Benin

The territory of Dahomey became a French Colony in 1872 and achieved independence on 1 August 1960, as the Republic of Benin. A succession of military governments ended in 1972 with the rise to power of Mathieu KEREKOU and the establishment of a government based on Marxist-Leninist principles. A move to representative government began in 1989. Two years later, free elections ushered in former Prime Minister Nicephore SOGLO as president, marking the first successful transfer of power in Africa from a dictatorship to a democracy. KEREKOU was returned to power by elections held in 1996 and 2001, though some irregularities were alleged. KEREKOU stepped down at the end of his second term in 2006 and was succeeded by Thomas YAYI Boni, a political outsider and independent.

Main Airports

Cotonou Cadjehoun (COO)

U.S. Embassy

rue Caporal Bernard Anani, 01 BP 2012, Cotonou, Benin
tel. 229-21-30-06-50

Statistics

GDP: purchasing power parity:

$8.553 billion (2005 est.)

GDP - real growth rate:

3.5% (2005 est.)

GDP - per capita: purchasing power parity:

1,100 (2005 est.)

Inflation rate (consumer prices):

3.5% (2005 est.)

Labor force:

NA

Exports:

$826.9 million f.o.b. (2005 est.)

Exports - partners:

China 31.3%, Indonesia 8.1%, India 7.4%, Niger 6%, Togo 4.8%, Thailand 4.8%, Nigeria 4.6% (2005)

Imports:

$1.043 billion f.o.b. (2005 est.)

Imports - partners:

France 21.8%, Ghana 7.1%, Cote d'Ivoire 7%, China 6.7%, UK 5.2%, Belgium 4.9%, Togo 4.5%, Thailand 4.2%, Nigeria 4% (2005)

Population:

7,862,944

Population growth rate:

2.73% (2006 est.)

Population Below Poverty Line:

33% (2001 est.)

Major Industries:

textiles, food processing, construction materials, cement

Employing Workers: 121*

Registering Property: 85*

Enforcing Contracts: 162*

Closing a Business: 98*

*2006 World Bank rank out of 175 countries

Starting a Business

The table below shows the number of steps and the amount of time needed to start a business, on average

Indicator	Benin	Region
Procedures (number)	7	11.1
Time (days)	31	61.8

Benin Risk Assessment

Country Rating

Rating: B

Political and economic uncertainties and an occasionally difficult business environment can affect corporate payment behaviour. Corporate default probability is appreciable.

Risk Assessment

Improving trade relations with Nigeria and easing the congestion in the Port of Cotonou spurred re-export activity in 2007. The energy shortage after the drought and a timid recovery of cotton production has, however, had a moderating effect on the economy upturn initiated in 2006. In 2008 the economy should benefit at once from the normalisation of relations with Nigeria, rising cotton production, and continuation of the reform programme (withdrawal of the government from the cotton company SONAPRA and privatisation of Port of Cotonou management). The growth is still however vulnerable to weather conditions, an upsurge in oil prices, and a resurgence of tensions over trade with regional partners.

Public finances continue to suffer from a narrow tax base limited by the extent of both poverty and the informal economy while public sector investment and the settlement of arrears have strained public spending. International aid continues, however, to largely cover domestic financing needs. The current account balance, meanwhile, should continue to improve in 2008 thanks to the increase in cotton exports and buoyant world prices, which have partially offset the increase in capital goods imports and rising oil costs. The reduction in the debt service burden as a result of the bilateral and multilateral debt cancellation granted in 2005, and the extent of international aid have allowed Benin to largely cover its external financing needs and accumulate very comfortable foreign exchange reserves.

The slim majority won by government coalition in the March 2007 legislative elections, will bolster President Boni Yayi's capacity to go forward with the structural reforms initiated in several sectors including cotton (an industry that employs a quarter of the population), electricity, telecommunications, and port infrastructure.

• Agriculture
• Apparel
• Arts & Crafts
• Automobile
• Bags, Cases & Boxes
• Chemicals
• Computer Hardware & Software
• Construction & Real Estate
• Consumer Electronics
• Electrical & Electronics
• Energy & Environment
• Food & Beverage
• Furniture & Furnishing
• Health & Medicine
• Home Supplies
• Industrial Supplies
• Lights & Lighting
• Machinery
• Mineral & Materials
• Office Supplies
• Security & Protection
• Service
• Sports & Entertainment
• Telecommunications
• Textile
• Toys
• Transportation