- IMF staff and the São Toméan authorities had productive discussions on the third review of the economic policies underpinned by the 52-month ECF-supported program. Most quantitative targets for the third review have been met and significant progress was made on a range of macro-structural issues.
- The authorities have made progress in preserving macroeconomic stability, despite the protracted energy crisis and the ongoing global oil shock. They are committed to improving the fiscal position and advancing the government’s reform agenda. Growth remained subdued at 1 percent in 2025 while inflation has declined to single digits, thanks in part to a tight monetary stance. Growth and inflation are expected to be affected by the war in the Middle East, putting at risk the progress achieved under the ECF so far.
- The authorities remain committed to the objectives established in the ECF-supported program approved by the IMF Executive Board in December 2024. Discussions with the São Toméan authorities will continue in Washington during and after the IMF Spring Meetings.
Washington, DC: An International Monetary Fund (IMF) staff team, led by Mr. Slavi Slavov, Mission Chief for São Tomé and Príncipe, held meetings in São Tomé during March 26-April 8, 2026, to discuss progress on the authorities’ reforms and policy priorities in the context of the third review of São Tomé and Príncipe’s 52-month program supported by the Extended Credit Facility (ECF). The arrangement was originally approved by the IMF Executive Board on December 19, 2024.
At the conclusion of the visit, Mr. Slavov issued the following statement:
“The IMF staff team visited São Tomé and Príncipe to assess the economic program supported by the ECF arrangement, as part of the Third Review. Discussions with the São Toméan authorities will continue in Washington during and after the IMF Spring Meetings.
“São Tomé and Príncipe faces persistent disruptions in electricity supply and delays in the energy transition, while an uncertain external environment—including higher global oil prices—continues to weigh on the outlook. The economy has remained relatively resilient despite electricity shortages, tight monetary policy, and the country’s vulnerability to climate change and natural disasters. Inflation has declined in recent months but remains elevated and could rise again if external conditions worsen.
“Progress was made during the visit on policy measures to address domestic and external imbalances stemming from the electricity crisis and a challenging external environment. The authorities remain committed to an ambitious medium-term fiscal adjustment, which is the key instrument for addressing the country’s high public debt and rebalancing the economy under a pegged exchange rate, complemented by a tight monetary policy. Accelerating reforms in the energy sector is essential to alleviate pressures on the fiscal position and public debt, sustain the recovery in foreign exchange reserves, and unlock sustained growth.
“The Fund-supported program continues to play a pivotal role in supporting macroeconomic stability, fostering structural reforms, and catalyzing support from other development partners.
“The IMF staff team met President Carlos Vila Nova, Prime Minister Américo d’Oliveira dos Ramos, Minister of State for Economy and Finance Gareth Haddad do Espírito Santo Guadalupe, Minister of Natural Resources Nelson Mário Cardoso, Governor of the Central Bank Agostinho Fernandes, other government officials, representatives of civil society and the private sector including commercial banks, and development partners. The mission expresses its deep appreciation to the authorities for their cooperation, hospitality, and constructive policy discussions.”
READ MORE: https://www.imf.org/en/news/articles/2026/04/09/pr26109-sao-tome-and-principe-imf-completes-mission-third-review-ecf-arrangement
