The African Development Bank Group’s Board of Directors has approved EUR 117 million in financing for Benin to implement the Support Programme for the Economic Development of Local Authorities (PADECT). The initiative, running from 2026 to 2031, aims to transform Benin’s 77 municipalities into dynamic centers of private investment and job creation. The funding package includes EUR 110 million from the African Development Bank and EUR 7 million from the African Development Fund. The Ministry of Economy and Finance will oversee implementation through its Economic and Financial Programme Monitoring Unit.
The programme focuses on strengthening the capacity of local governments to execute their annual investment plans and improving access to financing for small and medium-sized enterprises. This will be achieved through partnerships with the Small and Medium-sized Enterprise Development Agency and the Investment and Guarantee Fund for SMEs. The project marks the Bank’s first sub-national financing initiative in Benin, signaling a milestone in decentralized development support.
A major component of PADECT is digital transformation. The project plans to expand telecommunications infrastructure to 89 public facilities, including town halls, schools, universities, and hospitals. It will also extend mobile network coverage to 114 underserved localities and establish 65 community digital points to enhance internet access and promote digital inclusion across municipalities.
Climate resilience and environmental sustainability are also central to the programme. Through the National Disaster Response Fund and the National Environment and Climate Fund, PADECT will finance local climate prevention and environmental protection projects, with a strong emphasis on initiatives led by women. The programme also sets a gender equality benchmark, aiming for at least 30 percent female participation.
PADECT will adopt a results-based financing model anchored on nine disbursement-linked indicators. This approach marks a strategic shift from activity-based to performance-based financing, reflecting a stronger focus on measurable outcomes. The programme is aligned with Benin’s National Decentralisation and Devolution Policy (2024–2033) and the country’s long-term vision, Benin 2060 ALAFIA, reinforcing its commitment to inclusive, sustainable, and locally driven development.
