IMF Staff Discusses with the Beninese Authorities on a Possible Fund-Supported Program
IMF News, December 12, 2016
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Bibliographic details
- Published: December 12, 2016
Mission details
- Press Release No. 16/552
- Mission leader: Norbert Toé (Mission Chief for Benin)
- Mission dates: November 30 to December 12, 2016
- Purpose: Continue discussions with the authorities on a three-year economic program that could be supported by the IMF under its Extended Credit Facility (ECF) arrangement.
- Contact: Phone: +1 202 623-7100; Email: MEDIA@IMF.org
Principal findings and economic assessment
- “The new government is moving swiftly to change the policy environment and is intent on fostering a structural transformation of the economy and improving the living conditions of the population.” — Norbert Toé
- External shock: Negative spillovers from Nigeria—Benin’s main trading partner—had significant impacts on the economy, including a decline in customs revenues.
- Resilience: “Economic activity remained resilient thanks, primarily, to agriculture production.”
- Commitment: The authorities have committed to preserve macroeconomic stability while implementing an ambitious structural reform agenda emphasizing improving governance and boosting investment.
- Role of ECF: The ECF is a concessional lending instrument for low-income countries with a three-year government economic program agreed with the IMF.
Policy recommendations and priorities agreed with authorities
- Step up domestic revenue mobilization.
- Strengthen public financial management.
- Create fiscal space for increased public investment and pro-poor spending while preserving debt sustainability.
- Implement structural reforms to improve governance and boost investment.
Engagements and consultations
- The mission met with President Talon.
- Discussions held with:
- Romuald Wadagni, Minister of Economy and Finance
- Abdoulaye Bio Tchané, Senior Minister of State of Planning and Development
- Alain Komaclo, National Director of the regional central bank (BCEAO)
- Other senior government officials
- Representatives of Benin’s international development partners, civil society, and the banking and business communities
Next steps and outlook
- “Significant progress has been made and discussions with the authorities will continue.”
- Continued engagement to finalize a three-year program that could be supported under the IMF’s ECF arrangement.
IMF Communications Department — End-of-Mission press release (views are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board).