

45

50

55

60

65
Groupes d'âges

Source : IOF 2010, INE São Tome et Principe

According to the IOF, the net rate of school enrolment in primary education (NER)
was 87.5% in 2010, with a slight advantage for boys (88.7%, compared to 86.5%
for girls), whereas that of completion of this cycle was 98%. The literacy rate of
individuals 15 years of age was estimated at 87.7% (93.8% of men compared to
only 82.1% among women), while 93.7% of the population had a level not
exceeding the primary instruction and barely 6%, a secondary or higher level of
education. There was no clear discrimination between men and women, but this
discrimination was very remarkable between poor and non-poor, and this
discrimination is seen at all levels of education (primary, secondary, tertiary).

According to the same survey, in 2010 the morbidity rate was estimated at 19.7%
at the national level (18.3% for men compared to 21.1% in women). Respiratory
diseases constitute the first cause of morbidity and affected 31.6% of the total
population. Malaria was the second most common disease with prevalence
estimated at 10.8% at the national level. It affected much more individuals from
poor households (21.1%), than those from non-poor households (15.4%).

The maternal mortality rate was 76% per hundred thousand live births, while infant
mortality was 38 thousand in 2014.

Health consultation rate of 85.6% in 2010, and the IOF have concluded that "total
health coverage in the country seems to be globally good and meets the
expectation of people based on the estimated rates of satisfaction.

13
According to the data available in 2014, 94% of the population had access to
drinking water, among them 70% by connection to the water supply, and 42% to
hygienic sanitation. The rate of households connected to the public electricity
network is about 60%, the same year.

14
3 MAJOR ECONOMIC AND SOCIAL DEVELOPMENT’S CALLENGES
FACING SÃO TOME E PRINCIPE

Like most of the small island developing States (SIDS), Sao Tome and Principe
will not reach to achieve, by the end of 2015, the MDGs to which it had freely
acceded. This situation is due to the fact that the country, as already pointed
out, is strongly constrained by its insular character and the authorities are aware
of the challenges they will have overcome to succeed the Transformation
Agenda and the 2030 Vision.

The first challenge lies in the expansion of the productive base of the economy
and the diversification of the sources of growth and employment for, on one
hand, to reduce the high rate of unemployment, particularly among young
people (23% among those aged 14-24 years), and, on the other hand,
substitute imports with local products and alleviate the high external constraint.

The second challenge lies in the capacity of the saotomean administration.

Indeed, the strong budget constraint limits human resources and the means of
the various ministerial departments, which translates into a modest quality of
policies design for economic and social development, their implementation and
their monitoring and evaluation, as well as on business climate.

The lack of infrastructure to support growth (energy, roads, ports, airports,

water) is a third major challenge. The low volume of the investment and the
immensity of the needs since independence, as well as the high cost of these
factors of production penalize the public finances, companies and households
and discourage potential investors.

Another major challenge in this area is related to the low accumulation of capital
stock. The investment on own resources is being almost non-existent, whilst the
external funding are increasingly constrained by the international economic
crisis and the proliferation of hotbeds of tension in the world. As a result, the
classic ODA is, somewhat, ousted by emergency situations. Therefore, the
predominance of the services sector, largely informal and quite capitalistical,
reinforces substantially this weakness.

Due to this situation, the country may be considered as being in a trap of

fragility, which the exit requires a vigorously and simultaneously actions, so that
these challenges could be gradually surmounted.

15
Thus, new challenges of the Transformation Agenda Objective are declined
below:
- Poverty reduction in rural and coastal areas;
- To promote the employment of young people through education and
training;
- Strengthening the health system;
- Strengthen public and administrative management tool;
- Promote transparency and accountability in public affairs;
- Strengthen homeland security, public safety and coastal security;
- Simplify the legislation and improve the business climate;
- To implement programs of infrastructure to support growth; and
- Ensure the protection of the environment and the control of the
operators.

16
4 OUTLINES OF THE TRANSFORMATION AGENDA AND THE
IMPLEMENTING REFORMS

The Country Transformation Agenda is built on the Vision "São Tomé e

Príncipe 2030: the country we need to build". It is founded on a solid based-
knowledge foundation of our related region and the economic and social
endogenous data, and, finally developed following a broad consultations
involving all the forces of the country, partners in development and economic
private actors at first rang.

This vision has the major objective to transform the country in a way that the
“Sao-tomeans live decently in a stable, democratic and solidarity’s country, by
modernizing and offering high level quality services, at the region and at the
global levels". To this end, it defines nine aspirations which are:

1. The Political stability

2. The economic growth;
3. A quality Education for all;
4. A strong and modern State and a stronger democracy;
5. An adequate infrastructure for the promotion of the national
development;
6. A national covered health system;
7. The decent work;
8. A functional and accessible Justice for all;
9. A food and nutritional security.

4.1 Outlines of the Transformation Agenda

In order to be responsive, these nine legitimated aspirations of the citizens,

(whose today doubt of the effectiveness of public action for development), are
based on four complementary axes of the Vision that mutually act as a support
to the achievement of a rapid national economic emergence.

The first axe aims to consolidate the rule of law and further deepen democracy
and the second one expects a sustainable growth, whilst the third seeks to
promote human development, and the fourth to develop and owner values and
behaviors that promote, in all components of the STP society, the rooting of a
virtuous process conducive to the success of development policies.

The Program of the 16th Constitutional Government, issuing from the elections
of October 2014, streamlines these axes and groups them into two pillars. The
first pillar is the acceleration of sustainable growth, employment-creating and

17
reducing poverty and promoting food security, articulated into four axes or
strategic directions. The second pillar aims to strengthen social cohesion the
external credibility of the country, focusing towards five areas.

The Agenda of Transformation is built on three pillars.

4.2. Key-Reforms

4.2.1 Accelerating and sustaining growth through the creating-

employment

The accelerating and sustainable growth, through the creating-employment and

poverty reduction, will be achieved in line to the related implementing programs’
investment and in-depth reforms aiming:

(i) The diversification of the country's economy and the enlargement of its
productive base in order to multiply the opportunities of creation of
wealth
(ii) Improving the management of public finances;
(iii) The modernization of economic and social infrastructure; and
(iv) Improving the management of land and the preservation of the
environment.

4.2.1.1 Diversifying the economy and creating new wealth

It should be a way to enabling conditions in view to optimize the exploitation of

the potential traditional sectors of STP economy such as agriculture, fishing and
tourism that can create opportunities for employment for young and less young.
For the first two sectors, it should contribute to the improvement of the country
food security and reducing its dependence towards the rest of the world. In
addition, oil exploration will be continued and intensified.

It will also generate new wealthy opportunities, particularly in the services sector
and ICTs offers, through vigorous specific measures, by:

 Improving the affairs’ environment and the attractiveness of the IDE;

 Promoting entrepreneurship; and
Better mainstreaming approach of regional and global trade

4.2.1.2 Improving the strategic development management and finances

18
The diversification of the economy and the creation of new wealth require an in-
depth reform of the public administration enabling a genuine impulsive force to
the development.

In this context, the improvement of the strategic management of development

will be the cornerstone of the transformation’s process of the country, unless it
would be unable to raise substantially the capacity of resources mobilization
and its absorption. It will be achieved through a net strengthening of national
capacity in design, planning and monitoring and evaluation of policies,
programmes and development projects. To this end, particular attention should
be given to:

 The rationalization of administrative structures;

 Development of Capacity, including formulation, development and

implementation of a national plan for capacity building and the related
issues and technical assistance enabling the know-transfer in all projects
funded by the TFP, and;

 The optimization of the human resources, through a redeployment of

staff and training, as well as the financial resources.

The public finance management, which has recorded notable progress over the
past years, will be strengthened by the implementation of several reforms
agreed within the programme supported by the FEC-IMF, aiming to:

 Maintain the stability of the macroeconomic framework;

 Increase, without prejudice of the attractive investments, internal
resources including tax;
 Control of the State Performance Delivery, by reducing systematically
the lifestyle track of unjustified expenses or convenience (phone,
travel,...); and
 Ensure better effectiveness and efficiency of public delivery.

4.2.1.3 Modernizing economic and social infrastructure

It is not realistic to envisage a strong and sustainable economic growth without

modernizing and intensifying the network of economic and social infrastructure.

An ambitious forthcoming development programme for port, airport and energy

infrastructures has been developed and some progress has already achieved at
funding mobilization level, according to public-private partnership toolkit. By this

19
ways, STP aims to become a hub of air and marine services for the countries of
the Gulf of Guinea.

This program will also accelerate the process of diversification of the country
productive basis and new wealth creation, particularly in the service sector
where it expected to develop a high-quality financial services, health, education
and leisure, based on the attractive incentives for the installation of enterprises
and the development of high ICT quality infrastructure.

The infrastructures of the land transport, water and telecommunications and ICT
will take also advantage of this public investment.

4.2.1.3 Improving the management of land and the preservation of the

environment

Due to its geographical size insular nature, the country has to adopt a strategy
of land management which should be in line with the requirement in order to
meet expectations of current needs of the populations without compromising
the prospects of development for future generations.

Therefore, this strategy should be designed and implemented under a

guaranteed and rational use of the land, such as for the habitat purpose or for
economic activities. In any case, we should ensure scrupulously the
preservation of the environment that could affect the quality of life of citizens
and the tourism products. In this context, a review of the land law is underway.

4.2.1 Strengthening social cohesion and external credibility

São Tomé and Príncipe still pursuing its strategy by strengthening the social
cohesion and the external credibility through the responsive-action policies
form:

(i) Strengthening human capital and governance;

(ii) Youth promotion, consolidation of the family and protecting the
vulnerable groups;
(iii) Enhancing national culture, supporting inclusive development including
the diaspora;
(iv) Reinforcing the pools of local development and promoting
decentralization; and
(v) Consolidating the international cooperation and the preservation of
national sovereignty.

20
 4.2.2.1 Strengthening human capital and governance

The guarantee of a sustainable growth and social and equitable distribution is

deeply aligned to the Human Capital of a country. By this way it will be possible
to contributing to the strengthening of cohesion social and, consequently, to the
country's political stability and its external credibility. The development of this
capital depends strongly on the quality of governance of a country.

STP authorities are concern about the development and the implementation of
an effective development policy of the educational system that guarantees to
every child a skills training enabling them to be prepared for active life. The
focus of this policy will be the improvement of the quality of education, at all
levels, and the intensification and adaptation of the vocational and technical
training toolkit. Thus, it could be monitored by domestic economic changes and
by the new and more stringent requirements of the labor market.

They are also determined to promote, throughout the territory and accessible to
all, a health care of quality, through the replication of equipped infrastructures
with qualified staff, modern equipment and medicines in quantity and in quality.

Health insurance will be extended to allow all citizens access to health care.
Specific financial mechanisms will be set up for this purpose. All of them, as
well as the solidarity devices for vulnerable social groups, including women
heads of households, persons with disabilities and the unemployed, are called
to enabling a regular income (AGR and other modalities).

Justice is the cornerstone of any democracy and its reliability is one of the
necessary conditions for the growth of wealth creation in a liberal economy. The
implementing strategy, through deep institutional and legislative reforms and
ambitious programs of investment, is expected to drill-down and dock at
Protective Justice Basis, at impartial and diligent way:

 Capacity-building for magistrates and judicial officers and their

working conditions, including their remuneration and their statutory
guarantees of independence from the Chancery;
 Legal texts redesign to be in line with the current standards
 Strengthening of the institutions of control and inspection; and
 Construction and equipment of tribunals and courts, as part of a
vast operation scenario among judicial formations.

Priorities will be done to public and private media, awakening people vector and
culture rooting, in order to contribute to the improvement of the overall
governance of the country and promotion of its brand image.

21
Necessary reforms should be carried-out, including legislative, institutional and
regulation, contributing to provide adequate support and guidance in order to
ensure the quality of public service and the development of a private national
information and communication services: responsible, professional and quality.

4.2.2.2 Promoting Youth, consolidating family and protecting vulnerable

groups

Usually, the youth is the future of the nation. A complementary policies

designed to ensure its development and its full participation should be set-out
and implemented. Policies and programmes that promote the emergence of
talent and the release of the creative energies of young people, including
policies and programs should be emphasized, namely:

 Education and training;

 Employment and insertion;
 Entrepreneurship;
 Communication and ICT;
 Sport; and
 Culture.

An ambitious policy of housing will be developed, as participatory and

collaborative approach. It will expect to provide (i) responsive current imperative
solutions-crisis housing, through a healthy political development of the territory;
(ii), the safeguarding and preservation of the environment, in a context of the
scarcity of land.

A harmonious set of complementary measures, legal, institutional, economic

and social, will be implemented to strengthen the family. This arrangement aims
to protect the family against the risk of bursting, violence, school drop, social
deprivation... The action of the public authorities in this area will be coordinated
with civil society organisations, which develop advocacy actions in the field of
family, women and child rights.

4.2.2.3 Optimizing the National and Sports Culture and Diaspora

Mainstreaming

A treatment approach will be booked to focus the identity, culture and national
cohesion, through:
 Preservation and enhancement of the historical and artistic heritage;
 Promotion of cultural production;

22
  Management and dissemination of artistic creations and cultural
property, at internal and abroad level.

The sport constitutes, undoubtedly, another factor of cohesion and social

integration. It also allows a better quality of life, a greater self-esteem and a
significant contribution to national pride. The authorities will ensure the growth
of team sports to feeding the national solidarity and cohesion. The school sports
will be revitalized and multi-year plans of development of sports infrastructure
will be developed and implemented, taking into account the growing volume of
resources, and as long as the budget constraint will reduced. Individual
competitive sports will be encouraged and will receive a multiform support.

Since independence, the diaspora has playing an important role in the

development of the country. This role should be further strengthened so that the
process of emergence of Sao Tome and Principe will take advantage of the
expertise accumulated by our expatriated citizens, their dynamism in the
business and the financial resources they could drain to the country. Therefore,
a set of institutional, legal, fiscal and diplomatic agenda and communication
measures will be implemented by the authorities, including:

 The safeguarding of the interests of our citizens in their host countries;

 The strengthening of their links with the country; and
 The facilitation and the incentive arrangements for their return and/or
promotion of local economic activities.

4.2.2.4 Strengthening the pools of the local development and

decentralization

The comprehensive decentralization and the full participation of local

communities in the management of the daily life of citizens and the shaping
future are a factor of reduction of the costs of intermediation in the
implementation of public development policies, improvement of the quality of
public services and the culture of accountability at public decision-makers. They
are also a vehicle for consolidation of democracy in our country.

Therefore, the local governments intend to promote the emergence and local
development poles by:

 Revising the tax legislation in order to increase the resources of the

regions and municipalities;
 Strengthening coordination between the central and decentralized
regions;

23
  Know-transfer of skills and related resources; and
 Building-capacities of local communities.

4.2.2.5 Consolidating international cooperation and national

sovereignty
As a fragile and small country, São Tomé and Príncipe must weave a solid
network and a diversified international cooperation relationship enabling it to
take advantage of ODA and preserve its national sovereignty.

The authorities intend to pursue its special relationship policy with the maximum
of countries in the world, in order to promote the ideals of international peace,
security, stability and solidarity. Therefore, a particular fare to the strengthening
of ties of integration in the Gulf of Guinea sub-region will be enhanced, so that it
gradually becomes a zone of peace, security, harmony, solidarity and
cooperation, at the service of sustainable human development, as the citizens’
aspirations.

24
5 ALIGNING THE SUSTAINABLE DEVELOPMENT GOALS (SDG)
WITH THE STP TRANSFORMATION AGENDA, BY 2030

Since the SIDS which STP is concerned, are called to facing a future presenting
other certainty than change, beset problems and difficulties in their market
should be entailed as a way of life and sustainable development.

The action of the international community must be rooted in a vision of

economic, inclusive and sustainable growth in order to help SIDS to boost their
new vision and new commitments. The challenge is to strengthen capacity,
gateways and networks, enabling carrier operations solutions and mobilizing all
key international cooperation partners to produce a dynamic and a real impact.

The STP Agenda of Transformation aligns with the Sustainable Development

Goals by 2030, as adopted by the international community, September 25,
2015 and is expected to take advantage of the momentum enabled by the
Millennium Development Goals, particularly:

 Goal 1, which aims to eradicate poverty in all its forms, overall in the
world, will be articulated with one of the 2030 SDG, by eliminating the
extreme poverty in the world. It will be put in place systems and
measures of social protection for all, adapted at the national context,
including bases of social protection, and to ensure that, by 2030, a large
proportion of the poor and vulnerable people will benefit;

 Goal 8, aiming to promote sustained economic growth, a full and

productive employment and decent work for all will be maintained as a
sustained economic growth rate and a high level of economic productivity
through diversification, technological upgrading and innovation
achievement, including sectors with high added-value and intensive
labor;

 Goal 9, which aims to build a resilient infrastructure, promoting a

sustainable industrialization and boosting innovation. Long-term
investment in infrastructure and innovation is a key to economic growth
and development vector.

 Goal 14, which aims to maintaining and operating in a sustainable way

the oceans, seas and marine resources, by 2030 SDG, will take
advantage of the economic benefits of sustainable exploitation of marine
resources, particularly through sustainable management of fisheries,

25
 aquaculture and tourism for SIDS and the Least Developed Countries
(LDCs).

In general, the above matrix presents the articulation of the SDG with the
Country Transformation Agenda- 2030:

SDG Matrix articulation with the STP Transformation Agenda-2030

DOMAIN SUSTAINABLE TRANSFORMATION AGENDA
DEVELOPMENT GOALS
 Poverty Reduction in rural and
coastal regions
 Promotion of youth employment
PEOPLE 1, 2, 3, 4, 5 of through education and training
 Strengthening the health system

 Environmental protection and

PLANET 6, 12, 13, 14, 15 Collateral damage growth control
due to the growth

 Promoting of transparency and

accountability in public affairs
PROSPERITY 7, 8, 9, 10, 11  Infrastructure to support growth
programs
 Simplification of the
legislation/business Environment

 Strengthening homeland security,

PEACE 16 public safety, and coastal security

However, the Government is aware of the need for sustaining targeting effective
national ownership of the SDG and their ownership into public policies, both at the
national and local communities’ level. Without this ownership, we are unable to
mobilise financial resources and technical assistance from our partners to finance
and implement programmes and projects which contribute to the achievement of
these SDGs. For this purpose, the role of advocacy of the United Nations System
will be crucial and should make it possible to mobilize, as soon as possible, the
appropriated resources to develop a strategy for further implementation of the
SDG and to define, target and set indicators, for transposition arrangements of
these SDG towards the Transformation Agenda of the country.

The development partner’s support to the SDGs accomplishment, as committed at

WSSD Summit, September 2015, will allow certainly Sao Tome and Principe to

26
reach 4 of the 8 MDGs 2 , and to accomplish by the year 2030, the SDG
commitments.

The Government expects to receive a supportive assistance from its bilateral

and multilateral partners in order to be able to pace reforms enabling it to
achieve the objectives of its Transformation Agenda, in harmony with the SDG.

2Universal education, Reduction of child mortality, reducing maternal mortality and (iv) significant Reduction of the
prevalence of major endemic diseases. For this last objective, it was noted that the rate of mortality due to malaria
was reduced to zero on the island of São Tomé in 2014 and a few years ago on the island of principle, then the
prevalence of HIV/AIDS decreased by two thirds between 2009 and 2015, 1.5% at 0.5%.

27
6 PORTFOLIO OF PRIORITY PROJECTS FOR THE IMPLEMENTATION OF
THE STP AGENDA FOR TRANSFORMATION BY 2030

The first portfolio of priority projects for the implementation of the Agenda for
Transformation aims to lay the foundations for the transformation of the country,
through two important projects to be carried out according to public-private
partnership standard and to a priority public investment program.

These projects and programmes must pave the way for a new dynamic national
and foreign private initiative, the economic ownership, particularly in the sectors
of tourism, logistics, port and airport, high value-added agricultural, fishery and
the related economic activities of the sea.

Therefore, the State will set aside two large areas of the national territory, called
New Frontier Park, dedicated to the settlement of economic operators with
special features and substantial incentives. The New Frontier Park I will be
dedicated to the industry and trade, as well as to the business tourism, whilst
the New Frontier Park II would be aligned to the Eco-friendly initiatives in the
field of tourism, agriculture and innovation.

The Public Investment will focus on the following elements:

- Rural development, especially those areas that contribute to increase the

productivity of crops and the insertion of markets, by best paths;

- Poverty Reduction in coastal area, by combining these populations to the

touristic activities and the sea;

- Quality of care of health;

- Improvement of the quality of all levels of education and vocational

training;
- Production and the implementation of reform texts and the introduction of
e-governance;

- Strengthening the capacity to absorb investment and official

development assistance; and

- Preserving and protecting the environment and the coherence of the land
development.

28
 6.1 Structuring public-private partnership projects

These projects aims to building a Deep-water Transshipping Port and a high

performant international airport throughout the country will become a functional
hub logistic services in the sub-region of the Gulf of Guinea.

For the first phase of this transshipment deep-water port project, estimated up
to 500 -550 million USD, (35% already secured contractually until April 30,
2016), its Phase 1 of the construction must be completed current 2018 and
commissioning intervene in 2019.

The airport will be created by gradual extension of current international airport

of Sao Tome, according to a well-studied phasing, for which the work should
begin during the first quarter of 2016, under PPP arrangements.

A guarantee fund for private investment initiatives in hydropower, for an

estimated amount of US $ 60 million, is also envisaged, aiming to cover, by
2019, 50% of the country electricity needs, by this source of clean and
renewable energy.

6.2. Priority Public Investment Programme, 2016-

2019

The Priority Public Investment Programme (PIP) aims to address the challenges
listed in the concept Note on the preparation of STeP IN 2015. It overlaps,
jointly with those outlined in part 3 above, the major of the first causes.

These challenges are considered as the constraints to be raised over the next
four years so that the country could be able to take advantage of the
opportunities offered at the end of this period i.e. the new deep water port and
the new international airport that will make Sao Tome and Principe a maritime
and air hub and a service platform for the countries of the Gulf of Guinea.

Priority PIP takes into consideration the following four aspects:

 The level of 2015 expenditures on capital (71 M USD, programming) is

increasing by more than 65% over those realized in 2014 (43 million
USD). We can assume that this level could be maintained on the period
of 2016-2018. Therefore, the partners should provide their commitment

29
 in terms of volume of funding and the authorities should be aware that
the absorption capacity of the country must be improved substantially.

 The implementation of the reforms announced by the Government, in its

General Policy Statement, as well as the settlement of several agencies,
under the Transformation Agenda, are expected to promote the
improvement of the country absorption capacity for the period 2016-
2018;

 The reasonable disbursements increase is excepted on the second year,

since the first year will focus on the implementation teams, procurement
procedures and inception arrangements or on deepening of reforms
enabling the improvement of the absorption capacity;

 Taking into account that the Government Development Projects will be

completed in 2019, it is more reasonable to propose a four-year program.

The selected scenario is called to sustain the evolution of expenditures on

capital, slightly more optimistic than the 2015 scenario, and to assume 7.5%
further capital delivery growth on the period 2016-2019, both on own resources
and external funding, on annual average basis.

This growth should result from the combined effect of tax reforms (expansion of
the base, improvement of the roofing and introduction of VAT), the
effectiveness of the measures of improvement of the absorption capacity
(reforms of public procurement, strengthening of the capacity of the
administration...) and largest financial accompaniment of the MFP. I will be
assumed to reach an exchange rate, as that proposed by the IMF.

With this scenario, it will be assumed that the accumulation of capital will
amount to 305 million USD over the expenditure period.

The following table shows the distribution of total public expenditure on the
period 2016-2019, according to new nine challenges.

30
 7. 2030-VISION’S RISKS AND ITS FIRST IMPLEMENTING
PLAN, SEQUENCING AND TRACKING

7.1 Risks

Sao-Tomeans authorities are aware that Vision and its first implementation
program face several risks:

Firstly, the ambitiousness of the Vision, based especially on the construction of

a port of transshipment deep-water and an international airport of capacities,
assuming that will make the country a hub of logistics services in the sub region
of the Gulf of Guinea.

However, the size of the country and the weight of the other States of the sub-
region and their ambitions for the development of port and airport infrastructure,
should be considered, despite playing the natural conditions of a volcanic island
that has unique sites meeting the needs of the next generation ships, both in
technical and operational terms.

Following factors translate this ambition: the privileged location of São Tomé
and Príncipe, its political stability and social cohesion, coupled with the good
economic performance of the past years, the programme of reforms in the
process of implementation or inception, as well as the prospects for
development of the sub region. In addition, none of the ports in the sub-region
fulfils the requirements to become a transshipment port, leaving this role of
logistical support to the port of São Tomé.

The airport is justified by a tourist regional and international single offer. In fact,
there is a continuous growth market and should be understood as a lock to lift
for the development of the country.

The second risk is associated to the resources mobilization for development in

PPP projects and priority public investment program 2016-2019. This risk is
mitigated by the fact that the projects are sufficiently well studied, offering good
prospects for profitability, and representing the main support axes for the
development of other income generating enterprises and jobs, thus increasing
tax revenues.

STeP IN London 2015 makes this private investor’s mobilization one of its main
objectives. Several of them, including some of the largest worldwide, have
confirmed their interest to examine these projects. Funding of the deep water

31
port project, which is the most important in terms of cost (500 to 550 M USD), is
already secured and discussions for the modernisation of the airport, being
finalized.

With regard to the priority PIP 2016-2019, the Government has retained a
scenario for which the external mobilization resources for 305 M USD, or 131 M
more than arrested with the IMF in July. However, this gap was over a period of
3 years, while the Government is counting on a four-year plan with a strong
commitment to bilateral partners and new funding modalities including
mitigation of risk and specialized funds. It is understood that this scenario will be
thoroughly reviewed with key partners of the country, including the IMF.
A third risk is the absorption capacity of the country and the capacity of its
Administration; the Government is determined to implement without delay the
necessary reforms, as described in section 4.2.1 above, to substantially
improve these abilities.

There is also a risk for the stability of the macroeconomic framework of the
country if significant increase in private investment (PPP infrastructure projects,
notably) and public is expected. The Government is quite aware and will take, in
consultation with its partners, including the IMF, the necessary steps to
preserve this stability.

Finally, it cannot obscure the risk policy which, coupled with weak legal services
of the State, can be expressed by delays in the development and promulgation
of important laws for the improvement of the business environment and respect
for the pace of implementing reforms, agreed in the context of the triennial
programme supported by an FEC of the IMF. The Government supported by a
comfortable parliamentary majority will take any useful measure, in consultation
with the legislature, to mitigate this risk and ensure the implementation and
accountability of the laws of the Republic.

7.2. Sequencing

The STP Transformation Agenda will be implemented sequentially, in

quadrennial multiannual programmes. It will take account of the urgent need to
respond to the aspirations of the citizens and to achieve the development goals
as defined in the Agenda post 2015 adopted by the United Nations on
September 25.

The first sequence of this implementation is described in sections 4 and 5

above (reforms and program priority projects). The Government is aware that
this is the decisive sequence for the success of the transformation process of

32
the country. He is committed to accelerate the pace of reforms. It expects from
its partner’s development the necessary accompaniment, both in terms of
financial resources and in terms of technical assistance, so that this phase has
all the chances of success. It is how the country will be able to get out of the
trap of fragility where it is and that it will respond to the aspirations of its citizens
and will carry out the objectives of development post 2015.

7.3. Monitoring

As already pointed out, the administration in São Tomé and Príncipe is

characterized by a notorious weakness of the development strategic
management capacity, resulting in a lack of statistical data reliable and a low
monitoring implementation of public policies.

The Government is determined to implement, without delay, an efficient system

of monitoring of the Transformation Agenda of the country. This system, whose
architecture will be defined with precision in the next few weeks, will be
articulated around a Joint Committee monitoring and a first review of mid-term
in late June 2016.

This implementation will be facilitated by a combination of factors which

including:

- The size of the country;

- The reform of public administration, the establishment of e-governance,
the implementation of a national programme of capacity-building with use
of foreign technical assistance;
- The establishment of specialized agencies, which may have recourse to
outside expertise, including Diaspora, excited to the work for national
transformation;
- The widespread use of ICTs.

33
 CONCLUSION

Sao Tome and Principe is now at the crossroads: (i) the country resigned to remain a
State assisted by the international community; either (ii) it decides to take its destiny in
hand and to stand, finally and irreversibly, on the path of sustainable and inclusive
growth, enabling offer of employment to its youth, reducing and ultimately eradicating
poverty, and met hopes, long, of citizens who aspire legitimately, the conditions for a
decent life.

The Government, issued from October 12, 2014 elections and supported by an
absolute parliamentary majority, made the second choice, without any hesitation. It is
his ambition to Sao Tome and Principe. The country has objectively all the necessary
assets to achieve this ambition.

We are aware that the way to achieve the objectives of our Transformation Agenda,
which overlap the SDG domains, will be long and difficult. However, we are confident
because recent history teaches us that when the political will is real, the popular
support is solid, the pace accelerated reforms and the support of the international
community are effective, countries, even their small size, can initiate a sustainable
virtuous process of transformation and meet the aspirations of their citizens.

Our political determination is strong and will be translated into a net improvement of the
mode of governance of the country, enabling the most transparent, efficient and
effective actions. That is how we will be able to raise definitively the level of popular
requirement in terms of good governance.

The popular expectation in terms of reforms is strong and our fellow citizens clearly
expressed it during the consultations leading to the development of the Vision "São
Tomé e Príncipe 2030: the countries we must build”.

The Government is strongly aware of this political will and popular demand. It will lead
an accelerated pace of reforms, supported by a revitalization/restructuring and rigors’
public administration, involving all stakeholders in the country's development, and a
regular communication.

The support of our partners, that we were never lacking, is today crucial, both in terms
of financial resources volume and in terms of technical assistance.

The first sequence of the Transformation Agenda will be successful as well as the
further ones. Thus, the achievement of the SDG by 2030 and the related further
transformations will contribute to the social and economic development of the sub-
region of the Gulf of Guinea and the African continent, in general. São Tomé and

34
Príncipe, as an emerging country will finally offer its citizens a dignified life and a full
development conditions.

PROJECT LIST

Monitoring Project Responsible Departments

Issues Project Id
Description and Ministries
Challenge I: Fighting against poverty in rural communities
Technical and Financial Agricultural Community-Assistance

Support to vulnerable Ministry of Employment and

families Social Affairs FP11
Non-Contributory
Social Pension’s Ministry of Employment and
Assistance Social Affairs FP12
Rural credit
institutionalization’ Ministry of Finance and Public
Support Administration FP21
Support to Dry
Beans Row Ministry of Agricultural and
Development in STP Rural Development FP55
Support to the
Development of Ministry of Agricultural and
Poultry Production Rural Development FP56
Support to Fruit and
Vegetable Ministry of Agricultural and
Development Center Rural Development FP62

Solutions for irrigation Needs

Construction and/or
rehabilitation of
irrigation system and
dams for water Ministry of Agricultural and
retention Rural Development FP66

Commodities, Access and Marketing of agricultural products

Improving access for

agricultural products Ministry of Agricultural and
and marketing Rural Development FP57

35
 National Rural Ministry of Agricultural and
Extension Program Rural Development FP63
Rural Tracks Ministry of Agricultural and
Rehabilitation Rural Development FP65,FP67

Conservation, Storage and add-value Agricultural Products

Capacity-Building of
Agricultural
Research and
Technology Center Ministry of Agricultural and
(CIAT) Rural Development FP64

Over-Production Marketing Control - Guidance, Quality Control and other

related Control

Comprehensive Ministry of Agricultural and

Rural Development Rural Development FP58
Sustainable
Development of
Agro-Livestock Ministry of Agricultural and
Production Rural Development FP59
Capacity-building for
rural development Ministry of Agricultural and
actors Rural Development FP60
Promoting the
Development of Ministry of Agricultural and
African Food in STP Rural Development FP61

Challenge II: Fighting against Poverty at Coastal Communities

Technical and Financial Fishing Community Assistance

Promoting the Ministry of Economy and

Industrial Fishing International Cooperation FP25

Youth Education and Training in “Sailor and Sea Men”

Security and Coastal Patrols for Safety and Rescue Activities
Erosion Control and Tides’ Protection

Coastal Protection Ministry of Infrastructure ;

and Relocation of Autonomous region of
Fishing Communities Principe FP91

36
Challenge III: Development of Human Resources – Capacity Building for Young
Children School Bus Solutions for All
Reducing the number of children in schools through the Improvement of
Teacher-student Ratio

School Expansion
Management Ministry of Education, Culture
Network in STP and Science FP48
Construction of a Ministry of Education, Culture
regional high school and Science FP87

Lunch Meal Approach – Fighting against Malnutrition and Boosting for

School Attendance

Development of
National Food and Ministry of Education, Culture
School Health and Science FP45

Replenishment Facilities & ICT Inception

Technology
Development in Ministry of Education, Culture
Classrooms and Science FP53

Vocational and Technical Education on Language Laboratories for Young

– Introduction of new disciplines

Technical Education
Development Project
and Recurrent Ministry of Education, Culture
Professional School and Science FP46
Strengthening
institutional capacity
of the University of
São Tomé and Ministry of Education, Culture
Príncipe and Science FP50
Strengthening
institutional
capacities and Ministry of Education, Culture
Teaching Skills and Science FP51
Literacy and
vocational
qualification for
young and adults Ministry of Education, Culture
people and Science FP52

37
 Development of Teacher-training and Teaching Approach

Improvement of
Education Quality Ministry of Education, Culture
FP49
System and Science
(PROMEQSE)

Challenge IV: Development of Health Care at Municipal and Central Level

Urgent improvement of the Emergency Facilities and Trauma Care

Support to the
Ministry of Health
Alcoholism Combat
Development of
Road Safety Project Ministry of Internal Affairs
Rehabilitation
Physiotherapy Ministry of Health FP07
Infrastructure

Hospitalar Acquisitions and Planned Medicines Management (Reagents,

Expendable and Hospital Equipment)

Software
Development and
Ministry of Health FP04
Management
Infrastructure
Development of
Image Diagnostics Ministry of Health FP02
Tools
Hospital Dr. Ayres FP05
de Menezes:
Reestructuration of
Ministry of Health
Oxygen Center; FP08
Reorganization and
Hospital Tools
Development of the
Ministry of Health FP09
Sterilization Center
Hospital Dr. Dias
da Graça:
Autonomous region of
Expansion; FP88
Principe
Equipment; and
Expertise

38
 Eradication of Transmissible Diseases
Prevention, Management & Control

Tackling against
Endemic and non- Ministry of Health FP01
Endemic Diseases

Challenges V: Responsive Challenges on Public Safety, Homeland Security

and Airports and Coastal Safety
Oriented-Police Training on Internal Control Framework (Operating
Procedures; International Standards Requirements; Awareness, including drugs and
terrorism).

Municipal Secondary
Schools Survey on
Psychotropic
Substances Ministry of Justice and Human
FP36
Prevalence and other Rights
Drugs (i.e. Água
Grande; Mé-Zóchi and
Lembá)
Training and
Ministry of defense and the
Requalification of
sea; FP98
Army and Security
Ministry of Internal Affairs
Staff

Updating Surveillance & Protection Equipment (Shields and bulletproof

vests, guns and ammunition included)
Training and Provision of Required Equipment for Airports and Coastal
Security Operations
Development of Maritime Legal Framework

Formulation of the Ministry of defense and the

FP99
Maritime Law sea

Challenge VI: Legal & Judicial Capacity Reform

Inspection and Laws Revision: Corporate, Commercial and Business
Laws. Revision of the Civil Code.

Creation of the
National School of
Ministry of Justice and Human
Administration and FP35
Rights
Judicial Studies of
STP (ENEJA)

39
 Promoting best practices and technologies on Speed-up Disputes
Resolution, Judicial and arbitration processes

Mutual Legislative Ministry of Justice and Human

Production Rights
Development of an
Integrated
Ministry of Justice and Human
Management FP37
Rights
System for Legal
Processes

Challenges VI: Promoting National and Social Cohesion

Preventing Domestic violence, Improving Parental responsibility Behavior

amongst Young-single mothers/couples, Promoting Parents-School
Relationship and Developing Post-school Centers

Promoting Inclusive
Educational System Ministry of education, culture
FP47
(i.e. children with and science
special needs)
Development of
Kindergarten
Amazinhas - Ministry of education, culture
FP54
National Institute for and science
the promotion of
Gender Equality
Promotion of
Min. of Foreign Affairs and
Sustainable and FP94
communities
integrated Growth
Construction of a
Elderly day-care Reg. Aut. The Prince FP83
Center

Public access to the Internet and e-TV

Development of e-
Ministry of the Presidency FP68
TVS Worldly Project

40
Development of citizen's Shops, eGovernance and based-people
Programs approach. Voice to People for Public Government Police Scrutin

e-shop/citizen
Ministry of the Presidency FP70
Government
e-Governance Ministry of the Presidency FP71
Strengthening
capacity for Ministry of finance and Public
FP20
Supervision and Administration
Oversight Activities
Construction of a
pilot Public Autonomous Region of
FP84
Administration Principe
building
Strengthening Ministry of Foreign Affairs and
National Diplomatic Fp95 and
communities
Negotiation Skills

Development of Institutional Sports and Facilities

Construction of a
Sports CPLP-Games Ministry of youth and sports FP103
Center
Construction of
Sports medicine- Ministry of youth and sports FP105
Center
Construction of a Autonomous Region of
Gim-Sports Pavilion Principe FP89

Culture and Cultural Products Development

Ministry of education, culture

On-line Library and science FP42
Rehabilitation of the Ministry of education, culture
STP History File and science FP43
Development of
Ministry of education, culture
STP- More Culture,
and science
More Citizenship FP44
Rehabilitation of
buildings holding the Autonomous Region of
Library and Historical Principe
Archives FP76
Rehabilitation of the Autonomous Region of
House of culture Principe FP77

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Challenges VIII: Sustainable Development through Environmental preservation
and Collateral damage Control

Development of renewable energy; Hydropower and Solar energy

Photovoltaic Solar Ministry of Economy;

Center EMAE Project FP33
Construction of 5 Autonomous Region of FP86
mini-hydric stations Principe

Development and management of landfills and waste management

Construction of
Incineration Ministry of health FP03
Structures
Laundry Services
Operations at
Ministry of health FP06
Hospital Dr. Ayres
de Menezes
Landfill Service Ministry of infrastructures,
FP14
Operations Natural and environment Rec.
Barges Debris Ministry of defense and the
FP96
removal Operations sea
Marine waste Ministry of defense and the
FP97
removal Operations sea
Construction of a Autonomous Region of
Fp75
landfill Principe

Territorial GIS Planning & other related Projects

Development of Ministry of infrastructures,

Digital Cartography Natural and environment Rec.
Strategy for
Conservation of
FP90
nature and Autonomous Region of
Biodiversity Principe

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Challenge IX: Development of Economic and Infrastructural Growth
Rehabilitation of Roads, Pavements, Sea walls Protection and other
related Infrastructures

Rehabilitation of
streets in the Capital Ministry of infrastructures,
of the Country Natural and environment Rec. FP15
Pavement
rehabilitation and
Coastal Protection;
EN1 (Lobata and Ministry of infrastructures,
Lembá) Natural and environment Rec. Fp16
Rehabilitation and
construction of Autonomous Region of
asphalted roads Principe FP80

Rehabilitation of Bridges over Rivers

Rehabilitation of the
06 Bridges over the Ministry of infrastructures, FP17
river Água Grande Natural and environment Rec.
Rehabilitation of the
bridges over the
FP18
rivers Lembá e Ministry of infrastructures,
Contador Natural and environment Rec.
Construction of the Autonomous Region of
FP81
bridge Barreto Principe

Other Public Infrastructures Development

Certification of São
Tomé International
Ministry of Economy and
Airport (National FP23
International Cooperation
Company of Airport
Security-ENASA)
Construction of the Autonomous Region of
FP82
port of Ponta Mina Principe
Communities water Autonomous Region of
FP74
supply Principe
Development of
Ministry of employment and
Public Community
Social Affairs
Works Project FP13

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Oriented-based Rehabilitation of Generation, Transmission and Elecricity
Distribution

Development of
Ministry of Economy;
Central-Power FP29
EMAE Project
Electricity
Development of the
Ministry of Economy;
Electricity GPL FP30
EMAE Project
Center
Development of
Ministry of Economy;
Grand Central, 11.5 FP31
EMAE Project
MW
Rehabilitation of the
Ministry of Economy;
BT-Water & FP34
EMAE Project
Electricity Networks
Construction of
Autonomous Region of
infrastructures for of FP92
Principe
Fuels Storage
Transport and
Autonomous Region of
distribution of energy FP93
Principe
for rural communities

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Challenges X: Implementing Agencies for the Strategy and Policies
Implementation

International Cooperation Agency (ICA)

The Authority's Public works and Development (PWDA)
Brands, image & communications Management Body (BICMC)
Investment Promotion Authority (IPA)
Environmental Authority of São Tomé and Príncipe (STPEA)
Funding I: National Agency Fund
Institutional capacity building for Oriented-economic Growth
(focused on Independent agencies)

The Government will create

special independent bodies
to guide and implement the
vision and related policies.
Five agencies that will be
created are:
1. International Cooperation
Agency (ICA)
2. The Authority's public
works and development
(PWDA)
3. Governing Council for
Brands, image &
communications Ministry of Finance
Management (BICMC) and Public
4. Investment Promotion Administration
Authority (IPA)
5. Environmental Authority
of São Tomé and Príncipe
(STPEA)

Each agency will hire an

Executive Manager,
Director, Senior and Junior
Staffs

The Fund will be non-profit-

Disbursement Fund under a
Central Treasury.

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Fund II: National Education Fund

1. Comprehensive Infrastructural Investments in Education

(Orienting all the investments for Educational infrastructures);
2. Educational Abroad Fund
(Providing Loans for students wishing to pursue studies in renowned institutions
abroad)

The Fund will invest in Ministry of education,

private projects operating in
infrastructure for education.
These facilities will be
rented or purchased by
educational institutions and
the Fund will earn their
investments back.
The Fund will education
loans to students who wish
to study abroad.
Mechanisms will be put in
place to ensure non a very
low number of
off-track
culture and science;
Ministry of Finance
and Public
Administration
An Independent
Governing Board will
be created. Each
founded participating
partner will appoint an
Executive Director to
ensure a strict
governance.
An international team
and highly qualified
managers will be hired
to operate the Fund.

46
Fund III: National Fund for Renewable Energy

The Government is committed to generate at least 50% of the STP energy

requirements through renewable sources in the next 5 years. This Fund
will provide access to finance the related projects

The fund will focus on: Ministry of infrastructures,

renewable energy Natural Resources and
generation projects (hydro, Environment;
solar energy) which have Ministry of Finance and Public
secured a power purchase Administration.
agreement with the
Government. An Independent Governing
Board will be created. Each
Structuring options: founded participating partner
1. the Fund is structured as will appoint an Executive
a deposit with the central Director to ensure a strict
bank with a very low interest governance
rate. Additional 1-2% will be
led by the Bank to cover the An international team and
administrative costs. highly qualified managers will
be hired to operate the Fund. A
2. The Fund may invest technical team will be hired to
directly in projects through guide the implementation of the
Net Worth. projects.

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Fund IV: National Fund for Land and Housing Development

Real-estate Development including offices, residential units, industrial

warehouses, hotels and resorts, and entertainment venues.

Private Equity model to real-

estate investments.
Features:
1. The participation of the
Government in the
development of the island is
ensured by its contributions
and commitments to the
Fund
2. The Fund will be actively
marketed to private
investors
3. All participants will earn
their investments back
4. The Fund will be
guaranteed by the
Government.
Structuring plan:
The Fund will be structured
as a Private Equity firm with
2/20 structure.
Ministry of infrastructures,
Natural Resources and
Environment;
Ministry of Finance and Public
Administration
An Independent Governing
Board will be created. Each
founded participating partner
will appoint an Executive
director to ensure a strict
governance.
An international team and
highly qualified managers will
be hired to operate the Fund. A
technical team will be hired to
guide the implementation of the
projects.

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