On July 05, 2018, the international rating agency Standard & Poor’s assigned a B + rating to the Republic of Benin, associated with a stable outlook. This rating places Benin, like Senegal and Kenya, in the first rank of African countries assessed by the S&P agency (excluding South Africa and Morocco), ahead of countries such as Nigeria or Rwanda ( B, Stable perspective). Benin thus puts an end to seven (07) years without rating, the last one dating from 2011 (B, negative outlook). Sovereign financial rating assesses a government’s ability to meet its financial commitments. This good rating attributed to Benin therefore reassures investors on the state’s credit quality. Standard & Poor’s particularly noted the dynamism of the current administration and the political stability – unique in the sub-region – of Beninese democracy. The rating agency explains its rating by a notable improvement in the macroeconomic management of the country by the new authorities, under the leadership of His Excellency President Patrice G. Talon. S&P emphasizes strengthening public governance and institutional accountability. It also highlights the reforms implemented to support economic growth and pursue fiscal adjustment, within the framework of the Government Action Program (PAG). S&P mainly emphasizes the improvement of revenue collection, thanks to an increased dynamism of economic activity, associated with better performance of the cotton sector and a series of reforms aimed at improving tax collection. In addition, efforts related to the business climate, in particular the creation of commercial courts and the adoption of decrees and laws aimed at increasing transparency, including in the award of public contracts, also constitute important reforms favored by the rating agency. The latter underlines that the success in the implementation of these reforms will boost the confidence of donors and foreign investors.
