World Bank provides $ 10 million to support São Tomé and Príncipe’s response to COVID-19 – Sao Tome and Principe
WASHINGTON, December 18, 2020– The World Bank Board of Directors today approved a $ 10 million Development Policy Operation (DPO) for São Tomé and Príncipe (STP) to support the government’s response to the human and economic impact COVID-19 pandemic as well as economy-wide and sector reforms for a stronger and more resilient recovery.
This DPO directly supports the government’s response to the COVID-19 crisis, helping to mitigate the impact of the COVID-19 crisis on lives and livelihoods and strengthening institutional capacity in human capital, improving girls’ learning and expanding coverage of an ongoing cash transfer program. The project also supports government efforts to mitigate the impact of the COVID-19 crisis on businesses and jobs and lay the institutional foundation for higher and more sustainable economic growth. This includes strengthening the institutional and regulatory environment in the electricity and water sectors and strengthening the transparency of national debt and tax revenues.
“This DPO is a reaffirmation of the World Bank’s commitment to support Sao Tome and Principe to overcome the constraints imposed by Covid-19. The operation focuses on key structural reforms that are essential to achieve sustained and inclusive growth, effective investments in human capital, job creation and poverty reduction. “ said Jean-Christophe Carret, World Bank Country Director for STP.
The COVID-19 pandemic has severely affected STP’s economy, mainly due to losses in the tourism industry, but the services provided to the local population are also affected. Despite taking early steps to prevent infections from outside the islands, STP suffered a major epidemic, which had a significant impact in the country. As a result, STP’s economy is expected to experience a deep downturn in 2020, with GDP contracting 6.5% in 2020.
World Bank Group Response to COVID-19
the World Bank Group, one of the most important sources of finance and knowledge for developing countries, takes wide and fast action to help developing countries strengthen their response to the pandemic. It supports public health interventions, works to ensure the flow of essential supplies and equipment, and helps the private sector continue to function and maintain jobs.
The World Bank Group makes up to $ 160 billion available over a 15-month period ending June 2021 to help more than 100 countries protect the poor and vulnerable, support businesses and support recovery economic. This includes $ 50 billion in new IDA resources in the form of grants and highly concessional loans and $ 12 billion for developing countries to finance the purchase and distribution of COVID-19 vaccines.
PRESS RELEASE N °: 2021/083 / AFR
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