Benin: Third Review under the Extended Fund Facility and the Extended Credit Facility Arrangements and Request for an Arrangement under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director
IMF Staff Country Reports, January 5, 2024
Source details
- Canonical URL
- Benin: Third Review under the Extended Fund Facility and the Extended Credit Facility Arrangements and Request for an Arrangement under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director
Other formats
Bibliographic details
- Published: January 5, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400263903.002
Overview and Key Findings
- The paper discusses Benin’s Third Review under the Extended Fund Facility (EFF) and the Extended Credit Facility (ECF) Arrangements and Request for an Arrangement under the Resilience and Sustainability Facility (RSF).
- Robust tax collection is supporting fiscal consolidation.
- Stepped-up budget support from Benin’s development partners and frontloaded Fund disbursements under the EFF/ECF complement fiscal consolidation efforts.
- The RSF will support the authorities’ goal to mainstream climate considerations in policymaking and will complement the EFF/ECF in supporting overall socio-economic resilience in Benin.
- Contingency planning is paramount given heightened uncertainty.
Fiscal, Financial, and Macro Policy Implications
- Fiscal consolidation is being supported by robust tax collection and external budget support.
- Frontloaded Fund disbursements under the EFF/ECF are a key financing element.
- Remaining vigilant vis-à-vis financial sector risks and promoting financial inclusion are highlighted as supports for sustainable growth.
- A phased approach to public investment and flexibility in budget execution are recommended to manage uncertainty.
RSF Role and Climate-Related Measures
- The RSF is designed to mainstream climate considerations into Benin’s policymaking.
- RSF support is intended to complement the EFF/ECF by enhancing socio-economic resilience.
- Addressing structural challenges that expose Benin to climate shocks is expected to mitigate balance of payment risks and catalyze other sources of climate financing.
Governance, Structural Reforms, and Institutional Foundations
- Sustaining the ongoing reform drive to enhance the rule of law and the anticorruption framework is emphasized.
- Strengthening these institutions is presented as necessary to solidify the foundations for private sector–led growth that benefits all Beninese.
Policy Recommendations and Priorities
- Maintain flexibility in budget execution, including a phased approach to public investment.
- Continue robust revenue mobilization efforts to support fiscal consolidation.
- Advance reforms to the rule of law and anticorruption framework to underpin private-sector-led growth.
- Monitor and mitigate financial sector risks while promoting financial inclusion.
- Implement contingency planning given heightened uncertainty.
Subjects and Keywords (as provided)
- Subject: Climate change, Climate finance, Environment, International organization, Monetary policy, Natural disasters, Public debt, Revenue administration
- Keywords: Africa, Climate change, Climate finance, consolidation effort, Global, government action program II, Natural disasters, RSF arrangement, RSF design, RSF reform measures build, West Africa
IMF Staff Country Report No. 2024/003; January 5, 2024; Pages: 154; Volume: 2024; Issue: 003; DOI: https://doi.org/10.5089/9798400263903.002; Stock No: 1BENEA2024001; ISBN: 9798400263903; ISSN: 1934-7685
Content in this bundle
- 1benea2024001