The decision unlocks an immediate disbursement of 36.3 million dollars under the EFF/ECF and 81.6 million dollars under the RSF. Total disbursements under the programmes now stand at $664.7 million for the EFF/ECF and $204 million for the RSF.
The IMF reports that Benin’s economy continues to gain strength following five years of robust performance. Growth is projected at 7.5% in 2025, matching 2024 levels, and is expected to remain strong over the medium term. The current account deficit narrowed in 2024 after widening due to large services imports linked to the Glo‑Djigbé Industrial Zone.
It is projected to improve further as exports from the zone increase.
Several external loans previously assigned to public and semi‑public enterprises have been reclassified as central government debt, lifting the debt‑to‑gross domestic product (GDP) ratio to 60.5%at the end of 2024. The IMF says Benin’s risk of debt distress remains moderate due to improved debt‑carrying capacity.
Programme performance under the EFF/ECF has been strong, with all quantitative targets met and structural benchmarks implemented, although one was completed with a short delay. Under the RSF, authorities finalised reforms to strengthen climate‑related public financial management, adjust water tariffs, expand agricultural insurance, reinforce social protection and improve climate‑financial reporting.
IMF Deputy Managing Director Kenji Okamura said Benin’s commitment to reform has delivered “tangible dividends”, including higher growth and improved access to international markets. He urged authorities to maintain fiscal discipline and accelerate inclusive policies.
The fiscal deficit fell to 3.1% of GDP in 2024. The 2026 budget aims to stay within the West African Economic and Monetary Union’s deficit ceiling of 3%. The IMF advised continued tax revenue mobilisation and careful expenditure management, along with rebalancing the debt portfolio toward domestic borrowing over time.
Benin was also urged to enhance fiscal transparency, strengthen the governance of state‑owned enterprises, support small and medium‑sized firms, and continue reforms under the RSF to attract climate finance and safeguard long‑term economic stability.
–IMF/ChannelAfrica–
