2023-09-14 00:52:46
Views: 22982
A mission from the International Monetary Fund (IMF) which visited Benin, focused on the repercussions of the closure of the borders with Niger. According to the institution, the robust performance of the Beninese economy in the first half of this year suffered the repercussions of ECOWAS sanctions against Niger. Added to this are the consequences linked to the rise in prices of contraband gasoline. But it also highlights the future contributions of Benin’s development partners as well as the efforts of the authorities to contain the budget deficit. The mission stayed in Cotonou from September 6 to 12, 2023. It was led by Constant Lonkeng with the aim of evaluating the recent development of the Beninese economy and assessing the progress made within the framework of Benin’s commitments under the its economic and financial program supported by the IMF. The IMF Executive Board 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, to help meet urgent financing needs and support the country’s progress towards achieving the Sustainable Development Goals. The second review of the program was concluded in May 2023.
At the end of the visit, Mr. Lonkeng made the following statement:
“After strong GDP growth in the first half (6.3 percent), 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 line with the Government’s general objective of converging towards the community standard limiting the deficit to a maximum of 3 percent 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.
“The authorities have requested support from the IMF under the new Sustainability and Resilience Fund (FRD). In this context, the IMF team – joined by experts from Global Center on Adaptation (GCA) – explored the authorities’ climate agenda with various national stakeholders.
“The mission met the Minister of State, Minister of Economy and Finance, in charge of Cooperation Mr. Wadagni, the Minister of State, Minister of Development and Coordination of Government Action Mr. Bio Tchané, the Minister of Justice, Minister of Justice and Legislation Mr. Detchenou, the Minister of Social Affairs and Microfinance Ms. Tognifodé, the National Director of the Central Bank of West African States Mr. Assilamehoo, and other senior officials. The team also met with representatives of the donor community, the banking association, civil society, the private sector, and the association of women entrepreneurs.
“The IMF team would like to thank the 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 FRD considerations.”
Olivier ALOCHEME
#IMF #insists #consequences #Benin