The Board of Directors of the African Development Fund, the African Development Bank Group's concessional window, approved on Thursday a loan of $60 million to the Republic of Benin to finance the second phase of the country's Economic Governance and Private Sector Development Support Programme. The funding brings the total amount granted to Benin to over $100 million through programmatic budget support covering 2023 and 2024 fiscal years.
The programme will boost the private sector's contribution to the national economy by improving the overall business environment, supporting the agri-food sector and strengthening climate action.
Through this programme, Benin will increase private investment to 30.2 per cent of GDP, up from 29.9 per cent in 2022; reduce the time government takes to settle debts due to micro, small and medium-sized enterprises (MSMEs) from 200 days to 60.
"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."
