Cotonou, Benin – A recent report from the national debt management service has revealed that Benin’s public enterprises have accumulated approximately CFA 1.31673 billion in bank debt over the seven-year period from 2018 to 2024. Notably, this debt was raised by only six of the nine state-owned companies currently in operation, following a series of governmental reforms.
Entities that have been dissolved in recent years—such as the Beninese Port Handling Company (Sobemap) and the National Council of Benin Shippers (CNCB), which have been debt-free since 2022—are not included in the latest ranking. Instead, the spotlight falls on the Société des Infrastructures Routières et de l’Aménagement du Territoire S.A (Sirat S.A). With over CFA 725 billion in bank debt during the period, Sirat S.A has emerged as the top borrower, tapping both domestic and international financial markets.
Between 2018 and 2024, Benin’s public enterprises have focused on boosting public investment to enhance production capacities and drive infrastructural development. A significant government reform reduced the number of state-owned companies from 14 in 2016 to nine in 2022—a move intended to consolidate operations for improved efficiency and profitability. Newer, restructured entities like Sirat S.A have been entrusted with more ambitious mandates and more robust financial frameworks.
According to statistics from the General Directorate of the Autonomous Debt Management Fund, these enterprises increased their funding mobilization capacity by 6.49 percentage points over five years. In 2019 alone, they raised approximately CFA 35 billion on financial markets. The pace of borrowing accelerated sharply from 2020 onward, with public enterprises mobilizing nearly CFA 167 billion in 2020, CFA 182 billion in 2021, and subsequently CFA 253 billion, CFA 340 billion, and CFA 286 billion in 2022, 2023, and 2024 respectively.
The companies included in the study are the Centre National d’Essais et de Recherches des Travaux Publics (Cnertp), the Port Autonome de Cotonou (Pac), the Société Béninoise d’Energie Electrique (Sbee), the Société Nationale des Eaux du Bénin (Soneb), the Société Béninoise des Infrastructures de Radiodiffusion SA (Sbir SA), and Sirat S.A—which leads regional and international banks’ client lists, followed by the Port Autonome de Cotonou and Soneb. Overall, the report notes that the average bank debt of Benin’s public enterprises during the period stands at approximately CFA 2,542.74 billion.
Government officials maintain that these debt-financed investments are crucial for enhancing the country’s infrastructure and public services. However, financial analysts warn that sustained high levels of borrowing could become a concern if economic conditions shift, urging a careful balance between leveraging debt for growth and ensuring fiscal stability.
As Benin continues its ambitious investment programs, the evolution of its public enterprises’ financial strategies remains a key topic for policymakers and industry experts alike.
Read Also:
