Why Benin

Country Context

Strategic geographic position

At the crossroads between Nigeria (approximately 190 million inhabitants) and seven West African countries (more than 90 million people). Fast and secure gateway for landlocked countries such as Niger and Burkina Faso

Stable macroeconomic framework

Average GDP growth rate of 5% over the past five years. National budget deficit forecasted to remain contained to 3% of GDP between 2017 and 2021. Subdued inflation rate of less than 3%

Continuously improving business environment—

Simpler, swifter & easier procedures. Creation of businesses under 24 hours. Efficient building permit delivery (7th of 49 SSA countries in Doing Business rankings). Suppression of visas for African country nationals, member of African Trade Insurance Agency

Regional integration—

Member of the West African Monetary Union (stable monetary zone) and the Economic Community of West African States (Market access to more than 300 million consumers)

Connectivity—

Mobile telephone density 108% in 2015 and mobile internet penetration of 25,2% in 2016. Access to SAT3 and ACE submarine cables

Rich agricultural potential—

80% of arable land in the country of which only 20% in use. 70 000 ha of arable land in inner country valleys. 13 billion m3 of surface water reserves and 1.8 billion m3 of underground water reserves for agriculture

Key Facts

Official language : French
Currency : CFA Franc
Government type : Presidential Republic
Land area : 114,763 Km2
Coastline : 125 Km
Major urban areas : Cotonou, Porto-Novo, Parakou
Literacy rate (2013) : 43,1%
GDP (current, 2016 est.) : US$ 8,622.5 million
GDP Growth (2016 est.) : 4.0%
GDP per capita (2016 est.) : US$ 777.6
Natural resources : Limestone, iron ore, marble and kaolinite

Compact Measures

Macroeconomic Framework

  • Sustaining a stable macroeconomic framework through accelerated economic growth based on the foundational impact of structural investments
  • Reinforcing public debt management including, liabilities tied to Public-Private Partnerships (PPPs) and state enterprise debt
  • Reforms aimed at the increase and modernization of resource mobilization
  • Improving the quality and efficiency of public spending

Business Environement Framework

  • Reforming fiscal control procedures and clarification of rights and obligations in matters of fiscal litigation
  • Development of economic promotion zones (creation of a special economic zone)
  • Reforming private sector relations and investment promotion platform
  • Restructuring the “Doing Business” reform monitoring framework and making significant progress in ranking tables

Financing Framework

  • Reforms to access opportunities offered by multilateral and bilateral institutions in order to reduce non-commercial risks and build confidence for private and institutional investors
  • Development of national and subregional financial market
  • Development of new tools to facilitate resource mobilization
  • Operationalization of framework to execute the law pertaining to Public-Private Partnerships