S&P lifts Benin

S&P said it raised its long-term local- and foreign-currency sovereign credit ratings on Benin to BB- from B+.

“The upgrade reflects our view of Benin's strong economic outlook. We believe Benin's economic growth will average 6.4% over 2024-2027, outpacing that of peers, thanks mostly to the authorities' efforts to diversify the economy through public investments and structural reforms, backed by international donors. Although large development programs sometimes provide only a temporary boost to economic growth, for example via construction activity, with projects yielding only limited long-term and transformative benefits, we believe this is not the case for Benin.

“The government's program focuses on projects that improve the country's current productive capacity, notably on upscaling its role in the value chain, especially in the agribusiness and textile sectors, as well as infrastructure. An illustration of this is the very rapid development and operationalization of the Glo-Djigbe special economic zone (SEZ), and the concomitant expansion of the Cotonou port,” S&P said in a press release.

The agency said it expects GDP per capita to top $2,100 in 2027 from $1,550 in 2023.

The outlook is stable.

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