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Integrated SDG Insights

São Tomé and Príncipe

UNDP’s Integrated SDG Insights explore how to achieve the SDGs by 2030. So that no one is left behind.

How To Read This Report

‘SDG Insights’ playbooks transcend development “as usual,” and leverages data innovation, AI and systems analysis to chart credible pathways that help countries meet the 2030 Agenda.

SDG Moment This section provides an overview of a country's economic growth trajectory, with new insights on sustainability and inclusiveness of growth pathways.

SDG Trends & Priorities This section builds from the foundation of national SDG progress and uses machine learning to analyse national development ambition with an SDG lens.

SDG Interlinkages Combined, these insights are mapped against SDG interlinkages to define policy choices the accelerate SDG progress, tailored to national context.

Finance & StimulusThese policy choices are made against fiscal constraints and opportunities for stimulus mapped in this section to ensure choices translate to development impact and leave no one behind.

1. SDG Moment

While economic growth is a key element in achieving the SDGs, many countries are intent on moving beyond growth as a yardstick for progress. In the short run, growth enables the SDGs; but in the long run, the SDGs aim to transform the pattern of growth itself.

GDP Growth Pathways

People

Poverty: Percentage of the population under each threshold (PPP$ a day).

Data not available.

Planet

Carbon Intensity: CO2 emissions intensity of GDP (tCO2 per PPP $1,000).

São Tomé and Príncipe’s economy is in mitigation mode in 2023 and it is projected to stay this way or transition to coping phase during 2024-2025. In the short-term economic policy will focus on mitigating the impact of rising prices on households and businesses and maintaining macroeconomic stability amid a global economic slowdown. Accordingly, the SDG policy focus is on mitigating the effects of the downturn, especially on the most vulnerable.

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Despite the positive impact of this pace of economic growth on reducing poverty at $2.15 a day, there are still significant distributional challenges, especially when using the more stringent national poverty thresholds.​ Moreover, the economic cycle occurs at the expense of the environment, as the country’s carbon emissions intensity of GDP is expected to increase at an annual rate of 1.5% due to fossil fuel usage, and of 3% when also considering land-use change.

3. SDG Interlinkages

Maps synergies and trade-offs of national priorities to the most relevant SDG targets to chart policy pathways with most potential to accelerate progress.

3.8: Achieve universal health coverage​

São Tomé and Príncipe  recognizes that beyond health and well-being, investment in health also contributes to social inclusion, gender equality, poverty eradication, economic growth and human dignity. ​

Recent assessments have identified certain gaps and priorities for system reform in the health sector for it to become truly universal. These are: (i) the need to move from vertical to integrated programmes; (ii) the shift from a hospital-centred care delivery to a strong network of primary health care centres able to deliver health services, in particular prevention, adapted to the needs of people and closer to their homes; and (iii) reform of health financing that ensures vulnerable people have access to health care without facing financial hardship. These priorities have been incorporated into the new national health development plan 2023-2028.​

In addition, by increasing government investments in digital health technology, there is potential to extend health care services to marginalized areas  at reduced cost, and, as indicated by synergies, to enhance investments in energy, decent jobs, improved nutrition and in reducing inequalities.​

Progress on target 3.8 should be supported with policies to reduce energy intensity and to increase its access (Target 7.1) and efficiency to mitigate the negative impact on the share of renewable energy (Target 7.2) and on energy  efficiency (Target 7.3).​

8.5: Full employment and decent work with equal pay​

Despite the relative progress in key social indicators, the country economy is not diversified and economic growth has not been inclusive. As a result, São Tomé’s young and fast-growing population lack employment opportunities – 50% of young women and 20% of young men (15 to 30 years old) are not employed,  (12% for women and 6% for men) – and rely on informal and subsistence activities.  Not surprisingly, a recent survey conducted among the youth in São Tomé revealed that a significant number (68%) are considering leaving the country in search of better opportunities elsewhere.​​

To address this challenge, the country needs a new development model based on private sector-led growth which focuses on improving human capital, infrastructure and the business environment to unleash the potential for the blue economy, high- value nature-based tourism and high-quality, niche agricultural production. ​

By implementing policies that build human and physical capital and generate economic opportunities (SDG 8 - decent work and economic growth), STP can address the current employment challenges to focus on key priority areas, such as poverty eradication, zero hunger, improved health care and education.​

Progress on target 8.5 should be supported with policies to reduce energy intensity and increase its access (Target 7.1) and efficiency  to mitigate the negative impact on the share of renewable energy (Target 7.2) and on energy  efficiency (Target 7.3).​

10.1: Reduce income inequalities​

Extreme poverty remains high for São Tomé and Príncipe’s GDP per capita level of US$2400, with about 15.4% of the population living on less than US$2.15 per day (in 2017 PPP terms), 44.6% on less than US$3.65 per day (the poverty line for LMIC) and income inequality (Gini index of 40.7). STP’s income inequality has increased between 2010 and 2017, particularly in urban areas. This partly explains the small gains in poverty reduction despite an increase in GDP per capita.​

To reduce poverty and inequality, STP should prioritize inclusive and  sustainable growth, which strengthens resilience, builds relevant skills,  creates jobs and protects natural resources. It is also important to expand social protection schemes currently benefiting just 5,000 families. By implementing policies that build human and physical capital and generate economic opportunities, STP has the potential to address inequality and yield multiple benefits for other SDGs, including poverty, hunger, education, gender and health outcomes, among others.​

These interventions, if sustainably designed, would both protect the environment and enhance the Government’s responsiveness. ​

16.6: Develop effective, accountable and transparent institutions

In São Tomé, approximately 68.1% of the population are satisfied with public service delivery. By focusing on SDG 16 (Peace, justice and strong institutions), and specifically on Target 16.6, measures can be implemented that cut across all goals and pillars outlined in the National Development Plan 2020-2024, where public services are provided. ​

São Tomé’s challenges lie in addressing inequality, poverty and unemployment. Improving living standards necessitates a multifaceted approach that includes increasing employment opportunities, boosting incomes through diversification of the economy, productivity growth, the provision of a social safety net, and fostering a strong connection between capabilities, opportunities and employment for improved social and living conditions. ​

Crucially, effective leadership, an engaged citizenry and effective government play vital roles in driving development within a socially cohesive environment. ​

15.1: By 2020, ensure the conservation, restoration and sustainableuse of terrestrial and inland freshwater ecosystems and their services.

By prioritizing Target 15.1 in its 2021-2025 National Development Plan, Ecuadorreaffirmed the significance of protecting and preserving terrestrial ecosystems andtheir biodiversity. This includes recognizing that the investment projects intendedto fulfil Target 15.1 will not only contribute to achieving the SDGs 13, 14 and 15, butwill also help restore ecosystems that underpin the availability and comprehensivemanagement of water resources (SDG 6) and promote their sustainable use (Target12.2). Additionally, it will also foster the generation of new energy from renewablesources (Target 7.2).

To this end, Ecuador seeks to strengthen the management of the National Systemof Protected Areas through its 2022-2032 Strategic Plan and the implementationof the National Forest Restoration Plan 2019-2030. These instruments serve as thetechnical, legal and financial foundation for executing local forest restorationprocesses with a landscape vision, with an overall goal of covering 30,000hectares through its projects. Considering that the proportion of national territoryunder conservation or environmental management, as of 2022, stands at 22.1%, itis necessary to mobilize additional financial resources from various sources andestablish robust governance (Target 17.3) to intensify the care of protected areas.This ensures the conservation of natural and cultural resources, genetic flows, theprovision of environmental services for the benefit of the population and thealignment of policies on the ground.

Futures Scenarios

SDG Push is a futures scenario based on 48 integrated accelerators in the areas of Governance, Social Protection, Green Economy and Digital Disruption. It uses national data to explore the impact on human development by 2030 and 2050 across key SDG indicators. It does this by using ‘International Futures,’ a systems model designed to explore interactions across development systems.

Poverty <$1.90 Per Day (Number of People)

Malnourished Children Under 5 (Number Of Children)

Malnourished Children Under 5 (Number Of Children)

4. Finance and Stimulus

Many countries are facing reduced fiscal space, high debt levels, rising interest rates and downgrades on credit ratings. Fiscal and financial constraints tend to slow or even reverse SDG progress.

São Tomé and Príncipe's gross government debt, projected at 54.8% of GDP in 2023, is 6.5 percentage points (pp) higher than the low-income developing countries (LIDC) figure of 48.3%. The country is expected to collect 30.6% of GDP in revenue this year, thus more than double the LIDC group ratio of 14.9%.​ ​

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São Tomé and Príncipe’s public external debt servicing this year, at 4.4% of revenue, is nearly 10 pp below the LIDC average of 14.1%. Nevertheless, due to prolonged unsettled external arrears – unpaid amounts past due dates – the latest World Bank and IMF DSA from September 2022 rates the country as ‘in debt distress’.

SDG Stimulus

The UN Secretary General’s SDG Stimulus Plan lays out a blueprint for action within the existing financial architecture. It includes:

  • Providing liquidity to support recovery in the near term
  • Enhance debt relief for vulnerable countries.​
  • Expanding development financing by MDBs
  • Align financial flows with the SDGs and Paris Agreement, according to country-level priorities and needs, for example through the rollout of the UN Integrated National Financing Framework (INFFs).

Given the projected fiscal and financial constraints faced by

São Tomé and Príncipe

possible funding options for the investments derived from the identified interlinkages are as follows:

  • Tax and revenue reform​
  • Debt for SDGs​
  • Climate finance​
  • Energy transition ​
  • Blended and public-private finance​
  • SDG-aligned business environment and investment​
  • Leveraging São Tomé’s Blue Economy potential​
  • Accessing financial markets and insurance​
  • Remittances, philanthropy and faith-based financing​

Methodology & Data Sources

Click here to view the Methodological Note for the Integrated SDG Insights.

This report is the result of a global exercise carried out using artificial intelligence to identify SDG priorities based on 10 national government documents, together with SDG progress and SDG interlinkage analysis. The implementation and monitoring of the 2030 Agenda in Argentina should be consulted in the Country Reports and National Voluntary Reports.

SDG Moment

Methodology
Assesses challenges and opportunities in national growth trajectories with insights on environmental sustainability and inclusiveness.

Data Sources
Future trajectories to 2025 are based on IMF-WEO GDP projections, distributions of per capita income or consumption from the World Bank, and CO2 emissions from the Global Carbon Budget 2022 and EDGAR (JRC and IEA).​

Trends & Priorities

Methodology
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.

Data Sources
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.

Interlinkages

Methodology
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.

Data Sources
The exercise globally considered a total of 454 documents published from 2015 to August 2022. (Miola et al., 2019 updated in 2021-2022)​

Finance & Stimulus

Methodology
Provides insight into indicators of fiscal and financial stress with options (INFF) for stimulus and other means to accelerate progress.

Data Sources
Most recent resource data from UNU-WIDER GRD (between 2018 and 2021), debt and revenue from IMF WEO (between 2020 and forecasts for 2023), external debt from IDS (2023), yields from Haver Analytics (8 June 2023), credit ratings from S&P, Moodys and FITCH (2023), and DSA ratings from World Bank/IMF (31 May 2023).