Benin Targets FCFA 2.65 Trillion Revenues in 2026
Benin’s 2026 budget projects FCFA 2.65tn revenue (+8% y/y). Growth 5.5%, inflation 3%, deficit ≈3% of GDP. Fiscal reforms, VAT digitisation, and IMF-backed discipline keep WAEMU targets intact as Eurobond yields stay near 7.4%.
The World Bank’s October 2025 “Africa’s Pulse” projects Sub-Saharan Africa growth at 3.8 %, up from 3.5 % in 2024, as inflation softens and domestic demand recovers. Regional inflation averages 8.9 %, down two points year on year, while monetary tightening cycles are peaking across major economies.
Commodity exporters — Nigeria, Angola, DR Congo — benefit from steady prices in Brent (CL=F) and gold (XAUUSD). Importers gain from cheaper freight and a softer USD. Private credit growth in frontier markets averages 12 %, and FX reserves rebuild after two years of drawdowns. However, half of African economies still face debt service ratios above 20 % of revenues.
Policy divergence widens. Kenya and Ghana maintain tight rates to anchor expectations; Tanzania and Rwanda pursue growth-supportive liquidity; South Africa’s real rates turn positive. The continent’s median public-debt-to-GDP is 60 %, and primary deficits average 1.5 %. Fiscal discipline and structural reform remain central to sustaining momentum.
Investor flows into African Eurobonds have stabilised since Q3 2025 as global risk sentiment improves. MSCI Frontier Africa gained 3 % YTD, reflecting confidence in policy stability and commodity earnings. The Bank urges governments to prioritise infrastructure and tax efficiency to unlock higher potential growth around 5 %.
