African Development Fund Approves $60 Million Loan to Boost Benin's Economic Governance and Private Sector

The African Development Fund, the concessional arm of the African Development Bank Group (AfDB), has granted a $60 million loan to the Republic of Benin. Approved on Thursday, this funding supports the second phase of Benin’s Economic Governance and Private Sector Development Support Programme. With this latest loan, the total support from the African Development Fund to Benin now exceeds $100 million, covering the 2023 and 2024 fiscal years.

The programme aims to enhance the private sector's role in Benin’s economy by improving the business environment, supporting the agri-food sector, and strengthening climate action. As a result, private investment is expected to rise to 30.2% of GDP, up from 29.9% in 2022. 

The initiative is to reduce the time it takes for the government to settle debts to micro, small, and medium-sized enterprises (MSMEs) from 200 days to 60 days.

“The African Development Fund is pleased to support the government's ambitious reforms, placing Benin at the forefront of climate action and the creation of a favourable environment for the private sector,” said Robert Masumbuko, the Bank's Country Manager for Benin. “The Bank also stands by Benin in continuing to support the remarkable financial innovations that have enabled the Beninese government to raise substantial resources on all financial markets.”