## IMF Staff Concludes Visit to Benin

_IMF News, November 23, 2021_

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## Bibliographic details
- Published: November 23, 2021

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### Mission context and purpose
- Press Release No. 21/345; November 23, 2021.
- IMF mission led by Constant Lonkeng conducted in-person and virtual meetings with Beninese authorities during November 15–23 to discuss recent economic developments and policy priorities to inform future discussions on an IMF-supported program.
- The mission followed an official request for a new Fund-supported program by the Beninese authorities to anchor the country’s homegrown development plan.
- Views expressed are those of IMF staff; the mission will not result in a Board discussion.

### Recent financing and IMF support
- Benin’s three-year Fund-supported Extended Credit Facility (ECF) arrangement (about US$255 million, including the augmentation of access of US$103 million at the onset of COVID-19) reached an end in May 2020.
- IMF emergency financing approved in December 2020 under the Rapid Credit Facility and the Rapid Financing Instrument: US$178 million.
- IMF general SDR allocation received in August 2021: US$168 million, 1 percent of GDP.

### Macroeconomic performance and outlook
- Strong macroeconomic fundamentals entering COVID-19 provided much-needed fiscal space and continuous access to financing, helping contain the economic fallout.
- Government pandemic response and public investment contributed to economic activity expanding by 3.8 percent in 2020.
- The government designed a package of mitigating health-related and economic support measures totaling 4.5 percent of GDP extending over 2020–22.
- A robust economic recovery is underway despite setbacks in agriculture due to weather-related events.
- Recovery is aided by the normalization of merchandise traffic at the Port of Cotonou—identified as one of Benin’s main economic engines.
- Inflation and food prices:
  - Aggregate inflation has remained subdued.
  - Food prices rose 8 percent in October 2021, y/y.

### COVID-19 developments and vaccination
- Benin experienced its most severe wave of COVID-19 infections, with weekly confirmed cases peaking at 4,760 in September.
- Situation has since eased, but vaccination coverage remains low:
  - Only about 460,000 persons or 3.7 percent of the population have been fully vaccinated.
- Authorities are revamping the vaccination strategy through close engagement with local communities and expansion of rollout capacity to increase take-up and reduce vulnerability to future outbreaks.

### Fiscal transparency, oversight, and governance
- The mission noted online publication of procurement documents and key contract information related to major projects implemented under the COVID-19 response plan.
- Operationalization of the Court of Auditors (previously Accounting Chamber) following an institutional change that set it at arm’s length from the Supreme Court is underway.
- The institutional transition has delayed the ex-post independent audit of COVID-19 related funds; the authorities intend to accelerate this audit to preserve the integrity of emergency financing and bolster trust in public institutions.

### Policy dialogue, next steps, and engagements
- The mission discussed recent economic developments and the outlook, budget execution under the 2021 supplementary, and assumptions underpinning the 2022 budget, as well as authorities’ policy priorities.
- These discussions will inform the upcoming Article IV consultation and discussions on a possible Fund-supported program for Benin, expected to take place early next year.
- The mission met with:
  - Senior Minister of Economy and Finance Wadagni;
  - Minister of Development and Coordination of the Governmental Action Bio Tchané;
  - Minister of Health Hounkpatin;
  - Minister of Social Affairs and Microfinance Tognifodé;
  - National Director of the BCEAO Assilamehoo;
  - Other senior government officials, civil society, representatives of the business community (including the national federation of small-and-medium-size enterprises), the banking association, and other private sector actors in Cotonou and other communes.

*IMF Press Release No. 21/345; November 23, 2021.*

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## References

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_Source: https://www.imf.org/en/news/articles/2021/11/23/pr21345-benin-imf-staff-concludes-visit-to-benin_