President Patrice Talon is in pole position to win the presidential elections held on April 11, due to the partial boycott of the opposition and the resulting drop in turnout. Nevertheless, believes Aurelien Mali, vice-president of Moody’s, “the credit problems in Benin remain and include political and social tensions, a relatively low income per capita and a relatively undiversified economy which still struggles to attract direct investment. important foreigners ”.
Note that the outlook attached to B1 had been reduced a few weeks ago from “positive” to “stable”, reflecting political tensions.
“Our view of Benin’s credit reflects the small size and relatively undiversified economy, which is vulnerable to external shocks from Nigeria (negative B2) offset by a long history of macroeconomic stability,” the agency wrote in a dated note. from March 9, 2021.
In recent years, Benin’s growth has accelerated, supported by the authorities’ development plan, the Government Action Program (PAG). The country’s economy has been affected by the coronavirus pandemic and the global recession. However, its real growth potential remains robust, above 6% in the medium term, supported by the international community.