## 1benea2023004 - PREFACE

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---

### Development planning framework and history
- Post-February 1990 Conférence des Forces Vives, Benin adopted a three-level development planning coordination: perspective, strategic planning, and three-year rolling investment programs for long, medium, and short terms.
- The long-term vision “Benin 2025 Alafia” was reaffirmed in 2000.
- Three phases for socioeconomic structural transformation:
  - (i) strengthening of the institutional and economic foundations (2000-2010);
  - (ii) economic growth in support of development (2011-2020);
  - (iii) restoring social values and reclaiming the external environment (2021-2025).
- Midterm assessment: substantial delay toward achieving Benin 2025 Alafia Vision and absence of an appropriate monitoring and evaluation mechanism based on quantitative benchmarks.
- Development paradigm aligned with the Sustainable Development Goals (SDGs) “not to leave anyone behind.”

### Recent diagnostics and policy instruments
- April 2016 diagnostic of living conditions: persistent poverty, unemployment, corruption, and institutional failures.
- Government responses:
  - Bénin Révélé (Benin Revealed) Action Program.
  - Government Action Program (PAG).
  - 2018-2025 National Development Plan (PND), adopted October 24, 2018, targeting human capital development and implementation of international agendas including the SDGs (horizon 2030) and Africa 2063 Vision.

### Participation and implementation commitments
- PND (2018-2025) developed via a participatory and inclusive process involving sectoral ministries, institutions of the Republic, civil society organizations (CSO), social partners, National Association of Municipalities of Benin (ANCB), and technical and financial partners (PTF).
- UNDP provided major support as lead agency for technical and financial partners.
- Official government commitment to sustain PND implementation; leadership endorsements highlighted.

### Foundations and role of the National Development Plan (PND)
- Council of Ministers roadmap (July 27, 2016) initiated development of the 2016-2021 PAG and the PND.
- PND as first layer in configuration of Benin 2025 Alafia Vision; follows planning system adopted during national assessment days on December 5 and 6, 1991 and adopted by government in 1992.
- PND specifies strategic benchmarks for the eight-year period until 2025 and will be implemented in two phases:
  - first phase: 2018 through 2021 (through the Growth for Sustainable Development Program (PC2D) reflecting PAG objectives);
  - second phase: 2022 through 2025.
- Unique PND characteristics:
  - alignment with Benin 2025 Alafia Vision, the SDGs, and Africa’s Agenda 2063 via four pillars: (i) economic growth and structural transformation; (ii) inequality reduction and improvement of social inclusion; (iii) environmental sustainability; and (iv) effective and inclusive governance;
  - tool for guiding strategic objectives, flagship investment projects, and major economic and social reforms;
  - implementation and monitoring framework including results-based management tools and indicators.
- PND developed through participatory process involving all sectors and the country’s 12 departments.

### Strategic diagnostics — Human capital
- Constraints to human development:
  - low productivity, high demographic growth, high poverty and inequality rates, lack of decent job opportunities, increased vulnerability from limited access to housing, sanitation, water, and health care.
  - multiple deprivations and weak performance in education, health, and social protection.
- Education indicators:
  - gross rate of access to introductory courses (CI) in 2015: 141 percent;
  - gross rate in Grade Six (6e) in 2015: 66 percent;
  - differential reflects “a deterioration of more than 50 percent.”
- Literacy and health indicators:
  - literacy rate in 2015: 43.1 percent;
  - regional comparator average (including Togo, Côte d’Ivoire, and Senegal): 60 percent.
- Public health concerns: high maternal and infant mortality rates; malaria, tuberculosis, and HIV/AIDS as leading causes of hospitalization; chronic malnutrition; drinking water shortages in some areas.
- Labor market and social challenges:
  - informality reflects low-skilled activities generating limited revenues;
  - promoting decent employment is a national priority;
  - exploitation of children and violence against women are major challenges;
  - unresolved gender dimension across economic, political, social, and cultural areas.
- Key human-capital policy priorities:
  - Foster and scale-up human capital to improve labor productivity.
  - Strengthen implementation of the 2013-2025 National Population Policy (PNP) to reap the “demographic dividend.”
  - Implement an effective poverty reduction strategy emphasizing income redistribution, economic growth, and better targeting of poorest households; expand social security under Insurance for Human Capital Development (ARCH); develop income-generating activities via territorial development.
  - Establish a coherent, effective system to promote youth employment.

### Strategic diagnostics — Economic growth and production system
- Growth and productivity issues:
  - effective growth during 2005-2015: 3.9 percent;
  - potential growth during 2005-2015: 8 percent.
- Weak structural transformation despite untapped potential in agriculture, livestock, fishing, trade, tourism, and digital sectors.
- PND focus areas: inclusive and sustained growth, demographic considerations, reforms for structural transformation, human capital consolidation, economic diversification, modernization of agriculture, agroindustry, transportation, infrastructures, and services (logistics, digital, tourism, financial).
- Structural transformation defined as transferring labor from low productive to more dynamic and highly productive activities.

---

### 1benea2023004 - introduction of a new specialization to enhance competitiveness and to target new regional

### Economic structure and competitiveness
- Sectoral shares (averages since 2000):
  - primary sector: 23.3 percent of GDP;
  - secondary sector: 24.7 percent of GDP;
  - tertiary sector: 52.0 percent of GDP.
- Downward trend in total factor productivity affecting labor productivity in agriculture and industry.
- Policy proposal: promote a large-scale transfer of agricultural and industrial biotechnologies to improve factor productivity by at least 3.0 percent between 2018 and 2025.
- Banking sector: highly liquid; firms face difficulties accessing tailored financing solutions.

### Environment, land use, and climate change
- Key problems: land use planning, decentralization, continuous pressure on natural resources, and effects of climate change.
- Policy needs:
  - Adopt targeted sector policies and accompanying measures to ensure effectiveness of land management instruments.
  - Develop best environmental governance and participatory land management practices.
- Land development concerns: securing property for housing and economic investment; managing pollution, waste products, wastewater and rainwater; accessibility of decent, affordable housing.
- Emphasis on reducing spatial disparities while accounting for regional development hubs, infrastructures, socio-collective facilities, and effective use of border areas.

### Governance, institutions, peace, and security
- Democratic process faces difficulties: separation of powers, accountability application, and public participation at national and local levels.
- Security improved and social dialogue has promoted peace, but some stakeholders have not consistently delivered on commitments.
- Persistent governance weaknesses:
  - challenging political governance and rule of law where liberties are sometimes at risk;
  - weak public administration and an ineffective, opaque justice system;
  - insufficient quality in public resource allocation and ongoing corruption in property, tax and customs administrations, public procurement, and PPP framework.
- Governance reform priorities:
  - improve political governance, institutional functioning, and electoral dispute resolution;
  - strengthen rule of law and liberties;
  - make judicial services transparent and efficient;
  - modernize public administration to improve public services, transparency, and policy formulation;
  - strengthen the fight against corruption to improve Doing Business outcomes;
  - improve quality of public resource allocation and management, addressing inconsistencies between investment decisions and current expenditure projections, gaps between expenditure forecasts and outturn, unrealistic sectoral MTEFs, ineffective budget arbitration, and lack of accountability with CSO involvement;
  - expand and clarify decentralization for effective multi-level operations and planning.

### Challenges, objectives, and strategic choices for the PND
- Development challenge by 2025: achieve strong, inclusive, sustained, and durable economic growth by overcoming diversification challenges, formalizing informal activities, and structurally transforming human capital and production/consumption mechanisms.
- Medium-term transformation focuses:
  - (I) improve productivity of the primary sector;
  - (ii) foster development of processing activities including a diversified, modern industrial sector and services relying on information and communication technologies;
  - (iii) elevate the level of human capital;
  - (iv) improve economic, administrative, and local governance.
- Strategic option: make agroindustry, tourism, and services the engine of inclusive, sustainable economic growth within more effective national and local governance.
- General PND objective: “achieve sustained, inclusive, and sustainable growth of at least 10 percent in 2025 focused on development of agroindustry, services, and tourism in a context of more effective national and local governance, based on the development of human capital and infrastructures.”
- Major changes to be confirmed by 2025:
  - Healthy, skilled, and competitive human capital.
  - A competitive, diversified economy based on agroindustry and services.
  - Command of land management and urban development, and adaptation to climate changes.
  - Effective national and local governance strengthened by sustained development management.

### PND strategic objectives and pillars
- Four strategic objectives:
  - To develop healthy, skilled, and competitive human capital.
  - To sustainably increase the productivity and competitiveness of Benin’s economy.
  - To ensure the sustainable management of living conditions, the environment, and the emergence of regional development centers.
  - To consolidate the rule of law and good governance.
- Three fundamental pillars:
  - Diversification of agricultural production through development of services (rural infrastructures, logistics, innovations, biotechnologies, and regional centers).
  - Agroindustrial transformation and increased development of services (special economic zones, business climate, tourism, transportation, logistics, digital, innovations).
  - Exporting of knowledge through innovations and biotechnologies.

### Expected impacts, outputs, and priority results
- Six required effects for desired impacts:
  - Healthy, skilled, and competitive human capital for sustainable, inclusive development.
  - Accelerated structural transformation of the Beninese economy.
  - Diversified and productive agriculture ensuring food security and synergy with processing industries.
  - Controlled urban development and rural management with emergence of regional development centers and resilience against climate change and natural disasters.
  - Inclusive, peaceful, and effective governance.
  - Access to quality public services for the Beninese population.
- Priority human capital results:
  - Quality health services accessible and improved in all regions.
  - Health infrastructures effectively distributed with appropriate equipment and human capital.
  - Improved supply of education, vocational training, and adult literacy in quantitative and qualitative terms, accessible to everyone.
  - Improved sanitation and energy services.
  - Accessible social protection and coverage adapted to various occupational situations in formal and informal sectors.
  - Strengthened nutritional status and access to food and drinking water.
  - Increased incomes for women and men, particularly young persons.
  - Improved access to financial services.
  - Environment and conditions conducive to sport and cultural activities for youth.
  - Minimized social and gender inequalities and promotion of women’s socioeconomic and political roles.
- Priority results to accelerate structural transformation and create decent, sustainable jobs:
  - Boost economic diversification.
  - Substantially increase value added of key sectors, particularly industry, tourism, and services.
  - Increase productivity of production factors.
  - Enhance competitiveness of the economy.
  - Provide rural populations with modern, reliable infrastructures for economic exchanges and market access.
  - Provide tailored financing to agroindustry, services, and infrastructures.
  - Adapt finance to the specificities of the informal sector.
- Priority results for sustainable management of living conditions and environment:
  - Conserve and upgrade natural resources.
  - Strengthen resilience and capacities to adapt to climate change and natural disasters.
  - Improve living environment, particularly sanitation and energy services.
  - Reflect efficient and equitable land management and regional development in sectoral policies to revitalize regional and local economies.
  - Provide access to decent housing.

---

### 4. Economy is resilient against shocks

### Governance, public services, and social protection
- Improve legal and physical security for individuals and the rights of democratic expression.
- General government to offer quality services to support development dynamics.
- Communities require access to quality basic sanitation and social services.
- Strengthen and revitalize local governance.
- Ensure the population can exercise rights and duties in an effective, accessible, and credible judicial system.
- Public resources must be more effectively directed, managed, and used in support of priority development needs through more efficient administration.
- Wage an effective fight against corruption.
- Protect population and property and strengthen national cohesion.
- Strengthen institutional efficacy and improve quality of public services.

### Regional governance resilience
- Ensure resilience of regional governance against regional sociopolitical instability.

### Macroeconomic framework and PND scenarios
- PND includes three scenarios; PND-SDG scenario premised on reasonably prompt implementation of the Government Action Program, economic reforms, and four-year PC2D programs.
- PND-SDG assumptions and actions:
  - Strengthen investment, particularly private sector, reflecting updated phasing of PAG projects at end-2017 following feasibility studies.
  - Assume favorable commodity price trends and good climate conditions.
  - Accelerate economic growth through structural socioeconomic transformation and inclusive financing instruments for agropastoral sector and processing industries.
  - Develop private investment to reach 33 percent of GDP by 2025, focusing on SMEs, PPPs, and increased FDI.
  - Stable global and regional economic environment and domestic factors.
  - Macroeconomic assumptions based on real improvement in the business climate and progress in major reforms: modernization of public administration, fight against corruption, modernization of social protection, effective public financial management, and inclusive access to financial services.
- Targeted PND-SDG outcomes:
  - economic growth rate should reach 10.2 percent in 2025, as against 5.6 percent in 2017.
  - investment rate should rise from 29.1 percent in 2017 to 33.2 percent for the period 2022-2025.
  - revenue (not including grants) should represent 22.3 percent of GDP during the period 2022-2025, as against 17.6 percent in 2017.

### PND financing scheme
- Implementation instruments: PAG, PC2Ds (2018-2021; 2022-2025), sectoral policies, and Communities Development Plans (PDC), ensuring alignment.
- Financing sources and instruments:
  - More domestic revenue mobilization.
  - Development of Public Private Partnerships.
  - Recourse to financial markets and technical and financial partners, nongovernmental organizations, foundations.
  - Active participation of the diaspora.
  - Use of innovative financing instruments and establishment of specialized financing facilities (environment, health, education, etc.).
- Human capital and technical assistance needs:
  - Benin must have a critical mass of human capital primarily among general government staff.
  - Clearly identify technical assistance from international organizations.
- Engagement with global initiatives:
  - Participation in UN initiative for evaluation of development financing in context of Addis Ababa Action Agenda to explore domestic, external, diaspora, sovereign funds, financial markets, foundations, innovative—including climate—financing, PPPs, etc.
  - Strategies and action plans for financing the PND to be refined based on the study.

### Monitoring and evaluation mechanism
- National-level steering bodies:
  - National Guidance Committee (NOC) as highest body.
  - Government-Development Partner Committee (CGPAD).
  - Technical Steering and Monitoring Committee (CTPS).
- Technical secretariat and support:
  - Directorate General for Development Policies (DGPD) to provide technical secretariat for CTPS and support the Progress and Impact Monitoring Framework (CSPE).
  - Four working groups, Sectoral Committees (CS), and Development Department Committees (CDP) to support implementation.
- Monitoring arrangements:
  - Four working groups to meet every two years to analyze performance reports for each strategic objective.
  - Sectoral Steering and Monitoring & Evaluation Committee in each ministry/institution to monitor sectoral performance per PND indicators.
  - Departmental Development Committees, chaired by prefects, including departmental services and municipal development committees, to monitor program/project progress.

### Planning system renewal and strategic orientation
- Historical model maintained: three coordinated planning levels (long-term, medium-term, rolling three-year investment programs) adopted December 1991.
- 2000 Benin 2025 Alafia Vision stages reiterated.
- Past implementation suffered from insufficient coordination between long-term and operational planning.
- Government commitment to bold reforms for renewal of economic and social development, strengthening the national planning system and restoring the “strategic planning” link via the 2018-2025 PND.
- PND objective: incorporate SDGs and Africa’s 2063 Agenda key challenges: inclusive growth, industrialization, economic resilience, human capital development, sustainable development, and governance efficacy.
- Institutional preparation framework: National Guidance Committee, Technical Steering Committee, Technical Secretariat, and Topical Groups; operational bodies used a participatory, inclusive process.
- Four major organizational pillars:
  - (i) human capital and public welfare;
  - (ii) economic growth: productivity and competitiveness;
  - (iii) environment, climate change, and land development;
  - (iv) governance.
- PND as reference framework guiding development objectives and strategies for the next eight years, integrating interrelations at four levels:
  - Economic growth and structural transformation.
  - Reduction of inequalities and improvement of social inclusion.
  - Environmental sustainability.
  - Effective, inclusive governance.

*Source: 1benea2023004 - PREFACE (1benea2023004 - PREFACE)*

### PREFACE

### 1benea2023004 - PREFACE

### Development planning framework and history
- In the wake of the February 1990 Conférence des Forces Vives, Benin adopted an approach to development planning with a three-level coordination: perspective, strategic planning, and a three-year rolling investment programs for the long, medium, and short terms.
- The first layer of the development pyramid was re-affirmed in 2000 with the adoption of the long-term vision “Benin 2025 Alafia”.
- Three phases for socioeconomic structural transformation were defined:
  - (i) strengthening of the institutional and economic foundations (2000-2010);
  - (ii) economic growth in support of development (2011-2020);
  - (iii) restoring social values and reclaiming the external environment (2021-2025).
- Midterm assessment revealed substantial delay toward achieving the Benin 2025 Alafia Vision and absence of an appropriate monitoring and evaluation mechanism based on quantitative benchmarks.
- Development paradigm evolved to be guided by the Sustainable Development Goals (SDGs) “not to leave anyone behind.”

### Recent diagnostics and policy instruments
- A diagnostic of living conditions in April 2016 highlighted persistent poverty, unemployment, corruption, and institutional failures.
- The Government adopted the Bénin Révélé (Benin Revealed) Action Program and the Government Action Program (PAG) to foster durable sustainable economic and social development and avoid ad-hoc planning.
- The decisive adoption of the 2018-2025 National Development Plan (PND) on October 24, 2018 was aimed to address the major challenge of human capital development and to support implementation of international agendas including the SDGs (horizon 2030) and the Africa 2063 Vision.

### Participation and implementation commitments
- The PND (2018-2025) was developed through a participatory and inclusive process involving sectoral ministries, institutions of the Republic, civil society organizations (CSO), social partners, the National Association of Municipalities of Benin (ANCB), and technical and financial partners (PTF).
- The United Nations Development Programme (UNDP) provided major support as lead agency for technical and financial partners.
- Official statements express government commitment to sustain the PND implementation and make Benin 2025 Alafia Vision a reality.
- Key leadership endorsements: Abdoulaye BIO TCHANÉ, Minister of State Responsible for Planning and Development; Magloire A. AGUESSY, Director General of Development Policies.

### Foundations and importance of the National Development Plan (PND)
- A Council of Ministers roadmap on July 27, 2016 set development of the 2016-2021 Government Action Program (PAG) and the National Development Plan (PND).
- The PND is the first layer in the configuration of the Benin 2025 Alafia Vision, following a planning system adopted during national assessment days on December 5 and 6, 1991 and adopted by the government in 1992.
- The PND specifies strategic benchmarks for the eight-year period until 2025 and will be implemented in two phases:
  - first phase: 2018 through 2021 (through the Growth for Sustainable Development Program (PC2D) reflecting PAG objectives);
  - second phase: 2022 through 2025.
- The PND aims to consolidate achievements of the 2016-2021 PAG and ensure continuity in development actions across central, sectoral, and local levels.
- Unique characteristics of the PND:
  - due account of Benin 2025 Alafia Vision, the SDGs, and Africa’s Agenda 2063 via fourfold winning pillars: (i) economic growth and structural transformation; (ii) inequality reduction and improvement of social inclusion; (iii) environmental sustainability; and (iv) effective and inclusive governance;
  - tool for guiding choice of strategic long-term development objectives, flagship investment projects, and major economic and social reforms;
  - implementation and monitoring framework including results-based management tools and indicators.
- The PND was developed through a participatory process involving all sectors of Beninese society and the country’s 12 departments.

### Strategic diagnostics — Human capital
- Benin is lagging behind in human development due to low productivity, high demographic growth, high poverty and inequality rates, lack of decent job opportunities, and increased vulnerability from limited access to housing, sanitation, water, and health care.
- Access to basic social services shows multiple deprivations and weak performance in education, health, and social protection.
- Education indicators:
  - gross rate of access to introductory courses (CI) in 2015: 141 percent;
  - gross rate in Grade Six (6e) in 2015: 66 percent;
  - the differential reflects “a deterioration of more than 50 percent.”
- Literacy and health indicators:
  - literacy rate in 2015: 43.1 percent;
  - regional comparator average (including Togo, Côte d’Ivoire, and Senegal): 60 percent.
- Public health concerns: maternal and infant mortality rates remain high; malaria, tuberculosis, and HIV/AIDS continue as leading causes of hospitalization; chronic malnutrition is a major concern; drinking water shortages persist in some areas.
- Labor market and social challenges:
  - informality reflects low-skilled activities generating limited revenues;
  - promoting decent employment is a national priority;
  - exploitation of children and violence against women are major challenges;
  - unresolved gender dimension across economic, political, social, and cultural areas.
- Key human-capital challenges highlighted:
  - Foster and scale-up human capital to improve labor productivity and enable the active population to contribute more effectively to economic growth.
  - Strengthen implementation of the 2013-2025 National Population Policy (PNP) to reap the “demographic dividend” as the “demographic transition” starts in Benin (simultaneous reductions in the mortality and birth rates).
  - Implement an effective poverty reduction strategy emphasizing income redistribution, economic growth, and better targeting of poorest households; expand social security coverage under the new Insurance for Human Capital Development (ARCH); develop income-generating activities via territorial development involving communities and local authorities.
  - Establish a coherent, effective system to promote youth employment given youth vulnerability and fragmented initiatives.

### Strategic diagnostics — Economic growth and production system
- Diagnosis highlights insufficient economic diversification and a disconnect between effective growth and potential growth during 2005-2015:
  - effective growth: 3.9 percent;
  - potential growth: 8 percent.
- Benin’s weak structural transformation is identified despite untapped potential in agriculture, livestock, and fishing; trade, tourism, and digital sectors noted as sources of innovation and wealth creation.
- The PND focuses on inclusive and sustained growth with deep assessment of demographic dimension and reforms to foster structural transformation, consolidate human capital development, and bolster economic diversification and modernization of key sectors including agriculture, agroindustry and other industries, transportation, infrastructures, and services (logistics, digital, tourism, and financial).
- Structural transformation noted as a long-lasting process of transferring labor from low productive to more dynamic and highly productive activities and described as a prerequisite for sustained economic and social development.

_Italic line: Source: 1benea2023004 - PREFACE (1benea2023004 - PREFACE)_

### introduction of a new specialization to enhance competitiveness and to target new regional

### 1benea2023004 - introduction of a new specialization to enhance competitiveness and to target new regional

### Economic structure and competitiveness
- The primary sector represented an average of 23.3 percent of GDP since 2000.
- The secondary sector represented an average of 24.7 percent of GDP since 2000.
- The tertiary sector accounts for 52.0 percent of GDP.
- Benin has experienced a downward trend in total factor productivity, affecting labor productivity in both agriculture and industry.
- Policy proposal: promote a large-scale transfer of agricultural and industrial biotechnologies to improve factor productivity by at least 3.0 percent between 2018 and 2025.
- Banking sector characteristic: highly liquid, with firms facing difficulties accessing tailored financing solutions.

### Environment, land use, and climate change
- Key problems: land use planning, decentralization, continuous pressure on natural resources, and effects of climate change.
- Policy needs:
  - Adopt targeted sector policies and accompanying measures to ensure effectiveness of land management instruments.
  - Develop best environmental governance and participatory land management practices.
- Land development concerns: securing property for housing and economic investment; management of pollution, waste products, wastewater and rainwater; accessibility of decent, affordable housing.
- Emphasis on reducing spatial disparities while accounting for regional development hubs, infrastructures, socio-collective facilities, and effective use of border areas.

### Governance, institutions, peace, and security
- Democratic process is underway but faces difficulties: separation of powers, application of accountability principles, and public participation at national and local levels.
- Security has improved and social dialogue has promoted peace, though some stakeholders have not consistently delivered on commitments.
- Persistent governance weaknesses:
  - Challenging political governance and rule of law where individual and collective liberties are sometimes at risk.
  - Weak public administration and an ineffective, opaque justice system.
  - Insufficient quality in public resource allocation and ongoing corruption in areas such as property, tax and customs administrations, public procurement, and the Public Private Partnership (PPP) framework.
- Specific governance issues requiring response:
  - Improving political governance, including institutional functioning and electoral dispute resolution.
  - Strengthening the rule of law and liberties.
  - Making judicial services transparent and efficient; current limitations include political influence, corruption, low human capital quality, and poor territorial coverage.
  - Modernizing public administration to improve quality of public services, resource management transparency, and policy formulation.
  - Strengthening the fight against corruption to improve Doing Business outcomes.
  - Improving quality of public resource allocation and management: address inconsistency between investment decisions and current expenditure projections, gaps between expenditure forecasts and outturn, unrealistic sectoral MTEFs, ineffective budget arbitration, and lack of accountability with CSO involvement.
  - Expanding and clarifying decentralization to enable effective operation of interrelated levels and proper planning of activities.

### Challenges, objectives, and strategic choices for the National Development Plan (PND)
- Development challenge by the 2025 horizon: achieve strong, inclusive, sustained, and durable economic growth by overcoming economic diversification challenges, shifting informal activities to the formal sector, and structurally transforming human capital and production/consumption mechanisms.
- Medium-term transformation focuses:
  - (I) improve productivity of the primary sector;
  - (ii) foster development of processing activities including a diversified, modern industrial sector and services relying on information and communication technologies;
  - (iii) elevate the level of human capital;
  - (iv) improve economic, administrative, and local governance.
- Strategic option: make agroindustry, tourism, and services the engine of inclusive, sustainable economic growth within more effective national and local governance, based on human capital and infrastructure development.
- General objective of the PND: “achieve sustained, inclusive, and sustainable growth of at least 10 percent in 2025 focused on development of agroindustry, services, and tourism in a context of more effective national and local governance, based on the development of human capital and infrastructures.”
- Major changes to be confirmed by 2025:
  - Healthy, skilled, and competitive human capital.
  - A competitive, diversified economy based on agroindustry and services.
  - Command of land management and urban development, and adaptation to climate changes.
  - Effective national and local governance strengthened by sustained development management.

### PND strategic objectives and pillars
- Four strategic objectives of the PND:
  - To develop healthy, skilled, and competitive human capital.
  - To sustainably increase the productivity and competitiveness of Benin’s economy.
  - To ensure the sustainable management of living conditions, the environment, and the emergence of regional development centers.
  - To consolidate the rule of law and good governance.
- Three fundamental pillars:
  - Diversification of agricultural production through development of services (rural infrastructures, logistics, innovations, biotechnologies, and regional centers).
  - Agroindustrial transformation and increased development of services (special economic zones, business climate, tourism, transportation, logistics, digital, innovations).
  - Exporting of knowledge through innovations and biotechnologies.

### Expected impacts, outputs, and priority results
- Six required effects for desired impacts:
  - Healthy, skilled, and competitive human capital for sustainable, inclusive development.
  - Accelerated structural transformation of the Beninese economy.
  - Diversified and productive agriculture ensuring food security and effective synergy with processing industries.
  - Controlled urban development and rural management with emergence of regional development centers and resilience against climate change and natural disasters.
  - Inclusive, peaceful, and effective governance.
  - Access to quality public services for the Beninese population.
- Priority results for human capital:
  - Quality health services accessible and improved in all regions.
  - Health infrastructures effectively distributed with appropriate equipment and human capital.
  - Improved supply of education, vocational training, and adult literacy in quantitative and qualitative terms, accessible to everyone.
  - Improved sanitation and energy services contributing to higher quality of life.
  - Accessible social protection and coverage adapted to various occupational situations in formal and informal sectors.
  - Strengthened nutritional status and access to food and drinking water.
  - Increased incomes for women and men, particularly young persons.
  - Improved access to financial services.
  - Environment and conditions conducive to sport and cultural activities for youth.
  - Minimized social and gender inequalities and promotion of women’s socioeconomic and political roles.
- Priority results to accelerate structural transformation and create decent, sustainable jobs:
  - Boost economic diversification.
  - Substantially increase value added of key sectors, particularly industry, tourism, and services.
  - Increase productivity of production factors.
  - Enhance competitiveness of the economy.
  - Provide rural populations with modern, reliable infrastructures for economic exchanges and market access.
  - Provide tailored financing to agroindustry, services, and infrastructures.
  - Adapt finance to the specificities of the informal sector.
- Priority results for sustainable management of living conditions and environment:
  - Conserve and upgrade natural resources.
  - Strengthen resilience and capacities to adapt to climate change and natural disasters.
  - Improve living environment, particularly sanitation and energy services.
  - Effectively reflect efficient and equitable land management and regional development in sectoral policies to revitalize regional and local economies.
  - Provide access to decent housing.

*Source: 1benea2023004 - introduction of a new specialization to enhance competitiveness and to target new regional*

### 4. Economy is resilient against shocks

### 4. Economy is resilient against shocks

### Governance, public services, and social protection
- Legal and physical security for individuals as well as the rights of democratic expression must be improved.
- General government must offer quality services to support the country’s development dynamics.
- Communities must have access to quality basic sanitation and social services.
- Local governance must be strengthened and revitalized.
- The population must exercise its rights and duties in an effective, accessible, and credible judicial system.
- Public resources must be more effectively directed, managed, and used in support of priority development needs through more efficient administration.
- An effective fight must be waged against corruption.
- Protection of the population and property and strengthening of national cohesion must be ensured.
- The efficacy of institutions must be strengthened, and the quality of public services must be improved.

### Regional governance resilience
- Efforts must be made to ensure the resilience of regional governance against regional sociopolitical instability.

### Macroeconomic framework and PND scenarios
- The PND includes three scenarios; the PND-SDG scenario is based on a reasonably prompt implementation of the Government Action Program and its economic reforms, in addition to four-year PC2D programs.
- PND-SDG scenario objectives and assumptions:
  - Strengthen investment, particularly from the private sector, reflecting updated phasing of projects included in the PAG at end-2017 following feasibility studies.
  - Assumes favorable commodity price trends in the international markets and good climate conditions.
  - Accelerated economic growth emphasizing sustainable and inclusive growth through structural socioeconomic transformation, creation of income opportunities in poor areas and in the informal sector, implementation of inclusive financing instruments for the agropastoral sector and processing industries, and reforms for a more efficient administration.
  - Development of private investment to reach 33 percent of GDP by 2025, focusing on the development of small and medium-scale enterprises and industries, promotion of public-private partnerships, and increased foreign direct investment.
  - Stable evolution of the global and regional economic environment and domestic factors of economic evolution.
  - Macroeconomic assumptions based on real improvement in the business climate and progress in implementing major reforms, including modernization of the public administration, the fight against corruption, modernization of the social protection system, an effective public financial management system, and inclusive access to financial services.
- Targeted outcomes under the PND-SDG scenario:
  - The economic growth rate should reach 10.2 percent in 2025, as against 5.6 percent in 2017.
  - The investment rate should rise from 29.1 percent in 2017 to 33.2 percent for the period 2022-2025.
  - Revenue (not including grants) should represent 22.3 percent of GDP during the period 2022-2025, as against 17.6 percent in 2017.

### PND financing scheme
- Implementation instruments: PAG, PC2Ds (2018-2021; 2022-2025), sectoral policies, and Communities Development Plans (PDC), ensuring alignment for consistency.
- Financing sources and instruments to be mobilized:
  - More domestic revenue mobilization.
  - Development of Public Private Partnerships.
  - Recourse to the financial markets and technical and financial partners, nongovernmental organizations, foundations.
  - Active participation of the diaspora.
  - Effective use of innovative financing instruments and the establishment of specialized financing facilities (environment, health, education, etc.).
- Human capital and technical assistance needs:
  - Benin must have a critical mass of human capital consisting primarily of staff of general government (the central government and local authorities).
  - Clearly identify technical assistance from international organizations.
- Engagement with global initiatives:
  - Benin is part of the United Nations initiative for the evaluation of development financing in the context of the Addis Ababa Action Agenda on Financing for Development to explore all potential sources of financing (domestic, external, diaspora, sovereign funds, financial markets, foundations, innovative—including climate—financing, PPPs, etc.).
  - Strategies and action plans for financing the National Development Plan will be refined based on the study.

### Monitoring and evaluation mechanism
- National-level strategic guidance and technical steering:
  - The National Guidance Committee (NOC): The highest body in the steering system.
  - The Government-Development Partner Committee (CGPAD).
  - The Technical Steering and Monitoring Committee (CTPS).
- Strategic monitoring:
  - The Directorate General for Development Policies (DGPD) will provide the technical secretariat for the Technical Steering and Monitoring Committee of the PND and will support the Progress and Impact Monitoring Framework (CSPE).
  - Support to implementation through four working groups, the Sectoral Committees (CS), and the Development Department Committees (CDP).
- Monitoring of sectoral performance and expected outputs:
  - Four working groups, that will meet every two years, will be established to analyze performance reports for each strategic objective of the PND.
  - A Sectoral Steering and Monitoring & Evaluation Committee in each ministry and institution will monitor performance at the sectoral level according to the indicators defined by the PND performance framework.
  - Departmental Development Committees, chaired by the prefects, including departmental services and municipal development committees, will monitor the progress of various program and projects being implemented.

### Planning system renewal and strategic orientation
- Historical planning context:
  - Benin adopted a model for the development planning process at three coordinated levels: (i) long-term planning, (ii) medium-term planning; and (iii) rolling three-year investment programs (model adopted in December 1991).
  - In 2000, Benin adopted the long-term Benin 2025 Alafia Vision with three stages of socioeconomic structural transformation: (i) strengthening the institutional and economic foundations (2000-2010); (ii) economic growth in support of development (2011-2020); and (iii) restoring social values and reclaiming the external environment (2021-2025).
  - Past implementation suffered from insufficient coordination between long-term planning and operational planning.
- Government commitment:
  - Willingness to make bold reforms for sustainable renewal of economic and social development, including strengthening the national planning system and restoring the “strategic planning” link between forward-looking and operational planning through the 2018-2025 PND.
- Objective of the 2018-2025 PND:
  - Incorporate major challenges and key questions of the SDGs and Africa’s 2063 Agenda: inclusive growth, industrialization, greater economic resilience, development of human capital, sustainable development, and efficacy of governance.
  - Institutional framework for preparation: National Guidance Committee, Technical Steering Committee, Technical Secretariat, and Topical Groups; operational bodies used a participatory, inclusive process.
- Four major pillars around which the process was organized:
  - (i) human capital and public welfare;
  - (ii) economic growth: productivity and competitiveness;
  - (iii) environment, climate change, and land development;
  - (iv) governance.
- The PND will be used as a reference framework to guide development objectives and strategies for the next eight years, integrating interrelations at four levels:
  - Economic growth and structural transformation.
  - Reduction of inequalities and improvement of social inclusion.
  - Environmental sustainability.
  - Effective, inclusive governance.

*Source: 1benea2023004 - 4. Economy is resilient against shocks.*

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_Source: https://www.imf.org/-/media/files/publications/cr/2023/english/1benea2023004.pdf_