The World Bank's International Debt Report 2026, published on November 5, reveals that Benin's external debt reached $16.9 billion at the end of 2025. This represents a 16.5% increase from the previous year. For comparison, the external debt was $3.6 billion in 2015. The report highlights the country's growing debt burden, which has significant implications for its economy.
According to the report, the external debt is comprised of $12.4 billion in public debt or debt guaranteed by the state, $2.9 billion in private debt not guaranteed by the state, and $1.6 billion in short-term debt. Multilateral creditors hold $6.2 billion of the debt, with the International Development Association (IDA) and the International Monetary Fund (IMF) holding $2.8 billion and $1 billion, respectively.
Private creditors hold $5.1 billion of the debt, while bilateral creditors hold $1.2 billion. The report notes that the debt is under significant pressure, with the debt stock representing 373% of Benin's exports and 70% of its gross national income. The terms of borrowing also vary significantly, with an average interest rate of 1.7% over 23 years for official creditors, compared to 7.2% over 15 years for private creditors.
The World Bank report also notes that Benin's public debt has increased, rising from 41.2% of GDP in 2019 to 53.4% in 2024, according to a note from UMOA-Titres. In early 2026, Benin raised $850 million on international markets, including a $500 million sukuk, becoming the first African country to issue an international sukuk.
The country's debt trajectory is a concern, with the debt-to-GDP ratio estimated to be 43.5% in 2025, according to Bpifrance Assurance Export. The World Bank report highlights the need for careful management of the country's debt to avoid potential risks to its economic stability.
The World Bank's report also provides context on the global external debt landscape, noting that the external debt of developing countries reached $9,400 billion in 2025, representing the fastest growth since 2021. This underscores the need for careful management of external debt by countries like Benin to ensure sustainable economic growth.
Overall, the World Bank's report highlights the need for Benin to carefully manage its external debt to avoid potential risks to its economic stability. The country's ability to access international markets, including through the issuance of a sukuk, demonstrates its commitment to managing its debt and financing its development needs.
Key points
- Benin's external debt reached $16.9 billion in 2025, a 16.5% increase from the previous year.
- Multilateral creditors hold $6.2 billion of Benin's external debt, with private creditors holding $5.1 billion.
- Benin's public debt has increased, rising from 41.2% of GDP in 2019 to 53.4% in 2024.
