Guide to Benin

Benin is in the Western part of Africa sharing bothers with Nigeria, Togo and the Atlantic Ocean. The country covers a land size of 112 sq km and has a population of over 14million people. Benin’s official capital is Porto-Novo. Cotonou is however its largest city with a lot of economic activities. French is the official language of Benin. But like most African countries, Benin has a wide variety of languages spoken by the population. Fon, Yom and Yoruba meanwhile have the status of national languages of Benin.

Political Context: French Dahomey achieved independence from France in 1960 and subsequently changed its name to the Republic of Benin in 1975. A succession of military governments ended in 1972 with the rise to power of Mathieu KEREKOU and 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. KEREKOU stepped down at the end of his second term in 2006 and was succeeded by Thomas YAYI Boni, a political outsider and independent, who won a second five-year term in March 2011. Patrice TALON, a wealthy businessman, took office in 2016 after campaigning to restore public confidence in the government.

ECONOMIC TRENDS

Current Account Balance: -$1.8 billion USD (2020 est.)

Reserves: $14.585 million USD (2020)

GDP: $17.79 billion USD (2021)

Currency: Franc CFA

Inflation: 1.73% (2021)

Growth Rate: 6.6% (2021)

Export Commodities: Cotton, cashews, shea butter, textiles, palm products, seafood

ENVIRONMENT

Area: 112,620 sq km; land: 110,620 sq km; water: 2,000 sq km

Climate: Tropical; hot, humid in south; semiarid in north

Terrain: Mostly flat to undulating plain; some hills and low mountains

Land Use: Arable land: 22.9%; permanent crops: 3.5%; other: 28.7% (2018 est.)

Natural Hazards: Hot, dry, dusty harmattan wind may affect north from December to March

BENIN’S CASHEW SECTOR OVERVIEW

Agriculture is an important economic sector in Benin, employing 43.19% of the labour force. Cashew is a strategically important sector for Benin Republic, as it brings significant export revenues and creates huge social and economic impact in the country. Benin’s annual cashew production crop size is approximately 160,000 tons. Designated as one of 12 priority industries, the government of Benin has conceived a strategic plan to develop cashew sector as part of its overall agricultural sector strategy (PSRA, 2006- 2011). Benin cashew ranks second on quality scale among other African nations and this fact is well recognized by local and external cashew processors.

While Benin has been one of the leading producers of cashew in the last two decades, local processing has always been less than 10% of production. The Benin government is therefore implementing several policies to promote local cashew processing. One of such measures is the ban on raw cashew nuts (RCN) exports, effective April 2024. The government and its partners are constructing a cashew industrial zone, the Glo-Djigbé Industrial Zone, made up of cashew processing factories to process all of Benin’s production. The decision, which is aimed at incentivising local cashew processing has since its announcement been scrutinised by several industry players, both locally and internationally, with some questioning its sustainability over time.

Benin has meanwhile signed up to the Consultative International Cashew Council (CICC), an interministerial body of cashew producing countries established to among others ensure harmonisation of policies among cashew producing countries in Africa.  

Extracted from 2023 Edition of ACA Investment Guide

Currency

The local currency used in Benin is the West African CFA franc (code: XOF. Click here to view the exchange from USD TO XOF.

Health

To receive accurate and up-to-date information on general health information for travelers to Benin, please click here.