Benin: Sixth Reviews Under the Extended Fund Facility and the Extended Credit Facility Arrangements, and Third Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Benin
July 14, 2025
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Benin’s strong institutional foundation and economic reform drive, combined
with sound macroeconomic management, has generated tangible dividends. Economic
activity accelerated over the past five years—and markedly in 2024—with promising
signs of economic transformation and less volatile income growth. Fiscal consolidation
in 2024 supported Benin’s convergence to the WAEMU deficit norm of 3 percent of
GDP one year in advance—one of only two countries to do so in the WAEMU. The 2025
budget will therefore target a minor adjustment to remain in compliance with the
WAEMU deficit norm. The strong reform drive has sustained development partners’
engagement and reaffirmed international investors’ confidence: budget support
continues to consistently exceed expectations, while access to international markets is
marked by successful issuances. Going forward, Benin will need to manage sociopolitical
and security challenges, while maintaining the reform and tax collection
momentum and strengthening inclusive policies to entrench the ongoing economic
transformation.
with sound macroeconomic management, has generated tangible dividends. Economic
activity accelerated over the past five years—and markedly in 2024—with promising
signs of economic transformation and less volatile income growth. Fiscal consolidation
in 2024 supported Benin’s convergence to the WAEMU deficit norm of 3 percent of
GDP one year in advance—one of only two countries to do so in the WAEMU. The 2025
budget will therefore target a minor adjustment to remain in compliance with the
WAEMU deficit norm. The strong reform drive has sustained development partners’
engagement and reaffirmed international investors’ confidence: budget support
continues to consistently exceed expectations, while access to international markets is
marked by successful issuances. Going forward, Benin will need to manage sociopolitical
and security challenges, while maintaining the reform and tax collection
momentum and strengthening inclusive policies to entrench the ongoing economic
transformation.
Subject: Capital spending, Debt sustainability analysis, Expenditure, External debt, Public debt, Revenue administration
Keywords: Africa, Capital spending, Debt sustainability analysis, ECF arrangement, electricity tariff regulation, Global, government plan, Policy discussion, RSF arrangement, RSF front, RSF review, West Africa
Pages:
117
Volume:
2025
DOI:
Issue:
185
Series:
Country Report No. 2025/185
Stock No:
1BENEA2025001
ISBN:
9798229015967
ISSN:
1934-7685
