Research and consulting in Benin
IOA has built a depth of expertise on many aspects of Benin through conducting research and providing consulting services focusing on the country. A lack of political development has hindered economic growth in the country, as determined by IOA consultants. This is reflected in the overall low degree of social welfare and educational benefits available. 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 African countries, but other countries can compensate with bountiful natural resources and larger populations that offer marketing opportunities. When rule of law is firmly entrenched in Benin so that 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
- Based on agricultural reforms,the GDP is expected to show solid growth in 2023
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
- Despite a sizeable population along the Gulf of Guinea coast, vulnerable to rising ocean levels, there is no climate change policy
- Secondary agricultural exports like cashews and yams are also shipped raw, and their value is affected by fluctuating global prices