IMF: Benin receives a new disbursement of 90 million dollars
The International Monetary Fund (IMF) has approved the latest technical reviews of ongoing economic and financial programs with Benin.
This validation concerns the Extended Credit Facility (ECF), the Extended Financing Facility (EFF), and the Resilience and Sustainability Facility (RSF). It paves the way for a new disbursement of 90 million dollars in favor of the country.
In its official communication, the Bretton Woods institution commended Benin’s budgetary trajectory, which reached the community goal of a 3% deficit of GDP set by UEMOA in 2024 with a year in advance. This performance is attributed to an increased mobilization of internal revenues and a strict control of essential social expenditures.
On the economic front, Benin’s growth displays a remarkable dynamic. The country recorded a growth rate of 7.5% in 2024, a historic high. In the medium term, this momentum is expected to continue, mainly due to the acceleration of activities in the Glo-Djigbé Industrial Zone (GDIZ). While the initial phases weighed on the balance of payments, the export prospects linked to this industrial hub should gradually strengthen the external accounts.
The IMF also highlighted Benin’s progress in combating climate change. Several reforms have been undertaken, notably in the water, energy, and construction sectors. The government has revised electricity rates and is currently working on the development of a national climate taxonomy. This strategic tool aims to guide investments towards the projects with high environmental value, a prerequisite for accessing green financing.
This new support from the IMF confirms the credibility of Benin’s economic policy and represents a strong signal sent to technical and financial partners.
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