São Tomé and Principe has a country-specific memorandum of understanding for the implementation of the Lusophone Compact aimed at accelerating inclusive, sustainable and diversified private sector growth
São Tomé is the fifth nation to sign the agreement, after Mozambique, Cabo Verde, Angola, Guinea-Bissau. The Lusophone Compact is an initiative championed by the African Development Bank to accelerate inclusive, sustainable and diversified private sector growth in the Portuguese-speaking African countries (PALOPs): Angola, Cabo Verde, Equatorial Guinea, Guinea-Bissau, Mozambique and São Tomé and Príncipe.
The signing ceremony was attended by more than 50 participants including representatives of the São Toméan Government, members of the diplomatic corps, financial institutions, private companies and project sponsors, the Compact for São Tomé.
Minister Vaz highlighted the Government’s role in the implementation of the Lusophone Compact and how to foster private sector-led economic growth, by attracting foreign private investment, as well as creating a conducive business environment through more sector-friendly regulation.
The initiative aims to unlock the PALOP’s growth opportunities by supporting the countries’ economic integration within their geographic regions and across Africa, anchored by three pillars, which include risk mitigation, investment products and technical assistance.
“We have to look at the continental context in which we just signed this Compact - the Africa Continental Free Trade Area - that will facilitate intra-regional trade. Therefore, it is important that each country can have a dynamic private sector that can export goods and services to other countries. This would be where the Lusophone Compact could play an important role,” AfDB country manager for Angola and São Tomé and Príncipe Joseph Ribeiro said.
For Portugal’s Ambassador, the private sector is an irreplaceable partner in boosting economic growth and sustainable development. “The Lusophone Compact meets the needs for promoting private investment and at the same time, materialises the spirit of partnership that should guide development cooperation,” he said.
