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Research and consulting in Benin

Country overview:

IOA has built a depth of expertise on many aspects of Benin through conducting research and providing consulting services focusing on the country. Although a peaceful and stable country by West African standards, greater political development will assist economic growth in the country, IOA consultants have determined. Nearly one out of ten people live in poverty, and social welfare benefits and educational opportunities are low. Revenues from the port at Cotonou account for 60% of the country’s GDP. Although Benin is one of Africa’s largest cotton producers, most Beninois survive on subsistence agriculture.

Economic freedom is hindered by corruption at all layers of government and bureaucratic inefficiency, IOA analysts have concluded. These maladies are shared with several West African countries, but other countries can compensate with bountiful natural resources and larger populations that offer marketing opportunities. When the court system develops to the point that business contracts can be enforced, investors will find opportunities like establishing industrialised agriculture on ample arable land.

Key opportunities in Benin:

Cotton production is a large and established sector yet has room to grow
IOA analysts have identified Cotonou’s port’s potential to handle domestic exports and regional shipping as the economy develops
Ongoing efforts by local government to expand infrastructure and support the development of agro-processing facilities is expected to facilitate strong economic growth in the coming years

Key concerns/risks in Benin:

The country’s main export, cotton, is hostage to global commodities prices, and there is little local industry to produce value-added products from domestic cotton, or from other agricultural products
Despite a sizeable population along the Gulf of Guinea coast, vulnerable to rising ocean levels, there is no climate change policy
While unemployment is officially at a low 1.4%, pay is so meagre that a sizeable 72% majority of workers are categorised as “underemployed,” a major contributor to poverty, and nine out of ten workers toil in the informal sector

Find out about how IOA can help you with research and consulting services in Benin

Tips on doing business in Benin:

Starting a business:

In 2020, local authorities made the business registration process entirely digital, cutting red tape considerably. Companies in Benin can fall under a number of legal categories, including PLC’s, LLC’s, branch offices and Rep Offices. The registration process for the latter can generally be expected to take between 5-7 weeks
Non-Beninese nationals are allowed to own property in urban areas, subject to their country of origin having a reciprocity agreement with the local authorities
(Read more at: https://gdiz-benin.com/investment-opportunities/)

Doing business:

The local economy is quite small, with the most significant opportunities based around import and export to nearby Nigeria, made possible by the port of Cotonou, an important regional trade hub
Likewise, a simplified tax and tariff regime grants local operators access to much of the wider region through the West African Economic and Monetary Union (WEAMU)
Infrastructure access is a key challenge, with internet and electricity access spotty outside of urban areas. Local authorities offer tax exemptions in dedicated Free Trade Zones

Culture and society:

English is not widely spoken, and thus having a French speaking interpreter or representative is essential
The act of whistling is taboo locally and should be avoided
Religious ceremonies at local public Vodun shrines can sometimes involve animal sacrifice, which may be upsetting to unprepared newcomers