IMF, São Tomé and Príncipe Reach Staff-Level Agreement on Second ECF Review
An International Monetary Fund (IMF) mission led by Slavi Slavov, Mission Chief for São Tomé and Príncipe, has reached a staff-level agreement with the authorities to conclude the second review of the country’s 40-month Extended Credit Facility (ECF) programme.
The discussions, held in São Tomé from October 23 to November 5, 2025, focused on assessing progress under the reform programme and reviewing macroeconomic performance. The ECF arrangement, valued at SDR 18.5 million (approximately US$25 million), was initially approved by the IMF Executive Board on December 19, 2024.
Subject to Executive Board approval, São Tomé and Príncipe will gain access to SDR 2.1 million (US$2.8 million), bringing total IMF disbursements under the current programme to SDR 10.1 million (US$13.4 million).
“The São Toméan authorities and IMF staff team have reached a staff-level agreement on the steps needed to conclude the second review of the economic program,” says Slavi Slavov, IMF Mission Chief for São Tomé and Príncipe
The Fund noted that the country continues to grapple with unfavorable demographics, energy supply shocks, and delays in its energy transition, with prolonged power outages posing major risks to economic recovery. Despite these challenges, the economy has shown relative resilience, supported by agriculture, tourism, and remittances.
Inflation, however, remains elevated in the low double digits, driven by supply constraints and demand-side pressures. The IMF observed that while the pegged exchange rate regime has provided an anchor of stability, the widening inflation gap with the Euro Area is placing strain on São Tomé’s external position.
Looking ahead, economic growth is projected to accelerate to 3.9% in 2026, before stabilizing around 3.3% in the medium term. The IMF highlighted that the energy sector reforms remain central to unlocking growth and easing fiscal and external pressures, particularly amid volatile global energy prices.
The Fund underscored that the ECF-supported programme continues to play a catalytic role in mobilizing external financing and technical assistance from development partners while supporting macroeconomic stability and structural reforms.
During the visit, the IMF team met with President Carlos Vila Nova, Prime Minister Américo d’Oliveira dos Ramos, Finance Minister Gareth Haddad do Espírito Santo Guadalupe, Acting Central Bank Governor Lara Simone Beirão, as well as representatives from commercial banks, the private sector, and development partners.
The mission expressed appreciation for the authorities’ cooperation, hospitality, and commitment to reform implementation.
