IMF Completes Seventh EFF/ECF Review for Benin, Approves Fresh US$117.9m Disbursement
The Executive Board of the International Monetary Fund (IMF) has completed the seventh review under Benin’s blended Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements, alongside the fourth review under the Resilience and Sustainability Facility (RSF).
The EFF/ECF programmes were initially approved in July 2022 and later complemented by the RSF arrangement in December 2023.
Disbursements Approved
Completion of the reviews unlocks immediate disbursements of approximately US$36.3 million (SDR 26.5 million) under the EFF/ECF, bringing total disbursements under the arrangement to about US$664.7 million (SDR 484 million).
Additionally, Benin will receive about US$81.6 million (SDR 59.4 million) under the RSF, raising total disbursements under the resilience facility to roughly US$204 million (SDR 148.6 million).
Growth Momentum Sustained
According to the Fund, economic momentum in Benin continues to strengthen, underpinned by five consecutive years of solid performance. Growth is projected at 7.5 per cent year-on-year in 2025, in line with 2024, and is expected to remain robust over the medium term.
The current account deficit narrowed in 2024 following earlier pressures linked to significant professional services imports associated with the Glo-Djigbé Industrial Zone. The deficit is projected to continue improving gradually as exports from special economic zones expand and the services deficit moderates.
Debt Reclassification and Fiscal Outlook
In line with international statistical standards, several external loans transferred to public and semi-public enterprises in 2021—though fully serviced by those entities—have now been reclassified as central government debt.
As a result, central government debt has been revised upward to 60.5 per cent of GDP at end-2024. The IMF, however, maintained that Benin remains at moderate risk of debt distress, supported by improved debt-carrying capacity.
Fiscal consolidation efforts reduced the fiscal deficit to 3.1 per cent of GDP in 2024. The 2026 budget aims to keep the deficit within the West African Economic and Monetary Union (WAEMU) ceiling of 3 per cent of GDP.
The adjustment strategy remains anchored in a Medium-Term Revenue Strategy focused on sustained tax mobilisation and expenditure rationalisation.
Strong Programme Performance
Programme implementation under the EFF/ECF has been described as strong, with all end-June 2025 quantitative performance criteria and end-September 2025 indicative targets met. Structural benchmarks were also implemented, albeit with a slight delay in one instance.
Under the RSF, authorities completed the remaining six reform measures, advancing climate-related public financial management reforms, water tariff restructuring, agricultural insurance rollout, social protection strengthening, and improvements in climate-financial-information systems.
IMF Board Assessment
Following the Board’s deliberations, Deputy Managing Director and Acting Chair, Mr. Okamura, commended the authorities for what he described as strong programme performance and sustained reform commitment.
He noted that fiscal discipline must be maintained, alongside continued reform momentum and inclusive policies, particularly amid regional and global risks.
The IMF further advised continued vigilance in debt management, enhanced monitoring of state-owned enterprises, improved fiscal transparency through publication of revised debt data, and sustained oversight of financial sector institutions to safeguard stability.
Looking ahead, the Fund urged Benin to accelerate efforts to formalise the economy, support small and medium-sized enterprises, update the social registry, and improve the targeting efficiency of social assistance programmes.
Under the RSF, the IMF emphasised the need to sustain reforms to strengthen long-term balance of payments stability and catalyse private climate finance.
