To ensure better mobilization of domestic resources, the World Bank approved $150 million in financing from the International Development Association (IDA) * to help Benin.

The objective of this funding is to increase the effectiveness of domestic resource mobilization and public expenditure through the economic governance program for service delivery is focused on performance (pFORR in English). It will support actions aimed at increasing efficiency in mobilizing national resources in order to enable the State to have more resources to finance public services and respond to shocks. The program targets more inclusive access to electronic declaration and increased use of performance-based management in customs administration. It also aims at greater efficiency in the management of public expenditure and procurement and supports the establishment of a tax area favourable to citizen control.

“Benin has made significant progress in improving budget management over the past decade, but additional efforts are needed to increase domestic resource mobilization and public expenditure efficiency,” highlights Atou Seck, World Bank operations manager for Benin. “This funding will make it possible to scale the results of reforms undertaken to improve tax management and domestic incomes, but also to modernize the country's statistical system.”

Benin still has progress to make compared to its regional peers in mobilizing domestic resources, and its tax base remains narrow. In 2022, Benin's tax revenue was estimated at 11.5% of gross domestic product (GDP), less than the West African Economic and Monetary Union (WAEMU) average (12.9%). Additional efforts are needed to reach the target of 20% of GDP set by the UEMOA

This performance-based program is aligned with the World Bank's Partnership Framework with Benin. It consolidates the achievements of reforms and economic governance projects supported in recent years by the World Bank in Benin

* The International Development Association (IDA) is the World Bank institution that helps the poorest countries in the world. Founded in 1960, it provides grants and low-interest or interest-free loans for projects and programs that stimulate economic growth, reduce poverty, and improve the lives of the poorest. IDA is among the top donors to the 76 poorest countries in the world, 39 of which are in Africa. IDA resources make it possible to make positive changes in the lives of 1.6 billion people living in countries eligible for IDA assistance. Since its establishment, IDA has supported activities in 113 countries. The annual volume of commitments is constantly increasing and has averaged $21 billion over the past three years, with about 61% of this amount going to Africa