São Tomé & Príncipe - Poverty Reduction Project (PRP)

The poverty reduction project was prepared in response to the serious economic difficulties encountered by the Democratic Republic of Sao Tome and Principe during the first decade following its accession to international sovereignty. Indeed, the rapid transition from a communist system to a market economy was accompanied by State disengagement, especially from the “roças” (state-owned plantations) which created considerable political and social tension. Thus, since 1987, the Government has implemented a vast economic recovery programme with the support of the international community (especially the World Bank in 1992, the European Union and ADF in 1995). This project was in keeping with the programme. The project was designed as a social safety net to promote the development of income-generating activities, job creation and the consumption of social goods in order to improve the living conditions in the insanitary districts. This explained the high proportion of project resources earmarked for social infrastructure. The project also responded to the need to improve the living standards of the population, particularly the poor, through support to income-generating activities. It mainly concerns: (i) poverty monitoring and analysis; (ii) establishment of a micro and small enterprise development fund; (iii) establishment of a fund to support infrastructure of collective interest; (iv) establishment of an implementation unit (with the Ministry of Planning and Finance), equipped with human and material resources to coordinate project activities.