The Republic of Benin has secured €500 million, equivalent to about 328 billion CFA francs, in international bank financing with support from the African Development Fund.

The financing will support priority investments in education, health, water access, infrastructure, renewable energy and agriculture, with a focus on creating jobs and expanding opportunities for young people and women.

The transaction was completed on September 18, 2026, following the 17th replenishment of the African Development Fund, agreed in December 2025 as the largest replenishment in the Fund’s history.

The 12-year financing package uses an innovative credit enhancement mechanism to help Benin access long-term funding on competitive terms.

It includes a partial credit guarantee from the African Development Fund, alongside second-loss insurance provided by the insurance subsidiary of the Islamic Development Bank Group.

AfDB Country Manager, Robert Masumbuko said the transaction supports the Bank’s strategy of mobilizing capital-market resources at scale and advancing a new financial architecture for Africa’s development.

Director of the Financial Sector Development Department at the African Development Bank Group, Ahmed Attout, said the operation demonstrates the potential of guarantees to mobilize private capital more effectively. 

The latest financing builds on a previous transaction concluded in 2023 with support from the African Development Fund.

The African Development Bank said the deal demonstrates how innovative financing solutions can help African countries mobilize additional resources for long-term development and deliver investments that benefit communities.