Bénin : quatrième revue des accords MEDC/FEC et deuxième revue de la FRD — rapport des services du FMI

IMF Country Report No. 24/338 BENIN STAFF REPORT FOR THE 2024 ARTICLE IV CONSULTATION, FOURTH REVIEW UNDER THE EXTENDED FUND FACILITY AND THE EXTENDED CREDIT FACILITY ARRANGEMENTS, FIRST REVIEW UNDER THE RESILIENCE AND SUSTAINABILITY FACILITY, AND REQUEST FOR MODIFICATION OF A QUANTITATIVE PERFORMANCE CRITERION—PRESS RELEASE; STAFF REPORT; AND STATEMENT BY THE EXECUTIVE DIRECTOR FOR BENIN In the context of the 2024 Article IV consultation with Benin, the Fourth Review under the Extended Fund Facility and the Extended Credit Facility Arrangements, and the First Review under the Resilience and Sustainability Facility, the following documents have been released and are included in this package: • A Press Release including a statement by the chair of the Executive Board. • The Staff Report prepared by a staff team of the IMF for the Executive Board’s consideration on June 27, 2024, following discussions that ended on May 8, 2024, with the officials of Benin on economic developments and policies underpinning the Fundsupported program under the Extended Fund Facility and the Extended Credit Facility. Based on information available at the time of these discussions, the staff report was completed on June 14, 2024. • An Informational Annex prepared by the IMF staff. • A Debt Sustainability Analysis prepared by the staff of the IMF and the World Bank.

• A Statement by the Executive Director for Benin. The IMF’s transparency policy allows for the deletion of market-sensitive information and premature disclosure of the authorities’ policy intentions in published staff reports and other documents. Copies of this report are available to the public from International Monetary Fund • Publication Services PO Box 92780 • Washington, D. C. 20090 Telephone: (202) 623-7430 • Fax: (202) 623-7201 E-mail: publications@imf. org Web: http://www. imf. org December 2024

PR24/249 BENIN: IMF Executive Board Completes Fourth Review of Extended Fund and Extended Credit Facilities, First Review of Resilience and Sustainability Facility, and Concludes 2024 Article IV Consultation FOR IMMEDIATE RELEASE • The IMF Executive Board today completed the Fourth Review of Benin’s Extended Fund Facility (EFF) and the Extended Credit Facility (ECF) and the First Review under the Resilience and Sustainability Facility (RSF). The decision allows for an immediate disbursement of about US$ 67 million. The Board also concluded the 2024 article IV Consultation. • The Beninese economy has proven remarkably resilient to recent shocks, supported by continued reform drive and a robust government response made possible by policy space created pre-pandemic. • Program performance has been strong. An important priority going forward is to continue anchoring Benin’s growth and development in sustainable and inclusive policies that leave no region nor socio-economic group behind. Washington, DC – June 27, 2024: The Executive Board of the International Monetary Fund (IMF) concluded today the 2024 Article IV consultation 1 with Benin and completed the Fourth Review under the 42-month blended Extended Fund Facility (EFF) and the Extended Credit Facility (ECF) arrangements, and the First Review under the Resilience and Sustainability Facility (RSF) arrangement.

The EFF/ECF was approved by the IMF Executive Board in July 2022 (see PR 22/252) and complemented by the RSF in December 2023 (see PR 23/452). The completion of the reviews allows for the immediate disbursement of SDR 31. 2 million (about US$ 41 million) under the EFF/ECF—bringing total disbursements under the program to SDR 400. 2 million (about US$ 526 million)—and of SDR 19. 8 million (about US$ 26 million) under the RSF arrangement. The Executive Board also approved the modification of the quantitative performance criterion on new debt contracted or guaranteed by the government for 2024, with public debt remaining at moderate risk of debt distress. The Beninese economy has proven remarkably resilient to shocks, leveraging buffers wisely created pre-pandemic and supported by the government’s continued reform efforts, with economic activity estimated to have expanded by 6. 4 percent in 2023. Growth is expected to remain strong in the coming years, supported by the government infrastructure drive and by private investment, including through the Special Economic Zone. The ongoing reform of education will help prepare the labor force to a transforming economy.