Benin Report 2023

Benin is one of West Africa’s remarkable success stories due to its relative political stability, benign investment climate, and increasingly diversified economy, as well as sound fiscal and monetary policy management. The government of President Talon has created a politically stable and business-friendly environment for foreign investors, despite concerns over northern insecurity and potential unrest in the three-year outlook. Going forward, the economic outlook for Benin is promising, with an average of 6 percent GDP growth projected until at least 2025, as well fresh opportunities emerging in industries outside of the core agricultural sector.

Benin is fast accumulating new commercial and concessional loans to expand its port and logistics infrastructure, while enhancing sustainable development goals. Even though there are growing concerns over debt sustainability, public debt accumulation is expected to peak this year and sound debt management should allay non-payment risks.