World Bank has shown commitment to enhance and stabilize the economy of Benin, following $40b credit deposit to Central Bank of Benin, CBN.
This is a credit of 40 million dollars that the World Bank granted to Benin this November 28, 2017. This amount is intended to strengthen the management of public finances, consolidate the financial viability and the production capacity of the electricity sector. , and to increase the productivity and competitiveness of Beninese agriculture.
The World Bank has approved this 28 November 2017 a credit of the International Development Association (IDA) for Benin. In the amount of 40 million dollars (about 22 billion CFA francs), this support aims to support the government’s efforts in the context of the servicing of public finances and the promotion of economic growth. This support is the first in a series of two operations to support the Benin Government’s reform agenda.
The objective is not only to foster macroeconomic stability by supporting the implementation of reforms to strengthen public financial management, but also to stimulate economic growth through measures to increase productivity and improve the economy. agricultural competitiveness. This credit should also help to consolidate the financial viability and productive capacity of the electricity sector.
“This operation in support of development policies arrives at the right moment for Benin: the country displays positive growth prospects in the medium term, thanks to the constant strength of agricultural production and the sustained level of economic growth. public and private investment, combined with the firm resolution of the government to provide fiscal space and improve the effectiveness of public spending, “said Pierre Laporte, director of operations of the World Bank for Benin.
According to the World Bank, Benin’s comparative advantage in agriculture is still largely untapped today, while the instability of electricity supply is a major impediment to the expansion of the private sector, the fight against poverty informal economy and rising productivity.
To address this, the new program will focus on improving the governance framework for the agriculture sector and strengthening the financial viability of the electricity sector, while promoting private sector participation to increase electricity generation capacity. especially by developing renewable energies.
The main reforms agreed under this operation will contribute to improving transparency and compliance with tax obligations in order to increase the mobilization of domestic resources.
It will also be necessary to increase the efficiency of public spending in order to create budgetary space but also to promote the development of agricultural sectors, the quality of agricultural products and access to finance in agriculture in order to increase the productivity and competitiveness of this sector. The support of 22 billion FCFA should also serve to strengthen the financial viability and the production capacity of the electricity sector.