Located in West Africa, Benin is a natural corridor between Nigeria and countries of the West African Economic and Monetary Union (WAEMU). In light of the country’s stable political environment and commitment to key economic policy measures, Benin is expected to exhibit strong growth in the medium term, while keeping inflation low and the fiscal position strong. Since 2016, the Government has worked to launch the structural transformation of the economy, with an ambitious government action program dubbed "Revealing Benin" which is centered around three main pillars: (i) strengthening democracy, the rule of law, and consolidating governance; (ii) pursuing the structural transformation of the economy, in particular the integration of national and regional value chains (supported by measures to enhance the business environment); and (iii) improving the well-being of the population. The Government concluded on July 8, 2022, a 42-month IMF-supported program under the Extended Fund Facility (EFF) and the Extended Credit Facility (ECF), with a financial package to the tune of nearly US$650 million. The program seeks to help address pressing financing needs, support the country’s National Development Plan centered on achieving Sustainable Development Goals (SDGs) and catalyze donor support. In addition, building on Benin’s strong legal and institutional foundations for climate action, a staff-level agreement was reached on October 26, 2023 on a new two-year program under the IMF Resilience and Sustainability Facility (RSF) and the completion of the Third EFF/ECF review (contingent on approval by IMF Management and Executive Board). Reform measures under the RSF aims to support reform in four areas: 1) mainstreaming climate considerations in policymaking; 2) enhancing adaptation to climate change, including resilience building at the community level and climate-proof social safety nets; 3) mitigating transition risks, notably through a comprehensive energy subsidy reform; and 4) mobilizing private climate finance via the development of a climate financial information architecture.
Key Indicators |
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| Population in millions, 2022 | 13.4 | |
| GDP per Capita, U.S. dollars, 2022 | 1303 | |
| GDP Growth, percent, 2022 | 6.3 | |
| Inflation, CPI average, change in percent, 2022 | 1.4 | |
| General Government Debt, percent of GDP, 2022 | 54.2 | |
| Source: WEO, October 2023 | ||
Heritage & Tourism
Background
- Benin has a rich and untapped touristic potential rooted in its heritage. Its strongpoints lie in its culture, the arts and voodoo civilization, the memory and remnants of the slave trade and the largest animal park in West Africa. The objective is to develop tourism into a full-fledged economic sector. The sector’s contribution to GDP is projected to grow to US$ 628 million in 2021 compared to US$ 182 million in 2016.
Specific opportunities
- Positioning Pendjari park as the Natural Park of reference in the West African region (US$ 26 million)
- Reinventing the Lake City of Ganvié (US$ 43 million)
- Developing beachside resorts (US$ 333 million)
Agriculture
Background
- The objective is to promote inclusive growth and leverage agriculture as an economic growth vehicle to generate jobs and wealth for Benin.
- Extension of sown areas, improvement of productivity and development of high value added agricultural product transformation (maze, rice, pineapple, cashew, cassava, cotton)
- Development of 500 ha of aquaculture zones for the production of 20,000 tons of fish for over 5 years
- Improvements in meat, milk and egg production: Reaching 104,000 tons of meat, 172,000 tons of milk and 25,000 tons of eggs produced by 2021
Electricity
Background
- The objective is to achieve energy independence in the short-term and ensure distribution at competitive prices.
Specific opportunities
- Construction of floating gas storage and gas regasification units near the Port of Cotonou to supply onshore gas-powered plants generating 500 MW
- Development of renewable energy - Rebalancing of thermal production mix with the construction of 2 hydroelectric dams and the implantation of solar farms
- Extension and rehabilitation of national power distribution network
Living Environment
Background
- The objective is to ensure inclusive and sustainable development built around resilient and secure cities.
Specific opportunities
- Development and rehabilitation of 850 kilometers of urban main access roads, secondary and tertiary access roads in 9 cities
- Development of Cotonou lagoon banks and sanitization of lagoon
- Development of social housing real estate programs to accommodate approximately 20,000 housing units
- Construction of multidisciplinary urban complex dedicated to international forums and culture – National theater of 3,000 seats, conference centre of 3,500 seats and various other attractions
