Brazzaville, May 28, 2026 (Lusa) – São Tome's finance minister said that energy sovereignty through renewables remains crucial for tourism growth and subsequently the economy, as the country pushes to reduce its dependence on fossil fuels.
"This energy sovereignty is fundamental for São Tomé and Príncipe, because if we continue to be dependent on imports, we are not the ones deciding, others are deciding for us," Gareth Guadalupe told Lusa, on the sidelines of the African Development Bank (AfDB) annual meeting, which runs until Friday in Brazzaville, the capital of the Republic of the Congo.
"Tourism requires more than beautiful beaches or hotel infrastructure," he said. It also depends on building new infrastructure, such as modernising the airport, establishing a "quality hospital", and investing in security, he said.
Rising international fuel costs, exacerbated by instability in the Middle East, significantly inflated the energy bill of the country, which imports most of the fuel used for electricity generation.
Before the war, quarterly import costs ranged between US$6 million (€5.16 million) and US$8 million (€6.88 million).
"Now, this latest import cost US$15 million," Guadalupe said. He acknowledged that the country had to reduce the imported quantity "because initially it was around US$18 million."
"The opportunity cost of US$18 million for an economy like São Tomé is very high," he said, adding that the government's objective focusses on the energy transition through solar energy projects in São Tomé and on Príncipe island, funded by the World Bank and the AfDB.
One project includes the installation of an 11-megawatt solar park in São Tomé, alongside seven megawatts of battery storage. The investment totals around U$9 million in partnership with Norwegian company Scatec and the International Finance Corporation (IFC).
"We hope that, from October, we can produce, in the best-case scenario, up to 50% of our demand by renewable energy," he stated.
The Autonomous Region of Príncipe will host a project featuring four megawatts of solar energy and two megawatts of batteries, valued at more than US$20 million.
This strategy directly impacts tourism, the country's largest source of revenue, Guadalupe said. An AfDB report released on Tuesday identifies the sector as vital for São Tomé and Príncipe's projected economic growth of 2.4% in 2026 and 3.2% in 2027.
However, rising fuel prices driven by Middle East tensions could "further aggravate pressures on the balance of payments", the minister acknowledged. Additionally, the AfDB itself highlights the "slow pace of reforms in the energy sector."
The report was presented at the AfDB Group annual meeting, where representatives from the 81 member countries, including heads of state, finance ministers, planning ministers, and central bank governors from Portuguese-language African nations, are reviewing progress over the past year and addressing future challenges.
The theme of this year's meetings is "Mobilising Africa's Development Financing on a Large Scale in a Fragmented World." The event gathers more than 3,000 people until Friday in the capital of the Republic of the Congo.
Health measures against Ebola have been reinforced in Brazzaville. The bank altered the meeting format, adopting "a hybrid format, allowing all delegates to participate fully in the proceedings, regardless of travel and logistical conditions."
MIM/RYOL // AYLS
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