On December 21, 2018, the international financial rating agency Standard & Poor’s confirmed the B + rating assigned to the Republic of Benin with a stable outlook. It thus ranks Benin second among African countries, at the same level as Senegal and Kenya. This assessment is part of the periodic review of Benin’s rating. According to the agency, this note confirms its expectations of a gradual improvement in the country’s economic and financial situation over the coming years. The agency believes that macroeconomic management has improved. It has therefore significantly revised upwards its growth forecasts for the 2018-2021 period, bringing it to 6.5% on average. This growth will be driven by productivity gains in agriculture, improved management of the Port and its modernization, as well as the economic reforms implemented by the Government. In terms of public finances, the agency projects a gradual reduction in the budget deficit which will stand at less than 4% of GDP between 2018 and 2021. This trend will be driven by an increase in public revenues due to stronger economic activity, better performance in the cotton sector, and a series of reforms aimed at better tax collection. Regarding the debt, S&P forecasts that it will be around 50% of GDP over the 2018-2021 period, well below the community ceiling for the UEMOA zone which is 70% of GDP. The agency particularly welcomed the reprofiling operation carried out by the Government in September 2018, which enabled Benin to improve its debt profile by replacing a stock of expensive debt of short average maturity with debt contracted at a lower rate and long maturity.
