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Ph:DR: Mr. Constant Lonkeng, head of the IMF for Benin
From September 6 to 12, 2023, a team from the International Monetary Fund (IMF), led by Mr. Constant Lonkeng, stayed in Cotonou to assess recent developments in the economy and assess the progress made within the framework of Benin’s commitments under its economic and financial program supported by the IMF. Through a press release published on September 13, the mission noted a robust performance achieved by Benin during the first half of 2023; the current economic situation caused by the closure of the border with Niger; the rise in petrol prices caused by the increase in pump prices in Nigeria; budgetary support from development partners and the finance bill for 2024 management.
Aline ASSANKPON
Indeed, the IMF Board of Directors approved for the benefit of Benin, on July 8, 2022, a new mixed Extended Credit Facility (MEDC)/Extended Credit Facility (ECF) agreement in the amount of $638 million. , equivalent to 391% of the quota (press release no. 22/252), to help meet urgent financing needs to support the country’s progress towards achieving the Sustainable Development Goals. The second review of the program was successfully concluded in May 2023 (press release no. 23/158).
At the end of the visit, Mr. Constant Lonkeng, head of the IMF, made the statement that after strong GDP growth in the first half (6.3%), the Beninese economy is facing shocks. linked to the closure of the border with Niger, following regional sanctions following the recent coup d’état in this country. Rising pump prices in Nigeria have also caused significant increases in the price of contraband gasoline in Benin (by around 60%), putting pressure on inflation.
“After the accommodation of recent years, fiscal consolidation is underway, supported by tax revenues. Budgetary support from development partners should be greater than expected this year, which could provide room for additional spending in these difficult times.”
“Work under the 2024 finance bill for management is underway, in accordance with the Government’s general objective of converging towards the community standard limiting the deficit to a maximum of 3% of GDP by 2025. The authorities are also developing a medium-term revenue mobilization strategy to support fiscal consolidation while meeting Benin’s important development needs. Mr Lonkeng said.
Seizing the opportunity, government authorities requested support from the IMF under the new Sustainability and Resilience Fund (SRF). Against this backdrop, the IMF team – joined by experts from the Global Center on Adaptation (GCA) – explored the authorities’ climate agenda with various national stakeholders.
During their stay in Benin, the mission met several government ministers and some senior officials of the country. These include, among others, the Minister of State for the Economy and Finance, in charge of Cooperation, Mr. Romuald Wadagni, the Minister of State, Minister of Development and Coordination of Government Action, Mr. Abdoulaye Bio Tchané, the Keeper of the Seals, Minister of Justice and Legislation, Mr. Yvon Détchenou, the Minister of Social Affairs and Microfinance, Ms. Véronique Tognifodé, the National Director of the Central Bank of the States of West Africa (BCEAO), Mr. Emmanuel Assilamehoo, and other senior officials.
The IMF mission also met with representatives of the donor community, the Banking Association, civil society, the private sector, and the association of women entrepreneurs.
At the end of their working visit, the IMF team thanked the Beninese authorities and the various stakeholders for their warm hospitality and for the open and constructive discussions.
The team plans to return to Cotonou later this year for the third review of the program and for considerations of the new Sustainability and Resilience Fund (FRD).
