• Benin approves 2026 draft budget of 3.784T CFA francs (+6.5%)
• Social spending set at 42%, inflation target around 2%
• Growth forecast 7.5% in 2026, driven by industry and agriculture

Benin’s Council of Ministers has approved a draft 2026 budget that is 6.5% higher than the previous year, according to a government statement released on Wednesday, September 10, 2025.

The draft budget is balanced at 3.784 trillion CFA Francs ($6.75 billion), up from 3.551 trillion CFA Francs in 2025. The government expects to keep inflation under control at around 2.0%, below the West African Economic and Monetary Union’s (WAEMU) community standard of 3.0%. The statement also noted that social spending would represent 42% of the general budget.

The budget aims to continue the "diversification of the economy through the development of the industrial sector and infrastructure, as well as the strengthening of human capital," the statement said. It also earmarks increased investments in several key sectors, including health, energy, social protection, digital technology, and education.

The draft budget also allocates funds for the 2026 general elections, for which the government says resources have already been secured. The proposal must now be presented to the National Assembly for adoption.

The new budget follows a period of strong economic growth in Benin. The International Monetary Fund (IMF) reported a 7.5% growth rate in 2024, exceeding the initial forecast of 6.5%. This growth has been driven by increased exports of value-added goods and a dynamic information technology sector. According to the IMF, continued efforts to increase revenue will create room to boost social spending in priority areas.

The government anticipates economic growth of 7.5% in 2026, supported by a dynamic agricultural sector, a strengthening of industrial activities, increased port traffic, and the development of tourism.

For the next three years (2026-2028), the budget emphasizes security, with plans to install video surveillance systems in major cities and provide high-performance equipment for the Defense and Security Forces.

Lydie Mobio