Introduction Key Economic Facts Risk Assessment (Provided by Coface) Benin is a small country in West Africa with a coastline on Income Level (by per capita Low Income Country rating: B - Political and economic uncertainties the Bight of Benin. Neighboring countries include Burkina GNI): and an occasionally difficult business environment can Faso, Niger, Nigeria, and Togo. The geography of Benin is Level of Development: Developing affect corporate payment behavior. Corporate default mostly flat with sandbanks that make GDP, PPP (current international $40.51 billion (2019) access to the coast difficult. The $): probability is appreciable. government system is a republic; the chief GDP growth (annual %): 6.87% (2019) Business Climate rating: C - The business environment is of state and the head of government is the GDP per capita, PPP (current $3,432.78 (2019) difficult. Corporate financial information is often unavailable president. Officially, Benin has a mixed international $): and when available often unreliable. Debt collection is economic system, however, subsistence farming and External debt stocks, total $3,898,854,015.10 (2019) unpredictable. The institutional framework has many underdeveloped industries are indicative of a traditional (DOD, current US$): economy in which the allocation of available resources is Manufacturing, value added (% 9.87% (2019) troublesome weaknesses. Intercompany transactions run based on inheritance and of GDP): major risks in the difficult environments rated C. primitive methods. Benin is a Current account balance (BoP, -$0.65 billion (2018) Strengths current US$): member of the Economic • High growth potential, low inflation Community of West African Inflation, consumer prices -0.92% (2019) • Significant international financial support (ODA, States (ECOWAS). (annual %): Labor force, total: 4,993,954 (2020) HIPC, MDRI) Unemployment, total (% of 2.02% (2020) • Strategic position (access to the sea for hinterland total labor force) (modeled ILO estimate): countries) Location: Western Africa Imports of goods and services $4.90 billion (2019) Weaknesses Capital City: Porto-Novo (+1 GMT) (current US$): • High poverty Chief of State: President Patrice Talon Exports of goods and services $4.26 billion (2019) • Narrow and volatile export base (dependent on cotton (current US$): Head of Govt.: President Patrice Talon price fluctuations) Currency: Communaute Financiere Africaine GDP Composition % franc (XAF) Agriculture Services Industry Manufacturing • Erratic electricity supply Major Languages:
French (official), Fon and Yoruba • Governance gaps: corruption, rule of law, regulation (most common vernaculars in south), 48 • Impact on activity and tax revenues of Nigeria's tribal languages (at least six major 27 16 ones in north)
10 economic policy decisionsPrimary Religions:
Muslim 27.7%, Roman Catholic *Although Manufacturing is included in the Industry figures, it is also separately • Terrorist threat from neighboring Nigeria and the 25.5%, Protestant 13.5% (Celestial reported because it plays a critical role in economy. Sahel 6.7%, Methodist 3.4%, other Rankings Protestant 3.4%), Vodoun 11.6%, • Low bank profitability, low government revenues other Christian 9.5%, other traditional Index Rank religions 2.6%, other 2.6%, none 5.8% Corruption Perceptions Index 80 / 180 U.S. Embassy (2013 est.)
Global Competitiveness Index 125 / 141 Caporal Bernard Anani Calling Code: 229 Global Enabling Trade Index 124 / 136 01BP 2012 Voltage: 220 Index of Economic Freedom 127 / 179 Cotonou Benin Tel. (229) 21 30 06 50 Key Websites International Logistics Performance Index (LPI) 76 / 160 Inward FDI Potential Index 136 / 139 https://bj.usembassy.gov Main Government Page: gouv.bj KOF Index of Globalization 130 / 185 Commerce Ministry: finances.bj Networked Readiness Index (NRI) 128 / 139 Investment Promotion cepici.gouv.ci Open Budget Index 70 / 115 Agency:Country Memo Provided by: globalEDGE.msu.edu and EXPORT.GOV