Economical context
Benin enjoyed sustained growth in 2018 (+ 6.5%), which should continue in 2019 at the same pace, according to the IMF. The authorities are more optimistic and anticipate a GDP growth of 7.6% supported by new records of cotton production (between + 10 and + 15% for the 2018-2019 campaign), by construction (+ 25%), by the activity of the port (+ 10%) taking advantage of favorable conditions in Nigeria, the increase in electricity production with the start of production of the Maria Gléta 2 power station (120 MW).
Inflation is expected to remain moderate in 2019 with a target of 2% annual average, below 3% and in line with the WAEMU convergence criteria, but up from 2018 (1%).
Benin's 2019 budget - CFAF 1,877.5 billion, including CFAF 1264.3 billion in general budget expenditure - is marked by a sharp contraction of the overall deficit (including grants) from 270.7 billion to 161 million, FCFA 2 billion thanks to an increase in tax revenues. On the other hand, the burden of debt service on the government's cash position will increase significantly in 2019 (+ 9% mainly due to domestic debt).
On 7 April 2017, Benin signed a program with the IMF supported by an extended credit facility with funding of approximately USD 151 million. The objective of the program is to maintain macroeconomic balances by emphasizing the mobilization of domestic resources, keeping the public deficit below 3% of GDP, the compatibility of public debt with debt sustainability. Benin's performance in program delivery was appreciated during the first four reviews of the program.
The Government Action Program - PAG - provides 9 039 billion FCFA of investments over the period 2017-2021 of which 61% would be financed by the private sector, including through PPPs (public-private partnerships). This is the reference document for the dialogue with the technical and financial partners. Legal and administrative reforms are undertaken to improve the business climate (Benin ranks 153rd in the Doing business 2019 ranking).
https://www.diplomatie.gouv.fr/ [2019-09-26]