An International Monetary Fund (IMF) team led by Frederic Lambert concluded a mission to Cotonou, Benin, on October 9, 2025. The visit was held to review Benin's economic program under the Extended Fund Facility (EFF), Extended Credit Facility (ECF), and Resilience and Sustainability Facility (RSF).
According to a statement from Mr. Lambert, "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."
Mr. Lambert noted that over four years, Benin has improved its economic resilience through macroeconomic policies and reforms aimed at diversifying growth sectors. He stated, "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." He added that Benin’s current account deficit is expected to decrease in 2024 compared with 2023 due to reduced services deficit and lower imports following industrial developments.
The IMF reported that Benin met all quantitative targets for June 2025, with budget execution aligning with program goals. Fiscal buffers are being rebuilt as Benin moves toward meeting the West African Economic and Monetary Union (WAEMU) fiscal deficit norm of 3 percent of GDP in 2024. The government plans to continue increasing social spending within its budget framework, particularly for education, health, nutrition, and social protection.
Regarding fiscal policy for next year, Mr. Lambert said: "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."
Discussions during the mission also addressed measures for sustainable growth such as improving tax revenue collection, formalizing more of the economy, and supporting small- and medium-sized businesses.
Structural reforms were highlighted as well: "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," said Mr. Lambert. He noted actions taken by authorities including publishing audit reports on key public contracts as well as financial statements from public utilities like SONEB (water), SBEE (electricity), SBPE (energy planning), and Cotonou Port for recent years.
On climate policy progress under RSF commitments, Mr. Lambert said: "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 maintenance policy of public infrastructure assets, and ... an urban water pricing mechanism will help reduce fiscal and balance of payments risks." Other steps include launching an index-based agricultural insurance scheme and incorporating climate risk data into national registers.
Meetings were held with senior government officials including Senior Minister Romuald Wadagni (Economy & Finance), Senior Minister Abdoulaye Bio Tchané (Development & Coordination), Emmanuel Assilamehoo (National Director BCEAO), along with representatives from civil society groups, businesses, farmers’ organizations, 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," Mr. Lambert concluded.