The World Bank has approved $150 million in financing from the International Development Association (IDA)* to help Benin increase the efficiency of domestic resource mobilization and public expenditure.
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The Economic Governance for Service Delivery Program for Results (PforR) will support actions aimed at increasing the efficiency of domestic resource mobilization and public expenditure to enable the government to have more resources to finance public services and respond to shocks. The program targets more inclusive access to e-declaration and performance-based management in customs administration. It also aims to increase the efficiency of expenditure management and public procurement and supports the establishment of a space conducive to citizen oversight of public finances.
“Benin has made significant progress in improving budget management over the past decade, but further efforts are needed to increase domestic resource mobilization and the efficiency of public spending,” said Atou Seck, World Bank Country Manager for Benin. “This funding will help scale up the results of the reforms undertaken to improve tax management, increase domestic revenue and modernize the country’s statistical system”..”
Benin still has room to improve domestic resource mobilization relative to its regional peers and its tax base remains narrow. In 2022, Benin’s tax revenue was estimated at 11.5% of Gross Domestic Product (GDP), less than the average for the West African Economic and Monetary Union (WAEMU) at 12.9% percent. Further efforts are needed to achieve the WAEMU target of 20% of GDP.
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This results-based program aligns with the World Bank’s Partnership Framework with Benin. It consolidates the achievements of economic governance reforms and projects supported in recent years by the World Bank in Benin.