El context econòmic de Benín

Economic Indicators

Benin’s strong macroeconomic fundamentals and successful reforms have helped the country achieve robust economic growth despite recent external shocks such as the COVID-19 pandemic and the latest geopolitical tensions in Europe and the Middle East. Growth was estimated at 6.3% in 2024, with a forecast of 6.4% in 2025-2026 (data World Bank). The expansion of the construction and agro-food sectors, fueled by increased agricultural output and the development of the export-oriented GDIZ (Glo-Djigbé Industrial Zone), is expected to drive growth. The possible reopening of the border with Niger, improved customs relations with Nigeria, and the modernization of the Port of Cotonou will further support the services sector. On the demand side, strong investment from infrastructure projects and foreign capital in the GDIZ expansion will offset the end of the Niger-Benin pipeline investment and sustain growth. Increased export crop value-added and strong consumption, supported by lower inflation, will also contribute to growth.

Concerning public finances, Fitch Ratings estimated that the fiscal deficit narrowed to 3% of GDP in 2024, down from 5.5% in 2022 and 4.1% in 2023, reflecting higher revenue and lower current expenditure than budgeted, partly due to increased spending efficiency, underscoring the government's commitment to fiscal consolidation. Looking ahead, the fiscal deficit is expected to converge toward the 3% WAEMU target, as further increases in revenue will finance social expenditure. Deficit reduction and strong medium-term growth are expected to drive public debt down from 53.6% of GDP in 2024 to 51% in 2026. Benin’s proactive financing strategy includes a USD 500 million, 16-year Eurobond issued in January 2025, with USD 250 million used to buy back part of its 2032 Eurobond, reducing debt service costs and extending the average maturity of its external debt. Combined with similar measures in 2021 and 2024, this has helped reduce short- to medium-term amortizations, lowering Benin’s financial needs to 6.3% of GDP by 2026. According to the World Bank, inflation in Benin is expected to average 1.3%, supported by improved staple supply and a reduction in global food prices.

Sustained growth in Benin has not led to rapid poverty reduction. The elasticity between GDP per capita growth and poverty reduction is 0.26, compared to an average of 1.1 for Sub-Saharan Africa from 2018-2021. While growth has been driven by physical capital accumulation, largely due to ambitious public investment plans, human capital development remains low and below that of peer countries. The informal sector, which accounted for 86% of companies in 2023, contributes to low total factor productivity, hindering structural transformation.

Main Sectors of Industry

Benin’s economy is heavily reliant on agriculture. This sector accounts for 25.4% of Benin’s GDP and employs an estimated 28% of the workforce (World Bank, latest data available). The country has fertile land, and a third of its territory is suitable for agriculture. Around half of the population relies on subsistence farming for their livelihood, whereas cotton is the main crop and the key export commodity, accounting for a significant share of total exports. Other cultivations include cashew nuts, corn, cassava, yams, beans, palm oil, and peanuts. According to figures from INStaD, the 2023-2024 agricultural season saw a significant increase in cereal production, reaching 2,737,481 tonnes, compared to a five-year average of 2,219,312 tonnes and 2,297,373 tonnes in 2022. This growth was driven by expanded cultivated areas, although yields declined across all cereal crops. Maize production played a key role, rising 27.1% to 2,059,254 tonnes from 1,619,605 tonnes in 2022, accounting for over 75% of total cereal output. Rice, the second most important cereal (18% of total production), declined by 6.2%, reaching 492,626 tonnes, down from 525,014 tonnes in 2022. However, this remained above the five-year average of 454,946 tonnes.

The industrial sector in Benin is characterized by a range of activities, with key sectors including agro-processing, textile manufacturing, and construction. Agro-processing represents a significant portion of the industrial landscape, with Benin's agricultural resources supporting industries such as palm oil refining, cotton ginning, and food processing. Textile manufacturing, although relatively small-scale, plays a vital role in the economy, leveraging the country's cotton production for fabric and garment production. Construction is another prominent sector, driven by infrastructure development projects and urbanization trends. Emerging sectors include renewable energy and light manufacturing, as the government seeks to diversify the industrial base and attract foreign investment. Overall, the industrial sector is estimated to account for 17.3% of GDP and 22% of employment, with manufacturing accounting for 10% of GDP (World Bank).

Services (dominated by trade and transport) account for 47.7% of Benin’s GDP and half of total employment. Benin's services sector encompasses various industries that contribute to the country's economic development. Key sectors include telecommunications, banking and finance, transportation, and tourism. Tourism, though still emerging, holds promise due to Benin's cultural heritage, historical sites, and natural attractions. As the government invests in infrastructure and promotes private sector participation, the services sector is expected to increase its share of GDP in the upcoming future.

 

Breakdown of Economic Activity By Sector	Agriculture	Industry	Services
Employment By Sector (in % of Total Employment)	28.0	22.0	50.0
Value Added (in % of GDP)	25.4	17.3	47.7
Value Added (Annual % Change)	5.1	7.3	6.6

Source: World Bank, Latest Available Data. Because of rounding, the sum of the percentages may be smaller/greater than 100%.

 

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Indicator of Economic Freedom

Definition

Definition:

The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.}}

Score:

59,6/100

World Rank:

100

Regional Rank:

10

Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation

 

 

Sources of General Economic Information

Ministries

List of Benin's Ministries

Statistical Office

National Institute of Statistics and Demography (INSTAD)

Central Bank

West Africa Central Bank

Stock Exchange

Regional Securities Exchange

Economic Portals

Actu Benin
BBC - Benin profile