Benin’s economy in the spotlight: a positive outlook according to S&P
In an uncertain regional and international economic context, Benin stands out with a positive economic outlook, according to the American rating agency Standard & Poor’s (S&P). In its latest report, S&P highlights the robustness of the Beninese economy and projects sustained GDP growth of more than 6% per year until 2026.
A robust Beninese economy despite regional challenges
Despite the challenges of sanctions imposed on neighbor and major trading partner Niger following last July’s coup, S&P believes this will have little effect on Benin’s growth. Indeed, trade continues thanks to the transit of goods via Burkina Faso. Additionally, the pipeline project linking Benin and Niger continues to advance, providing new economic opportunities for both countries.
Risk of military intervention averted, but vigilance maintained
S&P also mentions the risk of military intervention by the Economic Community of West African States (ECOWAS), which seems to be receding. However, the rating agency warns of a possible deterioration of the situation, which could lead to a reduction in Benin’s rating. Despite this, the positive outlook granted by S&P is a recognition of the country’s economic and political stability.
The Beninese government welcomes this decision
The Beninese government welcomed S&P’s decision and stressed that Benin is the only country in Africa to benefit from a positive outlook from the rating agency. This recognition strengthens investor confidence and confirms the government’s efforts to maintain prudent management of public finances.
Benin is therefore positioned as a solid economic player in the region, with encouraging growth prospects. Investment and business opportunities are expected to continue to flow into this dynamic country, creating new development opportunities for Beninese businesses and citizens.