Minister of the Economy and Finance
In May 2021,Patrice Talon reappointed him as Minister of Economy and Finance.
From 2018 to 2020,he chaired the UEMOA Council of Ministers,where he led several reforms,including that of the CFA franc,which the African Development Bank described as “historic”. [21] [22]
In 2022,in the context of the economic crisis following the COVID-19 pandemic and the Russian-Ukrainian war,Wadagni took measures to preserve the purchasing power of Beninese. The authorities have announced that they will invest more than 41 billion CFA francs ($66 million) in reducing the prices of consumer goods. [23]
In April 2022,he led the Beninese delegation to Washington for the completion of an unprecedented $700 million agreement between Benin and the IMF,involving both the Extended Credit Facility and the Extended Fund Facility. When the agreement was conducted,the IMF emphasized that Benin had made significant progress in terms of macroeconomic management. [24] [25] [26]
Extension of responsibilities to international cooperation and military affairs
In early 2023,Patrice Talon widened Romuald Wadagni's scope to include international cooperation and defense issues,with a focus on securing the north of the country and acquiring military equipment. [27]
In October 2023,as a result of the various reforms,Benin was ranked eighth in the world,and first in Africa,in the global tax expenditure transparency index published by the Economic Policy Council and the German Institute of Development and Sustainability (IDOS). [28]
In December 2023,the IMF validated a two-year agreement for the country under the Resilience and Sustainability Facility (FRD) for an amount equivalent to $200 million. At the time,the IMF stated:“Program performance remains strong,with all quantitative targets to end-June 2023 achieved and structural benchmarks implemented”. [29]
In February 2024,against a backdrop of high interest rates,a Beninese delegation led by Romuald Wadagni met with investors in London and New York City to discuss Benin's first bond issue in US dollars. [30] In mid-February 2024,Benin became the second African country to return to the international debt market after Côte d'Ivoire. The country attracted international investors and raised $750 million by issuing its first US dollar bond. The bond has a term of 14 years and a coupon of 7.96%. With an interest-rate swap,the euro coupon is 6.5%. [31] Le Figaro describes the country's first dollar issue as a success,“reflecting its financial credibility and growth momentum”. The newspaper quotes Wadagni:“The IMF granted us financing equivalent to 400% of our quota,whereas the average is 125%,and we also had access to the resilience fund,which grants long-term loans ”. [32] In Bloomberg,Gemcorp Capital management's chief economist highlights the fact that Benin managed to issue its bond at a yield equal to,or even lower than,that of Côte d'Ivoire. [31]
In April 2024,Standard &Poor's upgraded Benin's credit rating from “B+”to “BB−”,maintaining a stable outlook. This upgrade is attributed to the country's robust economic and fiscal performance. [33] [34] This is one of the highest ratings awarded to a sub-Saharan African country,after Botswana,Mauritius and Ivory Coast. [35] For its part,Fitch Ratings confirmed Benin's credit rating at “B+”,with a stable outlook. The agency recognizes Benin's robust economic reforms and proactive debt management. Moody's forecasts sustained economic growth,anticipating favorable fiscal consolidation and a reduction in the budget deficit to 2.9% of GDP by 2025. [36] [37]
In May 2024,the 2023 Open Budget Survey (EBO) ranked Benin first among French-speaking countries for budget transparency,with a score of 79 out of 100,a score that doubled between 2017 and 2023 under Wadagni's ministry.This puts Benin in second place in the continental ranking,surpassed only by South Africa. [38]
In November 2024,at COP 29 in Baku,Romuald Wadagni presented an “innovative”financing plan to combat global warming,with the support of international financial institutions.The plan includes the creation of a climate finance unit and the use of mechanisms such as carbon credits and green bonds. [39] [40]
In January 2025,Benin issued $500 million in international bonds.Thanks to strong demand ($3.5 billion),it raises at a rate of 8.625%,below the initial range of 9.25%~9.375%. At the same time,it obtained a 500 million loan from Deutsche Bank,enabling it to buy back Eurobond 2032 and thus improve the terms of its public debt. [41]
At the beginning of 2025,while many were hoping that he would apply for the presidency of the African Development Bank,he was not among the candidates registered at the time of the closing of registrations. [42]
