Policy
The first competitive asset of Benin in Africa is its political and economic stability which makes the country a major place to welcome investors.

Indeed, since The National Conference gathering employers, workers and trade unions leading to the adoption of the December 11, 1990 constitution , Benin has definitely opted for democracy and political pluralism with regular change of government a as well as a separate executive, legislative and judiciary powers.

That’s how for 15 years now, market economy and macroeconomics’ rigor are the key words leading Benin to integration within the global economy.

By selecting Benin to host the signature of the “Cotonou Agreement” in June 2000, the European Union and ACP states gave Benin credit for its commitment to democracy and free enterprise.

In 2003 Benin was placed the first country in Africa for Press freedom by « Reporters Sans Frontières  ».

Geographical features
At the crossroad of two major economic areas, WAEMU and ECOWAS with 250 millions inhabitants, Benin offers a unique opening on the whole of West Africa, Central Africa, as well as all the hinterland countries, providing to investors then with a unique commercial position in the African area.

Big exchange crossroad and meeting point, Benin receives English-speaking Africa and French-speaking Africa, and also maintains very close commercial contacts with Nigeria and its 150 millions inhabitants.

Open on the Gulf of Guinea, Benin represents the natural gate for three isolated countries (Niger, Burkina Faso, and Mali) representing 40 millions consumers.

This geographical location is the second competitive asset.

Economic features

Economic reforms undertaken since 1990 have been improving macroeconomic balances and have also been increasing economic growth.

The investment rate has steadily been improving rising from 18.2% in 2001 to 19.4% in 2004.

The inflation is under control around 1.5%, by a long way under the threshold of 3% allowed by the WAEMU.

The steady efforts, being made for economic reform to safeguard and improve a macroeconomic environment favourable to private investors, have been rewarded by international ratings agencies. Encouraging grades B+/stable B and B/stable B have been respectively awarded to Benin in 2004 by Standard & Poor’s and Fitchratings.

In spite of the exogenous factors (the dollar’s rate, higher oil prices…) the growth projection in 2005 is 5.4%.

Benin is therefore better placed for the rate of the continent current foreign businesses which have been making profit to a certain extent.

The steady improvement of business environment by sustaining structural reforms and reinforcement of the legal and judicial system, all these have been making Benin a major financial place in West Africa.

Economic facts and figures

GDP per capita : 440 $

GDP distribution : Primary 35.7% - Secondary 14.3% - Tertiary 50%

Average growth rate (1994-2004) : 5,2% ; 5,4% en 2005 (forecast)

Average inflation rate (1994-2004) : 2,4% ; 1,5% en 2005 (forecast)

Investment rate  : 19,4% (2004)

Foreign Direct Investment (FDI)  : 51 millions de $ (2003)

Notation Standard & Poor’s (2004)  : B+/Stable B

Notation Fitchratings (2004) : B/Stable B

Notation COFACE  (2001) : B

WAEMU :     Member of the West Africa Economic and Monetary Union – 8 countries and 75 million inhabitants

ECOWAS:   Member of the Economic Community of West African States – 15 countries and 250 millions inhabitants

UE – ACP :   Signatory of the « Cotonou Agreements » for free access to EU markets

AGOA : : Eligible to the African Growth and Opportunity Act for free access to North American market

WTO  : Member of the World Trade Organisation

MCA : Eligible to the Millennium Challenge Account as part of a reward for democracy and good governance.