Benin’s Public Debt Management: A Success Story

Benin has made significant strides in managing its public debt, with a repayment of almost 500 billion FCFA in the first half of 2024. According to the Public Debt Statistical Bulletin for the second quarter of 2024, the country has no public debt service arrears as of June 30, 2024.

The bulletin reveals that the public debt service was provided in the first half of 2024 for an amount of 499.78 billion FCFA, including 334.48 billion FCFA to repay principal and 165.30 billion FCFA to pay financial charges.

Benin’s outstanding public debt amounts to 6,756.9 billion FCFA, with external debt representing 70.7% of this amount, totaling 4,774.1 billion FCFA, while internal debt stands at 1,982.8 billion FCFA.

Non-resident debts hold the majority of the debt, accounting for 85.7% of the total, highlighting the country’s reliance on external financing. The euro remains the primary debt currency, representing 51.7% of the total debt, followed by the CFA franc (29.3%) and the US dollar (10.6%).

The public debt ratio, measured by the ratio of outstanding debt to gross domestic product (GDP), stands at 52.1%, a slight decrease compared to the rate of 52.4% recorded at the end of the first quarter of the year.

This rate remains below the community standard set at 70% of GDP in the West African Economic and Monetary Union (WAEMU), reflecting a prudent and complex management of Benin’s public finances.

Author: Ange Aristide BYLL