The International Monetary Fund published an end-of-mission statement following staff discussions in São Tomé during March 26–April 8, 2026 on the third review of São Tomé and Príncipe’s 52-month Extended Credit Facility (ECF) arrangement. The mission highlighted persistent electricity supply disruptions and delays in the energy transition, alongside a more uncertain external environment including higher global oil prices; inflation has declined recently but remains elevated and could rise again if conditions worsen. Work during the visit advanced policy measures aimed at addressing domestic and external imbalances linked to the electricity crisis and external headwinds. The authorities’ medium-term fiscal adjustment was framed as the key tool to address high public debt and rebalance the economy under a pegged exchange rate, alongside tight monetary policy, while faster energy-sector reforms were presented as central to easing fiscal and debt pressures, supporting the recovery in foreign exchange reserves, and enabling sustained growth. Discussions with the authorities are set to continue in Washington during and after the IMF Spring Meetings.
International Monetary Fund 2026-04-09
International Monetary Fund staff mission reports progress and key risks in São Tomé and Príncipe’s third Extended Credit Facility review
The International Monetary Fund issued an end-of-mission statement on the third review of São Tomé and Príncipe’s 52‑month Extended Credit Facility, highlighting persistent electricity disruptions, delays in the energy transition and a more uncertain external environment. Staff underscored medium-term fiscal adjustment and tight monetary policy as key to addressing high public debt and external imbalances under the pegged exchange rate, with accelerated energy-sector reforms critical to easing fiscal and debt pressures and supporting growth.