Sao Tome, July 9, 2026 (Lusa) - Sao Tome's government has acknowledged that it has been experiencing financial challenges in paying staff salaries due to rising fuel prices, but said that June’s salaries would be paid by Friday.
The economy minister, Gareth Guadalupe, speaking at a press conference on Thursday, noted that the financial challenges have been more acute since the pay rise implemented in the last quarter of last year, which increased wage costs while the government continues to pursue a corresponding increase in revenue.
“The situation becomes even more challenging when, in addition to paying the salaries that have already risen across the entire civil service, which is putting considerable pressure on cash flow, we are facing a dramatic rise in fuel prices,” he said.
The minister noted that conditions have become more challenging since the start of the war in the Middle East, during which the government spent around €6.5 million on fuel purchases, but then spent €11 million on the penultimate purchase and around €18 million on the most recent purchase in June.
“The main challenge lies in securing the funds to make these payments […] people need to understand that the crisis we are experiencing is not just about price rises; it is also about the availability of supply,” the minister said.
Guadalupe acknowledged that the government had decided to delay salary payments to ensure the purchase of fuel, which is essential to energy supply and the functioning of the economy, particularly in the private sector.
“If we do not have the fuel for the country to function, public sector employees will be left without salaries, and all private economic activity will cease to exist because we have no fuel,” he explained.
However, the minister said that June’s salaries began to be paid out last week, prioritising the health and education sectors and civil servants in the Autonomous Region of Príncipe, with payments expected to be completed by Friday.
Despite revenue challenges, the minister said that the government would start paying the annual leave allowance to civil servants from July, with all sectors expected to be paid in phases by November.
According to Gareth Guadalupe, to ease the burden of fuel costs and the financial strain on the state, the solution lies in investing in renewable energy, with at least 10 megawatts available by September.
JYAF/ADB // ADB.
Lusa
