An International Monetary Fund (IMF) team, led by Frederic Lambert, concluded a visit to Cotonou from April 1-11, 2025, to discuss the sixth review of Benin’s economic and financial program. This effort was supported by the Extended Fund Facility (EFF), the Extended Credit Facility (ECF), and the third review of the Resilience and Sustainability Facility (RSF).
Following the mission, Frederic Lambert stated, "Benin’s authorities and IMF staff have reached a staff level agreement on policies to complete the sixth review of Benin’s 42-month blended EFF/ECF-supported program and the third review of the RSF-supported arrangement, subject to approval by IMF management and the Executive Board. Consideration by the IMF’s Executive Board is expected in June 2025."
Benin’s economy showed robust growth, with an unexpected growth rate of 7.5 percent in 2024, surpassing the initial forecast of 6.5 percent. Lambert highlighted, "The economic transformation in Benin continues, with higher value-added goods exports and momentum in information technology."
The fiscal health showcased resilience as all quantitative targets for year-end 2024 were met. "Program performance has been strong—all quantitative targets for end-December 2024 were met, and a frontloaded fiscal consolidation accelerated convergence to the WAEMU fiscal deficit norm of 3 percent of GDP one year ahead of program schedule," stated Lambert.
For 2025, authorities aim to maintain the fiscal deficit within 3 percent of GDP, spurred by a medium-term revenue strategy. They plan to direct this revenue towards social sectors, such as education and health. There are also ongoing efforts in the area of social protection programs.
The mission also emphasized the importance of enterprise transparency and improving the business climate. This includes the operationalization of a single electronic window and improvements in credit access for the private sector.
Efforts are underway to address climate change impacts and adopt renewable energy regulations. Lambert noted, "The authorities continue to advance reforms to implement their climate agenda and strengthen Benin’s resilience to climate change."
The IMF team held discussions with key government officials, including Senior Minister of Economy and Finance Romuald Wadagni and Minister of Health Benjamin Hounkpatin, alongside other stakeholders.
In conclusion, Lambert expressed gratitude, stating, "The IMF team would like to thank the authorities for their warm hospitality and open and constructive dialogue."