Fitch maintains Benin’s’ B+’rating with Stable Perspective Fitch, the international financial rating agency, has confirmed its ‘B+’ rating for the Republic of Benin with a stable outlook. This decision reflects the resilience shown by Benin in 2022, despite the war in Ukraine. Fitch particularly praised the strong growth dynamic that has been maintained, the moderate level of debt in Benin, and the quality of the reforms and budgetary policies undertaken. Fitch expects growth to accelerate to an average of 6.5% in 2023 and 2024, underpinned by the solid performance of the agricultural sector and investments made as part of the Government Action Program (PAG). The agency also expects the development of the industrial complex in Glo-Djigb to contribute to economic growth by stimulating industrial production. Price rises will be contained in 2022 thanks to the subsidies introduced by the government, the very good performance of the agricultural sector and fuel prices remaining low overall, pushing inflation up to 1.3% in 2022, significantly below the WAEMU average (7.4%). Fitch also praised the country’s good performance in terms of domestic revenue mobilization, as well as its proactive debt management strategy. The agency notes a significant reduction in the interest burden borne by Benin in 2022, thanks to the restructuring operations carried out by the country. Finally, Fitch highlights the strong support of Benin’s multilateral institutions, enabling access to very attractive term financing regardless of the global environment of rising interest rates. This review follows the confirmation of Benin’s rating by Moody’s in December 2022 (‘B1/Stable’).
March 2023