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IMF Country Report No. 24/339

BENIN

SELECTED ISSUES

December 2024

This paper on Benin was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on June 27, 2024.

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© 2024 International Monetary Fund

Title page

BENIN

SELECTED ISSUES

June 14, 2024

Approved By

African Department

Contents

• BENIN—ECONOMIC TRANSFORMATION AND INDUSTRIAL POLICY

• A. Background

• B. Recent Patterns and Stylized Facts

• C. Challenges to Economic Transformation in Benin

• D. Benin’s Approach to Industrial Policies

• E. Conclusions

• BOX

• 1. Glo-Djigbé Industrial Zone

• References

• BENIN—DIGITAL TRANSFORMATION TO FOSTER INCLUSIVE GROWTH

• A. Benin’s Commitment to Advancing the Digitalization Agenda and Outcomes

• B. Addressing Internet Accessibility and Quality Challenges

• C. Social Dividends from Digital Transformation

• D. Conclusions and Policy Recommendations

• FIGURES

• 1. GovTech Maturity Index

• 2. Mobile Money Usage

• 3. Internet Accessibility and Quality

• 4. Inequality of Access to Internet, 2018-2021 (Percent of population in each group) 19

• 5. Package Price for Mobile Data and Voice Low-Consumption Basket (percent of monthly GNI per capita)

• 6. Infrastructure Investment Needs

• BOX

• 1. Methodology for Costing Digital Infrastructure Investment Towards Universal Broadband Coverage

• References

• BENIN—SOCIAL POLICIES TO ENHANCE HUMAN CAPITAL DEVELOPMENT: STOCK-TAKE AND REFORM OPTIONS

• A. Social Spending in Benin: Recent Trends

• B. Assessing Poverty and Income Vulnerability

• C. Developing Human Capital to Harness the Demographic Dividend

• D. Bringing It All Together and Way Forward

• FIGURES

• 1. Government Spending on Core Social Sectors in WAEMU Countries (percent of GDP)

• 2. Regional Disparities in Poverty Rates Relative to the National Average, 2021 (percentage points difference relative to the national poverty rate)

• 3. Dynamics of Poverty: Households Transitions in Poverty Status Before and After the Pandemic (percent of total households in each department)

• 4. Share of Households Affected by Different Types of Shocks, by Welfare Quintile and Department 2021 (percent of total households)

• 5. SDG 1.3.1: Effective Coverage by Function of Social Protection, 2020 (percent)

• 6. Cause Specific Mortality, 2021 (percent of total deaths)

• 7. Maternal, Neonatal, and Infant Mortality Rates, 2021 (per 100,000 or 1,000 live births)

• 8. Access To Prenatal Care and Skilled Delivery, 2021-22 (percent by welfare quintile)

• 9. Total Current Health Expenditure Disaggregated by Source (% of GDP)

• 10. Healthcare Funding Source as a Share of Health Spending (% of Current Health Expenditure)

• 11. Medical Staff Density (per 10,000 population)

• 12. Performance in Achieving the SDGs

• References

• BENIN—INVESTING IN EDUCATION TO REAP THE DEMOGRAPHICS DIVIDEND

• A. Demographic Trends in Benin

• B. Education in Benin: Stylized Facts

• C. Bridging the Education Gap

• D. Conclusion and Policy Recommendations

• References