The Republic of Benin has secured a financing agreement of $230 million, which is over 141 billion XOF, from the World Bank.
The International Development Association (IDA), on Friday, September 15, 2023, approved a financing of $230 million, equivalent to over 141 billion XOF, for Benin from the World Bank. This financial support aims to assist the government of Benin in strengthening private sector-driven growth, boosting national revenue collection, and enhancing social and climate resilience.
This is specifically a financing agreement designed to support reforms that promote inclusive, resilient, and private sector-driven growth. According to the World Bank’s statement, this agreement is based on three pillars. The first pillar involves creating a new ecosystem for the development of micro, small, and medium-sized enterprises and improving the investment climate.
The second pillar focuses on reforms to boost national revenue collection by creating a fiscal space necessary for public investment and debt sustainability. The third and final pillar targets reforms aimed at increasing social and climate resilience, including subsidized healthcare for the poor, adaptive social protection, and strengthened disaster risk management.
It’s worth noting that the International Development Association (IDA) is the World Bank institution that assists the world’s poorest countries. Founded in 1960, it provides grants and low or zero-interest loans to finance projects and programs that promote economic growth and reduce poverty.
