The International Monetary Fund announced yesterday it has approved $177.9 million to help Benin strengthen its response plan against the coronavirus pandemic.
The money includes $118.6 million granted under the Rapid Financing Instrument (RFI) and $59.3 million under the Rapid Credit Facility (RCF). It will be used to meet the country’s urgent budget and balance of payment needs induced by the anti-Covid-19 measures.
This is the second emergency disbursement approved by the Fund since the outbreak of the pandemic. Last May, IMF granted the West African country an increase in the financing it was to receive under a three-year extended credit facility (ECF) agreement.
“Benin’s macroeconomic outlook has further deteriorated since the completion, in May 2020, of the sixth and final review under the ECF-supported arrangement. Economic growth is projected to decelerate to 2 percent in 2020, from nearly 7 percent in 2019 […] While Benin’s pandemic response has been effective in curbing the spread of the COVID-19, the economic shock has created urgent fiscal pressures and balance of payment needs,” the IMF statement read.
“Once conditions permit, the authorities are committed to reverting to their medium-term fiscal path, by maintaining the fiscal deficit below the regional ceiling. Raising domestic revenue closer to the regional target should remain a primary fiscal objective, as this would strengthen debt sustainability, ensure that the COVID-19 shock does not jeopardize fiscal sustainability, and allow Benin to finance its medium-term economic development plan and reduce poverty,” the statement said.
Let’s note that the new disbursement brings the total amount of loans granted by the IMF to Benin as part of the fight against the Covid-19 to $281.26 million. According to the latest official data, Benin has 3,167 cases of coronavirus with 44 deaths and 3,061 recoveries.
Moutiou Adjibi Nourou
• Maritime sector faces renewed risks amid military tensions in the Middle East• Blockade fears at S...
Lebara Group is now bringing its affordable and reliable mobile services to Africa, starting with Ni...
• Google unveils Veo 3, its latest AI tool for ultra-realistic video generation• Experts warn deepfa...
In a West African financial landscape marked by tighter regulation of the fintech sector, digital fi...
• Gates Foundation commits $1.6 billion over five years to Gavi.• Bill Gates warns of rising ch...
• Mozambican government and Huawei considering the construction of a local mobile phone factory catered to rural needs • Special features for rural...
• Djibouti adopts new digital code to accelerate digital transformation, with focus on data protection, cybersecurity, and e-commerce. • The move aligns...
• Record drought tests Zambia's dependence on hydropower, impacting its vital mining industry • Adoption of dedicated solar projects, such as the recent...
• The African Development Bank (AfDB) has approved €25.5 million in funding to boost Mauritanian SMEs and stimulate inclusive growth.• Mauritania’s...
In northern Ethiopia, in the Tigray region, lies Axum (also spelled Aksum), an ancient city that once stood at the heart of one of Africa’s most powerful...
Lake Natron, located in northern Tanzania near the Kenyan border, is one of the most extraordinary and extreme lakes in Africa. Fed primarily by the Ewaso...