Benin confirms its upward trajectory on the African economic scene. The International Monetary Fund (IMF) approved, on Wednesday, June 18, 2025, a disbursement of $90 million to the country, highlighting “solid” economic performance and exemplary budget management.
This decision comes after the sixth review of the MEDC/FEC program (Extended Credit Facility and Extended Fund Facility) and the third review of the Facility for Resilience and Sustainability (FRD). The amount is divided between $36 million under the MEDC/FEC and $54 million under the FRD, in support of Benin’s national climate strategy.
Exceptional growth driven by industrialization
The IMF notably praises the economic growth of 7.5% recorded in 2024, one of the highest in West Africa. This dynamism is largely driven by massive investments in the Glo-Djigbé Industrial Zone (GDIZ), which has become a central hub for transformation and export, particularly in textiles and agribusiness.
Despite a temporarily deficit current account, caused by increased imports of capital goods and services related to industrial projects, the outlook remains positive. The IMF predicts a gradual improvement in the balance of payments as exports from special economic zones gain momentum.
Cotonou also reached an important milestone in 2024 by meeting the budget convergence criteria of the West African Economic and Monetary Union (UEMOA), limiting the public deficit to 3% of GDP, a year ahead of the regional deadline. This performance was achieved through a rigorous strategy of resource mobilization, expenditure control, and tax reforms.
Benin is also actively pursuing a policy of rebalancing its public debt, increasingly favoring the domestic market to limit exposure to external risks and strengthen medium-term financial stability.
Model
The IMF also highlights Benin’s significant progress in ecological transition, supported by the FRD. New regulations have been adopted in key sectors: water, construction, energy, and electricity, while authorities are preparing a national climate taxonomy to guide green investments.
This environmental commitment now places climate resilience at the heart of the country’s macroeconomic strategy, in line with sustainable development goals.
While praising Benin as a regional model of balance between macroeconomic discipline, regulatory innovation, and climate commitment, the IMF calls for strengthening social inclusion. It recommends scaling up policies to support SMEs, improving social safety nets through the updating of the single social registry, and consolidating gains in budget transparency.
Benin, now considered a stable and visionary economic player in West Africa, must remain vigilant in the face of external uncertainties, regional geopolitical tensions, and fluctuations in the international financial market.
In a global context marked by uncertainties, Benin’s commitment to resilient, inclusive, and green growth could become a reference for the entire continent.
