Benin industrial fund to cover part of bank guarantees
By the AFREEQUE newsroom, based on 24h au Bénin
Illustrative image · PNW Production · Pexels · Licence PexelsBenin’s Industrial Development Fund, endowed with 100 billion CFA francs, will help entrepreneurs whose viable projects lack the required bank guarantees. The mechanism will also cover part of promoters’ financial costs, according to Wilfried Houngbédji, government spokesman, cited by 24h au Bénin on 11 November 2026.
Benin’s Industrial Development Fund will be able to cover part of the guarantees and financial costs required by banks from industrial project holders, Wilfried Houngbédji, government spokesman, explained on Wednesday 11 November 2026. The mechanism targets entrepreneurs whose projects are considered viable but who do not have all the guarantees requested by banking institutions, according to Wilfried Houngbédji.
The fund, with capital of 100 billion CFA francs, will notably be able to reduce the cost of financing for promoters. For a loan carrying an interest rate of 12%, for example, part of the interest could be covered by the fund, the minister said. The mechanism will rely on three windows, including “Bénin Industrial Invest” for equity and quasi-equity contributions and the “Industrial Guarantee Facility” for risk-sharing with banks and leasing companies.
The fund is notably intended to finance the long-term acquisition of equipment and investments for industrial companies, according to the guidelines adopted by the Council of Ministers on 4 November 2026.
The announcement comes a week after the creation of the 100 billion CFA franc industrial fund by the Beninese government on 4 November.
