Policy Options to Strenghthen São Tomé and Príncipe's Resilience to Natural Disasters

São Tomé and Príncipe is highly vulnerable to natural disasters and strengthening resilience is macro-critical. The government faces significant challenges, including weak infrastructure, insufficient protection against floods, and lack of financial resources.
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Volume/Issue: Volume 2025 Issue 118
Publication date: July 2025
ISBN: 9798229024099
$15.00
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Summary

São Tomé and Príncipe is highly vulnerable to natural disasters and strengthening resilience is macro-critical. The government faces significant challenges, including weak infrastructure, insufficient protection against floods, and lack of financial resources. Simulations using the DIGNAD model illustrate the positive impact of investing in climate-resilient infrastructure and strengthening public investment efficiency on economic growth and debt, compared to ex-post disaster management and financial contingency funds. Given São Tomé and Príncipe’s large needs and debt vulnerabilities, international financial support is key to strengthen resilience.