On Friday, August 30, the Moody's rating agency confirmed Benin's sovereign rating at B1 with a stable outlook, while warning about the potential risks of deterioration in the coming months.

Moody's decision follows a periodic review conducted on 27 August 2024, during which the agency reassessed the relevance of current ratings taking into account recent economic and political developments, marked in particular by diplomatic tensions with some of its neighbors. The agency said that on the one hand, Benin enjoys macroeconomic stability supported by its membership in the West African Economic and Monetary Union (UEMOA) and by an ambitious government development plan, the Government Action Programme (PAG), which has boosted economic growth in recent years. On the other hand, Benin remains économie small, poorly diversified, and vulnerable to external shocks”, in particular from Nigeria and the Sahel region, Burkina Faso and Niger, two areas plagued by geopolitical turbulence

Moody's notes that Benin should continue to benefit from sustained economic growth, with real GDP expected to grow between 6% and 7% over the next five years.