The Executive Board of the International Monetary Fund has completed the seventh review of Benin’s blended Extended Fund Facility and Extended Credit Facility arrangements, paving the way for fresh financial support amounting to US$117.9 million. The Board also concluded the fourth review under the Resilience and Sustainability Facility.
Benin’s EFF and ECF programmes were originally approved in July 2022, with the Resilience and Sustainability Facility added in December 2023 to support climate-related reforms and long-term resilience.
Following the completion of the latest reviews, Benin will receive about US$36.3 million under the EFF/ECF arrangements, bringing total disbursements under that programme to roughly US$664.7 million. In addition, the country will access approximately US$81.6 million under the Resilience and Sustainability Facility, raising cumulative disbursements under that facility to about US$204 million.
According to the Fund, Benin’s economic performance remains strong, supported by five consecutive years of solid growth. The economy is projected to expand by 7.5 percent in 2025, matching the 2024 growth rate, and is expected to remain robust over the medium term.
The IMF noted that the current account deficit narrowed in 2024 after earlier pressures linked to substantial professional services imports associated with the Glo-Djigbé Industrial Zone. The deficit is expected to continue improving gradually as exports from special economic zones increase and the services deficit eases.
In line with international statistical standards, several external loans transferred in 2021 to public and semi-public enterprises have been reclassified as central government debt, even though those entities continue to service the loans. As a result, central government debt has been revised upward to 60.5 percent of GDP at the end of 2024. Despite the upward revision, the IMF assessed Benin as remaining at moderate risk of debt distress, supported by improved debt-carrying capacity.
Fiscal consolidation efforts helped reduce the fiscal deficit to 3.1 percent of GDP in 2024. Authorities intend to keep the deficit within the West African Economic and Monetary Union ceiling of 3 percent of GDP under the 2026 budget. The fiscal adjustment strategy is anchored in a Medium-Term Revenue Strategy focused on strengthening tax mobilisation and rationalising public expenditure.
The IMF described programme implementation under the EFF/ECF as strong, noting that all end-June 2025 quantitative performance criteria and end-September 2025 indicative targets were met. Structural benchmarks were also implemented, although one experienced a slight delay.
Under the Resilience and Sustainability Facility, Benin completed the remaining six reform measures, including climate-related public financial management reforms, restructuring of water tariffs, the rollout of agricultural insurance, strengthening social protection systems, and improvements in climate financial information frameworks.
Following the Board’s deliberations, Deputy Managing Director and Acting Chair Kenji Okamura commended the authorities for maintaining strong programme performance and sustained reform commitment. He emphasised the importance of preserving fiscal discipline and continuing reforms amid regional and global risks, while ensuring inclusive growth.
The IMF advised the authorities to remain vigilant in debt management, enhance monitoring of state-owned enterprises, improve fiscal transparency through the publication of revised debt data, and sustain oversight of financial sector institutions to safeguard stability.
Looking ahead, the Fund encouraged Benin to intensify efforts to formalise the economy, support small and medium-sized enterprises, update the social registry, and improve the targeting of social assistance programmes. It also underscored the need to sustain reforms under the resilience facility to strengthen long-term balance of payments stability and attract private climate finance.
