• Benin has created the Communal Investment Fund (FIC) to replace the FADeC.

• The fund will help municipalities improve financing, track projects, and access new funding.

• Decentralization in Benin began in 2003, with communes receiving about CFA50 bln yearly since 2016.

The government of Benin announced yesterday the creation of the Communal Investment Fund (FIC) and approved its statutes. This new instrument is designed to “improve the framework for managing financial support provided to municipalities and public inter-municipal cooperation bodies,” according to the Council of Ministers’ statement. It added that the decision aims to strengthen municipal investment capacity to support balanced national development through decentralized local governments.

The government explained that the FIC will help municipalities strengthen financial management, oversee and evaluate local projects, and manage domestic and external financing intended for communal development. However, resources obtained directly by municipalities, such as through twinning partnerships, will remain outside its scope.

Decentralization in Benin began in 2003 with the creation of 77 communes. The state has supported this process with a legal framework, regular local elections, and the establishment of the Communal Development Support Fund (FADeC). In January 2025, the Minister of Decentralization and Local Governance, Raphaël Akotègnon (pictured), recalled that between 2016 and 2025 the government released an average of CFA50 billion each year through FADeC to support municipalities.

The FIC replaces the FADeC. Unlike its predecessor, it will allow municipalities to access more diverse and innovative sources of financing.