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Ph:DR; The S&P rating agency upgrades Benin’s outlook from “Stable” to “Positive” and maintains its rating at “B+”
The international financial rating agency S&P maintained the B+ rating assigned to the Republic of Benin, and favorably revised the associated outlook, moving from Stable to Positive. This remarkable decision in the current context of growing international instabilities places Benin as the only country in Africa with a Positive outlook with S&P.
Through this decision, the agency welcomes the continued resilience displayed in recent years by Benin, the country’s very favorable growth prospects, and an acceleration of budgetary consolidation anticipated from 2023.
S&P recalls the strong economic dynamism recorded by Benin since 2017 despite successive external shockswith growth continually exceeding that of countries with an equivalent rating.
The agency anticipates growth of nearly 6% in 2023, accelerating to nearly 6.5% on average over 2024-2026. These projections are supported by the solidity of the economic policies pursued by the authorities and the effective execution of the Government Action Program. S&P particularly highlights the rapid development of the Glo Djigbé special economic zone, which contributes to the structural transformation of the Beninese economy and the development of high value-added sectors.
The S&P agency also forecasts an improvement in Benin’s budgetary performance in the short term, driven by the continued increase in budgetary revenues and a spending strategy targeted towards the most strategic sectors. S&P therefore forecasts an acceleration, from 2023, of the reduction in the budget deficit, which should fall below the community standard of 3% in 2025.
Finally, the agency once again salutes the quality of Benin’s financing strategy, and the proactive debt management by the authorities. The favorable structure of Benin’s public debt, the support of international donors, and the capacity to mobilize innovative financing make it possible to effectively limit the repercussions of the overall rise in interest rates on Benin.
