In 2024, Benin’s public debt will rely more heavily on external borrowing, making up 72.1% of the total debt portfolio. Meanwhile, domestic debt will account for 27.9%, according to the Directorate General of Budget.
Benin’s public debt is projected to slightly decrease, reaching 53.7% of GDP in 2024, down from 54.5% in 2023. This information is detailed in a report by the Directorate General of Budget, which outlines the government’s debt management strategy.
The report reveals a shift in the structure of the country's public debt. External debt is expected to rise to 72.1 % of total debt in 2024, compared to 67.5 % in 2023. Meanwhile, domestic debt will drop to 27.9 %, down from 32.5 % the previous year.
In nominal terms, Benin’s total public debt will amount to CFA 6,968.9 billion (about $11.2 billion), with external debt accounting for CFA 5,026.2 billion and domestic debt making up CFA 1,942.7 billion. Multilateral creditors remain the main source of external financing for the country.
To meet its domestic financing needs, Benin has issued public securities, including Treasury bills and bonds. In September, the country raised CFA 21.99 billion, exceeding its target of CFA 20 billion. Of the bids submitted, 69 % were accepted. The interest rates offered were 6.81 % for 1-year Treasury bills, 6.57 % for 3-year bonds, and 7.15 % for 5-year bonds.
As part of its debt strategy, the government plans to prioritize medium- and long-term financing while reducing the risks associated with refinancing domestic debt. It also aims to maximize concessional loans internationally and explore tools like debt reprofiling and swaps to manage costs and risks more effectively.
For 2025, Benin’s general budget identifies a financing need of CFA 1,183.6 billion (nearly $2 billion). This will be covered through project loans, public securities, and borrowing from local banks. Over the next decade, the government aims to maintain an average public debt-to-GDP ratio of 38 %, well below the sustainable threshold of 55 %.