African Development Bank Group approves EUR 117 million financing to strengthen economic attractiveness of Benin’s 77 municipalities

The PADECT programme will support private sector development, digital transformation and climate resilience in 77 municipalities.

The Board of Directors of the African Development Bank Group approved, on 24 October, EUR 117 million in financing to implement the Support Programme for the Economic Development of Local Authorities (PADECT) in the Republic of Benin. The programme aims to transform the country’s 77 municipalities into hubs of private investment and job creation over the period 2026-2031.

The financing comprises two loans: one of EUR 110 million from the African Development Bank, the other of EUR 7 million from the African Development Fund, the concessional window of the Bank Group. Benin’s Ministry of the Economy and Finance will implement the programme through its Economic and Financial Programme Monitoring Unit.

The programme will strengthen the capacity of Benin’s 77 municipalities to implement their annual investment plans and will facilitate access to financing for small and medium-sized enterprises through the Small and Medium-sized Enterprise Development Agency and the Investment and Guarantee Fund for Small and Medium-sized Enterprises.

“This project is the Bank’s very first sub-national financing in Benin. We congratulate the national authorities for this remarkable innovation. The Bank is proud to have responded to support Benin in its development,” said Robert Masumbuko, Country Manager of the African Development Bank Group in Benin.

Digital transformation forms a central pillar, with the planned deployment of telecommunications infrastructure in 89 public facilities, including town halls, schools, universities and hospitals. Mobile network coverage will be extended to 114 localities currently without service, and 65 community digital points will provide affordable internet access and digital services in municipal centres.

The programme will also strengthen climate action through the National Disaster Response Fund and the National Environment and Climate Fund, financing municipal climate prevention projects and environmental protection initiatives, with particular focus on activities led by women. The programme demonstrates strong commitment to gender equality, targeting at least 30 percent female representation.

PADECT will be implemented using a results-based financing approach with nine disbursement-linked indicators. “This programme marks a strategic upgrade in the Bank’s support to Benin by moving from an activity financing approach to a performance-based financing approach,” emphasized Ammar Kessab, Principal Programme Officer at the African Development Bank.

The programme aligns with Benin’s National Decentralisation and Devolution Policy 2024-2033, and with the country’s long-term vision, “Benin 2060 ALAFIA”.

Contact: 

Natalie Nkembuh, Communication and External Relations Department media@afdb.org

Source : AFDB