The International Monetary Fund has approved an extension of Benin’s Resilience and Sustainability Facility (RSF) arrangement to January 7, 2026, allowing the climate-focused programme to run in parallel with the country’s broader IMF-supported reforms, the Fund said Friday.
The two-year RSF, originally approved on December 14, 2023, provides Benin with SDR148.56 million (US$181 million) equivalent to 120 percent of the country’s IMF quota. The extension aligns the RSF with Benin’s ongoing programmes under the Extended Fund Facility (EFF) and the Extended Credit Facility (ECF), which anchor the government’s fiscal and structural reform commitments.
The RSF is designed to help climate-vulnerable economies strengthen resilience to environmental shocks without undermining debt sustainability. For Benin, the arrangement supports reforms in climate adaptation, disaster-risk management, renewable-energy expansion and improved planning of climate-sensitive public investment.
Climate and fiscal pressures
Benin has recorded steady economic growth in recent years, buoyed by strong agricultural output, transport services and sustained public investment. But the country remains highly vulnerable to climate-related shocks including coastal erosion, heavy flooding and irregular rainfall which pose risks to agriculture, infrastructure and long-term macroeconomic stability.
Under the RSF, Benin is expected to modernise climate-risk systems, improve environmental regulation, and incorporate climate considerations into major public projects. IMF staff say synchronising the RSF timeline with the EFF/ECF will create a “coherent policy framework” and streamline monitoring across the three arrangements.
Background on the wider IMF programme
Benin’s ECF and EFF programmes focus on stabilising public finances, increasing domestic revenue and strengthening governance in public financial management. The IMF has encouraged authorities to improve tax collection, reinforce budget execution, and tighten oversight of state-owned enterprises to reduce fiscal risks.
The twin programmes also place emphasis on protecting priority social spending as Benin navigates a challenging regional environment marked by rising security pressures and volatile commodity prices.
Governance reforms including stronger procurement oversight, improved public-sector transparency and better management of state assets remain central to the IMF’s engagement.
Why the RSF matters for Benin
Created in 2022, the RSF offers long-term, low-interest financing to countries most exposed to climate risks. For Benin, the facility aims to embed climate considerations into macroeconomic policy at a time when environmental shocks are becoming increasingly costly.
By pairing climate reforms under the RSF with fiscal and governance measures under the EFF/ECF, the IMF believes Benin can build resilience while sustaining growth and development gains.
Next steps
The IMF Board said the extension would allow for “smoother sequencing” of reforms and better coordination with development partners supporting Benin’s climate and governance agenda.
Benin’s progress under the RSF, ECF and EFF will be assessed during the next IMF review cycle in early 2026.
