A decade has passed since Patrice Talon came to power in Benin. His economic approach, based on fiscal discipline, the diversification of growth drivers, and a strong international outlook, has marked a lasting turning point in the country’s economic history. With one year to go before the presidential election, the time for reflection coincides with a broader reality: that of a model which is gaining attention beyond national borders, including within the Economic Community of West Africa States (ECOWAS), as its regional implications have become increasingly visible.
When Patrice Talon came to power in April 2016, Benin was at an impasse: erratic growth, a high public deficit, concerning levels of debt, an uninviting business climate, and an underperforming tax administration. The national economy was largely dependent on cotton and trade flows with Nigeria. From the outset, the new president’s priority was clear: to restore confidence, clean up public finances, rebuild the state’s investment capacity, and structure a more resilient economy.
This policy involved an accelerated modernisation of the administration, including the simplification of business registration procedures, the establishment of one-stop shops for foreign trade, and the expansion of online services. These reforms were accompanied by sustained efforts to combat corruption, based on auditing public accounts, market transparency, and payment traceability. Added to this was a decisive shift away from the aid-based logic of public development assistance, in favour of private investment both national and international as the main driver of growth.
From 2016, the Beninese government launched an extensive modernisation programme with the PAG 2016–2021, backed by 9,039 billion CFA francs in investments. This first programme combined structural reforms, major infrastructure projects and targeted social policies within a deliberately streamlined institutional framework. In 2021, a second PAG, even more ambitious at 12,011 billion CFA francs, continued this momentum by strengthening macroeconomic foundations and accelerating the transformation of the national productive fabric.
Between 2016 and 2024, GDP growth rose from 3.3% to 7.5%, reflecting sustained economic expansion despite major external shocks, notably the Covid-19 pandemic, during which the country maintained positive growth of 3.8%. Inflation, historically volatile, was contained at 2.2% in 2024, while public debt, projected at 52.4% of GDP in 2025, remains well below the regional threshold of 70%. The budget deficit, which stood at 6% in 2015, is expected to fall to 2.9% in 2025, according to official forecasts — a sign of progressive but steady fiscal consolidation.
This trajectory also relies on a deep restructuring of the economic administration, aimed at better mobilisation of domestic resources. The tax-to-GDP ratio rose from 13% to 15.5% between 2017 and 2024, supported by a series of structural measures: revision of the General Tax Code, adoption of a national medium-term revenue mobilisation strategy, digitalisation of tax procedures — notably with the introduction of standardised VAT invoices — and broadening of the tax base through the gradual formalisation of the informal sector. This foundation places Benin among the most disciplined African economies in terms of fiscal governance.
Fiscal discipline, a lever of confidence
In 2024, the agency Standard & Poor’s upgraded Benin’s sovereign rating to BB- with a stable outlook, praising the country’s debt management and fiscal reliability. A few months later, in March 2025, Fitch affirmed its B+ rating, highlighting fiscal discipline and a strategic orientation towards concessional loans, which now account for 60% of external debt. These assessments reflect growing recognition of the country’s financial trajectory.
In this favourable climate, Benin is undertaking financing operations of unprecedented scale. In January 2025, it raised one billion euros and dollars, split between 500 million dollars via a 16-year eurobond — one of the longest maturities ever achieved at this rating level — and 500 million euros in the form of a structured loan guaranteed by IDA, a world first. This innovative arrangement, which was heavily oversubscribed, allowed for the partial refinancing of the 2032 eurobond while lowering the average cost of debt and directing resources towards high-impact projects.
This strategy also extends to the regional market. On 3 April 2025, the Beninese Treasury raised over 20 billion CFA francs during its first quarterly issuance on the WAEMU market, with a coverage ratio exceeding 400%. A new auction is scheduled for 22 May, as part of an overall second-quarter programme totalling 65 billion CFA francs. At the helm is Romuald Wadagni, Minister of Economy and Finance since 2016, named Africa’s best finance minister at the end of 2024, who embodies this strategy of rigour and innovation — now widely praised far beyond the continent.
The transformation of Benin’s economy no longer stops at financial stability. Driven by a clear policy of diversification, it now relies on the rise of sectors such as soya, cashew, rice and pineapple. The Glo-Djigbé Special Economic Zone (GDIZ) embodies this momentum: launched in 2021, it has generated over 14,000 jobs and attracted investors from Asia, Europe and the Middle East. Structured around value chains such as cotton, cashew nuts and textiles, it forms part of a strategic repositioning: to make Benin an industrial processor rather than a mere exporter of raw materials.
To support this ambition, Benin established a national framework for sustainable financing as early as 2021, reinforced in 2024 during a roundtable with international investors. This strategy has enabled the implementation of innovative operations, such as the structured loan raised in January 2025 for an amount of 500 million euros, guaranteed by IDA and secondarily secured by ATIDI. This arrangement allowed the country to strengthen its fiscal resilience and partially refinance the 2032 eurobond. The savings generated through this operation are being reallocated to priority projects aligned with Benin’s Sustainable Development Goals. In parallel, the state is relying on the Caisse des Dépôts et Consignations du Bénin to mobilise domestic and diaspora savings through dedicated instruments, with the aim of financing high value-added industrial and development projects.
This trajectory is accompanied by a clear commitment to green finance. A Green Bank, currently in preparation with the African Development Bank, will complement a climate window housed within the FNEC, in order to channel local financing towards ecological transition. The signing of a strategic partnership with Norway at COP29 confirms the internationalisation of Benin’s positioning as a credible and innovative player in the field of climate finance.
Talon legacy: towards a Beninese model?
The Talon decade has also been marked by a sustained effort to strike a balance between economic imperatives and social expectations. The significant increase in public investment has helped reduce territorial disparities, notably through the expansion of the road network, electrification of the country (69% in urban areas and 36% in rural zones), the development of access points to drinking water — particularly via the Aqua-Vie programme supported by the World Bank — and the construction of healthcare infrastructure in the most remote regions.
In education, several reforms have been initiated. The Integrated National School Feeding Programme (Pnasi) now covers more than 1.2 million pupils and has enabled the widespread introduction of school canteens in rural areas. At the same time, the government has gradually extended free schooling for girls up to the end of lower secondary education, a measure that will be implemented nationwide from October 2024. The development of technical training programmes is also among the top priorities.
As the time for reflection arrives, it would be reductive to summarise the Talon decade through a series of indicators alone. What this period highlights is the determination to break with a version of the Dutch disease still widespread across the continent: an economy dominated by the export of minimally processed raw materials, insufficient private investment, and training poorly aligned with the needs of productive sectors. In response to these challenges, Benin has chosen a method: technocratic governance, public investment oriented towards production, and an openly results-driven culture. On a continent where productive disengagement remains one of the blind spots of public policy, Benin offers a path which, without claiming to be exemplary, deserves attention — that of a country choosing to turn its constraints into levers, with method, and without grandstanding.
As the electoral deadline approaches, a question quietly emerges: will this method withstand President Talon’s departure? Will a future change in leadership mark a rupture or a continuation? In ten years, Benin has laid the foundations for a different future. The question now is who will carry its legacy forward.
