Strengthening Growth Potential by Investing $150 Million in Benin

WASHINGTON, September 21, 2022 – The World Bank today approved $150 million in financing from the International Development Association (IDA)* to help the government of Benin empower women and girls, expand access to reliable and sustainable energy and improve fiscal and debt management.

This is the second development policy operation to finance reforms aimed at improving Benin's potential for strong and inclusive growth, focusing in particular on strengthening the active participation of women and girls in social life and economic. These reforms will, among other things, help girls complete secondary education through life skills education, free access to school in priority areas, removal of barriers to accessing sexual and reproductive health as well as the strengthening of mechanisms for the prevention of gender-based violence. The program will also support actions to strengthen the resilience of the electricity distribution network, reduce costly connection charges and introduce new energy efficiency legislation. In addition to ensuring effective debt management, it will also enable Benin to complete its fiscal policy reform.

A number of courageous reforms undertaken by the government have enabled Benin to make significant strides toward empowering women and girls. These reforms undoubtedly contribute to unlocking the potential of millions of women and girls who have not been able to exercise their power to participate actively in social and economic life. ATOU Seck, Country Director for Benin at the World Bank, said. In addition to strengthening the reforms in the economy, this financing will enhance the quality of life for the population as well as the structural transformation of the economy.

Women and girls in Benin have benefited from numerous legislative reforms adopted in 2021. To promote access to reproductive health and rights, criminalize gender-based violence, and strengthen the national entity that advocates for, monitors, and supports gender reform, the government has adopted laws and decrees. Gender-based crimes referred to the justice system (as a percentage of the total received) increased from 12.1% in 2020 to 13.7% in 2021.

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In the energy sector, reforms focused on the establishment of an appropriate institutional and regulatory framework to increase private participation in the energy sector, particularly in renewable energy, and the adoption of a national energy efficiency policy.

"The ongoing energy sector reform will make electricity distribution cheaper and more resilient to climate shocks, resulting in a significant increase in access to electricity for the population of Benin. Romuald Wadagni, Minister of State, Minister of Economy and Finance, emphasized that these reforms are necessary to improve the prospects for inclusive growth. A middle-income economy is within reach for Benin with the assistance of this operation."

The new funding was designed in alignment with the Beninese government's 2021-2026 action plan, and in particular the national development plan (2020-2025), one of the essential pillars of which is the reduction of fertility in order to benefit of the demographic dividend. . It is also part of the Bank's partnership with Benin, which emphasizes the structural transformation of the economy for competitiveness and productivity, the development of human capital and support for resilience and reducing vulnerability to climate change.

The International Development Association (IDA) is the institution of the World Bank that helps the poorest countries in the world. Founded in 1960, it provides low-cost or no-cost grants and loans to finance projects and programs that stimulate economic growth, reduce poverty and improve the lives of the poorest people. IDA is a major donor to 76 of the world's poorest countries, including 39 in Africa. As many as 1.6 billion people are impacted by IDA resources in its eligible countries. The International Development Association has supported development projects in 113 countries since its inception. IDA's annual volume of commitments has steadily increased and has averaged $21 billion over the past three years, of which about 61 percent has gone to Africa.

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