- The Beninese authorities and IMF staff reached staff-level agreement on the seventh and final review of the EFF/ECF-supported program and on the fourth and final review under the Resilience and Sustainability Facility (RSF).
- Over the four years of the program, Benin's economic resilience has been strengthened by sound macroeconomic policies and reforms that initiated a structural transformation of the economy. The strong growth momentum of 2024 continued in the first half of 2025, with GDP growth of 7.5 percent year-on-year, supported by agriculture, trade, and infrastructure.
- Efforts to rebuild fiscal buffers continue following a fiscal consolidation that brought the fiscal deficit below the West African Economic and Monetary Union (WAEMU) norm of 3 percent of GDP in 2024, one year ahead of program schedule. Budget execution through end-July 2025 suggests a similar performance.
Washington, DC: An International Monetary Fund (IMF) team led by Frederic Lambert visited Cotonou from September 29-October 9, 2025, to conduct discussions on Benin's seventh review of Benin's economic program supported under the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) and the fourth review under the Resilience and Sustainability Facility (RSF).
At the end of the mission, Mr. Lambert issued the following statement:
"The Beninese authorities and IMF staff have reached a staff-level agreement on the steps needed to conclude the seventh and final review of Benin's EFF and ECF supported program and the fourth review under the RSF, subject to the approval of IMF Management and the Executive Board. Consideration by the IMF's Executive Board is expected in December 2025.
"During the four years of the program, economic resilience has been strengthened thanks to sound macroeconomic policies and reforms that have initiated a structural transformation of the economy, focused on diversifying the drivers of growth. The strength of activity observed in the first half of 2025 has encouraged us to revise up our growth forecast for 2025 to 7 percent. The upcoming opening of the Grand Nokoué agri-food hub in Abomey-Calavi and the resumption of oil production in Sème-Podji should help support growth in the medium term. The current account deficit is estimated to be lower in 2024 compared to 2023, amid a reduction in the services deficit and a fall in imports of capital goods following the start-up of the Glo-Djigbé industrial zone.
"Benin's performance under the program remains robust, with all quantitative targets for end-June 2025 met and the 2025 budget execution in line with program targets. The rebuilding of fiscal buffers continues following the authorities' convergence to the WAEMU fiscal deficit norm of 3 percent of GDP in 2024, supported by a continuous increase in tax revenues and prudent budget execution. The authorities remain committed to increasing social spending within the budget envelope, with notable advances in education, health, nutrition, and social protection programs in 2025.
"The 2026 draft budget law submitted to Parliament in September 2025 aims to strengthen fiscal discipline with a deficit target below 3 percent. Sustained revenue mobilization efforts will continue to support an increase in public spending to address Benin's development needs.
"The mission discussed measures to support sustainable and inclusive growth, particularly with regard to tax revenue mobilization, formalization of the economy, and the development of small and medium-sized enterprises.
"The mission welcomed the completion of structural and transformative reforms under the program, particularly in the areas of governance and transparency, the business climate, financial inclusion, social safety nets, and macroeconomic and fiscal management. Under the 7th EFF/ECF review, the authorities implemented measures to improve transparency in public financial management by publishing the audit reports of several high-stakes public contracts and the financial statements of the water and electricity public utilities (SONEB. SBEE, SBPE) and the Port of Cotonou for the years 2022-2024. The authorities are also finalizing a mapping of social protection programs that will help orient the national social protection policy towards greater efficiency and inclusion.
"The authorities have made steady progress in implementing their climate agenda and are expected to complete the 15 reform measures agreed under the RSF program. Among the measures evaluated during this review, the inclusion of climate issues in the annual report on state-owned enterprises, the integration of climate vulnerabilities into the maintenance policy of public infrastructure assets, and the expected institutionalization of an urban water pricing mechanism will help reduce fiscal and balance of payments risks. The operationalization of a national index-based agricultural insurance scheme and the inclusion of information on climate risks, including floods, in the social register are also expected to strengthen Benin's economic resilience. In addition, the authorities have developed a transition taxonomy and a framework for collecting and disseminating climate data to better catalyze climate financing.
"The mission met with Senior Minister of Economy and Finance Mr. Romuald Wadagni, Senior Minister for Development and the Coordination of Government Action Mr. Abdoulaye Bio Tchané, National Director of the BCEAO (the regional central bank) Mr. Emmanuel Assilamehoo, and other senior officials, representatives of civil society, representatives of businesses and farmers, donors and other stakeholders.
"The IMF team would like to thank the Beninese authorities for their warm hospitality and for the open and constructive dialogue."
