"In the next three years of funding we are very excited, very happy because we are going to have a significant increase in the amount that was made available to São Tomé and Príncipe. In the previous cycle the base amount was over 22 million dollars. Looking at the next three years we are probably seeing an almost three-fold increase," said the African Development Bank representative in São Tomé, Pietro Toigo.
He explained that the amount will be made official in September and "responds to the ADB's desire to support in a more precise, more timely way" the island countries to face "the vulnerabilities and the climatic, economic pressures in which these types of economies are subject".
"We are looking at a phased two-year intervention, supporting a reform program that is aimed at macroeconomic and fiscal stabilization, some measures to increase the collection of domestic resources for the country to have a little more oxygen to implement its policies [ because it is a] country very dependent on external finances, increase budget transparency and put in place actions for transforming the energy system", explained the official.
In order to improve revenue collection, the AfDB representative argues that the reform initiative should be internal and not externally imposed to update the legislation of the tax system and allow "to mobilize resources more dynamically", as well as "increase the effectiveness of public spending" considering that São Tomé public resources are scarce.
