Benin - Is the “Revelation” within reach?

Over the past several years, Benin has demonstrated promising momentum, characterized by strong and resilient economic growth and a drive for structural reforms. The macro-fiscal trajectory appears favorable in the short to medium term, supported by one of the most dynamic growth rates on the continent, enabling the rebuilding of fiscal buffers. However, questions remain regarding the long-term development trajectory. The economic model remains largely informal, with insufficient productivity and a limited supply of quality jobs. Structural transformation has yet to lead to the emergence of high value-added activities, trade openness is stagnating, and human capital remains underutilized. The authorities are implementing a governmental strategy aimed at ushering the country into a new era of prosperity. This strategy focuses on enhancing industrial policies and strengthening social systems. To truly drive this transformation, the government will need to address several structural obstacles, including low mobilization of public revenues, limited access to private financing, and an inefficient and costly energy system. As the end of President Patrice Talon's current term approaches in 2026, this MacroDev report raises the question of whether the ambition of a "Benin Revealed" is within reach.