The Republic of Benin has signed a financing agreement for a total amount of 127M € (83 billion CFA Francs) with a leading international bank. This loan has a partial guarantee from the World Bank and its funds will be entirely dedicated to the financing of the project for Insurance for the Strengthening of Human Capital (‘ARCH’). This commercial bank therefore joins the many international partners who have already contributed to the ARCH project: the World Bank, presents through its guarantee in this operation, but also by a direct financial participation; the Islamic Development Bank, the French Development Agency and many others.
“This is a decisive moment for a key policy of the government, and the promise of great social progress from 2019. This agreement makes it possible to finance a significant part of the ARCH project, on all pillars: health insurance, training, micro-credit, retirement “said Minister of Economy and Finance Romuald Wadagni. “We still demonstrate that Benin is able to attract leading foreign investors, also on priority social projects.”
The € 127m loan is partially guaranteed by the World Bank, up to 40% of the principal amount. It carries an interest margin of less than 3.5% for a maturity of 12 years. This is the second time that Benin has used a partial guarantee from the World Bank: after the debt reprofiling operation conducted in 2018, Benin still demonstrates its ability to find the most favorable terms by relying innovative instruments proposed by the international financial institutions.
This operation confirms the growing interest of foreign investors for Benin. The Minister of Economy and Finance Romuald Wadagni, welcomes this dynamic and ensures work to new success in this direction.
Cotonou, January 11, 2019
