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Benin Strengthens Fiscal Management and Its Energy and Digital Sectors to Boost Growth

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Benin Strengthens Fiscal Management and Its Energy and Digital Sectors to Boost Growth

Washington — The World Bank today approved $100 million from the International Development Association (IDA)* to help the government of Benin strengthen fiscal and debt management, improve the financial sustainability of the energy sector, and foster the development of the digital economy.

This second development policy operation is designed to support the Government’s efforts to promote faster, sustainable growth, which has been stymied in recent months by the coronavirus pandemic. The program will support reforms on tax revenue mobilization and administration and debt management. The reforms will help improve the financial sustainability and competitiveness of the Benin Electricity Company (SBEE), develop renewable energy technologies, and promote a digital sector that is competitive, reliable, and accessible.

“Benin can achieve an economy that is more resilient to shocks and conducive to the creation of more productive jobs and SME innovation.” This financing contributes to that objective by ensuring the sustainability of the electricity sector and by boosting competition in Internet services to improve the quality of services to citizens at more affordable rates,” noted Atou Seck, World Bank Country Manager for Benin. “Although the coronavirus crisis has jeopardized gains made in recent years, it can provide an opportunity to step up the pace of reforms needed for fast and sustainable growth.”

This financing builds on the first operation approved on December 12, 2019 in the amount of $100 million. An additional $50 million in financing was also approved on June 26, 2020 as part of the budget response to the coronavirus crisis.