"Three questions to ..." John Andrianarisata, Country Representative of the African Development Bank in Benin

AfDB NEWS & EVENTS

19-Feb-2020

The African Development Bank has been a partner of Benin since 1972, one of the six African countries that experienced the strongest growth in 2019.
John Andrianarisata, Bank representative in the country, explains the role of the institution in this performance and details its priorities to support Benin in the structural transformation of its economy.

Last year, Benin was, for the first time, among the six African countries and the ten most dynamic economies in the world in terms of growth. How do you explain this performance?

Benin recorded strong economic growth over the 2017-2019 period, with a jump of 6% of its Gross Domestic Product (GDP, and even 6.7% in 2018 and 2019.

This growth is due to the performance of its agricultural sector, particularly cotton, whose production increased from more than 269,000 tonnes in 2016 to almost 727,000 in 2019.

It also owes it to the vitality of the building and public works sector, to the increase in energy capacities (entry into operation of the 120 MW power plant at Maria-Gléta), to the revival of agro-industry activity , the dynamism of the port of Cotonou and the increase in public investment (from 21% of GDP in 2016 to 29.6% in 2019).

Good macroeconomic management, carried out by the authorities in recent years, has had a positive effect. Indeed, Benin successfully issued, for the first time in March 2019, a Eurobond of 500 million euros - the equivalent of 5.2%. The country is credited with a B + rating by the Standard & Poor's agency and its risk of over-indebtedness is considered moderate by the IMF.

What actions of the Bank contributed to this performance?

The Bank's partnership with Benin is almost 50 years old. It started in 1972. Since then, the volume of its investments has exceeded 1.55 billion US dollars. The Bank's net commitments have multiplied by 3.6, going from 180 to 645 million dollars in three years - from 2016 and 2019. Today, its portfolio in Benin has 20 active projects for a total amount of 645 million of dollars. These investments affect the transport (53%), agriculture (19%), energy (13%), water and sanitation (12%) and governance (3%) sectors. ).

What are the Bank's priorities in Benin for the coming years? How can the Bank help the Beninese economy to accelerate its structural transformation?

The Bank is engaged with Benin through the Country Strategy Document (CSP) for the 2017-2021 period. By supporting the implementation of the Government Action Program (PAG 2016-2021), the objective of the CSP aims to enable the structural transformation of the Beninese economy in favor of inclusive growth, generating decent jobs, while ensuring the transition to a green economy.

To achieve this objective, the Bank is focusing its interventions in the agriculture and agro-industry, energy, transport, water and sanitation sectors.

The outlook is favorable: GDP growth forecasts are 6.7% this year, and 6.6% in 2021.