Benin has secured a landmark €117 million financing package from the African Development Bank Group to transform all 77 of its municipalities into dynamic hubs of investment, innovation, and sustainable development. This ambitious initiative, known as the Support Programme for the Economic Development of Local Authorities (PADECT), is set to run from 2026 to 2031 and represents a pivotal step in the country’s broader strategy to decentralize economic growth and empower local governments as engines of national progress.
The funding comprises €110 million from the African Development Bank and an additional €7 million from the African Development Fund, the Bank’s concessional window for low-income countries. PADECT is designed to strengthen local governance structures, improve infrastructure, and foster an environment conducive to private sector investment. It also places a strong emphasis on digital transformation and climate resilience, recognizing the critical role of technology and sustainability in shaping the future of inclusive development.
Under the leadership of Benin’s Ministry of Economy and Finance, the program will be implemented through the Economic and Financial Programme Monitoring Unit. The initiative aims to deliver tangible improvements in public service delivery, enhance the ease of doing business at the municipal level, and stimulate entrepreneurship and job creation. By equipping local authorities with the tools and resources needed to attract investment, PADECT seeks to reduce regional disparities and ensure that economic opportunities are more evenly distributed across the country.
Beyond its national significance, the African Development Bank views PADECT as a scalable model for sub-national economic transformation across the continent. The program’s integrated approach, combining governance reform, infrastructure development, digital inclusion, and environmental sustainability, offers a blueprint for other African nations seeking to unlock the potential of their local governments. As Benin embarks on this transformative journey, the success of PADECT could redefine how development is driven from the ground up, positioning municipalities not just as administrative units, but as vibrant centers of growth and innovation.