São Tomé and Principe - Fiscal Sustainability and Economic Resilience Program (FSERP)

The Fiscal Sustainability and Economic Resilience Program (FSERP) is designed as a programmatic series of two consecutive General Budget Support (GBS) operations. This support will enable the Democratic Republic of São Tomé and Príncipe to strengthen fiscal sustainability and economic resilience by improving Public Financial Management (PFM) systems and efficiency in the energy sector. The programme will support the Government in its efforts to implement reforms to accelerate economic growth by creating a more conducive environment for the private sector, enhancing transparency and accountability, and boosting governance in the energy sector while building climate resilience. The set of reforms under the proposed program is organized around two mutually reinforcing and complementary components. Component 1, Improving fiscal transparency and sustainability, will support enhancing domestic revenue, improving public expenditure efficiency, and enhancing debt transparency and sustainability. Component 2, Improving energy sector governance and transition to renewable energy, will support reforms in the energy sector and help in transitioning to green energy. The project contributes to climate finance, with 2 million USD of the total approved amount dedicated to mitigation.