UNCDF in São Tomé and Príncipe
West and Central Africa and the Caribbean Region
Investment grants
Our work
The United Nations Capital Development Fund (UNCDF), in close collaboration with national authorities and development partners, is catalyzing economic growth, unlocking investment and creating job opportunities in São Tomé and Príncipe (STP). Through innovative financing models, UNCDF enabled the country’s first cycle of the Performance-Based Climate Resilience Grant (PBCRGs).
These grants provide additional funding to local governments to ensure that public investments are designed to withstand climate risks. In practical terms, they cover the incremental costs required to make infrastructure, such as roads, markets, drainage systems, or public facilities, more resilient to floods, storms, and other climate impacts.
By strengthening the resilience and quality of public infrastructure, PBCRGs reduce investment risk for the private sector. More reliable infrastructure lowers operational disruptions, protects assets, and improves the overall business environment. At the same time, the performance-based structure incentivizes stronger planning, financial management, and accountability at the local level, creating conditions that make it easier for private investors and businesses to operate and expand.
Unlocking climate finance through public systems to strengthen local planning and resilience
With catalytic support from UNCDF and in partnership with the Government of São Tomé and Príncipe, the country launched its first climate finance mechanism targeting local governments.
In 2025, under the pilot phase of the Local Climate Adaptive Living Facility (LoCAL), the districts of Mé-Zóchi and Lembá received performance-based climate resilience grants totaling $108,000—equivalent to approximately 21% of the average capital transfers to each district.
Embedded within national systems and aligned with São Tomé e Príncipe’s Nationally Determined Contributions (NDCs), Local Adaptation Plan, and National Adaptation Programme of Action (NAPA), the grants strengthen local planning and budgeting processes. The investments are guided by Climate Risk and Vulnerability Assessments (CRVAs) conducted by UNCDF in 2021.
District councils have prioritized water infrastructure in six communities, focusing on improving water collection, storage, treatment, and distribution systems to ensure safe and reliable access. The initiative directly benefits 68,765 people, from which 53 percent are women (36,310) and 47 percent men (32,455).
By 2030, the programme aims to expand nationwide, including the Autonomous Region of Príncipe, with the potential to reach more than 220,000 citizens.
Ceremony of "Laying the first stone" of the investments in the district of Mé-Zóchi, São Tomé and Príncipe. Photo: UNCDF.
Latest news and stories
Our partners
UNCDF’s work in São Tomé and Príncipe is made possible through close collaboration with several key partners, including the Government of São Tomé and Príncipe, the European Union, the Luxembourg Green Exchange, the Ministry of Foreign Affairs of Denmark, the Government of the Grand Duchy of Luxembourg—specifically its Ministry of Foreign and European Affairs—and the Government of Sweden (Sverige). Their collective support plays a vital role in advancing UNCDF’s mission in the region.
Documents
This section brings together key documents related to UNCDF’s work in the country. It includes a curated selection of publications, papers, and reports that reflect the scope of engagement at country level, from programme design to implementation and outcomes.
These documents offer additional context on how initiatives are developed and delivered, and how partnerships contribute to advancing national priorities. They are intended to support transparency, facilitate knowledge sharing and serve as a practical resource for partners, stakeholders and others seeking a deeper understanding of UNCDF’s work.
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Contact us
For inquiries about UNCDF’s work in São Tomé and Príncipe, including partnerships, investment opportunities, or ongoing initiatives, please contact our team on wcac.region@uncdf.org.
