Benin: 2022 Article IV Consultation and Requests for an Extended Arrangement under the Extended Fund Facility and an Arrangement under the Extended Credit Facility-Press Release; Staff Report; Staff Statement; and Statement by the Executive Director for Benin

This paper presents Benin’s 2022 Article IV Consultation and Requests for an Extended Arrangement under the Extended Fund Facility (EFF) and an Arrangement under the Extended Credit Facility (ECF). Revenue mobilization—the cornerstone of the authorities’ reform agenda—will, together with better spending prioritization and improved efficiency, help create the much-needed fiscal space to support Benin’s significant development and security needs while preserving debt sustainability. A steadfast implementation of the recently adopted action plan for Anti Money Laundering/Combating the Financing of Terrorism and further strengthening the rule of law and governance will consolidate the foundations of sustained private sector-led growth that benefits all Beninese. Considering Benin’s relatively large level of income inequality, the authorities’ IMF-supported EFF/ECF is rightly focused on development with a human face through enhanced access to basic public services and improved state presence in vulnerable areas, consistent with the authorities “civilian approach” to mitigating security risks. Ongoing efforts to enhance resilience to climate change are also important. Achieving these ambitious goals will require continued commitment to clearly communicated reforms and strong technical and financial support from Benin’s development partners to complement large and front-loaded IMF support.