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.<\/p>\n
<\/p>\n
The IMF reports that Benin\u2019s 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\u2011Djigb\u00e9 Industrial Zone.<\/p>\n
<\/p>\n
It is projected to improve further as exports from the zone increase.
\nSeveral external loans previously assigned to public and semi\u2011public enterprises have been reclassified as central government debt, lifting the debt\u2011to\u2011gross domestic product (GDP) ratio to 60.5%at the end of 2024. The IMF says Benin\u2019s risk of debt distress remains moderate due to improved debt\u2011carrying capacity.<\/p>\n
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\u2011related public financial management, adjust water tariffs, expand agricultural insurance, reinforce social protection and improve climate\u2011financial reporting.<\/p>\n
<\/p>\n
IMF Deputy Managing Director Kenji Okamura said Benin\u2019s commitment to reform has delivered \u201ctangible dividends\u201d, including higher growth and improved access to international markets. He urged authorities to maintain fiscal discipline and accelerate inclusive policies.<\/p>\n
<\/p>\n
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\u2019s 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.<\/p>\n
<\/p>\n
Benin was also urged to enhance fiscal transparency, strengthen the governance of state\u2011owned enterprises, support small and medium\u2011sized firms, and continue reforms under the RSF to attract climate finance and safeguard long\u2011term economic stability.<\/p>\n
<\/p>\n
–IMF\/ChannelAfrica–<\/p>\n","protected":false},"featured_media":0,"template":"","meta":{"_acf_changed":false},"news-type":[44],"class_list":["post-27042","news","type-news","status-publish","hentry","news-type-finance","entry"],"acf":{"short_description":"The International Monetary Fund (IMF) has completed the seventh review of Benin\u2019s Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements, alongside the fourth review of its Resilience and Sustainability Facility (RSF). ","published_date":null,"news_description":"The International Monetary Fund (IMF) has completed the seventh review of Benin\u2019s Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements, alongside the fourth review of its Resilience and Sustainability Facility (RSF). ","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/27042","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/27042\/revisions"}],"predecessor-version":[{"id":27317,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/27042\/revisions\/27317"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=27042"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=27042"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}