Benin: establishment of the Communal Investment Fund (FIC)

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With the FIC, the government intends to offer municipalities and intercommunal public bodies a modern and transparent framework for resource management. The objective is to strengthen their investment capacity and promote balanced development across the country, relying on decentralized local authorities.

The new mechanism will not only mobilize innovative financing, but also collect, for the benefit of municipalities, the portions of state revenue arising from shared taxation. The government is thus counting on greater efficiency in the transfer and use of funds.

Expanded missions and strengthened monitoring

According to the Council of Ministers’ details, the FIC’s missions cover several areas: providing additional financing tailored to municipalities’ needs, ensuring equity in their allocation through the principle of equalization, strengthening local capacities in analysis and in preparing financial dossiers, and monitoring the achievement of the set development objectives.

The Fund will also be responsible for monitoring and evaluating financed projects, to ensure their relevance and impact on sustainable local development. In addition, it will be responsible for collecting and managing both internal resources and the main external financing intended for municipalities.

However, it should be noted that direct financing arising from specific agreements, such as twinning agreements signed between a municipality and an international partner, does not fall within the FIC’s remit.

Finally, beyond the redistribution of funds, the FIC may, on behalf of local authorities, carry out management operations and financial investments with a view to optimizing resources.