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International Monetary Fund. African Dept.

This Selected Issues Paper (SIP) uses the dynamic macroeconomic Sustainable Development Goals (SDGs) financing framework to estimate the infrastructure financing gap in São Tomé and Príncipe (STP). Human capital and infrastructure investments are key strategic priorities of STP’s National Development Plans.2 We will: i) estimate STP’s human capital and infrastructure gap in 2030 based on the authorities’ current policies; ii) estimate how active policies—improved domestic revenue mobilization, enhanced spending efficiency, and efforts to attract private investment—could reduce this infrastructure gap; and iii) determine the residual financing to be sought from STP’s development partners in grant financing.