Selected Issues Papers

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

BySNEHA AGRAWAL, Julia Bersch, Azar Sultanov, Ke Wang

July 16, 2025

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Format: Chicago

SNEHA AGRAWAL, Julia Bersch, Azar Sultanov, and Ke Wang. "Policy Options to Strengthen São Tomé and Príncipe's Resilience to Natural Disasters", Selected Issues Papers 2025, 118 (2025), accessed 1/16/2026, https://doi.org/10.5089/9798229024099.018

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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.

Subject: Environment, Expenditure, Infrastructure, National accounts, Natural disasters, Private investment, Public investment spending

Keywords: A. São Tomé and Príncipe's vulnerability, climate adaptation, debt sustainability, Infrastructure, infrastructure investment, macroeconomic modeling, natural disasters, policy option, Private investment, public investment, Public investment spending, resilience to natural disasters, São Tomé and Príncipe, São Tomé and Príncipe's resilience, Sub-Saharan Africa, West Africa