The International Monetary Fund (IMF) has just concluded a financing agreement with the authorities of Benin. This partnership paves the way for a disbursement of 143 million USD, or 82.52 billion CFA francs.
Supporting reforms sustainably
The IMF’s financial support to Benin is part of the evaluations of the program supported by the Extended Fund Facility (EFF), the Extended Credit Facility (ECF), and the Resilience and Sustainability Facility (RSF).
Since Patrice Talon assumed the presidency in 2016, Benin has undertaken ambitious economic reforms. In particular, through structural reforms, strengthened budgetary control, and a long-term development strategy.
The International Monetary Fund (IMF) applauds the country’s transformation process and economic expansion reaching 7.5% in 2024. The financial support from the financial institution aims to sustain these reforms.
Budget deficit at 3% of GDP
The Government Action Program (PAG), which is divided into several phases, has served as a guide to:
- Modernize the administration
- Consolidate infrastructure
- Optimize the business climate
- Promote inclusive growth
This approach is proving effective at this stage: the IMF forecasts economic expansion of 7.5% for 2024. This assessment exceeds initial forecasts, driven in particular by exports of high value-added products and the boom in the technology sector.
By 2024, Benin successfully achieved the WAEMU target of reducing the budget deficit to 3% of GDP, one year ahead of schedule. This achievement demonstrates rigorous fiscal control, based on a significant increase in tax revenues and prudent management of public spending.
Growing Confidence of Global Investors
Romuald Wadagni, the Minister of Economy and Finance, holds a key position in this virtuous journey. As the architect of budgetary and financial reforms, he is the creator of the innovations that have enabled Benin to stand out as a reliable player in global markets.
In January 2025, Benin successfully launched a 500 million USD 16-year Eurobond, establishing itself as the first African country to conduct this type of operation that year. The issue, which attracted 3.5 billion USD in demand, reflects the growing confidence of global investors in the country’s economic management.
Strengthening Social Protection Systems
These resources will be used to finance initiatives with a significant social impact, particularly in the education, health, and infrastructure sectors. They are also expected to ensure reforms that foster resilience and sustainable development.
Benin is also implementing initiatives within the framework of the Resilience and Sustainability Facility. The aim is to improve its capacity to adapt to climate change, specifically in agriculture. Furthermore, the IMF has emphasized the need to strengthen social protection systems to assist the most vulnerable groups in this economic transition.
Through its rigor, transparency, and strategic vision, Benin is positioning itself as an example of economic management in the subregion. The country is gradually gaining the trust of its technical and financial partners, while strengthening its commitment to sustainable and inclusive development.
