ANNEX 1 
BENIN Benin WT/TPR/S/236/BEN 
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CONTENTS 
 
  Page 
I. ECONOMIC ENVIRONMENT 77 
(1) M AIN FEATURES  77 
(2) R ECENT ECONOMIC TRENDS  79 
(3) T RENDS IN TRADE AND INVESTMENT  82 
(i) Trade in goods and services 82 
(ii) Foreign direct investment 82 
(4) O UTLOOK  83 
II. TRADE AND INVESTMENT REGIMES 86 
(1) E XECUTIVE , LEGISLATURE AND JUDICIARY  86 
(2) T RADE POLICY FRAMEWORK  88 
(i) Institutional framework 88 
(ii) Broad outlines of trade policy 89 
(3) C ONSULTATION BETWEEN THE GOVERNMENT AND THE PRIVATE SECTOR  89 
(4) I NVESTMENT REGIME  90 
(i) Legislation 90 
(ii) Institutional framework 92 
(iii) Settlement of investment-related disputes 93 
(5) I NDUSTRIAL FREE ZONE REGIME  93 
III. TRADE POLICIES AND PRACTICES BY MEASURE 95 
(1) I NTRODUCTION  95 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  96 
(i) Registration 96 
(ii) Customs procedures 96 
(iii) Preshipment inspection and customs valuation 97 (iv) Rules of origin 98 
(v) Customs levies 99 
(vi) Prohibitions, quantitative restrictions and licensing 103 (vii) Standards, technical regulatio ns and accreditation procedures 105 
(viii) Sanitary and phytosanitary measures 106 
(ix) Packaging, marking and labelling requirements 108 (x) Contingency measures 109 
(xi) Other measures 109 
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  109 
(i) Registration and customs procedures 109 
(ii) Goods in transit 110 
(iii) Export prohibitions and controls 111 
(iv) Export subsidies and promotion 111 
(4) M EASURES AFFECTING PRODUCTION AND TRADE  112 
(i) Incentives 112 
(ii) Competition and price control regime 112 
(iii) State trading, State-owned enterprises and privatization 113 (iv) Government procurement 115 
(v) Protection of intellectual property rights 116 WT/TPR/S/236/BEN Trade Policy Review 
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  Page  
IV. TRADE POLICIES AND PRACTICES BY SECTOR 118 
(1) I NTRODUCTION  118 
(2) A GRICULTURE , LIVESTOCK AND FORESTRY  118 
(i) Overview 118 
(ii) Agricultural policy 121 
(iii) Policies by subsector 124 
(3) M INING , ENERGY AND WATER  129 
(i) Petroleum and gas products 129 
(ii) Electricity 131 (iii) Water 134 
(iv) Mining products 135 
(4) M
ANUFACTURING  136 
(i) Principal trade regulations 136 
(ii) Upgrading programme 137 
(5) S ERVICES  137 
(i) Telecommunications and postal services 137 
(ii) Transport 141 
(iii) Tourism 144 
(iv) Financial services 145 
(v) Professional and business services 147 
V. AID FOR TRADE 147 
(1) O VERVIEW  147 
(2) I NTEGRATION OF TRADE INTO THE NATIONAL DEVELOPMENT STRATEGY  148 
(i) National development strategy 148 
(ii) Integrated Framework 149 
(iii) Supply-side constraints 149 (iv) Aid for Trade needs 150 
(3) A
ID FOR TRADE ASSISTANCE  151 
(i) Overview of development aid flows in the economy 151 (ii) Overview of Aid for Trade 151 
(iii) Trade-related technical assistance 154 
(4) M
ATCHING NEEDS AND ASSISTANCE  155 
(i) National coordination mechanisms 155 
(ii) Monitoring and evaluation 156 
(5) O UTLOOK FOR AID FOR TRADE  157 
REFERENCES  159 
APPENDIX TABLES 163 Benin WT/TPR/S/236/BEN 
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CHARTS 
 
  Page 
 I. ECONOMIC ENVIRONMENT 
 
I.1 Structure of trade in goods, 2003 and 2009 84 I.2 Direction of trade in goods, 2003 and 2009 85 
 
IV. TRADE POLICIES AND PRACTICES BY SECTOR  
IV.1 Trend in imports of food products, 2000-2009 120 
IV.2 Trend in domestic production, imports and total supplies of electricity 132  
TABLES 
 
I. ECONOMIC ENVIRONMENT 
 
I.1 Basic economic indicators, 2003-2009 78 
I.2 Balance of payments, 2004-2009 81 
 II. TRADE AND INVESTMENT REGIMES 
 
II.1 Principal ministries and institutions dealing with international trade and 
foreign investment, May 2010 86 
II.2 Institutions providing support for trade and investment, May 2010 90 
II.3 Tax concessions under Benin's industrial free zone regime 94  
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 III.1 Ecotax, 2009 101 
III.2 Exemptions, 2004-2009 102 
III.3 Plants and plant products banned for import, 2009 103 III.4 Temporary import bans, 2009 105 
III.5 SPS regulatory framework, Benin 106 
III.6 SPS notifications, December 2009 108 III.7 Summary of taxes on exports, re-exports and goods in transit, 2009 110 
III.8 State intervention in the economy, 2010 114 
 
IV. TRADE POLICIES AND PRACTICES BY SECTOR 
 IV.1 Production of food crops and principal crops, 2000-2007 119 
IV.2 Major agricultural exports, 2000 and 2007 119 
IV.3 Major agricultural imports, 2000 and 2007 121 IV.4 Cotton indicators, 1999-2000 124 
IV.5 Indicative producer purchase prices determined by the Commission on 
production factors, 1997-2010 126 
IV.6 Price of electricity, prior to July 2000 and after July 2009 134 
IV.7 Texts and legislation on postal and telecommunications services, 2009 139 
IV.8 Trend in container traffic, 2001-2009 141 IV.9 Indicators for activities at Cotonou airport, 2004-2008 144 
 
V. AID FOR TRADE  
V.1 Aid for Trade flows:  CRS auxiliary date, 2005-2008 152 
V.2 Donor actions 153 WT/TPR/S/236/BEN Trade Policy Review 
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APPENDIX TABLES 
 
  Page 
 I. ECONOMIC ENVIRONMENT 
 
AI.1 Structure of imports, 2003-2009 165 AI.2 Structure of exports, 2003-2009 166 
AI.3 Origin of imports, 2003-2009 167 
AI.4 Destination of exports, 2003-2009 168 
 
 
 Benin WT/TPR/S/236/BEN 
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I. ECONOMIC ENVIRONMENT 
(1) MAIN FEATURES  
1. Because of Benin's structural weaknesses, its economy remains vulnerable to external shocks.  
Economic growth still essentially de pends on trends in agriculture, wh ere the level of mechanization 
continues to be fairly low.  Consequently , the Beninese economy's overall performance remains 
heavily reliant on weather factors and on the global pr ice for cotton, still Benin's main export.  Benin 
also depends to a large extent on imports for its energy needs;  in 2005, the electricity imported covered 87.7 per cent of total requirements, while domestic production (99.1 per cent thermal energy) 
relied on supplies of hydrocarbons.  Furthermore, the cost of domestically ge nerated electricity was 
two times higher than that of imported electricity.
1 
2. Some 57 per cent of the population, estimated to be almost 8.5 million in 2009, live in rural 
areas (Table I.1), underlining the importance of the primary sector as a source of jobs and income.  
The structure of Benin's GDP has in fact remain ed unchanged since 2003;  services and agriculture 
continue to dominate the economy, while manufactur ing and mining are still at an embryonic stage.  
Despite the considerable potential of mining resources,  there is very little exploi tation of the subsoil.  
The country's geographical situation opens up sign ificant opportunities for transport, transit and 
tourism.  In general, services consist of re-exports to the huge market in Nigeria;  according to 
estimates by the BCEAO, the value of re-exports (bot h official and informal) represented more than 
8 per cent of GDP over the period 2004-2009.  Overall, the informal sector still plays an important role. 
3. As a least developed country (LDC), Benin r eceives external support in the form of debt 
cancellation, which frees up internal resources to finance large planning projects and social 
programmes.  According to figures from the BCEAO, multilateral debt relief, amounting to a total of 
CFAF 570.3 billion in 2006, has greatly reduced the outstanding external debt to GDP ratio;  
additional bilateral and multilateral ca ncellations for a total of CFAF 3. 9 billion were granted in 2009.  
Benin nevertheless still depends on transfers from ab road, notably development aid, for its long-term 
financing.  On average, 21.1 per cent of to tal government spending was financed by external 
resources during the period 2003-2009, half of it in the form of grants. 
4. Although the country has an ambitious social  programme, poverty in Benin still gives cause 
for concern and social services only provide limite d cover.  The average poverty rate (with wide 
regional variations) was estimated to be 33.3 per cent in 2007, compared to 28.5 per cent in 2002
2, 
although it has gone down compared to the figure for 2006 (37.2 per cent).  The literacy rate among 
young people and adults has risen since 2002, but is  still fairly low, 52.4 per cent and 40.5 cent, 
respectively, in 2007.  The prevalence rate for HI V/Aids went from 1.3 per cent in 2002 to 1.2 per 
cent in 2007.3 
                                                      
1 BCEAO (2007). 
2 UNDP (2009). 
3 World Bank Group, online information.  Viewed at:  http://ddp-ext.worldbank.org/ext/ 
DDPQQ/member.do?method=getMembers&userid=1&queryId=6. WT/TPR/S/236/BEN Trade Policy Review 
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Table I.1 
Basic economic indicators, 2003-2009 
 2003 2004 2005 2006 2007 2008 2009a 
M i s c e l l a n e o u s         
Population (million) 7.0 7. 2 7.4 7.7 8. 0 8.2 8.5 
 In rural areas (% of total population) 60.8 60.3 59.7 59.0 58.2 57.5 56.7 
Total public debt (% of GDP) 41.1 39.5 41.3 22.1 14.9 24.0 26.7 
Total external debt (% of GDP) 40.3 38.6 40.3 21.0 11.3 14.0 14.8 
Debt servicing (% of exports of goods and services) 6.7 3.5 3.8 3.0 2.6 3.3 5.4 
Gross official reserves (in import months, goods and 
services) 11.1 8.7 11.4 6.5 7.5 7.9 7.2 
Real GDP (US$ million, at 1999 prices) 3, 049.8 3,463.0 3 624. 6 3,721.1 4,247.0 4,779.6 4,646.1 
GDP at market prices (US$ million) 3, 557.2 4,050.9 4,358. 0 4,705.1 5,511.9 6,642.4 6,598.9 
Sectoral distribution of GDP Percentage of GDP 
Agriculture, livestock, forestry, fishing and hunting 32.1 32.3 32.3 32.4 31.4 32.4 32.4 
 Agriculture 22.2 22.3 22.3 22.7 21.9 22.8 22.7 
 Livestock 5.9 6.0 5.8 5.7 5.6 5.5 5.7 
 Forestry, fishing and hunting 4.0 4.0 4.2 4.0 3.9 4.0 4.0 
Industry 13.7 13.3 13.3 13.0 13.0 12.6 13.1 
 Mining and quarrying 0.2 0.2 0.2 0.2 0.2 0.2 0.2 
 Manufacturing 8.3 7.8 7.8 7.5 7.5 7.2 7.6 
 Electricity, gas and water supply 1.2 1.2 1.2 1.2 1.1 1.0 1.0 
 Construction and public works 4.0 4.1 4.0 4.1 4.2 4.2 4.3 
Services 44.4 44.2 44.3 44.6 45.5 45.2 44.7 
 Tradable services 35.9 35.4 35.6 35.8 36.6 36.7 36.2 
 Wholesale and retail trade 16.9 16.6 16.8 16.8 17.0 17.5 17.0 
 Transport, storage and communications 7.8 7.6 7.6 7.9 8.4 8.4 8.2 
 Banking and insurance 1.9 1.9 1.9 1.9 1.9 1.9 1.9 
 Other tradable services 9.3 9.3 9.3 9.2 9.3 8.9 9.1 
 Non-tradable services 10.3 10.5 10.4 10.5 10.7 10.1 10.3 
 Financial intermediation services measured 
 indirectly -1.7 -1.7 -1.7 -1.7 -1.7 -1.7 -1.8 
Import duties and taxes and VAT 9.8 10.2 10.1 10.0 10.1 9.9 9.8 
National accounts Percentage of GDP 
Final consumption 89.8 87.8 90.4 88.9 92.9 91.1 92.6 
 Private 79.7 78.6 80.2 79.3 83.8 81.6 82.7 
 Public 10.1 9.3 10.2 9.7 9.1 9.5 9.9 
Gross fixed capital formation 19.5 19.4 19.4 19.6 19.9 20.1 20.1 
 Public 6.6 6.1 6.3 4.9 7.8 6.5 10.3 
 Private 13.0 13.3 13.1 14.7 12.1 13.6 9.8 
Variation in inventory 0.8 1.3 -1.2 1.0 0.8 0.5 0.4 
Exports of goods and services 20.0 19.4 17.7 20.2 24.5 24.5 21.3 
Imports of goods and services 30.1 27.9 26.3 29.7 38.1 36.1 34.3 
Gross national savings 11.2 11.7 12.9 12.4 11.5 12.6 11.2 
Gross domestic savings 6.7 6.7 9.6 6.8 6.1 7.2 7.4 
Prices and interest rates        
Inflation (CPI, % change) 1.5 0.9 5.4 3.8 1.3 7.9 2.2 
Discount rate (end of period, annual pe rcentage) 4.5 4.0 4.0 4.3 4.3 4.8 .. 
Interest rate (12 months) 3.5 3.5 3.5 3.5 3.5 3.5 .. Benin WT/TPR/S/236/BEN 
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 2003 2004 2005 2006 2007 2008 2009a 
Exchange rates        
CFAF/US$ (annual average) 581.2 528.3 527.5 522.9 479.3 447.8 472.2 
Real effective exchange rateb (end of period, 
% variation) 8.4 2.4 2.2 1.1 0.9 4.7 .. 
Nominal effective exchange rateb (end of period, 
% change) 8.8 4.4 -0.5 -0.3 2.6 1.6 .. 
Public finances Percentage of GDP 
Revenue and grants 18.5 19.0 20.1 25.8 25.2 21.3 20.9 
 Current revenue 16.6 16.4 18.1 22.3 21.0 19.5 18.5 
  Tax revenue 14.9 14.6 16.5 18.2 19.4 17.2 16.1 
   Direct and indirect taxes 7.2 7.3 7.5 8.0 8.9 7.8 7.7 
Total expenditure and net lendi ng 22.0 20.1 21.1 23.8 29.5 23.0 25.7 
 Total current expenditure 15.6 13.9 15.8 15.4 18.3 15.0 15.8 
  Current primary expenditure 15.0 13.6 15.3 15.2 17.7 14.7 15.3 
  Wages 5.1 5.5 5.9 5.8 6.7 6.1 7.2 
  Pensions and scholarships 1.2 1.2 1.3 1.4 1.4 1.2 1.3 
  Current transfers 3.7 3.1 3.7 4.0 5.2 4.0 3.5 
  Other current expenditure 4.9 3.8 4.5 4.0 4.4 3.3 3.2 
  Interest 0.6 0.3 0.4 0.2 0.6 0.3 0.5 
 Capital expenditure 6.6 6.1 5.2 8.4 11.3 6.5 9.4 
 Net loans -0.1 0.0 0.1 0.0 0.0 1.5 0.5 
Overall fiscal balance (payment order basis, excluding 
grants) -5.4 -3.6 -2.9 -1.5 -8.5 -3.5 -7.2 
Overall fiscal balance (payment order basis, including 
grants) -3.5 -1.0 -0.9 2.0 -4.3 -1.7 -4.7 
Change in arrears 0.0 -0.4 -2.6 -2.4 -0.7 -0.6 -0.9 
Payments during supplementary period 0.8 -0.5 3.1 2.9 0.0 -3.3 -1.2 
Balance (cash basis, excluding grants) -4.7 -4.5 -2.4 -0.9 -9.2 -7.4 -9.2 
Financing        
 Domestic financing 0.0 0.1 -2.1 -5.1 1.7 3.7 4.7 
 External financing 4.0 4.4 4.5 6.1 7.4 3.7 4.6 
 Errors and omissions 0.0 -0.3 0.1 0.1 1.6 -0.6 2.1 
.. Not available 
a Estimates. 
b A minus sign (-) indicates depreciation 
 
Source: Beninese authorities;  IMF, Country reports Nos 09/252,  08/287, 08/124 and 08/84.  Viewed at:  www.imf.org;  
BCEAO, Statistics Yearbook 2007;  Annual Reports 2007 and 2008.  Viewed  at:  http://www.bceao.int/;  
WAEMU, Rapport annuel , 2007;  and WAEMU, Rapport de la surveillance multilatérale  - Annexe statistique , 
December 2009.  Viewed at:  http://www.uemo a.int/Publication/Sur v_Multilaterale.htm. 
(2) RECENT ECONOMIC TRENDS  
5. During the review period, Benin's economy progressed at a generally sustained pace (joint 
report, Table I.1), despite an unfavourable international environment marked by strong inflationary pressure and a real appreciation in the CFA franc.  This performance reflects, in part, the combined 
effects of the measures taken by the authorities, includ ing tax relief, in order to revive agriculture and 
attract private investment;  the continuation of the major infrastructural improvements also 
contributed to this performance.  Nevertheless, Benin could not avoid the negative impact of the 
global financial crisis, which caused a sl owdown in its economic growth in 2009. WT/TPR/S/236/BEN Trade Policy Review 
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6. At the fiscal level, Benin simultaneously grante d targeted exemptions from certain duties and 
taxes4 and introduced the single tax identification number (IFU).5  The reorganization and partial 
computerization of the tax authority helped to ensu re a large increase in revenue compared to 2004.  
This upward trend is also attributable in part to the increase in imports (Table I.1), and the inclusion 
of income from customs escort charges in the fi scal revenue.  In 2009, however, Benin did not 
observe the WAEMU-defined reference threshold fo r the tax ratio (17 per cent) because of the 
slowdown in economic activity and the reforms inte nded to make the informal sector pay tax by 
giving tax reductions.  As of Ja nuary 2009, the authorities lowered the following:  profits tax (from 
35 per cent to 25 per cent for natural persons, 38 per cent to 30 per cent for legal persons engaged in 
business, and 38 per cent to 25 per cent for legal pers ons in industry);  the employer's contribution on 
wages (from 8 per cent to 4 per cent for natural an d legal persons, and from 4 per cent to 2 per cent 
for private educational establishments);  and the graduated tax on wages and salaries (a 5 per cent 
reduction on the rate applied to all taxable income brackets).6  Additional incentives were given for 
start-ups and to employers upon recruitment of  their first wage-earner (Chapter III(4)(i)). 
7. The increased mobilization of revenue was not accompanied by a sustained reduction in the 
budget deficit (excluding grants), wh ich persisted throughout the peri od 2003-2009 (Table I.1).  After 
initially falling, it rose from 1.5 per cent of GDP in  2006 to 7.2 per cent in 2009 because of substantial 
government spending as a result of the food crisis and the projects to improve basic infrastructure.  In 
general, the financial support given by development partners has not su fficed to offset the deficit;  the 
only surplus (of 2 per cent) in the fiscal balance (including grants) was in 2006.  Total government 
debt rose from 14.9 per cent of GDP in 2007 to 26.7 per cent in 2009.  Benin has been able to 
diversify its sources of financing by means of Tre asury bills and bonds on the regional market;  in 
2009, the external debt represented 55.6 per cent of total debt, compared to 94.9 per cent in 2006 
(Table I.1).  Although it has risen since 2008, mainly  because of the fall in global demand, external 
debt servicing as a ratio of exports of goods a nd services has remained at fairly low levels. 
8. In Benin, price trends are similar to the gene ral trend recorded within WAEMU, particularly 
as regard periods of intense inflationary pressure cau sed by shortages of foods tuffs and oil price peaks 
at the global level.  The latter have a very mark ed impact on inflation because of the domestic 
economy's structural dependence on thermal energy.  Confronted with inflationary pressure, between 
December 2007 and August 2008 the authorities suspe nded the collection of customs duty and VAT 
on certain fast-moving consumer products such as ce ment, rice (25 per cent broken), condensed milk, 
wheat, wheat flour, tomato concentrate, sugar, ed ible pasta, reinforcing steel, and hydrocarbons.  
During the same period, there was also a mechanism for approving the price of most of these products 
(except wheat, domestically produced wheat  flour, and "Belle Hollandaise" milk7).  The Beninese 
authorities consider that the revenue foregone as a result of these measures was around CFAF 30.1 billion (1 per cent of GDP) in 2008.  Deem ed to be ineffective, these temporary measures 
were replaced by measures intended to protect the vulnerable sections of the population, for example, 
free distribution of rice and maize seeds, the sale of cereals at reduced prices, and the sale of fertilizer 
                                                     
 
4 Fiscal incentives (except for those related to externally financed government procurement and 
BCEAO consolidated securities) granted in 2009 amou nted to CFAF 70.4 billion (2.3 per cent of GDP), 
including CFAF 10.9 billion (0.35 pe r cent of GDP) for agricultural inpu ts.  In 2008, the respective amounts 
were CFAF 43.2 billion (1.5 per cent of GDP) and CFAF  4.1 billion (0.14 per cent of GDP), respectively. 
5 Decree No. 2006-201 of 8 May 2006 creating the single tax identification number (IFU) and the 
national directory of persons, institutions and associati ons.  According to this decree's provisions, the authorities 
and the natural and legal persons concerned had to have an IFU by 30 June 2006 (Article 9). 
6 The tax revenue foregone as a result of the reducti on in the rate of domestic taxes (following these 
reforms) was estimated to be CFAF 16.9 billion (0.5 per cent of GDP) in 2009. 
7 The prices of locally produced wheat flour and "Belle Hollandaise" milk were not approved because 
their cost price was way above that for similar products. Benin WT/TPR/S/236/BEN 
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at subsidized prices.  In order to improve food secu rity in the medium term, the authorities have given 
producers more support and facilitated their purchase of  agricultural machinery through subsidies and 
tax reductions.  The easing of global oil prices and f ood prices, together with the introduction of an 
emergency food security programme (PUASA), enabled Benin to achieve an annual inflation rate of 
2.2 per cent in 2009. 
9. After falling slightly at the beginning of the re view period, the balance-of-payments current 
account deficit then grew significantly to reach 8.6 pe r cent of GDP in 2009 (Table I.2).  This increase 
is mainly attributable to the deterioration in th e balance of trade in goods and services.  The export 
trend was marked by fluctuations in prices and in cotton production, while imports doubled in value 
between 2004 and 2009.  The strong rise in imports  was caused by the sustai ned increase in purchases 
of capital goods and energy products, as well as hi gher global prices for oil and foodstuffs.  The 
reason for the deterioration in the services balance was mostly transport, especially freight, and the 
improved surplus under the travel heading w as too small to reverse the overall trend. 
10. As a member of WAEMU, Benin applies its common monetary and exchange policies (joint 
report, Chapter I).  In 2009, Benin fulfilled three of the four so-called first tier primary convergence 
criteria established within the Union, only fa iling to meet the basic fiscal balance criterion. 
Table I.2 
Balance of payments, 2004-2009 
(US$ million) 
 2004 2005 2006 2007 2008 2009a 
Current balance -287.9 -226.2 -216.3 -494.5 -535.9 -568.4 
Trade balanceb -273.3 -287.4 -310.2 -555.2 -607.4 -647.4 
 Exports (f.o.b.) 568.6 578.2 735.5 1,046.8 1,282.3 1,102.1 
  Cotton 214.8 176.3 98.5 138.1 176.2 136.6 
 Imports (f.o.b.) -842.0 -865.6 -1,045.7 -1,602.0 1,689.1 1,554.9 
  Petroleum -148.6 -127.0 -160.3 -272.1 -177.8 -161.0 
Services (net) -71.2 -85.3 -135.2 -199.1 -161.9 -170.3 
 Credits 215.6 193.8 217.1 301.5 348.1 278.9 
 Debits -287.2 -279.1 352.3 500.6 510.0 449.2 
 Transport (net) -139.7 -141.4 -187.6 -283.1 -297.2 -260.5 
  Freight (net) -127.8 -128.5 -168.3 -257.9 -269.5 -236.1 
 Travel (net) 89.3 76.4 82.0 134.8 171.9 130.2 
 Other services (net) -21.2 -20.3 -29.6 -50.7 -36.8 -40.0 
Income (net) -36.9 -17.8 -29.5 -8.8 -11.4 -10.0 
 Interest on public debt -17.6 -16.3 -14.0 -12.5 -11.8 -15.7 
Transfers (net) 93.5 164.4 258.6 268.5 244.7 259.2 
 Private 68.3 120.6 151.5 153.6 163.9 143.4 
 Public 25.2 43.8 107.1 115.0 80.8 115.8 
Capital and financial operations account 181.9 307.7 442.9 758.7 607.2 471.6 
 Capital transfers  80.4 121.9 1,154.9 175.9 108.1 100.8 
 Financial operations 101.5 185.8 -712.0 582.8 499.1 370.6 
  Direct investment 65.1 53.5 54.9 261.4 173.7 92.5 
  Portfolio investment -5.1 3.8 5.7 67.6 21.0 63.7 
  Other investment 41.5 128.5 -772.6 253.7 304.4 214.3 
Net errors and omissions  -9.7 11.8 24.1 30.7 11.2 0.0 
Overall balance -116.2 93.1 250.9 295.0 82.4 -96.8 WT/TPR/S/236/BEN Trade Policy Review 
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 2004 2005 2006 2007 2008 2009a 
Indicators (%)       
 Balance of goods/GDP -6.7 -6.6 -6.6 -10.1 -9.1 -9.8 
 Current account balance/GDP -7.1 -5.2 -4.6 -9.0 -8.1 -8.6 
 Overall balance/GDP -2.9 2.1 5.3 5.4 1.2 -1.5 
a Estimates. 
b The authorities revised their method of estima ting regional exports as of the data for 2007. 
Source : BCEAO. 
(3) TRENDS IN TRADE AND INVESTMENT  
(i) Trade in goods and services 
11. The breakdown and geographical distribution of Benin's trade appears hard to identify owing 
to the large informal economy and the re-export trade.  According to the statistics available, there has 
not been any major change in the structure of trad e since 2003 (Tables AI.1 and AI.2 and Chart I.1).  
The leading imports are food products (especially ri ce and chicken meat), fuel, electricity, machinery, 
vehicles, textiles, cement, medicines and agricultu ral inputs.  The boom in the price of oil and 
foodstuffs on international markets between 2006 a nd 2008 affected the trend in their respective 
shares of the total value of imports.  The share of intra-ECOWAS trade in Benin's total imports is also 
said to have felt the effects of this phenomenon, standing at around 24 per cent up to 2006, falling to 
15.9 per cent in 2008, and then rising to 17.8 per cent in 2009.  On average, WAEMU's share was 
13.2 per cent over the period 2003-2009, although there was a dip (10.6 per cent) in 2008.  The European Union, notably France and the Netherla nds, are still the main source of imports from 
outside the community, followed by China, Tha iland and Malaysia (Table AI.3 and Chart I.2). 
12. Cotton still occupies first place among Benin's e xports, although its share fell from 67.9 per 
cent in 2003 to 29.6 per cent in 2009.  The export of  certain food products (especially fruit and oil) 
and tobacco, on the other hand, showed a sharp incr ease.  Agricultural performance, however, is still 
to a large extent governed by weather factors a nd the revenue earned from selling cotton depends on 
fluctuations in global prices.  Manufactures only play a small role, even though exports of iron and 
steel have increased.  According to the statistics av ailable, Benin exports mo st of its goods to Africa 
and Asia.  Exports to other ECOWAS members tripled over the period under review, mainly a 
reflection of the development of tr ade relations with Nigeria;  the intra-Community share of the total 
value of Benin's exports was 51.4 per cent compared to 16.5 per cent in 2003.  The share of exports 
within WAEMU, on the other hand, experienced wide  fluctuations, but declined from 9.9 per cent in 
2003 to 8.7 per cent in 2009.  Since 2003, China has become the main destination for products of Beninese origin, replacing the European Union;  India, Viet Nam and Indonesia are also important export markets for Benin (Table AI.4 and Chart I.2). 
(ii) Foreign direct investment 
13. Despite a relatively stable political and macroeconomic context, flows of foreign direct 
investment (FDI) to Benin have not always kept  pace with their potential dynamism.  The business 
climate remains somewhat difficult, inter alia because of the red tape involved in running businesses, 
inadequate protection of property rights and frequent  power cuts.  Recent reforms have started to ease 
the fiscal burden and to improve arbitration and mediation mechanisms.  Benin did not, however, make any notable progress in most of the components of the World Bank's Doing Business indicator 
over the period 2004-2010.  Despite a slight impr ovement, there is still no permanent mechanism for 
dialogue between government structures and the privat e sector.  According to economic operators, the Benin WT/TPR/S/236/BEN 
 Page 83 
 
 
lack of any formal consultation forum is the main cause  of the lack of consistency in reforms to attract 
investment. 
14. The FDI trend in Benin over the period 2 003-2009 (Table I.2) essentially reflects the 
implementation of the State's policy of withdrawi ng from production, and the more frequent use of 
public-private partnerships to carry out large-scale public works.  Despite the absence of a definitive 
regulatory framework, substantial investment has be en made in mobile telecommunications;  projects 
to exploit Benin's subsoil should also take off in the near future. 
(4) OUTLOOK  
15. Benin's economy, still little diversified, remain s vulnerable to external shocks, including 
weather factors and fluctuating commodity prices on global markets.  This vulnerability is made 
worse by Benin's virtually total dependence on imports  to meet its electricity and petroleum needs.  
The extent of these structural w eaknesses suggests that, in the medium term, the financial and trade 
imbalances are likely to persist.  Recourse to ex ternal financing, including support from development 
partners, will continue to play an importa nt role in Benin's economic development. 
16. In addition to the emergency food security  support programme (PUASA), the Beninese 
authorities have drawn up a broader strategic fr amework aimed at diversifying activities in the 
primary sector.  Its effective implementation shoul d, in time, lessen the country's overwhelming 
reliance on cotton.  In addition, increased production of  food crops, which has already begun, will to a 
certain extent help in controlling inflationary pressu res if there are no external shocks such as higher 
global prices for petroleum products. 
17. The overall direction of Benin's economic policy is aimed at increasing productivity by 
strengthening the basic infrastructure and modern izing agriculture.  The multiyear programme's goal 
is an average annual rate of growth of 4.7 per cent over the period 2010-2014 and a gradual rise in the 
fiscal burden (up to 21.1 per cent by 2014).  Nevertheless, even though closer control of government spending is also envisaged, if there is no effectiv e mobilization of the expected grants and loans, 
expenditure on implementing various  planning projects could jeopardize the projections for a surplus 
in the basic financial balance. WT/TPR/S/236/BEN Trade Policy Review 
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Chart I.1
Structure of trade in goods, 2003 and 2009
2003 2009
(a)    Exports (f.o.b.)
Other
4.5
Total:  US$271.6 million Total:  US$451.0 million
(b)    Imports (c.i.f.)
Textiles & clothing
8.1
Machinery 
11.2 Manufactures
50.4
Chemicals
9.4Other semi-
manufactures
12.7Fuel
20.0
Other primary products
4.2Other consumer goods
3.5
Other semi-
manufactures
8.0Cotton
29.6
Fuel
16.4Machinery
8.3Manufactures
48.2
Chemicals
9.0
Total:   US$886.2 million Total:   US$1,574.1 millionPercentage
Rice
11.9
Automotive industry 
products
7.5Other consumer goods
3.6Food products
51.1
Cotton
67.9Manufactures
8.4Other
1.9
Other food products
12.4Meat
15.4
Other food 
products
12.8
Source : WTO Secretariat calculations, based on data taken from the UNSD Comtrade database
               (SITC Rev. 3) and data provided by the Beninese authorities.Automotive industry 
products
5.4
Food products
31.2Other manufactures
8.8
Iron & steel
   8.6
Other primary products
  5.4Food products
19.2Kernel fruit
6.4
Meat
9.2Meat
5.1
Food products
24.1
Iron & steel
5.3Kernel fruits
7.4
Palm oil
4.0
Rice
6.0Rice
4.4
Other food 
products
15.9Other food products
14.7Manufactures
17.4
Textiles & clothing
6.7
 Benin WT/TPR/S/236/BEN 
 Page 85 
 
 
Chart I.2
Direction of trade in goods, 2003 and 2009
2003 2009
(a)    Exports (f.o.b.)
Other Asia
11.5
Asia
59.7
Total:   US$271.6 million Total:  US$451.0 million
(b)    Imports (c.i.f.)
Other
3.5
Other Asia
12.2
EU (27)
44.7America
4.3
EU (27)
40.4America
5.9
Total:   US$886.2 million Total:   US$1,574.1 millionPercentage
Asia
35.1India
7.7
United Kingdom
4.7China
23.0
Other EU (27)
13.7China
7.1
Nigeria
4.3EU (27)
12.9Other
6.2
Other Asia
12.6EU (27)
4.7Other
0.6
Source :  WTO Secretariat calculations, based on data provided by the Beninese authorities.Nigeria
3.1 Togo
10.8Asia
26.0Asia
19.3
Togo
4.0Other
6.3
Netherlands
5.0Togo
4,6
Belgium
4.3Other Africa
12.2Nigeria
42.4
Côte d'Ivoire
5.4Nigeria
4.7Other Asia
9.4
Indonesia
9.3
France
24.2France
17.6Thailand
5.8
Belgium
4.1Africa
28.1
Other EU (27)
11.5China
13.4Chad
5.0Other Africa
11.9China
18.0
India
10.1
Africa
21.4Africa
21.2 Africa
59.6
Other Africa
14.4
Other Africa
7.5
 WT/TPR/S/236/BEN Trade Policy Review 
Page 86 
 
 
II. TRADE AND INVESTMENT REGIMES 
18. Since the previous review of Benin's trade policy (TPR) in 2004, only a few new legal texts 
on trade and investment have come into effect.  Although Benin's legal texts are in principle published 
in the Official Journal , they are not yet systematically posted on the official website open to the 
public.  The Government has gradually started to streamline procedures for promoting international 
trade and investment.  Between 2004 and 2010,  however, most of the components in the 
World Bank's Doing Business indicator did not sh ow any notable improvement in Benin, which 
explains its much lower ranking compared to  neighbouring countries in 2010 (Benin came 172nd out 
of 183 economies in 2010).8  Consideration is being given to reforms to make the administrative and 
regulatory framework for business less rigid.  The Government acknowledges that there are too many 
institutions involved in promoting trade and invest ment and that their activities overlap so it is 
considering bringing all the investment promotion st ructures together and creating a single agency to 
replace the current three "single windows".  The Government is also revising the implementing decrees for ordinances so as to redefine the scope of the Investment Code. 
(1) E
XECUTIVE , LEGISLATURE AND JUDICIARY  
19. Benin's Constitution has not changed si nce it was adopted in December 1990.9  Under its 
Constitution, the President of the Republic is elected  by direct universal suffrage (first-past-the-post 
ballot in two rounds) for a once-renewable five-year te rm.  Executive power is vested in the President, 
who appoints the members of the Government and determines their responsibilities.  The current 
President has been in office since 2006 and the next  presidential elections are due to be held in 
March 2011.  The President of the Republic appoint s the other members of the Government.  There 
have been three ministerial reshuffles since 2006;  Ta ble II.1 shows the ministri es in office at the time 
this report was drawn up. 
20. The National Assembly exercises legislativ e power and controls the activities of the 
Government;  laws, including those determining the Stat e's income and expenditure targets, have to be 
adopted by the National Assembly.  The National Assembly comprises 83 deputies elected by direct 
universal suffrage for four years, who may be re -elected.  The latest elections were held on 
31 March 2007.  In exceptional circumstances, the Government may issue ordinances valid for a 
limited period (Articles 68 and 69 of the Constitution).  Ordinances are adopted by the Council of Ministers and take effect upon publication, although in principle they lapse if the draft law on their ratification is not adopted by the Assembly.  Im plementing decrees for legislation voted by the 
Assembly are adopted by the Council of Ministers and are immediately enforceable.  The President 
may also put any draft law on a matter of national interest to a referendum. 
Table II.1 
Principal ministries and institutions dealing with  international trade and foreign investment, May 2010 
Ministries and their institutions Internet address 
Government's website http://www.gouv.bf 
Foreign affairs, African integration,  francophonie and Beninese overseas h ttp://www.maebenin.bj (not operational) 
Agriculture, livestock and fishing .. 
Ministry of Trade http//www.mic.bj 
Ministry of Tourism and Crafts .. 
                                                      
8 Doing Business, online info rmation.  Viewed at:  
http://english.doingbusiness.org/Cust omsQuery/Default.as px?excel=false. 
9 Law No. 90-032 of 11 December 1990.  Viewed at:  
http://www.bj.refer.org/benin_ct/cop/assemble/constitution/constitution.html. Benin WT/TPR/S/236/BEN 
 Page 87 
 
 
Ministries and their institutions Internet address 
Economy and Finance http://www.finances.gov.bf 
  Directorate-General of Customs and Indi rect Taxation (DGDDI) http://www.douane-benin.bj/ 
Industry http//www.mic.bj 
Small and medium-sized enterprises and promotion of the private sector .. 
Attorney General, Ministry of Ju stice, Legislation and Human Rights .. 
Ministry of Energy and Water Resources  .. 
Ministry of Petroleum and Mining Prospection .. 
Ministry responsible for small and medium -sized enterprises and promotion of the 
private sector  .. 
Ministry attached to the President of th e Republic responsible for information and 
communication technology  .. 
Ministry attached to the President of the Republic responsible for the maritime economy, 
maritime transport and port reform http://ecomaritimebenin.net/ 
Ministry attached to the President of the Republic responsible for land transport, air 
transport and public works .. 
National Institute of Statistics and Ec onomic Analysis  http://insae-bj.org/ 
.. Not available. 
Source: Information provided by the authorities. 
21. All laws, regulations and orders are published in French in the Official Journal .  There is not 
yet any official government website containing Benin's legal texts alt hough the Government is 
seeking financing to implement this project. 
22. International trade agreements and treaties, covered by Title IX of the Constitution, are 
negotiated, signed and ratified by the President of the Republic.  They can only be ratified or 
approved by means of a law adopted by the Nationa l Assembly.  Ratified treaties or agreements (for 
example, the WTO Agreement) take precedence over domestic laws once they have been published in 
the Official Journal , provided that each agreement or treaty is  implemented by the other party.  Such 
acts are immediately applicable and automatically en forceable, even though only the approval of the 
treaty or agreement is the subject of the law and not  the transposition of its provisions.  Accordingly, 
only the act ratifying the WTO Agreement was published in the Official Journal  and not the text of 
the Agreement itself.10  Under this monistic regime, the WTO Agreement can be directly cited in legal 
proceedings in the event of a trade dispute, although this has never been the case so far. 
23. Judicial power is vested in the Supreme Court, the courts and tribunals set up pursuant to the 
Constitution.  The Supreme Court is at the apex of  the judicial pyramid, followed by the appeal 
courts, the lower courts and conciliation tribunals.  It  coexists with two other high judicial instances:  
the Constitutional Court11 and the High Court of Justice.12  The Supreme Court has competence for 
administrative and judicial matters and the State's ac counts.  Its decisions are final and are binding on 
the Executive, the Legislature and all other judicial bodies.  The Government may consult it on any administrative or legal matter.  At the request of the President of the Republic, it may take part in 
drafting or amending any legislative or regulatory te xt before it is put before the National Assembly. 
                                                     
 
10 The WTO Agreement was ratified by Decree No. 95 -241 of 5 September 1995.  The provisions in 
the Agreement apply automatically. 
11 The Constitutional Court rules on the constitutionality of laws and regulatory acts, and is the 
regulatory body for the functioning of government in stitutions and activities (Artic le 114 of the Constitution). 
12 The High Court of Justice is empowered to judge the President of the Republic and members of the 
Government for acts deemed to be  high treason and for offences committed in connection with their 
responsibilities. WT/TPR/S/236/BEN Trade Policy Review 
Page 88 
 
 
24. The commercial chambers in the lower courts have competence for trade matters, which are 
heard there in the first instance.  Each appeal court also has a specialized chamber for ruling on 
appeals relating to trade dis putes and its decision is final.13  Countries belonging to the Organization 
for the Harmonisation of Business Law in Africa (OHADA), including Benin, have entrusted the 
Organization's Common Court of Justice and Arbitr ation (CCJA) with hearing appeals relating to 
trade disputes.14  Any party wishing to turn to arbitrati on, the terms for which can be found in the 
CCJA's arbitration regulations, must send a written re quest to the Secretary General for the Court's 
arbitration, together with the requisite fee. 
(2) TRADE POLICY FRAMEWORK  
(i) Institutional framework 
25. A number of ministries are involved in drafti ng and implementing trade policy, including the 
Ministry of Trade, the Ministry of Industry, the Ministry of Small and Medium-Sized Enterprises, and the Ministry responsible for development.  The Ministry of Finance and the Economy also plays a leading role in trade policy and investment matter s, especially as regards the customs administration 
and supervising government procur ement.  One of the Ministry's  representatives takes part in 
ministerial meetings of the franc zone, in WAMU a nd WAEMU.  The Ministry is also responsible for 
the financial aspects of ACP/EU relations. 
26. Coordination among these ministries could be im proved, notably in order to facilitate the 
design and implementation of trade facilitation and Aid for Trade (AFT) projects.  Moreover, the Ministry responsible for trade is not systematically  invited to discussions on development aid, held 
under the auspices of the Ministry responsible for development;  as a result, AFT projects have not 
been systematically integrated into national development plans (Chapter V). 
27. In order to ensure that activities to develop its in ternational trade are in fact incorporated into 
its national development plans, Benin particip ates in the process initiated under the Enhanced 
Integrated Framework (EIF), for which a steeri ng committee was set up in January 2009 under the 
auspices of the Ministry of Trade.  The focal point is the Directorate-General of Foreign Trade.  In 
February 2010, the national implementation unit w as in the process of being set up (Chapter V). 
28. Numerous agencies, associations, single windows and other entities are involved in enterprise 
creation and promoting investment (see Investment Regime below) and international trade.  Those 
responsible for promoting international trade have  recently been reorganized.  The Beninese Trade 
Promotion Agency (ABePEC) emerged from the amal gamation of the Benin Foreign Trade Centre 
(CBCE) and the Business Opportunities Observato ry (OBOBAF), and has been placed under the 
responsibility of the Minister responsible for trade;   80 per cent of its financing comes from the 
national budget and 20 per cent from supplying services.   Its main task is to develop and promote 
trade between Benin and the rest of the world, particularly by providing information on export markets and assisting participation in trade fairs. 
29. The Association for the Development of Expor ts (ADEx), an independent body bringing 
together exporters under the wing of the Ministry responsible for industry, provides investors with financial support for conducting strategic market su rveys on products for export, thereby reinforcing 
                                                     
 
13 Article No. 61 of Law No. 2001-37 of 27 August 2002 on the organization of judicial matters in 
Benin. 
14 The following countries are memb ers of OHADA, whose headquarters are in Abidjan:  Benin, 
Burkina Faso, Cameroon, Central African Republic, Chad , Comoros, Congo, Côte d'Ivoire, Equatorial Guinea, 
Gabon, Guinea, Guinea-Bissau, Mali, Niger, Senegal and Togo. Benin WT/TPR/S/236/BEN 
 Page 89 
 
 
their export potential.  The National Export Council (CNEX) is a private entity that provides technical 
assistance for export;  the National Shippers' Council  of Benin (CNCB) is a government body under 
the Ministry responsible for maritime transport a nd helps shippers with tr ansport operations and port 
transit. 
(ii) Broad outlines of trade policy 
30. Regional economic integration within WAEMU and ECOWAS is at the heart of Benin's trade 
policy (joint report, Chapter II).  Another major obj ective of Benin's trade policy is to integrate the 
promotion of international trade and investment into its poverty reduction strategy (PRS), which 
guides the whole of Benin's aid policy (Chapter V) .  Having focused its development strategy on the 
private sector as the engine for growth, the G overnment is trying to attract investment, inter alia  
through new legislation on foreign investment;  a dditional resources devoted to developing industrial 
free zones (see below);  and a revised admi nistrative, regulatory and legal framework. 
31. Benin became a GATT Contracting Party on 12 September 1963 and a Member of the WTO 
on 22 February 1996.  It is recognized as a "least de veloped country" (LDC).  It is not a member of 
any plurilateral agreement.  Benin has been particul arly active at the WTO in relation to the subsidies 
given by some WTO Members for trade in cotton (j oint report, Chapter IV).  Since 2004, Benin has 
also made some notifications to the WTO (joint report, Table II.1), but these are incomplete.  For 
example, there are no tariff or statistical data  on imports for the years 2008 and 2009 in the WTO 
Integrated Database (IDB).  Benin could adopt a sy stematic joint notification procedure with other 
WAEMU members so as to keep join t notifications up to date more efficiently and at lower cost. 
(3) CONSULTATION BETWEEN THE GOVERNMENT AND THE PRIVATE SECTOR  
32. The Government has regular dialogue with the private sector and with its major donors (the 
"Technical and financial partners" - TFPs).  For international trade and investment, however, this 
dialogue is on an ad hoc basis and the private sector would like to see a formal framework for 
consultation on trade policy issues set up, with meeti ngs to be held at fixed dates and publication of 
the outcome of the discussions.  The existing st ructures include a consultation framework on fiscal 
matters, set up in 2008 by an order.  Among the ot her forums, the Presidential Council for Investment 
(see below) is convened by the President of the Re public.  There is also a committee that meets on 
APE negotiations.  An order also provides for a fo rum on WTO negotiations, but this is not at present 
operating. 
33. Government-private sector meetings are held regularly at the instigation of the Benin 
Chamber of Commerce and Industry (CCIB).  In ex istence for over a century (1908), the CCIB is the 
principal public body supporting the private sector.  Its task is to represent and protect the interests of 
economic operators vis-à-vis  government authorities, national private institutions and outside bodies.  
It advises the authorities on questions of releva nce to economic matters and takes up with the 
Government all issues intended to  improve the working conditions of  economic operators.  It also 
participates in legislative and regulatory work.  It makes a detailed website available to the public and 
this is updated regularly with the principal economic  activities in Benin (Table II.2).  Since 2003, the 
Centre for Arbitration, Mediation and Conciliation has been hosted by the CCIB.15  In order to protect 
investment, the Centre provides settlement procedures;  makes a list of approved mediators/conciliators and arbitrators available to par ties;  and enables justice to be done more rapidly 
and more flexibly and in a way that is be tter adapted to the nature of the dispute. 
                                                     
 
15 Decree No. 2003-347 of 1 September 2003. WT/TPR/S/236/BEN Trade Policy Review 
Page 90 
 
 
Table II.2 
Institutions providing support for trade and investment, May 2010 
Entity Task Website  
Beninese Trade Promotion Agency (ABePEC) To promote trade between Benin and the rest of 
the world www.abepec.bj 
Export Development Association (ADE) Financial support for the conduct of strategic 
market surveys on products for export  .. 
Benin Chamber of Commerce and Indus try (CCIB) Represents the privat e sector http://www.economiebenin.org 
Business Formalities Centre   .. 
Investment Promotion Centre   www.cpibenin.com 
GUFE  .. 
National Export Council (CNEX)  Technical assistance for export .. 
Council of Private Investors in Benin (CIPB) Self-financed asso ciation of investors www.cipb.bj 
.. Not available. 
Source :  Information provided by the authorities. 
 
34. The CCIB plays an active role in promoting industrial, business and services activities, but 
does not deal with agricultural products or handicr afts.  The National Chamber of Agriculture is 
responsible for promoting agriculture, while the inter-departmental chambers of various trades 
represent and promote craftsmen vis-à-vis  government authorities. 
(4) INVESTMENT REGIME  
35. The Government seeks to encourage investme nt in Benin, including foreign investment, 
inter alia  by overcoming the delays and other admini strative and regulatory constraints that are 
typical of the investment regime in Benin.  Si nce 2008, new laws have been adopted to encourage 
large-scale investment, and efforts are under wa y to lessen the overlapping among the various 
institutions in charge of promoting investment in Benin. 
36. The Investment Code, which is the main legislation in this area, guarantees national 
treatment:  State-owned or private enterprises, whet her Beninese or foreign, have the same rights and 
are also subject to the same obligations.  There is  no limit on foreign participation in the capital of a 
company set up in Benin in the sectors covered by th e Code.  Foreign companies wishing to engage in 
activities in Benin must domicile their head office and keep their accounts in Benin.  Nevertheless, 
according to OHADA provisions, they may set up branches, whose life span may not exceed 
two years, after which they must be incorpor ated into a company established in one of the 
OHADA member States. 
(i) Legislation 
37. Companies approved under the 1990 Investment C ode are entitled to various fiscal incentives 
under several regimes depending on the number of jo bs created and the amount invested.  Regime A 
is for investment of up to CFAF 500 million (€ 762,000) and requires the creation of at least 
five permanent jobs for Beninese nationals.  Regime B (up to CFAF 3 billion, at least 20 jobs) offers 
the same benefits as Regime A. Regime C, the so-called "fiscal stabilization" regime, covers 
investment of CFAF 3 to CFAF 50 billion (€4.5 to €76 million, more than 20 jobs).  There is also a 
special regime for companies supplying services. Benin WT/TPR/S/236/BEN 
 Page 91 
 
 
38. The Code was amended in 2004 and again mo re recently in July and November 2008.16  On 
that date, in a special meeting of the Council of Ministers, the Government adopted two ordinances 
with a view to introducing an additio nal "Regime D" for "heavy investment"17 (from CFAF 50 to 
CFAF 100 billion, or €76 to €152 million);  and a Regime E for "structural" investment exceeding 
CFAF 100 billion (ordinance of November 2008).  Th ese new regimes make no mention of creating a 
minimum number of jobs.  For Regime E, the incen tives are negotiated directly with the Government 
and are the subject of an agreement. 
39. During the start-up phase, the Code principa lly gives customs incentives, for example, 
exemption from customs duty (but not from the munici pal tax, the statistical tax, the customs stamp 
duty, the community solidarity levy or the community levy) on:  (i) machinery, equipment and tools 
to be used specifically for production or exploita tion;  and (ii) spare parts specifically for the 
equipment imported, up to an amount corresponding to 15 per cent of the c.i.f. value of the equipment.
18  Companies providing services are only entitled to a 75 per cent reduction of import 
duties and taxes. 
40. During the operating phase, the company is given exemption for spare parts, inputs and fuel. 
41. As far as internal taxation is concerned, during the period of the investment, the company is 
given exemption from the business tax and propert y tax on buildings and on land.  During the 
operational phase, the investor must file an appli cation in order to receive the concessions as of the 
first year of production and for a period that depend s on the zone where the business is established.  
The concessions include exemption from the busin ess tax and the property tax on developed and 
undeveloped land;  exemption from the employers' contribution on the salaries of expatriate staff 
properly declared in accordance with the regulations in force in Benin;  and above all exemption from 
the industrial and commercial profits (BIC) tax. 
42. The period for which the concessions are given de pends on the zone in which the beneficiary 
company is established:  five years for the city of Cotonou and the surrounding area within a radius of 25 km.;  seven years for the urban areas of Po rto-Novo, Parakou, Abomey and Bohicon;  and 
nine years for other areas in Benin.  For Regime D, the period of concessions has been extended and 
includes:  a start-up or maximum investment period of five years, plus an operating period of 12, 13 
or 15 years depending on the zone. 
43. At the end of this period, companies approve d under Regimes C and D are also entitled to 
fiscal stabilization as regards the rate and method fo r determining the base for taxes other than the 
BIC throughout the period of entitlement.  Service su ppliers are not eligible for tax exemptions during 
the operating phase.
19  When the concessions under the speci al regime end, the company must 
                                                      
16 Law No. 90-002 of 9 May 1990, amended by Law No. 90-0 33 of 24 December 1990, Decree 
No. 98-453 of 8 October 1998 and Order No. 38/MPREPE/DC/SG/DPI/SACI of 9 December 1998.  The Code, 
and its accompanying legislation,  do not appear to be available on the official website. 
17 Ordinance No. 2008-04 of 28 July 2008. 
18 The articles excluded from the duty free regime under the Investment Code are building materials, 
office equipment, household electrical appliances and equipment, private tourism vehicles, air conditioning 
equipment, except for centralized air co nditioning, petroleum products, except for fuel lubricants, diesel fuel to 
be used as a raw material and bituminous products.  Raw materials and packaging imported in connection with 
the Code's incentives are su bject to the customary duty regime.  Nevertheless, drawback may be allowed in 
accordance with the provisions in the Customs Code for imported raw materials and packaging used to 
manufacture products exported and subject to compliance with the customs regulations. 
19 Article 59 of Law No. 90-033. WT/TPR/S/236/BEN Trade Policy Review 
Page 92 
 
 
continue its activities for at least five years otherw ise it has to reimburse the State for the concessions 
granted during the entitlement period. 
44. The principle of the Code is to stimulate the creation of local value added.  Activities that 
consist of buying for resale in the same state or repackaging and wrapping finished goods are, 
therefore, not entitled to the concessions.  Up to 2008,  there had to be at least 50 per cent value added 
in order to receive the concessions.  This figure h as, however, been lowered to 30 per cent in the new 
ordinances.  The Code requires beneficiaries to have a minimum of 60 per cent Beninese nationals on 
the payroll.20  Investors must also comply with the national or international quality standards 
applicable to the goods and services that are the subj ect of their activities;  protect the environment;  
keep SYSCOA (West African Accounting System)-compliant accounts;  respect the approved 
investment programmes;  allow controls by the au thorities;  and be registered in the Commercial 
Register. 
45. The scope of the Code is intended to be as broad as possible in order to attract private 
investment, including from outside the country.  A special regime applies to services activities, 
although several services activities are not listed in Article 1 of the implementing decree21, thereby 
excluding a wide range of services activities (for ex ample, distribution, business services) from the 
potential benefits.  According to the authorities,  investors may obtain ad hoc exceptions while 
awaiting the revision of the Code's scope.  Some services sectors such as telecommunications or 
energy are covered by sectoral codes.  Industries processing agricultural, animal or mining products of 
domestic origin are entitled to special tax con cessions, such as exemption from registration fees.22  
Equipment for hotels approved under the Code and entitled to exemption from import duties and taxes 
is regulated separately.23 
(ii) Institutional framework 
46. Any company seeking approval for a preferential regime under the Investment Code must 
make an application to the Benin Investment Prom otion Centre (CPI).  The application for approval 
under the Investment Code, accompanied by 20 copies of  all the documentation required, is sent to the 
Minister in charge of development.  It is then transmitted for consideration and decision to the CPI, 
currently placed under the Ministry of Planning, Development and Evaluation of Government Action 
(MPDEAP).  A technical investment commission (CTI), for which the CPI acts as the Secretariat, examines the application and approves projects.  The Investment Control Commission (CCI) ensures 
that the regulatory requirements (number of  local jobs, value added, etc.) are met.
24 
47. Since 1997, the Business Formalities Centre (CFE), a single window w ithin the CCIB, has 
also been responsible for formalities concerning the creation of businesses, their modification or 
dissolution.25  In October 2008, there was an evalua tion of the CFE, with support from the 
Millennium Challenge Account th rough its programme for poverty reduction through accelerated 
growth.  Based on this evaluation, on 20 Octobe r 2009 the Government adopted Decree No. 2009-542 
                                                      
20 Ibid., Articles 33, 35 and 36. 
21 Companies providing health and education services, handicrafts and public works, tourism and hotel 
and restaurant services;  industrial maintenance;  cultu ral, artistic and audiovisual production and environmental 
protection. 
22 Articles 48 of Law No. 90-002 and 32 of Decree No. 98-453. 
23 Swimming pool equipment;  capital appliances and machinery;  sound, radio and television 
appliances;  operating equipment;  transport equipment;  sanitary equipment and appliances (Interministerial 
Order No. 1289/MF/MI/CT). 
24 Chapter III and Title IV of Law No. 90-002 and Titles VII and VIII of Law No. 98-453. 
25 Decree No. 97-292 of 19 June 1997. Benin WT/TPR/S/236/BEN 
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setting up the single window for business formalities (GUFE), a public administrative body under the 
supervision of the Ministry of Trade, which will ultimately replace the CFE and be given more 
resources so as to lessen the number of formalities to be completed in order to start a business, modify 
it or wind it up.  According to the Decree, the GUFE will be the only intermediary between economic 
operators and government authorities.  It will be  financed through a State subsidy and fees for 
supplying its services.26 
48. In addition to the CFE/GUFE and the CPI, since 2007 Benin has also had a Presidential 
Council for Investment, with an administration and a secretariat, whose task is to make proposals to 
the President of the Republic with a view to e nhancing the business climate, particularly through 
closer dialogue between the Government and invest ors.  According to the ABePEC, which is also 
involved in supporting companies investing in Benin, the introduction of this presidential structure will enable "the alarming indicators on the business climate in Benin to be corrected".
27  A s  
mentioned above, the Council deals directly with investors in projects exceeding CFAF 200 billion. 
49. Aware of the fact that too many institutions  are involved in promoting investment (CFE, 
GUFE, CPI, Presidential Council), the Government is currently consolidating them in order to set up a 
single investment and export promotion agency (APIEx ).  It is also revising the implementing decrees 
for the ordinances so as to redefine the scope of the Investment Code. 
(iii) Settlement of investment-related disputes 
50. Any dispute regarding the interpretation or a pplication of the Investment Code may be 
brought before the Dispute Settlements Commission, whose terms of reference are spelled out in the 
Code.  The Commission deals, inter alia , with disputes concerning the validity, interpretation or 
application of the approval decree.  Appeals can also be made to the International Centre for 
Settlement of Investment Disputes (ICSID).  Acco rding to the ICSID database, Benin has signed 
agreements and treaties on the protection of invest ment.  Those with the Federal Republic of Germany 
(1978), Great Britain (1986), and Switzerland (1973) are in effect.28  According to the Beninese 
authorities, investment promotion and protection agreements have also been ratified with:  
Belgium-Luxembourg, Burkina Faso, Chad, Egypt, Ghana, Guinea, the Liby an Arab Jamahiriya, 
Mali, the Netherlands and South Africa. 
51. In order to strengthen the legal framework for investment and provide additional security for 
capital, particularly from abroad, in 1993 Benin ratified the Convention est ablishing the Multilateral 
Investment Guarantee Agency (MIGA).29  The latter's website shows that only two projects in Benin 
have received MIGA guarantees:  the SPACETEL tel ecommunications project in 2002 and a project 
to rehabilitate the Hôtel de la  Plage in Cotonou in 2009. 
(5) INDUSTRIAL FREE ZONE REGIME  
52. The Finance Law authorizing the creation of an industrial free zone in Benin (ZFI)30 dates 
back to 1999.  In September 2003, the first ZFI was defined to the east of Cotonou, in the Sèmè-Podji 
division near the border with Nigeria.  It covers a total area of 230 hectares, which can be extended to 
                                                      
26 CCIB online information.  Viewed at:  http://www.ccibenin.org/. 
27 ABePEC online information.  Viewed at:  http://www.abepec.bj. 
28 ICSID online information.  Viewed at:  http://icsid.worldbank.org/ICSID/Index.jsp. 
29 MIGA online information.  Vi ewed at:  http://www.miga.org/. 
30 Online information from the Benin ZFI Administrative Board.  Viewed at:  
http://www.a-zfibenin.com/.  The legal texts were consulted on this site. WT/TPR/S/236/BEN Trade Policy Review 
Page 94 
 
 
500 hectares.  The law on its organiza tion and operation was approved in 200531, but owing to lack of 
financing the ZFI was still in the process of being set up in 2010.32  Since 2007-2009, funds have been 
allocated for the effective development of the zo ne and the first company producing lead started 
operations, with a second being set up.  The ZFI option adopted by Benin is to combine 
geographically defined free zones and free points or free enterprises which, if they meet the criteria, 
can be established anywhere in Benin and be entitle d to the incentives applicable.  As at May 2010, 
there were seven approved free points, which have  been operating since 2009.  The ZFI is managed 
by a public limited company called the "ZFI Administ rative Board".  It receives an annual fee (to be 
determined) from each approved company and devel oper, defines and implements a development, 
promotion and financial viability programme. 
53. The following are eligible for the incentives:  industrial companies producing goods for 
export and those which produce goods and services excl usively for the former.  The companies must:  
(i) guarantee that at least 65 per cent of their annual production will be exported;  (ii) give priority for 
permanent jobs to Beninese nationals with qualifica tions equivalent to those of non-Beninese;  and 
(iii) give priority to raw materials, equipment a nd supplies of Beninese origin provided that they are 
equally competitive.  Any company that has benefited from a preferential regime under the 
Investment Code may only be given ZFI status five years after the preferential regime has ended.  Up 
to a maximum of 35 per cent of output may be so ld in Benin subject to payment of MFN import 
duties and taxes.  For the activities covered by thei r approval, companies are given tax concessions as 
of the date of signature of the agreement (Table  II.3).  Companies under th e ZFI regime are also 
entitled to:  (i) use their own telecommunications netw ork;  (ii) generate energy for their exclusive 
consumption;  and (iii) hold foreign currency accounts. 
Table II.3 
Tax concessions under Benin's industrial free zone regime 
Measure Concessions 
Import duties and taxes 
(excluding municipal tax) Exemption upon import of machinery, equipment and t ools;  spare parts specifically for the equipment 
imported;  raw materials and semi-finished goods;  products to be used for packaging and wrapping 
processed products;  fuel;  lubricants;  building ma terials;  office furniture and office consumables; 
electric generators and parts;  telecommunications  equipment;  appliances for air conditioners in 
companies approved under the ZFI regime and cold stores.  For goods vehicles purchased by the 
companies, there is a 60% reduction on these duties and taxes.  Only the municipal tax is payable upon export.   
Industrial and commercial 
profits tax (BIC) Exemption for the first 10, 12 and 14 years, respectiv ely, for geographical zone s 1, 2 and 3.  Reduction 
to a 20% rate (normal rate 25% or 30% depending on the case) for five years as of the 11th, 13thand 
15th years, depending on the zone.   
Employers' contribution 4% ra te on salaries for 5 years. 
Income tax on securities 5% rate for 5 years. 
Property tax on developed and 
undeveloped land, business tax Exemption for 10 years. 
VAT Exemption for the delivery of semi-finished or se mi-processed goods, packaging, works and services 
supplied to the approved enterprise.  Export at zero rate. 
Source :  Law No. 2005-16 of 8 September 2005 establishing the ZFI regime. 
                                                      
31 Law No. 2005-16 of 8 September 2005 establishing the ZFI regime. 
32 Article 5 of Law No. 99-001 of 13 January 1999 containing the finance law for 1999. Benin WT/TPR/S/236/BEN 
 Page 95 
 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) INTRODUCTION  
54. Benin has fully applied the WAEMU CET sinc e 31 January 2000;  other community duties 
and taxes are only levied on imports not originati ng in WAEMU or ECOWAS.  The rules of origin of 
these two regional groups, already harmonized to a la rge extent, are also applied in Benin.  The 
WAEMU regulations concerning the customs va lue of goods, including the provision on using 
reference values, has been applied at the national le vel since 2003.  It would appear that Benin does 
not systematically use reference values but rather negotiated minimum values (between importers and the customs authority) for certain products. 
55. In addition to the levies harmonized at the community level, goods crossing the border are 
subject to many other duties and taxes, including those levied by the CNCB, at an overall amount that varies according to the customs regime and the mode of  transport.  In Benin, there is still a system for 
preshipment inspection of imports.  Furthermor e, customs clearance procedures, including the 
customs escort for goods in transit, remain comple x and open to irregularities;  they are also still 
hampered by connectivity problems. 
56. A number of schemes for exemption from import du ties and taxes have been approved and/or 
renewed annually since the second Review of Benin's trade policy.  Benin also continues to apply a 
mechanism for a standing advance payment on the BI C (AIB), to which imports of goods and services 
are also subject.  For service providers not fiscally resident in Benin, it nevertheless represents a non-refundable tax.  An ecotax on polluting activ ities was introduced in Benin in 2004, but is not 
necessarily applied neutrally. 
57. Benin has renewed the moratorium on the import,  marketing and use of genetically modified 
organisms for a further five-year period, which will end in 2013.  Several te mporary bans on imports 
coming by land or river have been introduced si nce 2004 for certain fast-moving consumer goods;  
customs clearance of the goods in question takes place at a limited number of entry points, or even 
solely in the port of Cotonou.  In addition, the import and transit of bovine meat, suspended since 
2001, started again under a prior authorization regime.  It is still prohibited to export unprocessed teak 
wood or charcoal. 
58. A draft law on competition, based on the community legislation and recognizing the exclusive 
areas of competence of the WAEMU Commission, is be ing drafted.  The State still controls the price 
of certain staple goods (bread, water, electricity , hydrocarbons, pharmaceuticals and school supplies).  
Despite an ambitious programme for the State's withdrawal, the effective liberalization of the 
economy moves ahead slowly.  The State still inte rvenes in order to guarantee or support domestic 
industry in important sectors and some monopoli es remain, particularly in the services sector. 
59. Benin has not signed the WTO Agreement on Government Procurement.  To comply with 
WAEMU rules, it reinforced its legal and institu tional framework for government procurement in 
2009, but the implementing decrees for these new re gulations have not yet been adopted.  A 
preference for companies in the WAEMU area is planned. 
60. Benin ratified the revised Bangui Agreement ( 1999) in 2003.  Its regulatory framework for 
copyright was reinforced in 2006, with provision for legal proceedings and penal sanctions.  The 
Beninese Copyright Bureau (BUBEDRA) is studyi ng the possibility of taxing media for reproducing 
literary or artistic works directly at the customs cordon. WT/TPR/S/236/BEN Trade Policy Review 
Page 96 
 
 
(2) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Registration 
61. All economic operators wishing to import goods for commercial purposes must obtain an 
importer's licence from the Ministry of Trade.33  This is renewable annually and also serves as a 
professional trader's licence.  It is issued subject to payment of a flat rate admission fee 
(CFAF 30,000), payable to the Directorate-Genera l of Foreign Trade, and also the compulsory 
subscription to the CCIB.34 
62. Goods under all customs regimes must be decl ared to Customs and exemption from import 
duties and taxes does not remove this obligation.  A detailed declaration must be filed either by the 
licensed customs broker (or forwarding agent) or directly by the importer.  The latter, however, must 
possess a customs clearance authorization.35  The following documents are required for customs 
procedures:  importer's licence;  invoice;  freight not e;  insurance certificate (Chapter IV(5)(iv)(b));  
and, where applicable, the preshipment inspection cer tificate, certificate of origin or phytosanitary 
certificate. 
(ii) Customs procedures 
63. In principle, customs clearance procedures are computerized using the ASYCUDA++ 
system.36  The computerized network currently operates in six of the 32 existing customs posts and 
records 90 per cent of declarations at the national customs cordon electronically;  by August 2010, it should have been extende d to a further 12 posts.
37  The unsatisfactory reliability of the connection 
infrastructure, however, obliges the computerized cu stoms posts to devote considerable resources to 
entering hard copies of the declarations manually.38  Putting into operation a single window for 
foreign trade in the port of Cotonou, an essential pr oject for the port's competitiveness, seems to be 
jeopardized by connectivity problems and the compatibility of computer systems. 
64. Customs declarations are processed according to a risk assessment method that provides for 
four channels:  green (ready for clearance), blue (d eferred control), yellow (inspection of documents) 
and red (physical inspection).39  The main factors taken into account for the risk assessment are:  the 
                                                      
33 Law No. 90-005 of 15 May 1990, as amended by Law No. 93-007 of 29 March 1993, and Decree 
No. 93-313 of 29 December 1993. 
34 When a company is set up, the initial payment to the CCIB is CFAF 50,000 for Beninese nationals 
and CFAF 150,000 for foreigners.  The subsequent annual subscriptions are determined according to the 
economic operator's turnover, on a degressive scale. 
35 Natural or legal persons wishing to make deta iled declarations on their own behalf without 
exercising the profession of customs broker must obtain a customs clearance authorizatio n.  This is granted by 
the Ministry of Finance on a temporary and revocable basis for transactions con cerning the goods specified. 
36 The ASYCUDA computerized cu stoms system was introduced into Benin with aid from the 
Commission of the European Union as part of its fore ign trade-related statistical cooperation activities.  
UNCTAD provided Customs with the PROLOGUE software.  In principle, this allows the customs tariff, 
customs regulations and the databases to be managed.  For customs clearance, ASYCUDA allows declarations 
to be entered and checked, verification of payment of duties and taxes, and keeps the customs accounts. 
37 IMF (2009). 
38 In order to speed up customs cl earance procedures in the Custom s Revenue Office at Cotonou-Port, 
the authorities have introduced  a time-limit of one hour fo r dealing with each hard c opy declaration.  Circular 
Note No. 1016/DGDDI/CP/PRCC/DOUANES of 6 July 2006. 
39 In general, the green channel is for vehicles in transit to countries in the hinterland, with a fixed 
value, vehicles and goods for the des tination State in the hinterland, and us ed vehicles going to coastal countries 
with a fixed value.  Goods declared to be in transit to a country in the hinterland (except for those for the Benin WT/TPR/S/236/BEN 
 Page 97 
 
 
importer;  the person making the declaration;  the ty pe;  the import regime;  the country of origin or 
source of the goods;  the nationality of the carrier;  the mode of transport;  and the currency of the 
invoice.  Currently, this system is only operating in the port of Cotonou.  Moreover, the authorities 
acknowledge that updating the risk management criteria is often delayed because the committee 
responsible for drawing them up only meets irregularly. 
65. There is a clearing credit mechanism in Benin,  pursuant to the provisions in the community 
Code (joint report, Chapter III(2)(i));  the relevant increment is three per thousand of the total amount 
of the duties and taxes payable.40  According to the authorities, in most cases the processing of a 
customs declaration should not take more than two days;  the average time taken according to the 
World Bank's Doing Business 2010 report, however, is four days.41  Private operators consider that 
the real results in terms of transparency and rapidity of customs clearance are well below the 
ambitions proclaimed by the Customs Directorate.42  Administrative procedures and customs escort of 
goods are complex and open to irregularities.  This  malfunctioning lessens the attraction of Benin and 
the port of Cotonou compared to other ports in th e subregion as a centre for transit to landlocked 
countries43 or to the large market in Nigeria. 
(iii) Preshipment inspection and customs valuation 
66. Benin still has a system of compulsory preshipment inspection.44  Since October 1994, the 
company BIVAC International45 has been responsible for inspec tion and conformity assessment for 
all imports whose f.o.b. value exceeds CFAF 2 million (shipments by road) or CFAF 3 million 
(shipments by air or sea).  Partial shipments are in spected if the total value of the order exceeds the 
corresponding threshold.  In order to detect such fragmentation, an intent to import (IDI) must be 
declared for any order of a value exceeding CFAF 5 00,000;  imports whose value falls between this 
threshold and the threshold for compulsory  inspection are subject to random checks.46  T h e  I D I  
(which is valid for six months) is issued by the BIVAC office in Benin, at the importer's request 
(accompanied by the importer's licence and two copies of the pro forma invoice).  The IDI identification number must be shown on the price information certificate (CRP) sent to the importer 
within five working days if the inspection is sa tisfactory and also on the goods inspection certificate 
(CIM), which the BIVAC transmits to Customs at the same time through the computer network 
(ASYCUDA++) and in hard copy.  The IDI is also  one of the supporting documents required by the 
                                                                                                                                                                    
 
Government), used vehicles for coastal States whose value exceeds the fixed value, and goods for Benin going 
to industrial warehouses or for temporary admission for inward processing are directed to the blue channel.  In 
the red channel, there is systematic physical inspection of  the container vehicles, pers onal effects, and fabrics 
and clothing of Asian origin.  Other goods are dealt with through the yellow channel. 
40 Circular Note No. 1015/DGDDI/CP/PRCC/DOUANES of 6 July 2006. 
41 The data used in the Doing Business 2010  report date from 1 June 2009.  Viewed at:  
http://www.doingbusiness.org/Docum ents/CountryProfiles/BEN.pdf. 
42 DGDDI online information, "Rapport général de la table de concertation douane - opérateurs 
économiques des 23 et 24 septembre 2008".  Viewed at:  
http://www.douane-benin.bj/Actualite s/Nouvelles/rapgenefinal.html. 
43 Burkina Faso, Mali and Niger in particular. 
44 Decree No. 91-23 of 1 February 1991.  Benin has notified its laws and regulations on preshipment 
inspection to the WTO (WTO document G/PSI/N/1/Add.5 of 3 February 1997). 
45 The latest contract (No. 224/DNMP/SP/SMP) between the Beninese Government and BIVAC 
International (Bureau Veritas) dates from 25 August 2005. 
46 BIVAC online information, "Programme de Véri fication des Importations - Bénin, Guide pour les 
Importateurs".  Viewed at:  ht tp://www.bureauveritas.com/gsit. WT/TPR/S/236/BEN Trade Policy Review 
Page 98 
 
 
Treasury for a foreign exchange authorization if  the transaction implies a payment outside the 
WAEMU.47 
67. In general, inspection takes place in the exportin g country within three working days and the 
fees are paid by the Beninese Government.  BIVAC's  fees amount to 0.60 per cent of the f.o.b. value 
(agreed between Customs, BIVAC and the importer if need be) of the goods inspected, with a 
minimum of CFAF 85,000 per inspection certificate issued.48  On this basis, a standing charge is 
applied to all imports whose f.o. b. value does not exceed CFAF 14.2 million, i.e. 85,000/0.006;  in 
such cases, the Beninese Government would pay the am ount up to 2.83 per cent of the value of goods 
imported by air or sea and up to 4.25 per cent of the value of those imported by road.  For an LDC 
such as Benin, there could be a fairly large num ber of transactions not exceeding CFAF 14.2 million, 
which means that the fees would be much higher than 0.60 per cent.  In addition, the customs 
authority does not have to accept the certified value. 
68. WAEMU's customs valuation regulations have been in effect in Benin since 2003 (joint 
report, Chapter III(2)(i)).49  Despite the requirement to make an individual notification to the WTO 
and the technical support offered by the WAEMU Commission50 to member States, Benin has not 
submitted any notification or given any clarification in this regard.  The authorities state that they do 
not have a list of reference values, as require d by the WAEMU provisions.  Minimum values are, 
however, reportedly negotiated between the importers  and the customs authorities for certain products 
such as rice and edible oils. 
(iv) Rules of origin 
69. Benin applies the WAEMU rules of origin, who se basic provisions are harmonized with those 
of ECOWAS (joint report, Chapter III(2)(iii)).  The national approval committee deals jointly with 
approvals for entitlement to the WAEMU and ECOW AS preferential schemes.  If need be, economic 
operators are asked to file two app lications for approval simultaneously.51  If the application is 
approved, a certificate of origin is issued by the Ministry in charge of industry and endorsed by the customs service.  The list of approved products, together with the accompanying documentation, is 
sent to the respective WAEMU and ECOWAS Commissi ons for transmission to member States.  In 
2009, the number of enterprises in Benin approve d under the WAEMU tariff preference scheme 
(since it entered into force) was 58 for a total of 328 products;  47 companies and 209 products were 
approved under the ECOWAS scheme.  Over the period 2003-2009, an annual average of two companies (22 products) were approved for th e WAEMU preferential scheme for the first time;  
the corresponding approvals for the ECOWAS scheme  involved three companies (19 products) each 
year.  These figures show that the extent to which these two preferential schemes are utilized is fairly 
small. 
                                                     
 
47 The same procedure applies to inspection at the destination pursuant to a ministerial authorization;  
this is recorded in BIVAC's computer system so that an identification number can be given. 
48 The corresponding parameters in effect from 2002 to 2005 were 0.70 per cent and CFAF 100,000. 
49 Ordinance No. 2002-25 of 31 December 20 02 on the Finance La w for 2003 and Order 
No. 101/MFE/DC/SGM/DGDDI/DAR of 17 September 2002, implementing as of 1 September 2002, Regulation No. 5/99/UEMOA of 6 August 1999 on customs valuation of imported goods.  The Beninese 
authorities applied the Brussels Defi nition of Value until 31 December 2002. 
50 Directive No. 03/2002/CM/UEMOA of 23 May 2002. 
51 Applications, accompanied by 12 copies of the ap proval documentation, must be filed with the 
Directorate of Regional Integration in the Ministry of the Economy and Finance.  A fee of CFAF 100,000 is 
payable at the time of filing.  Viewed at:  http://www.finances .bj/spip.php?article698. Benin WT/TPR/S/236/BEN 
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70. Benin has not sent the WTO any notification concerning preferential or non-preferential rules 
of origin.52 
(v) Customs levies 
(a) Overview 
71. The WAEMU CET has been in effect in Benin since 31 January 2000 and, according to the 
authorities, it is fully applied (joi nt report, Chapter III(2)(ii)(a)).  Benin also imposes other community 
duties and taxes (joint report, Chapter III(2)(ii)(b));  the authorities state that they have never applied 
the special import tax (TCI).  In addition to the community levies, Benin's regime includes a large 
number of other duties and taxes such as the custom s seal fee, the fiscal export levy, the special 
re-export tax, the computer fee53, the statistical tax54, the temporary import tax, and the vehicle tax.  
Customs escort is mandatory for goods in trans it and also involves fees, levied on each transport 
vehicle.  Over the period 2004-2008, all these levi es at the customs cordon accounted for over 50 per 
cent of the Government's fiscal revenue.55 
72. Depending on the mode of transport, goods may be subject to certain additional charges, 
including those levied by the handling companies,  the Autonomous Port of Cotonou, and the CNCB.  
The latter levies a commission of 1.8 per thou sand on all goods imported or exported by sea, 
irrespective of the port of loading or unloading.56  Goods in transit or exempt from all duties or taxes 
do not have to pay this commission.  Some goods may be entitled to exemptions granted by the 
Ministry responsible for finance under a nationa l interest programme (for example, imported 
agricultural inputs).  In addition, any cargo loaded  or unloaded in the Autonomous Port of Cotonou 
must be accompanied by a cargo monitoring slip  issued by the CNCB upon payment of €25 (for 
Europe and Africa) or €100 (for Asia, America, the Middle East, and the Pacific).57  Commercial 
vessels operating in the Autonomous Port of Cotonou  have to pay the CNCB a financial contribution 
of CFAF 400/tonne on imports and CFAF 300/tonne on exports;  solid and liquid bulk goods pay a 
uniform rate of CFAF 100/tonne.  These numerous  charges raise the cost of import and export 
transactions. 
(b) Bindings 
73. Benin's bindings, including those inherited from the colonial period, affect 40 per cent of its 
tariff lines (joint report, Table III.1).  For the majority of agricultural products, the ceiling rate is 60 per cent;  some products such as vegetable oils  (HS 1507-1522), wheat starch (HS 1108.11) and 
                                                     
 
52 WTO document G/RO/67 of 25 November 2008. 
53 The computer fee was introduced in 2000 and is levied at a standard rate of CFAF 2,000 through the 
customs declaration on all goods imported into Benin under the regime providing for conditional relief from 
customs duties and taxes, as well as goods exported or re exported. 
54 The statistical tax amounting to 5 per cent of the customs value replaces th e statistical fee (joint 
report, Chapter III(2)(ii)(b)) for the following regimes:  re-export in the same state for goods imported into 
Benin;  transit to non-landlocked countries;  simple or special temporary admission;  and exemption from import 
duties and taxes.  This tax is not levied if the goods are put up for consumption under the common law regime.  
Law No. 2002-25 of 31 December 2002. 
55 These levies do not include:  general income tax;  the advance on profits tax;  the special standing 
advance;  excise duty;  radio tax;  television tax;  non-refundable security for the guarantee fund;  and municipal 
tax. 
56 For imports, the tax base is the c.i.f. value, for exports it is the f.o.b. value. 
57 According to the CNCB, this di fference is justified by the much  larger volume of trade with 
European and African countries.  The fees also reflect  the cost of CNCB's representation in ports on other 
continents. WT/TPR/S/236/BEN Trade Policy Review 
Page 100 
 
 
maize (corn) starch (HS 1108.12) are bound at 100 pe r cent.  The bindings made before the Uruguay 
Round are at a lower rate.58  In addition, 24 four-digit tariff lines in HS Chapter 2559 were bound at 
50 per cent during the Uruguay Round, while the previous tariff bindings for non-agricultural products were 4 per cent to 75 per cent.  Other dutie s and taxes were bound at 19 per cent.  Currently, 
for some 27 per cent of the lines bound, the MFN rates applied by Benin exceed the bound levels, 
sometimes by as much as 20 percentage points. 
(c) Domestic taxes 
74. As far as VAT is concerned, Benin applies a single rate of 18 per cent, which corresponds to 
the median of the range determined at the communi ty level (joint report, Chapter III(2)(ii)(e)).  The 
threshold for VAT liability in Benin is CFAF 40 million for sales and CFAF 15 million for providing 
services.
60  There are, however, many exemptions;  tho se granted under the Investment Code appear 
to be contrary to the relevant WAEMU re gulations (joint report, Chapter III(2)(ii)(d)).61 
75. Benin imposes excise duty on th e import and consumption of th e following products:  tobacco 
and cigarettes (30 per cent), non-alc oholic beverages excluding water (3 per cent);  alcoholic beer and 
cider (10 per cent);  wine (15 per cent);  liqueur and champagne (30 per cent);  wheat flour (1 per 
cent);  perfumery and cosmetic products (5 per cent);  and edible fats and oils (1 per cent).  Some of 
these rates were revised upwards in 2009 in accord ance with the relevant new WAEMU directive, 
although the rate for alcoholic beer and cider rema ins below the minimum threshold defined at the 
community level.62  To comply with the WAEMU regulations, as of 1 January 200463 the ad valorem  
rates applicable to hydrocarbons were replaced by a special tax whose rate may be amended by means 
of regulations depending on fluctuations in global oil prices. 
76. An ecotax on polluting activities was introduced in Benin on 1 January 200464 and was 
imposed on the following products up to the end of 2008:  tyres (0.5 per cent of the c.i.f. value), disposable plastic packaging (1 per cent of the c.i.f. value), clinker (CFAF 10/tonne of cement 
produced), and vehicles in transit or put on the road in Benin.
65  The scope of the ecotax was amended 
                                                      
58 These are milk, not concentrat ed or sweetened, dairy cream not  concentrated or sweetened, 
concentrated milk without sugar or added sugar, bound at 7 per cent, as well as cereal flour (of wheat, spelt and 
meslin), bound at 5 per cent. 
59 The tariff lines are:  SH 2502;  2503;  2504;  2505;  2506;  2507;  2508;  2509;  2510;  2511;  2512;  
2513;  2514;  2515;  2516;  2517;  2518;  2524;  2525;  2526;  2527;  2528;  2529 and 2530 (Schedule of 
concessions XLVIII). 
60 Online information from "Investir en zone franc".  Viewed at:  http://www.izf.net/pages/ 
benin/4635/. 
61 Law No. 2003-23 of 26 December 2003 containing the Finance Law for 2004.  The following are 
exempt from VAT for imports, production and sale:  medical products, certain staple food products (bread, 
maize, milk, potatoes, vegetables for sowing, cereals (except rice), tubers, pu lses, and garden produce), fish and 
food industry waste, and breeding animals.  Other exemptions are allowed under the Investment Code (Chapter II(4)(ii) and the industrial free zone  regime (section (3)(iv) and Chapter II(5)). 
62 The amendments concern the rates for tobacco and cigarettes (previously 10 per cent), and alcoholic 
beverages (previously 10 per cent). 
63 Law No. 2003-23 of 26 December 2003.  The tax is calculated as follows:  premium petrol - 
CFAF 65 /litre;  regular petrol - CFAF 55/litre;  petr oleum - CFAF 0/litre;  diesel fuel - CFAF 20/litre;  
lubricants (oil) - CFAF 17/litre;  fuel oil - CFAF 0/litre;  greases - CFAF 23/kg.;  liquefied petroleum (butane) - 
CFAF 0/kg. 
64 Law No. 2003-23 of 26 December 2003. 
65 For taxation purposes, vehicles in transit were divided into three categories:  light vehicles 
(CFAF 500);  vans (CFAF 1,000);  and heavy goods vehicles (CFAF 3,500).  Vehicles put on the road in Benin 
pay the following:  vehicles with traction on two or  three wheels (CFAF 300 annu ally);  light vehicles Benin WT/TPR/S/236/BEN 
 Page 101 
 
 
on 1 January 2009;  the products concerned an d the criteria for its imposition are shown in 
Table III.1.66  Despite the amendments introduced, the di scriminatory treatment applied to certain 
imports or goods in transit was renewed.  The eco tax levied on sulphur in transit to Niger was 
suspended in 2010.67 
77. The AIB is still in force in Benin, in accordan ce with the community provisions (joint report, 
Chapter III(2)(ii)(e)).68  Its scope is broader than that in  the harmonized regime within WAEMU 
inasmuch as it also applies to the supply of services.  In the latter case, deductions at source must be 
made by regular taxpayers when making payments to non-registered operators;  the amount deducted 
must be handed over to the Tax Revenue Office at the latest on the 10th of the month following the 
imposition.69  This requirement involves additional admi nistrative costs for some economic operators 
because of the parallel application of AIB to th eir sales and to the payment of their invoices. 
Table III.1 
Ecotax, 2009 
Product Rate applied 
Batteries and accumulators 0.5% of the c.i.f. value or the local production cost 
Disposable recipients and packaging other than in plastic and 
containing various products 0.5% of the c.i.f. value 
Empty disposable recipients and packaging, othe r than in plastic 0.25%  of the c.i.f. value 
Sulphur under the transit regime CFAF 25/kg. 
Tobacco and cigarettes 5% of the c.i.f.  value or the local production cost 
Source : Law No. 2008-09 of 30 December 2008. 
 
78. During the period under review, the rate and the scope of the AIB were modified.  Between 
2004 and 2009, it applied at a flat rate of 3 per cent of the value70 of imports, purchases on the 
domestic market and the supply of services in Benin.  Since January 2009, taxpayers with a single tax 
identification number have to pay 1 per cent, while non-registered operators pay 5 per cent.71  
Moreover, according to the provisions in force, fro m 2004 to 2008 the AIB did not apply to imports 
by taxpayers that had paid their tax commitments during the previous year;  the Directorate-General of Taxation and Public Property was supposed to dr aw up a list for this purpose annually.  In 2008, 
imports during the first year of operation of newl y established companies were  also entitled to this 
exemption;  start-ups, particularly when they we re being formalized, were exempt from the AIB for 
all their operations.
72  In 2009, newly established companies were also made exempt from payment of 
the AIB on their domestic purchases, while large enterp rises that could prove that their tax situation 
was in order were exempt for their imports, domest ic purchases and the remuneration paid to them as 
                                                                                                                                                                     
(CFAF 1,000 per vehicle and per technical inspection);  vans and taxis (CFAF 500 per vehicle and per technical 
inspection);  and heavy goods vehicles (CFAF 3,000 per vehicle and per technical inspection). 
66 Law No. 2008-09 of 2 January 2009. 
67 Law No. 2009-28. 
68 These levies can be deducted from the profits tax, but this only applies to taxpayers subject to a real 
taxation regime. 
69 Law No. 2003-23 DU of 26 Decem ber 2003.  The AIB paid by service providers not domiciled in 
Benin cannot be deducted from any other tax.  Since January 2010, the amount of the deduction (from the amounts to be paid after a reduction of 60 per cent) is set at 25 per cent for natural persons and 30 per cent for 
legal persons.  The rates previously applied were 35 per cent and 38 per cent, respectively. 
70 The value includes all taxes with the exception of VAT, but this exception is not mentioned in Law 
No. 2008-09 of 2 January 2009 and does not appear in the relevant WAEMU directive. 
71 Law No. 2008-09 of 2 January 2009. 
72 Law No. 2007-33 of 27 December 2007. WT/TPR/S/236/BEN Trade Policy Review 
Page 102 
 
 
service providers.73  Notwithstanding these changes, Be nin's AIB regime remains complex, 
particularly for companies that only have limited administrative capacity. 
79. Benin also continues to impose a special standing advance (AFS) of CFAF 50,000 on each 
used vehicle imported or in transit.74  The trigger for the AFS is the vehicle's unloading or crossing of 
a land border.  The amount paid can be deducted from the profits tax owing.  Since 2006, this advance 
has been abolished for transit goi ng to Burkina Faso or Niger.75 
(d) Duty and tax concessions 
80. In addition to the WAEMU and ECOWAS preferential tariff schemes (joint report, 
Chapter III(2)(ii)), Benin allows duty and tax reduc tions and exemptions under the Investment Code 
(Chapter II(4)) and the industrial free zone regime (Chapter II(5)).  Several regimes giving exemption 
from import duty have been introduced and are rene wed each year (Table III.2).  Over the period 
2004-2009, the revenue foregone as a result of exemptions at the customs cordon amounted to CFAF 140.7 billion, or around CFAF 23.5 billi on (0.9 per cent of GDP) on average each year. 
Table III.2 
Exemptions, 2004-2009 
Goods imported Concession Period of application 
Computer equipment (including software)a Exemption from customs duties and taxes and VAT. 2004-2009 
New vehicles for public passenger transportb Exemption from all duties and taxes, except the 
community solidarity levy, the community levy, the 
statistical tax and the municipal tax. 2004-2009 
Agricultural inputs, equipment and 
phytosanitary instrumentsb Exemption from import duties and taxes except for the statistical fee. 2004-2008 
Agricultural machinery and materialsb Exemption from import duties and taxes except for the 
statistical tax and the customs stamp duty. 2005-2008 
Materials for building social and low-cost 
housingb Exemption from import duties and taxes and VAT. 2007 
Materials for building medium category and luxury housing
b 50% exemption from import duties and taxes and VAT. 2007 
New equipment and materials for building petrol stations, roadside petrol pumps, and petroleum and gas oil tanks
b Exemption from import duties and taxes and VAT. 2007-09 
New tanker lorries for the distribution of petroleum products Exemption from import duties and taxes and VAT. 2008-2009 
Equipment and materials for rural 
electrification projectsb Exemption from import duties and taxes and VAT, except 
for the community solidarity levy, the community levy 
and the statistical tax. 2008 
Four-stroke motorized bicycles and spare 
partsb Exemption from import duties and taxes and VAT, except 
for the community solidarity levy, the community levy 
and the statistical tax. 2008 
a Pursuant to Law No. 2000-24 of 28 December 2006, this exem ption does not include the community solidarity levy, the 
community levy and the statistical tax. 
b The exemption also applies to products manufactured or purchased locally. 
Source : Beninese authorities. 
 
                                                      
73 Enterprises whose annual turnover exceeds CFAF 300 million are deemed to be "large" regardless of 
the nature of their activities. 
74 Law No. 2000-21 containing the Finance Law for 2001. 
75 Law No. 2005-42 of 5 January 2006. Benin WT/TPR/S/236/BEN 
 Page 103 
 
 
81. A special temporary admission regime is still in ef fect for imports of materials to be used to 
carry out public works.76  This regime is granted upon request with the duties and taxes payable being 
calculated on the basis of the period of amortization of  the equipment and the time it is to be used in 
the customs territory;  part of the duty (7 per cent) must be paid when the go ods are declared at the 
customs cordon. 
(vi) Prohibitions, quantitative restrictions and licensing 
82. Some imports are banned pursuant to internationa l agreements or for public safety or public 
health reasons, for example, turkey rumps.77  The import and transit of poultry and poultry products 
from countries affected by avian flu have b een temporarily banned since September 2005.78  I n  
accordance with the precautionary principle, Be nin decided upon a five-year moratorium on the 
import, marketing and use of genetically modifi ed organisms or their by-products on national 
territory.  In the absence of a le gal framework and the necessary scientific and technical competence 
to ensure biosafety, the moratorium ha s been renewed for a further five years.79  According to the 
authorities, import by the public of several plants an d plant products is also banned in order to prevent 
parasite attacks from outside (Table III.3). 
Table III.3 
Plants and plant products banned for import, 2009 
Name Detailsa 
Acacia spp. Non-thorny species 
Allium spp. (garlic, onions and other alliaceae) Except dormant bulbs and seeds 
Pineapple spp. Except the fruit 
Banana (Musa spp.) and other musaceae Except fruit originating in Africa 
Coffee (Coffea spp.) Except green  and roasted coffee for consumption not originating in 
Central America, Australia or neighbouring countries 
Cocoa (Theobroma cacao), bombaceae, ster culiaceae and tiliaceae Except roasted beans 
Sugar cane (Saccharum officinarum and Saccharum spp.) In any form 
Citrus and citrinae Except refrigerated, drie d or fresh fruit, without stalks or leaves 
Coconut (Cocos nucifera) Except coprah and processed products 
Cotton (Gossypium spp.) Except processed products without seeds 
Datura spp. In any form 
Pulses in grains (Phaseolus spp., Pisum spp., et c.) Except seeds, fruit and grains for consumption 
Mango (Mangifera indica) and an acardiaceae Except seeds and fruit 
Opuntia spp. In any form 
Oil palm (Elaeis guineensis) In any form 
Date palm (Phoenix dactlifera) Except dried and fumigated dates 
Papaya (Papaya carica) Except seeds and fresh fruit 
Pepper (Pipper nigrum) Except processed products 
Ornamental rosaceae of the genera Chaenomeles, Cotoneaster, 
Crataegus, Cydonia, Pyracantha, Sorbus, Stranvoesia In any form 
Tobacco (Nicotiana spp.) Except processed products 
Tea (Camellia sinensis) Except processed products 
Plants or parts of plants in a growing medium (soil) In any form 
a Unless specifically mentioned, the import of these plants and pl ant products is banned in any form (propagating material, fru it or 
seeds). 
Source : Plant protection service. 
 
                                                      
76 Order No. 02g/MF/DC/DDDI of 9 February 1993. 
77 Interministerial Order No . 347/MCAT/MDR/MSP/CAB/DCE/ DCI of 24 December 1990. 
78 Interministerial Order No. 889/MAEP/MICPE/ MFE/MSP/DG/SGM/DE/S of 13 December 2005. 
79 Regular meeting of the Council of Ministers of 12 March 2008.  Viewed at:  http://www. 
fraternite-info.com/spip.php%3Farticle961+b %C3 %A9nin+importation+ciment+agr %C3 %A9 %C3 %A9&c
d=3&hl=en& ct=clnk&gl=ch. WT/TPR/S/236/BEN Trade Policy Review 
Page 104 
 
 
83. Measures to control the import of certain products may be introduced for reasons of safety, 
protection of public health and morality, or becau se they are strategic.  Pursuant to the WAEMU 
regulation in force (joint report, Chapter III(2)(iv)), the Ministry of the Environment and the Ministry 
of Trade each year decide on the quota for impor ts of ozone-depleting substances, after consulting 
operators in the trade.  A special authorization i ssued by the Directorate- General of Foreign Trade80 is 
required to import such substances and is valid fo r six months.  According to the authorities, the 
Foreign Trade Directorate has never given such an  authorization because there has been no demand 
from economic operators.81 
84. The import of used material and capital go ods for non-profit purposes requires a prior 
authorization from the Ministry of Trade.  In principle, no automobile may be imported unless it was 
previously used for less than ten years for touris m vehicles and 13 years for goods vehicles.  In 
addition to meeting Benin's anti-pollution standa rds, used motorized bicycles and motorcycles 
imported into Benin must comply with the follo wing limits concerning their previous period of 
use:  three years for four-stroke engines and one year for two-stroke engines.82  Used tyres (second 
hand) may not be imported if their tread is worn by more than 50 per cent.83  In practice, these 
requirements are not imposed. 
85. The import of frozen foodstuffs of animal origin not originating in ECOWAS is only allowed 
through the Autonomous Port of Cotonou or Cotonou International Airport.84  Since the previous 
Trade Policy Review, temporary bans on import by ro ad or river have been introduced for some 
fast-moving consumer products (Table III.4).  The g oods concerned must clear Customs in a limited 
number of customs offices and in the case of wheat flour the sole point of entry is the port of Cotonou.  
The authorities state that the majority of these measu res are to protect human health by preventing the 
introduction of tainted food products  through land borders where controls are less strict.  In 2009, for 
example, the import and transit of bovine meat an d its by-products from any origin, banned since 
2001, recommenced subject to prior author ization from the Livestock Directorate.85 
86. Some goods can only be imported by authorized im porters, because of their particular and/or 
strategic nature or to ensure adequate supplies on the domestic market and guarantee their quality.  
Imports of products belonging to the following groups require authorization:  narcotics;  psychotropic 
substances;  laboratory reagents;  edible plant products;  pharmaceuticals;  medical equipment;  
explosives;  toxic and corrosive products;  products subject to spontaneous combustion;  inflammable 
products and fuels (Chapter IV(3)(i)(b));  fertilizer;  cement;  radioactive products;  and liquids with a 
flashpoint. 
                                                      
80 Order No. 002/MEHU/MICPE/MFE/DC/SG/DE/SEL/DEE/SR of 8 January 2003. 
81 As a signatory to the Montreal Protocol, Benin has undertaken to ban the production and import of 
chlorofluorocarbons as of January 2010;  the relevant draft law is being prepared. 
82 Decree No. 2004-708 of 30 December 2004 regulatin g the import of used motorized bicycles and 
motorcycles into the Republic of Benin. 
83 Decree No. 2000-671 of  29 December 2000. 
84 Decree No. 91-50 of 29 March 1991 regulating the import of foodstuffs of animal origin. 
85 Order No. 162/MCAT/MDR/MSP/MFE/DC/DCI/DE of 26 December 2000, repealed by Order 
No. 57/MC/MAEP/MS/MEF/DAC/SGM/DGCI/DPCI/DE/SA of 24 July 2009. Benin WT/TPR/S/236/BEN 
 Page 105 
 
 
Table III.4 
Temporary import bans, 2009 
Import banned Product Legislative text 
By road or river Wheat flour86 Order No. 30/MICPE/DC/SG/DCCI/DC of 23 May 2006 
Vegetable oil 
Rice 
Sugar 
Frozen fish By road 
Frozen meat and offal Order No. 1357/MFE/DC/SGM/DGDDI/DAR of 
8 November 2004 
Refrigerated fish 
Refrigerated meat and offal By road 
Refrigerated or frozen dead 
poultry Order No. 640/MFE/DC/SGM/DGDDI/DAR of 26 May 2005 
By road Edible o ils (of any origin) Order No. 115/MDEF/MIC/DC/SG/DGDDI/DGCI/DGCE of 
8 November 2006a 
a Order No. 87/MIC/MEF/DC/SG/DGDDI/DGCE/DG CI of 18 December 2007 did not include the temporary ban on edible oils 
originating in WAEMU and ECOWAS. 
Source : Ministry of Trade. 
 
(vii) Standards, technical regulations and accreditation procedures 
87. Benin's regulatory framework for standardiza tion and quality management dates back to 
1997.87  The Beninese Standardization and Quality Management Centre (CEBENOR) has been in 
operation since January 2000 with responsibility fo r coordinating the development of national 
standards and for accreditation and certification act ivities in Benin.  Controlling compliance with 
standards, however, is not  one of its responsibilities.88  CEBENOR is a government body under the 
supervision of the Ministry responsible for indu stry, but has its own legal status and financial 
autonomy;  it is currently being transformed into an autonomous body.  CEBENOR is the focal point for regional and international harmonization of standards and related activities;  it has accepted 
Annex III to the WTO Agreement on Technical Barriers to Trade.
89  If the CEBENOR had its own 
website it could be more effective in promoting awareness and quality in Benin. 
88. The Directorate of Metrology and Quality Contro l (DMCQ), within the Ministry in charge of 
industry, also has a role in drawing up and disseminating Beninese standards.90  The four main thrusts 
of its activities are:  ensuring the reliability of measuring instruments;  promoting the quality of industrial products;  improving the climate for co mmercial activities;  and ensuring fairness in 
commercial transactions.  Among the DMCQ's respons ibilities are controlling the quality of industrial 
products imported or manufactured for sale in Benin,  and providing expertise for any arbitration of a 
dispute concerning measuring, measuring instruments and the amounts measured.  It is empowered to 
seize any non-conforming goods.  In addition, th e Directorate of Food and Applied Nutrition 
(DANA), within the Ministry of Agriculture , Livestock and Fisheries, has the task, inter alia , of 
coordinating food and nutrition-related activities at the national level and an alysing and controlling 
foodstuffs.  It monitors compliance with the Codex Alimentarius standards and provides the 
permanent secretariat for Benin's Na tional Codex Alimentarius Committee. 
                                                     
 
86 In addition to the customary documents, custom s clearance and release for consumption formalities 
require the submission of:  a quality analysis certific ate;  a consumption certificate for the country of 
manufacture;  and the certificate of or igin from the countr y of manufacture. 
87 Decree No. 97-520 of 17 October 1997, revised by Decree No. 2002-310 of 11 July 2002. 
88 Order No. 026/MICPE/DG/SG/CEBENOR/SA of 21 March 2002 defining the responsibilities, 
organization and operation of the Beninese Standardization and Quality Management Centre (CEBENOR). 
89 WTO document G/TBT/CS/N/142 of 14 May 2002. 
90 Order No. 092/MICPE/DC/SG/DMCQ/SA of 23 August 2005 defining the role, organization and 
operation of the Directorate of Metrology and Quality Control (DMCQ). WT/TPR/S/236/BEN Trade Policy Review 
Page 106 
 
 
89. Under CEBENOR coordination, Beninese standa rds are drawn up by technical committees 
(either sectoral or ad hoc) composed of representatives of producers, consumers, academics, and other interested parties.  Public interest is protected by means of a public enquiry before any draft standard 
is finalized.  In principle, international or regi onal standards (joint report, Chapter III(2)(v)) can be 
transposed in Benin through the publication of a national legal text, but any difference with the 
original standard must be indicated.  The number of national standards currently in effect in Benin is 
149, all of which are voluntary.  In order to prot ect animal and plant health and consumers, the 
authorities apply international technical regulations;  there are no national technical regulations for the 
time being.  The conformity of imported goods with  mandatory standards (technical regulations) must 
be certified by a body recognized in Benin.
91  In addition, there is a mutual recognition agreement on 
standardization between Benin and Nigeria, although it is not properly implemented. 
(viii) Sanitary and phytosanitary measures 
90. There has been little change to the legal frame work for sanitary and phytosanitary protection 
since Benin's second Trade Policy Review in 2004.  Th e principal legislative texts in this area are 
shown in Table III.5. 
91. Sanitary and phytosanitary safety in Benin is the responsibility of a large number of entities, 
which could be made more efficient through an inte grated coordination mechanism.  The Ministry of 
Agriculture, Livestock and Fisheries is the prin cipal competent authority for animal health, 
phytosanitary protection, and the quality of agricultural products and those of animal origin.  The Ministry of Public Health is responsible for san itary protection, hygiene and basic sanitation.  The 
Beninese Codex Alimentarius Committee was set up in 1985 and brings together several actors 
directly or indirectly invo lved in controlling foodstuffs.
92  Benin still does not have a national 
SPS committee to coordinate the various structur es;  an SPS enquiry point was set up in the 
Directorate of Agriculture in 2005, but its opera tion is hampered by obsolescent equipment and the 
lack of a website to disseminate information. 
Table III.5 
SPS regulatory framework, Benin 
Legislative text Description 
Law No. 84-009 of 15 March 1984 Establishing the control of foodstuffs 
Decree No. 85-241 of 14 June 1985 Additives used in foodstuffs, content of contaminants and undesirable 
substances in these foodstuffs, materials in contact with the food and 
cleaning products for these materials 
Decree No. 85-242 of 14 June 1985 Labe lling and presentation of foodstuffs 
Decree No. 85-243 of 14 June 1985 Hygiene in the production and marketing of foodstuffs 
Decree No. 85-245 of 14 June 1985 Responsibilities, composition and functioning of the National Codex 
Alimentarius Committee 
Law No. 87-015 of 21 September 1987 Public Hygiene Code (Articles 36 to 45 and Article 156 with regard to 
penalties) 
Law No. 91-004 of 11 February 1991 The Republic  of Benin's phytosanitary regulations 
Decree No. 92-258 of 18 September 1992 Detailed rules for implementation of Law No. 91-004 of February 1991 
                                                      
91 The following bodies are currently  recognized:  the National Centre for Public Works Testing and 
Research (CNER-TP), DANA, the Directorate for the Prom otion of Quality and Preparation, the Directorate of 
Energy and the Directorate of  Pharmacy and Diagnostics. 
92 The National Codex Alimentarius Committee is composed of the representatives of the following 
ministries and bodies:  the Ministry of Agriculture, Livestock and Fisheries;  the Ministry of Health;  the 
Ministry of Trade;  the Ministry of Higher Education and Scientific Research;  the Chamber of Industry and 
Commerce;  the Association of F ood Processing Industries;  an d the Consumers' Association. Benin WT/TPR/S/236/BEN 
 Page 107 
 
 
Legislative text Description 
Order No. 85 MDR/DC/CC/CP of 22 April 1993 Professional hy giene required for the sale of phytopharmaceuticals and 
their use by providers of services 
Order No. 186 MDR/DC/CC/CP of 22 April 1993 Labelling,  packaging and technical notice for authorized 
pharmaceuticals 
Order No. 187 MDR/DC/CC/CP of 22 April 1993 Content of app lications for authorization, testing and approval of 
phytopharmaceuticals 
Order No. 188 MDR/DC/CC/CP of 22 April 1993 Criteria for aut horization and use in agriculture of phytopharmaceuticals 
containing certain hazardous substances 
Interministerial Order No . 255/MDR/MF DC/CC/CP of 
19 May 1993 Ban on the use in agriculture of active ingredients contained in 
phytopharmaceuticals 
Order No. 302 MS/DC/SA of 6 February 1995 Responsibilities,  organization and functioni ng of the Directorate of 
Hygiene and Basic Sanitation 
Interministerial Order No. 128 MDR/MF/DC/CC/CP of 7 March 1995 Phytosanitary control of plants a nd plant products upon import or export
Order No. 591/MDR/ DC/CC/CP of 26 Oct ober 1995 Professional authorization require d for the sale of phtyopharmaceuticals 
and their use by providers of services 
Order No. 592/MDR/ DC/CC/CP of 26 October 1995 General conditi ons for the use of certain fumigants in agriculture and 
special provisions on methyl br omide and hydrogen phosphide 
Order No. 593/MDR/ DC/CC/CP of 26 October 1995 Content of ap plications for authorization, testing and approval of 
phytopharmaceuticals 
Interministerial Order No. 40/MCAT/MDR/MSPSCF/ MEHU/MF/DC/DCI/DCE of 23 May 1997 Ban on the import and sale in the Re public of Benin of anti-mosquito 
insecticides containing active i ngredients and chemical products 
harmful to human health and the environment 
Order No. 251/MDR/ DC/CC/CP of 29 July  1997 Authorization of phytopharmaceuticals 
Decree No. 97-616 of 18 December 1997 Implementati on of Law No. 87-015 of 21 September 1987 containing 
the Public Hygiene Code 
Decree No. 97-624 of 31 December 1 997 Structure, composition and functioning of the Sanitary Police 
Order No. 1106 MSP/DC/SGM/DPP/CASES/SA of 
22 February 2000 Creating a local sanitary brigade in each commune 
Order No. 245 MAEP/D-CAS/SGM/DRH/DPQC/SA of 
30 July 2007 Rules for the organization and proce dures for quality control, market 
preparation and traceability of agricu ltural products of plant origin 
Source : Viewed at:  http://www.bj.refer.org/b enin_ct/Droit/site1_1/h ygienesante.html. 
 
92. An authorization is required to impor t, manufacture and use pesticides 
(phytopharmaceuticals) in Benin.  Requests for author ization for sale, testing or approval must be sent 
to the National Committee for the Approval and Control of Phytopharmaceuticals (CNAC).93  If the 
application is accepted, the approval authorization is i ssued in an order by the Minister responsible for 
agriculture.  There are two types of approval:  provisi onal approval for sale (APV) lasting four years;  
and approval-authorization (AH) for a period of ten years.  Benin has not yet transposed the WAEMU 
and ECOWAS provisions with a view to ensuring the free movement of approved phytopharmaceuticals (joint report, Chapter III(2)(v i));  the requirements on approval of imported 
products and the relevant procedures apply irrespective of the country of origin.  In addition, Benin is 
drawing up national rules for fertilizers and seed s in conformity with the relevant WAEMU 
provisions. 
                                                     
 
93 The fees applicable are:  CFAF 200,000 for examination of the application for a product 
(CFAF 100,000 for renewal);  and CFAF 500,000 for professional approval of a single distributor or applicator 
for a product (CFAF 250,000 for renewal). WT/TPR/S/236/BEN Trade Policy Review 
Page 108 
 
 
93. The import of plant products for consumption re quires a permit (valid for six months for the 
product concerned), issued by the Ministry in charge of agriculture.94  The import permit and 
phytosanitary certificate issued by the exporting co untry are required when the goods enter Benin for 
the purposes of documentary checks, but these do not replace conformity control.  Samples are taken 
from each batch to be sold on the Beninese market:  the Directorate for the Promotion of Quality and 
Market Preparation of Agricultural Products (DPQC)  checks the quality of th e packaging and market 
preparation, while the Directorate of Agricu lture (DAGRI) checks for the presence of parasites.95  The 
fees charged by the DPQC range from CFAF 100 to CFAF 1,200/tonne, depending on the product;  DAGRI inspects imported products free of charge.  Fo r the time being, Benin does not have sufficient 
administrative capacity to introduce a risk manage ment scheme for the purpose of granting import 
permits.  The authorization and control procedure is the same for all imports irrespective of the 
country of origin (including ECOWAS/WAEMU member States). 
94. Benin also has an optional phytosanitary control scheme for exports in order to provide a 
health guarantee for plants and plan t products exported.  The DPQC is responsible for issuing quality 
certificates for the products and the fees charged ar e the same as those for import controls.  The 
DAGRI gives phytosanitary certificates (valid for 14 days) subject to payment of CFAF 300/tonne of 
the product inspected, plus CFAF 1,500 for applicati on forms for the certificate.  The phytosanitary 
certificate issued appears to comply  with the international model defined in the Rome Convention and 
with the requirements of the importing country. 
95. With the exception of one notification of emer gency measures in 2006, Benin has not notified 
the WTO of any phytosanitary or phytopharmaceu tical control measures since 1997 (Table III.6).  
Since October 2007, Benin has regularly taken part  in meetings of the WTO Committee on Sanitary 
and Phytosanitary Measures;  prior to this it only participated in subregional training workshops for 
national experts. 
Table III.6 
SPS notifications, December 2009 
Document Date of distribution Key words 
 Regular notifications 
G/SPS/N/BEN/1 07/04/1997 Human health;  environment 
G/SPS/N/BEN/2/Corr.1 20/05/ 1997 Plant protection 
G/SPS/N/BEN/3 29/04/1997 Human health;  pharmaceuticals 
G/SPS/N/BEN/4 29/04/1997 Human health;  pharmaceuticals 
 Notifications of emergency measures 
G/SPS/N/BEN/5 28/07/2006 Human health;  avian flu 
Source :  WTO Secretariat. 
 
(ix) Packaging, marking and labelling requirements 
96. Benin applies certain international provisi ons on labelling, for example, the Codex 
Alimentarius standards for food and the FAO directives on indicating the risk of 
                                                      
94 The fees applicable are:  CFAF 1,500 for an application form for an import permit and CFAF 500 for 
the fiscal stamp. 
95 If teams from these two bodies do not act together, two samples are taken.  Goods in transit are not 
inspected. Benin WT/TPR/S/236/BEN 
 Page 109 
 
 
phytopharmaceuticals.96  In general, Benin's re gulations require that a description of the contents, 
instructions for use and the name and address of th e manufacturer or distributor should appear clearly 
and legibly in French.  Infant formula must menti on that breastfeeding is to be preferred to bottle 
feeding and have a warning against th e risks of inappropriate preparation.97  In addition to the general 
information, labels on phytopharmaceuticals must show  the risk level by means of a coloured band at 
the bottom of the label and indicate the sales author ization or approval numbe r.  Sellers who have 
been given approval may insert in products put on th e market a technical notice in French covering 
one to a maximum of four pages summarizing and supplementing the information on the label.98 
97. In accordance with the principl es laid down in the WHO Fram ework Convention on Tobacco 
Control, cigarettes may only be sold in Benin in p ackets that clearly show, in legible characters on the 
front and back the health warning "Tobacco seriously endangers health".99 
(x) Contingency measures 
98. Benin has no domestic legislation on anti-dumpi ng, countervailing or safeguard measures.  
There are provisions at the community level (joi nt report, Chapter III(2)).  According to the 
authorities, Benin has never taken any such measures. 
(xi) Other measures 
99. In Benin, buffer stocks of food crops (cereals) are kept by the National Food Security Support 
Board (ONASA) to provide emergency aid to vulnerable sections of the population 
(Chapter IV(2)(iii)).  These stocks are built up acco rding to the annual projections made by ONASA;  
there is a minimum threshold for stocks of mai ze (500 tonnes nationwide), deemed to be essential for 
food security.100  Furthermore, companies holding a special authorization to import and sell refined 
petroleum products must build up and permanently  maintain a buffer stock of each category of 
product imported equivalent to at least 20 per cent of the volume put up for sale by the company over 
the preceding 12 months. 
(3) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Registration and customs procedures 
100. Goods to be shipped must have a customs e xport declaration, the only document allowing the 
goods to leave Benin.  As is the case for imports, an approved customs broker must be used.  Unlike 
imports, exports do not have to undergo preshipment  inspection.  In 1993, Benin abolished export 
                                                      
96 Law No. 84-009 of 15 March 1984 and its implementing decree 85-242 of 14 June 1985 on labelling;  
Order No. 186 MDR/DC/CC/CP of 22 April 1993, on labelling, packaging and the technical notice for approved 
phytopharmaceuticals. 
97 Decree No. 97-643 of 31 Decembe r 1997, containing the regulations  for sale of maternal milk 
substitutes and infant formula. 
98 Conseil et Assistance consultancy (2008). 
99 Law No. 2006-12 of 7 August 2006 containing the regulations on the production, sale and 
consumption of cigarettes and other tobacco products.  Viewed at:  http://www.abp.gouv. bj/affiche_dep. 
php?num_ depeche=2137. 
100 In 2009, the stocks managed by ONASA comprised 7,450 tonnes of maize, 65 tonnes of sorghum 
and 2,029 tonnes of rice;  a sum of CFAF 500 million is earmarked in the State's budget. WT/TPR/S/236/BEN Trade Policy Review 
Page 110 
 
 
duty, but a fiscal exit duty of 3 per cent f.o.b. s till applies to cocoa beans, crude oil and precious 
metals.101 
101. There are no internal taxes on products inte nded for export or re -export;  products and 
services exported are subject to VAT at a zero rate, with the usual consequences.102  S o m e  t a x e s ,  
supposed to reflect the cost of th e services rendered, are levied on an ad valorem  basis on goods 
exported or in transit (Table III.7).  The computer fee is also levied on expor ts and re-exports, just as 
for imports, even those exempt from import duty (s ection (2)(v)(a)).  There are schemes intended to 
encourage the creation of value added in products  for export (for example, drawback, temporary 
admission). 
Table III.7 
Summary of taxes on exports, re-exports and goods in transit, 2009 
(percentage of f.o.b. value) 
Scheme Municipal 
tax Statistical tax Special re-export 
tax Guarantee 
fund Totala 
Transit to landlocked countries n.a.b n.a. n.a. 0.25 0.25 
Transit to coastal countries 0.85 5 n.a. 0.25 6.1 
Re-export 0.85 5 4c 0.25 10.1 
Single temporary admission 0.85 5 n.a. n.a. 5.85 
Special temporary admission 0.85 5 n.a. n.a. 5.85 
Export of indigenous products 0.85 n.a n.a. n.a. 0.85 
n.a. Not applicable. 
a Customs stamp duty is payable on all receipts issued by the cu stoms authority for duties and ta xes paid on entry or exit at a  rate 
of 4 per cent of the amount of the receipt. 
b The municipal tax on goods in transit to landl ocked countries was suspended in January 2009. 
c The special re-export tax (TSR) was reduced from 8 to 4 per cent in 2009 (Order No. 1068/MEF/DC/SGM/DGDDI/DAR of 
13 August 2009).  The following products (HS tariff lines) are subject to the TSR:  milk (0402910000);  vegetable oils 
(1511901000 and 1511909000);  sugar (1701911000 to 1701919000);  edible pasta (1902110000 to 1902400000);  alcoholic 
beverages, including beer (2203001000 to 2205900000 and 2207200000 to 2208900000);  new tyres (4011100000 to 
4011990000);  new inner tubes (4013100000 to 4013900000);  fabrics (5001000000 to 5516940000, 5801100000 to 5811000000 
and 6001100000 to 6006900000);  and reinforcing steel (7214990000). 
Source :  Information provided by the Directorate- General of Customs a nd Indirect Taxation. 
(ii) Goods in transit 
102. Because of Benin's geographical situation, intern ational transit trade is an important source of 
revenue.  Goods of any origin in transit do not pa y import duties or taxes, but are subject to other 
ad valorem  levies, whose aggregate total can vary dependi ng on the final destination (Table III.7).  A 
non-refundable contribution of 0.25 per cent to the guarantee fund set up by ECOWAS is paid to the CCIB.  In 2006, the municipal tax on goods in transit to Burkina Faso or Niger was abolished, but reintroduced in 2008;  it was again suspended in 2 009 for transit to all "countries in the hinterland" 
(Burkina Faso, Mali, Niger).
103  Goods in transit may also have to pay a customs seal fee 
(CFAF 25 per seal). 
103. Since May 2006, the customs escort has once again become a Customs prerogative, whereas 
previously it was provided by private operators.  Operators are obliged to have their convoys escorted 
                                                      
101 Online information from the Government of th e Republic of Benin.  Viewed at:  http://www. 
gouv.bj/spip.php?article578. 
102 Zero rate VAT does not apply to the supply of tourism services. 
103 Laws No. 2005-42 of 5 January 2006, No. 2007 -33 of 27 December 2007  and No. 2008-09 of 
2 January 2009. Benin WT/TPR/S/236/BEN 
 Page 111 
 
 
at a cost levied on each transport vehicle as follows:  a monitoring and control fee (RSC) of 
CFAF 50,000, plus a convoy assembly tax of CFAF  25,000 for staying in the assembly area before 
the convoy leaves.  There is an escort to coastal countries every day of the week except Sundays and 
holidays;  there are convoys to landlocked countri es every Tuesday, Thursday, Friday and Saturday.104  
In 2008, the revenue from the customs escort repre sented 4 per cent of the State's fiscal revenue, 
compared to 3.2 per cent in 2007. 
104. According to the authorities, a deposit consisting of  the municipal tax, the statistical tax, the 
customs stamp duty and the special standing advance (section (2)(iv)(c)) must be made for vehicles in 
transit to landlocked countries, but is refunded when proof is provided that the vehicle has legally left 
Beninese territory.  This mechanism, whose main objec tive is to combat false declarations, could be a 
hindrance for economic operators.  Moreover, overseas- registered transport vehicles of a weight of 
1,500 kg. or more have to pay a road tax of CFAF 5,000, plus the customs stamp duty;  overseas-registered vehicles for private use have to  pay a temporary import tax of the same amount.  
In addition, sulphur and all vehicles in tr ansit became subject to the ecotax in 2004 
(section (2)(iv)(c)), but vehicles were made exem pt from 1 January 2009 onwards and the tax on 
sulphur going to Niger was suspended in 2010. 
(iii) Export prohibitions and controls 
105. Following a shortage on the domestic market and in order to protect natural resources, since 
1997
105 exports of unprocessed teak wood and charcoal ha ve been banned.  There also appear to be 
bans on the export of cottonseed a nd food crops.  These temporary measures also apply to exports to 
other WAEMU countries.  The export of precious metals requires approval from the Minister of 
Finance, unless the articles only contain a small qua ntity of metal, weigh less than 500 grammes or 
comprise a maximum of ten gold pieces or are exported by the Treasury or the BCEAO. 
106. Pursuant to the Memorandum of Understa nding between Benin and Nigeria (Badagry 
Memorandum) of 14 August 2003, Beninese Customs also  ensures compliance with the export bans in 
force in Nigeria.  Accordingly, there is a long list of products106 which cannot be exported to Nigeria, 
although informal re-expor t is still widespread. 
(iv) Export subsidies and promotion 
107. In 1997, Benin notified the WTO that it did not have any national export subsidization 
scheme107;  the absence of such measures, as well as domestic support measures, was confirmed in 
1998108, but no update has been receive d since then.  The Investment Code and the ZFI regime, 
                                                      
104 DGDDI online information, "Création de la sec tion spéciale chargée de l'escorte douanière des 
véhicules d'occasion en trans it au Bénin".  Viewed at:  
http://www.douane-benin.bj/Actualites/Publica tions/SectionSpecialeEscorte/Escorte.htm. 
105 Interministerial Order No. 008/MCAT/MDR/DC/DC E/SRE of 29 July 1997 on detailed rules for the 
export of teak wood and other forest species. 
106 These are:  sorghum;  millet;  wheat flour;  gypsum;  vegetable oil in bulk or in drums;  
anti-mosquito coils;  retreaded or used tyres;  slot machines;  used clothing;  used refrigerators and air 
conditioners;  used compressors;  cement in bags;  vehicles of any type (by road);  vehicles over eight years of 
age;  textiles of any type (by road);  printed fabrics (anka ra);  goods in containers (by road);  frozen chickens;  
cassava and its by-products;  fruit juice;  mineral wate r (whether or not aerated);  pickaxes;  spaghetti and 
noodles (edible pasta cut in thin strips);  biscuits of any type;  tablets and similar articles (by road);  
confectionery (sweets, chocolates);  exercise books;  envelopes;  beer in bottles or cans. 
107 WTO document G/SCM/N/1/BEN/1 of 13 January 1997. 
108 WTO  documents G/SCM/N/38/BEN of 30 September 1998 and G/AG/N/BEN/1 of 
27 October 1998. WT/TPR/S/236/BEN Trade Policy Review 
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however, give various reductions, exemptions or ot her fiscal incentives (including import duty) that 
include imported raw materials and packaging to  be used to manufacture products for export 
(Chapter II(4) and (5)).109  In addition, since 2004, exports of worked or manufactured products from 
free zones and free points by companies approved under the ZFI regime have only had to pay the 
municipal tax.110  The impact of the ZFI regime is still modest, however, with 12 approved companies 
in 2009. 
108. The bodies responsible for promoting exports ar e the ABEPEC and the CCIB, which hosts an 
exporters' group (Chapter II(2)). 
(4) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives 
109. In order to foster the development of the form al sector and raise living standards, Benin has 
continued with its policy of incentives, mainly of a fiscal or customs nature.  In addition to the 
benefits given under the Invest ment Code (Chapter II(4)) and the ZFI regime (Chapter II(5)), 
exemptions are also given for the import and pu rchase on the domestic market of certain specific 
inputs and capital goods (section (2)(iv)(d)).  Since 2009, during their first year of operation legally 
constituted start-ups do not have to  pay profits tax and the relevant  advance when importing (section 
(2)(iv)(c)), or the business tax, the single trade ta x and the employers' contribution on wages.  
Developers are also exempt from the latter tax fo r two years on the salaries paid for each new job 
created provided that the employee is declared  with the National Social Security Fund.111  According 
to preliminary data from the authorities, the entr y into force of these measu res has led to a large 
increase in the number of physical persons registered.112 
(ii) Competition and price control regime 
110. Although Benin does not have any domestic comp etition policy framework, a draft law based 
on the relevant community legislation and recogni zing the exclusive areas of competence of the 
WAEMU Commission is being drafted.  It covers  consumer protection as  well, and provisions on 
transparency in the market and unfair competiti on are also planned.  Currently, domestic policy on 
competition is drawn up and implemented by th e Directorate of Competition and Suppression of 
Fraud within the Ministry of Trade, which is  the focal point for the Advisory Committee on 
Competition set up within the framework of cooperation with WAEMU. 
111. An ordinance dating from 1967113 establishes the principle of free pricing throughout Benin 
subject to regulation in case of need.  At present,  the prices of bread, water, electricity, inputs for 
cotton (fertilizer and insecticide)114, refined petroleum products, pharmaceuticals, and articles and 
supplies for schools are controlled by the State.115  The Directorate-General of Internal Trade in the 
Ministry of Trade uses a number of methods to inte rvene, for example, determining:  maximum prices 
(bread and refined petroleum products)116;  profit margins (school articles)117;  and multiplier factors 
                                                      
109 Articles Nos. 32 and 48 of Law No. 90-002 on the Investment Code and Ministry of Industry and 
Trade Information Note on industrial free zones. 
110 Law No. 2003-23 of 26 December 2003. 
111 Law No. 2008-09 of 2 January 2009. 
112 Directorate-General of Taxation and Public Property (2009). 
113 Ordinance No. 20/PR/MFAEP of 5 July 1967 regulating pricing and stocks. 
114 Order No. 65/MICPE/DEC/SG /DCCI of 2 December 2004. 
115 UNCTAD (2007). 
116 Decree No. 2004-432 of 4 August 2004. Benin WT/TPR/S/236/BEN 
 Page 113 
 
 
(medicines and pharmaceuticals).118  The price of inputs for cotton,  especially fertilizer, insecticide 
and other phytosanitary products, are determined by stakeholders and approved by the Government.  
Similarly, before coming into effect, the price of cement determined by each stakeholder must receive 
written approval from the Minister responsible for trade.119 
112. In response to the accelerated inflation aff ecting certain fast-moving consumer products, 
between December 2007 and August 20 08 Benin had a temporary scheme for approving their prices 
(Chapter I(2)). 
(iii) State trading, State-owned enterprises and privatization 
113. Benin has not yet notified the WTO of its Stat e trading enterprises w ithin the meaning of 
Article XVII of the GATT.120  An ambitious programme has been introduced for the State's 
withdrawal from economic activities, but after several years the effective liberalization of the economy is proceeding at a slower pace.  According to the strategic direction, defined in November 2006, structural reforms should focu s on the following priority sectors:  energy, 
telecommunications, cement, ports and cotton.
121  The State still intervenes, however, in order to 
guarantee or support domestic production in sectors that  are important and/or strategic for the country 
(Table III.8). 
114. In the financial services sector, privatization h as almost been completed:  of the 13 banks and 
financial institutions in operation, at the end of 2008 the State only held 10 per cent of the capital of 
Benin's Banque de l'habitat.  As part of the programme to upgrade the f acilities at the Autonomous 
Port of Cotonou, in September 2009 Benin gave a concession for the building and management of a 
new container terminal (Chapter IV(5)(2)(a)).  The State also sold 65 per cent of the capital of the 
National Timber Board (ONAB) to private operators  in December 2009, together with its holding 
(51 per cent) in the Onigbolo Cement Company in March 2010. 
115. The reforms under way in the agricultural sector, particularly in the cotton subsector, have led 
to the emergence of certain semi-public structures in  which the State continues to play an important 
role.  The sale of the ginning branch of the National Agricultural Promotion Company 
(SONAPRA)122, which came into effect on 11 October 2008, led to the creation of the Cotton 
Development Company (SODECO), the majority of  whose equity capital (66.4 per cent) was not 
transferred to the private sector.  Moreover, the Stat e also has a holding in the equity capital of the 
Agricultural Inputs Purchasing Pool (CAI), set up in  December 2008 in order to ensure supplies of 
inputs and phytosanitary products for all crops in Benin.  Although the 2004 reorganization in the 
areas of energy and post and telecommunications led to the creation of separate bodies such as the 
Beninese Electricity Company (SBEE)123, the Beninese National Water Company (SONEB), the 
                                                                                                                                                                     
117 Order No. 1995-84/MCT/CAB/DCP/SRC of 12 June 1995. 
118 Decree No. 2001-244 of 16 July 2001. 
119 Order No. 1504/MIC/DC/SG/DCCI/SAPPSC of 20 July 2006. 
120 WTO document G/L/898 of 20 October 2009. 
121 Council of Ministers No.:  09/PR/SGG/Com/Extr a/2007.  Viewed at:  http://www.finances.bj/spip. 
php?article287. 
122 Following the reorganization, SONAPRA's main task  will be to coordinate all action undertaken to 
promote agricultural subsectors. 
123 The product of the division of the electricity and water companies, the SBEE is being reorganized 
with a view to its future privatization.  From 1 September 2007 to 30 June 2008, the SBEE was given exemption 
from customs duties and taxes and VAT on petroleum products (whether imported or purchased locally) to be used to supply its electricity generators.  The State also converted some CFAF 14 billion of the company's debt 
to the Treasury into capital and ensured servicing of its  debt of CFAF 15.7 billion with the West African Asset 
Management Company (SOAGA). WT/TPR/S/236/BEN Trade Policy Review 
Page 114 
 
 
Beninese Post Office and Bénin Télécoms, the liber alization that should have ensued has been 
delayed.124  The State in fact still has a monopoly of cer tain postal services, fixed telephony and the 
sale of water, although the latter should be transferred to local authorities. 
Table III.8 
State intervention in the economy, 2010 
Company Sector Share held 
by the StateDetails 
Société nationale pour la promotion agricole 
(SONAPRA) Promotion of agricultural 
subsectors 100% Role redefined following the sale of 
the ginning branch 
Société pour le développement du coton 
(SODECO) Cotton ginning 66.4% Semi-public company 
Centrale d'achat des intrants agricoles (C AI) Supply of inputs 45% Semi-public company 
Port Autonome de Cotonou (PAC) Port serv ices 100% Management contract for the two 
future container terminals 
Société béninoise des manutentions portuaires (SOBEMAP) Port services 100% Privatization not yet envisaged 
Conseil national des chargeurs du Bénin (CNCB) Port  services 100% Privatization not yet envisaged 
Compagnie béninoise pour la navigation maritime 
(COBENAM) Maritime transport 100% Reconstruction planned 
Organisation commune Bénin-Niger (OCBN) Rail tr ansport 51% Grant of a concession under way 
Centre national d'essais et de recherches des 
travaux publics (CNERTP) Public works 100% Reorga nization has not yet begun 
Société béninoise d'énergie électrique (SBEE) El ectricity services 100% Rehabilitation under way 
Société nationale des eaux du Bénin (SONEB) Water services 100% Privatization not yet envisaged 
Société des industries textiles du Béni n (SITEX) Processing of cotton lint 
(unbleached) 100% State aid of around 
CFAF 1.5 billion in 2010 
Compagnie béninoise des textiles (CBT) Processing of cotton lint 
(unbleached) 49% Bilateral Benin-China 
Loterie nationale du Bénin (LNB) Lottery 100%  
Société de gestion des marchés autonomes de 
Cotonou (SOGEMA) Market management 100%  
Centres d'action régionale  pour le développement 
rural, 6 departments Extension services 100%  
Office national de soutien et de stabilisation des 
prix des produits agricoles (ONS) Securing and raising the income 
of agricultural producers 100%  
Office national d'appui à la  sécurité alimentaire 
(ONASA) Food security 100%  
Office national du bois (ONAB) Management of State-owned 
plantations and development of 
the forest economy 35% Sale of 65% in December 2009 
Office béninois de recherches géologiques et 
minières (OBRGM) Development of resources in the 
subsoil 100%  
Institut géographique national (IGN) Topography and car tography 100%  
Office de radiodiffusion et télévision du Bénin 
(ORTB) Radio and television 
broadcasting 100%  
Bénin Télécoms SA (BT SA) Telephony and In ternet 100% Privatization project under way 
La Poste du Bénin SA (LPB SA) Post al and financial services 100%  
Office national d'imprimerie et de pr esse (ONIP) Printing and press 100%  
Office de gestion du stade de l'am itié (OGESA) Sports facilities 100%  
Centre national de production de manuels 
scolaires (CNPMS) Production of teaching manuals 
and documents 100%  
                                                      
124 In addition, the regulatory framework governing telecommunications, information and 
communication technology and postal services is still being drawn up.  A transitional authority regulates the 
sector pending the adoption of the code of electronic communications and postal services. Benin WT/TPR/S/236/BEN 
 Page 115 
 
 
Company Sector Share held 
by the StateDetails 
Centre national hospitalier et universitaire 
(CNHU) Clinical care and training 100%  
Hôpital de Ouidah Medical care 100%  
Hôpital Mère enfant lagune (HOMEL) Medical care 100%  
Hospitals, 4 departments (Atacora, Borgou, 
Oueme and Zou) Medical care 100%  
Société des ciments d'Onigbolo (SCO) Cement  works 0% Benin's share (51%) sold in 
March 2010 
Sucobé (formerly Société sucrière de Sa vè) Sugar production 49%  Management lease 
Société nationale de commercialisation des 
produits pétroliers (SONACOP) SA Import, storage and distribution 
of hydrocarbons 35%  
SOBEBRA (formerly La Béninoise) Brewery 8%  
Africaine des assurances (formerly SONAR) Insurance 5%  
Continental Bank Bénin Banking 0% The 43.6% held by the State was 
sold in September 2008. 
Banque de l'habitat Banking 10%  
SERHAU-SEM Regional housing and urban 
planning studies 10%  
Appontement pétrolier du Bénin (ORIX) Petroleum deposit 40%  
Caisse autonome d'amortissement (CAA) Financia l intermediation 100% Manager of the public debt 
Source : Directorate of Management and Control of the Stat e's Portfolio, Ministry of  the Economy and Finance. 
 
(iv) Government procurement 
116. In 2009, Benin's arrangements for managi ng procurement by the Government were 
reorganized in order to bring them into line w ith the relevant community rules (joint report, 
Chapter III(3)(iii)), although the relevant impl ementing decrees have not yet been adopted.  
According to the new provisions, the principles of freedom of access and equal treatment will be 
underpinned by an express ban on any discrimination based on the nationality of the bidders or their 
legal status.  Bearing in mind the malfuncti oning noted in the course of several enquiries125, the new 
Code governing government pr ocurement and the award of public service concessions126 should 
reinforce transparency, reorganize how contracts are awarded and monitored and lessen arbitrary 
procedures. 
117. In addition to having broader scope, the Code  requires the separation of responsibilities for 
regulation, control and awarding of contracts;  no pe rson may belong to more than one structure with 
different functions.  According to these new provision s, regulation is the responsibility of the National 
Commission for Regulating Government Procurement, which has become the authority for regulating government procurement attached to the Office of  the President of the Republic.  The National 
Directorate for Control of Government Procurement,  within the Ministry of  Finance, has a central 
supervisory role with a network of decentralized structures.  The regulatory framework also provides 
for the appointment of the persons responsible a nd the creation of committees for awarding contracts 
in each contracting authority. 
                                                     
 
125 Afrik.com, "Des dysfonctionnements dans la gestion des marchés publics au Bénin", 
21 November 2007.  Viewed at:  h ttp://www.afrik.com/article12982.html;  l'Araignée presse , "Dossier Cen-Sad:  
Le Directeur national des marchés publics a fait économie de vérité", 22 July 2009.  Viewed at:  http://blesshnet.com/heberg/laraign ee/lesw2/modules.php?name=News&file=article&sid=4325&mode=thread&
order=0&thold=0. 
126 Law No. 2009-02 of 26 January 2009, enacted on 4 September 2009. WT/TPR/S/236/BEN Trade Policy Review 
Page 116 
 
 
118. Two principal modes of awarding contracts are de termined in the Code:  invitation to tender 
and direct negotiation (private agre ement).  Invitations to tender may be open, restricted or involve 
two stages.127  An open invitation to tender is the rule and the use of any other procurement method 
must be exceptional and justified by the contracting authority.128  Contracts for intellectual services 
are awarded following a consultation and the submissi on of proposals.  Currently, the thresholds for 
the award of contracts following an invitation to  tender are defined as follows:  supplies, office 
automation (CFAF 10 million);  intellectual services (CFAF 30 million);  works/building (CFAF 40 million).  For lower amounts, a request for an estimate is possible provided that the principles of non-discrimination in respect of access and treatment of the bidders is respected.  The 
National Directorate for the Control of Govern ment Procurement carries out a posteriori random 
checks on orders for amounts below the minimum thres hold;  for the moment an average of one such 
check is made every year because human resources are limited and computerization is inadequate. 
119. Invitations to tender and notices of pre-selection must be the subject of a call for competition 
published, in accordance with a model documen t and in the same terms, in the government 
procurement journal and in any ot her national and/or international publication.  The medium to be 
retained if there are differing dates of publication h as not yet been defined.  The publication of notices 
and invitations can also be transmitted electronically ;  unless otherwise provided in the invitation, bids 
can also be communicated to the contracting authority electronically. 
120. In accordance with the community provisions, Benin's regulations allow for a preference (not 
exceeding 15 per cent of the amount of the bid) fo r bids submitted by bidders whose fiscal residence 
is within the WAEMU area.  This can only be gr anted subject to certain additional criteria:  
traceability of at least 30 per cent of the value a dded within the WAEMU for the goods supplied;  
community origin for at least 30 per cent of the in puts or the personnel employed for public works, 
buildings or industrial facilities;  and in the case of supply of services, the contribution by citizens 
from the Union must amount to over 50 per cent of  the total value of the services.  Furthermore, 
companies and groups of operators must provide evidence that WAEMU citizens participate in the 
equity capital (over 50 per cent) and/or control of governing boards (at least 50 per cent).  According 
to the authorities, no such preference has yet been  granted.  In addition, Benin has never applied 
national preferences. 
(v) Protection of intellectual property rights 
121. Like the other members of WAEMU, Benin be longs to the African Intellectual Property 
Organization (OAPI), which was established by the Bangui Agreement (joint report, 
Chapter III(3)(iv)).  The revised Bangui Agreement (1999) was ratified by the Beninese authorities on 
6 November 2003.
129  It applies as a domestic law in Benin a nd is automatically enforceable;  there is 
no domestic legal instrument for its implementation.   Benin has also been party to the Convention 
establishing the World Intellectual Property Organization (WIPO) since 9 March 1975. 
                                                      
127 A restricted invitation to tender can only be made if the special nature of the goods, works or 
services to be provided means that there is only a limited number of competent suppliers or providers.  Only 
complex procurement may justify an invitation to tender in two stages.  In any event, if at least three bids have 
not been received when the time-limit expires, the period for submitting bi ds may be extended by 15 calendar 
days.  An invitation to tender is only valid if, at the end of the supplementary period, the contracting authority has received at least one bid deemed to be admissible and in conformity. 
128 The National Directorate for Control must ensure that, for each financial year, the total amount of 
contracts awarded by a contracting auth ority by means of simple  agreement does not exceed  10 per cent of the 
total amount of government procurement contracts awarded in Benin. 
129 Law No. 2003-19 of 22 October 2003 and its Implementing Decree No. 2003-452 of 
6 November 2003. Benin WT/TPR/S/236/BEN 
 Page 117 
 
 
122. The National Industrial Property Centre (CENAPI),  a specialized office in the Ministry of 
Trade, acts as the national liaison structure for the OAPI  in Benin.  Its main task is to centralize and 
transmit to the OAPI applications for patents, util ity models and property (trademarks, industrial 
designs and trade names) filed in Benin.  It also has a role to play in promoting awareness of the 
importance of industrial property, whose tre nds it follows at the international level. 
123. The BUBEDRA, part of the Ministry of Cultu re, is responsible for managing copyright and 
related rights.130  Benin's regulatory structure gives authors economic and moral rights;  even if the 
original work has been sold, authors of graphic or  three-dimensional works (and their heirs) have an 
inalienable right to a share of the profit from any subsequent sale of the work at public auction or 
through a dealer.131  If an offence is committed, the BUBEDRA may bring legal proceedings;  
penalties may take the form of a term of imprisonment (from three months to two years) and/or a fine (from CFAF 500,000 to CFAF 10 million).
132  Although the legislation does not provide any special 
measures applicable at the custom s cordon, in principle the customs services are empowered to act ex 
officio if copyright is infringed (Article 89).  Manu facturers and importers of media used to reproduce 
literary or artistic works must pay fair remunera tion, levied and distributed by the BUBEDRA.  
Discussions between the BUBEDRA and the Directorat e-General of Customs are currently under way 
with a view to establishing a mech anism for collecting this remuneration at the customs cordon.  
Benin's regime does not make any distinction betw een Beninese and foreign owners of copyright.  
The latter, however, must prove their authorship and their membership of a collective management 
association in order to be given national treatment. 
124. In 2008, Benin set up a National Commission to Combat Piracy of Literary and Artistic 
Works (CNLP) to deal with th is widespread phenomenon, particularly as regards musical and 
cinematographic works.133  The CNLP is a multi-disciplinary t echnical support body attached to the 
BUBEDRA and is responsible for strategic and prospective consideration of ways of combating piracy, as well as having an information and awaren ess role.  Since it was set up, the CNLP has been 
involved in drawing up regulations for the creation of departmental anti-piracy squads, as well as in 
the introduction of such structures in all the provinces. 
                                                     
 
130 Decree No. 93-194 of 25 May 1993, amended by Decree No. 2007-115 of 9 March 2007. 
131 Law No. 2005-30 of 10 April 2006. 
132 UNESCO (2009).  Benin does not have any special courts for copyright and intellectual property 
and in general the lower level courts hear such cases. 
133 Decree No. 2008-578 of 20 October 2008. WT/TPR/S/236/BEN Trade Policy Review 
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IV. TRADE POLICIES AND PRACTICES BY SECTOR 
(1) INTRODUCTION  
125. During the period under review, the need for a consistent trade policy strategy in Benin was 
also felt at the sectoral level.  Agricultural produc tion stagnated, partly because there was no clear and 
stable production policy.  Demographic pressure , combined with the stagnation in production, 
contributed to the vast increase in food imports.  Th e energy crisis became wo rse because of the lack 
of investment and frequent power cuts are still a co mmon feature of economic activities;  most petrol 
is imported illegally from neighbouring Nigeria.  Benin has experienced an unprecedented crisis in 
telecommunications and postal service s.  Moreover, unpaid insurance pr emiums represent one third of 
the turnover of insurance companies.  On the ot her hand, a long-term strategy to liberalize and 
encourage investment, particularly from abroad, is st arting to bear fruit, especially in relation to ports 
and building and public works. 
(2) AGRICULTURE , LIVESTOCK AND FORESTRY  
(i) Overview 
126. There are three climatic zones in Benin:  almost  the whole of the north is above 10°N and is a 
semi-arid Sudan-type zone with an average temp erature of 27.5°C, where annual rainfall ranges from 
900 mm. to 1,100 mm. and there is a relatively high  rainfall deficit.  The major economic activities 
are raising livestock, and growing cotton - which is  the country's leading export - and shea nuts;  
farms cover an average of ten hectares.  The centre of  Benin (from 7° to 10°N) is a zone of forests and 
humid savannah, with very marked temperature fluctu ations, an average of 27°C, with average yearly 
rainfall of 1,200 mm.  The south of the country (between 6°30 ΄ and 7°N) is a sub-equatorial zone 
where annual rainfall can reach 1,500 mm. and the an nual average temperature is 26.5°C, with annual 
average relative humidity of 75 per cent.134  Most of the land cultivated in the centre and the south is 
devoted to producing food crops, particularly yams, cassava, maize, tomatoes, pineapples and 
groundnuts, in addition to cotton.  The population is particularly dense in the south (100 to 
200 inh/km2 compared to 15 to 30 inh/km2 in the north).  In the south, farms cover an average of 
five hectares. 
127. Most of Benin's population lives in rural areas,  and is engaged in agriculture or raising 
livestock.  Agricultural products account for 80 per cent of Benin's exports and contribute 35 per cent 
to its GDP formation.  Agriculture is still mainly  family-based, although important changes appear to 
be under way.  Land and labour are the two most im portant factors in agricultural production.  The 
introduction of new technology (impr oved varieties, use of mineral fe rtilizers) and machinery is slow 
because of the lack of financial resources and agricultural output suffers from the obsolescence of the production methods used.  According to the FAO, generalized use of animal-drawn machines would 
allow the area under cultivation to be doubled as a mi nimum.  The FAO also draws attention to the 
relatively large losses caused by the lack of storag e and processing infrastructure and the inadequacy 
of the cold chains for preserving perishable produc ts.  All these factors raise the cost of transactions 
and accentuate the fluctuations in th e price of food crops over the year .  The poor state of the roads in 
some parts of the country preven ts agricultural products from reach ing markets.  Consequently, a 
large section of the population, particularly in ru ral areas, still lives from subsistence agriculture. 
128. According to FAO statistics, there appears to ha ve been a sharp drop in the production of the 
main crops between 2003 and 2007, except for maize.  The major products in value terms, namely 
                                                     
 
134 FAO online information, "La diversité biologique agricole au Bénin".  Viewed at:  
http://www.fao.org/docrep/008/y5667f/y5667f0h.htm. Benin WT/TPR/S/236/BEN 
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cotton lint, yams, cassava, and groundnuts, all saw  their production drop in volume terms over the 
period, despite the notable increases between 2000 and 2003 (Table IV.1).  Production of maize, dried 
beans, cashew nuts, paddy rice and pineapples, on the other hand, showed a substantial increase, 
denoting a certain diversification of agricultural prod uction to other subsectors that are perhaps more 
profitable. 
Table IV.1 
Production of food crops and principal crops, 2000-2007 
('000 tonnes) 
 2000 2001 2002 2003 2004 2005 2006 2007 
Maize 750.4 685.9 797.5 1,237.8 842.6 864.7 671.9 931.6 
Sorghum 155.2 165.3 182.6 203.5 163.8 169.2 156.3 117.3 
Millet 36.3 34.9 40.7 45.5 .. .. .. .. 
Rice (paddy) 49.2 54.9 63.2 76.3 64.7 78.3 71.0 73.0 
Cassava 2,350.2 2,703.4 3,154.9 3,951.9 2,955.0 2,861.4 2,524.2 2,284.1 
Yams 1,742.0 1,701.0 2,151.4 2,475.3 2,257.3 2,083.8 2,239.8 1,682.2 
Beans 85.6 78.3 95.3 114.1 93.8 104.6 80.2 130.6 
Tomatoes 139.2 117.6 134.8 167.3 144.2 143.3 113.6 156.1 
Soya beans 4.3 3.5 4.7 5.6 .. .. .. .. 
Seed cotton 339.9 393.0 376.7 484.8 235.0 190.0 124.0 148.0 
Groundnuts 121.1 125.3 130.0 164.7 151.7 140.3 99.4 114.5 
Pineapples 70.5 57.1 98.2 105.9 110.8 121.2 80.1 135.9 
Tobacco 0.7 0.6 8.8 0.9 .. .. .. .. 
.. Not available. 
Source : Viewed at:  http://faostat.fao.org/Deskt opDefault.aspx?PageID=339&lang=fr&country=53. 
129. Cotton is the major agricultural export, with cashew nuts and sugar far behind, although they 
have seen a large increase over the period (Table IV.2). 
Table IV.2 
Major agricultural exports, 2000 and 2007 
(Tonnes and € thousand) 
2000 2007 
Product Volume 
(tonnes) Value 
(€ thousand) Product Volume 
(tonnes) Value 
(€ thousand) 
Cotton lint 134,335  139,124 Cotton lint 99,702  87,203 
Cashew nuts 36,370  18,898 Cashew nuts 56,607  25,485 
Cotton seed 109,394  11,130 Cigarettes 1,575  16,596 
Palm oil 12,600  7,055 Raw sugar 16,531  5,798 
Cigars 280  3,161 Cottonseed oil 9,005  5,628 
Cigarettes 250  2,714 Palm kernel oil 7,600  5,005 
Palm kernel oil 4,100  2,496 Cottonseed cake 41,100  2,703 
Cottonseed cake 19,716  2,082 Oilseeds 3,569  1,672 
Cottonseed oil 1,466  943 Pineapples 1,876  1,577 
Shea nuts 8,531  910 Wheat flour 3,450  929 
Cotton waste 1,386  632 Soya bean cake 4,531  861 
Chicken meat 722  504 Ginger 1,059  722 
Palm kernel cake 7,000  456 Palm kernels 180  584 
Milled rice 2,000  333 Maize 11,374  469 
Tomato paste 445  297 Cotton waste 298  427 
Oilseeds, n.e.s. 724  250 Sorghum 1,235  417 WT/TPR/S/236/BEN Trade Policy Review 
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2000 2007 
Product Volume 
(tonnes) Value 
(€ thousand) Product Volume 
(tonnes) Value 
(€ thousand) 
Nuts, n.e.s. 329  194 Carded/combed cotton 492  357 
Palm kernels 1,000  144 Dried apricots 700  233 
Refined sugar 210  116 Beef/veal prep. 98  208 
Turkey meat 133  87 Soya beans 580  188 
Source:  FAO online information, "Trade".  Viewed at :  http://faostat.fao.org/site/342/default.aspx. 
130. There was an exceptional increas e in the volume and value of food imports between 2004 and 
2007-2008 (Table IV.3 and Chart IV.1).  For exampl e, over the period 2000-2007, there was a 20-fold 
increase in imports of rice in volume terms, amounti ng to around €240 million.  Imports of palm oil, 
the second most important import in value terms, incr eased by a factor of 37 over the same period.  
There has also been a fivefold in crease in Benin's relatively high volumes of imports of chicken meat.  
None of these products appears in the official re -export statistics, although this does not mean that 
they may not be re-exported informally. 
01002003004005006007008009001,0001,1001,200
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009Chart IV.1
Trend in imports of food products, 2000-2009
Source :   Autonomous Port of Cotonou.Cereals and similar products
Food productsThousands of metric tonnes
 
 Benin WT/TPR/S/236/BEN 
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Table IV.3 
Major agricultural imports, 2000 and 2007 
(Tonnes and € thousand) 
2000 2007 
Product Volume 
(tonnes) Value 
(€ thousand) Product Volume 
(tonnes) Value 
(€ thousand) 
Cigarettes 4,500 65,124 Milled rice 922,457  240,635 
Chicken meat 33,030 22,296 Palm oil 291,500  181,234 
Turkey meat 22,867 15,603 Chicken meat 45,936  45,280 
Milled rice 47,627 12,821 Turkey meat 23,689  25,399 
Tomato paste 10,276 8,086 Food preps. n.e.s. 7,111  16,301 
Food preps. n.e.s. 7,717 7,002 Tomato paste 15,555  12,600 
Whole condensed sweetened 
milk 5,111 6,147 Tea 8,648  8,842 
Refined sugar 18,438 5,409 Food preps., flour 8,564  7,843 
Wheat flour 22,940 5,160 Apples 13,952  7,813 
Apples 4,960 3,808 Cigarettes 810  6,538 
Whole condensed milk, not 
sweetened 2,025 3,047 Refined sugar 28,027  6,430 
Palm oil 7,808 2,927 Wine 5,697  6,381 
Distilled alcoholic beverages 2,903 2,714 Margarine and edible fats 9,631  5,972 
Whole dried milk 1,022 2,486 Edible pasta 11,948  5,526 
Margarine and edible fats 2,954 2,435 Non-alcoholic beverages 7,172  5,322 
Soya bean oil 3,300 2,171 Pastry 2,885  5,042 
Malt 2,871 1,816 Wheat flour 15,487  4,761 
Wheat 12,207 1,781 Tobacco products , n.e.s. 1,188  4,454 
Wine 2,954 1,712 Distilled alcoholic beverages 1,422  4,274 
Edible pasta 3,892 1,642 Broken rice 17,111  4,246 
Source:  FAO online information, "Trade".  Viewed at :  http://faostat.fao.org/site/342/default.aspx. 
(ii) Agricultural policy 
131. For Benin, agricultural policy is of the utmo st importance because it faces the challenge of 
ensuring food and nutrition security for a rapidl y growing population (3.3  per cent annually).  
According to the FAO, some 1.6 million people, or  19 per cent of the population, are undernourished, 
a figure that is higher than the average for West Africa.135 
132. Over the past 20 years, the State has largely withdrawn from production, marketing and 
supplying agricultural inputs.  The role of the Ministry of Agriculture, Livestock and Fisheries 
(MAEP) was essentially one of guidance and regulat ory and technical control, but it lacked the 
financial resources.  Agricultural output has remained  low, having suffered from the lack of support 
and advice for producers, which explains  the modest level of production. 
133. Over this period, a large amount of private i nvestment was made in agricultural production, 
particularly for export.  A MAEP study published in August 2006 indicated that the current land 
tenure regulations meant that a modern system of land tenure coexisted with a customary law regime.  
                                                      
135 FAO online information, "Food Security Indicat ors:  Benin".  Viewed at:  http://www.fao. 
org/fileadmin/templates/ess/documents/food_security_statistics/monitoring_progress_by_country_2003-2005/ 
Benin_e.pdf. WT/TPR/S/236/BEN Trade Policy Review 
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According to this study, such a system does not protect the rural population.136  In October 2007, a 
new Law on the rural land tenure system in the Republic of Benin was enacted.  It provides, inter alia , 
that any purchase of rural land covering an area of over two hectares must be for agricultural 
development, fishing, or raising livestock or, in  general, for a project in the public interest.137  The 
Law also provides that owners of rural land and local authorities must develop the land.  In 
October 2009, in a press release, the National Farmer s' Union of Benin declared that for several 
months Beninese and foreign private investors had been buying or leasing huge areas of agricultural 
land in the country, thereby jeopardizing the survival  of millions of small farmers;  the Union called 
in particular for implementing decrees for the Law in  order to ensure that it was put into effect.138 
134. In 2008, confronted with the food crisis, the G overnment took steps to halt the decline in food 
crop production, notably by providing producers of maize and rice with seed and fertilizer at subsidized prices (see below).  In July 2009, the Government declared its intention of mobilizing over 
CFAF 1,800 billion for a strategic plan to revive  the agricultural sector over the period 2009-2015, 
i.e. CFAF 285 billion (€435 million) each year.  Around one quarter of this  financing would come 
from the State, 35 per cent from Benin's TFPs, and the remainder from the private sector.  The 
declared objective is to make Benin "a dyna mic agricultural power by 2015, competitive, 
environmentally friendly, creator of wealth and responding to the population's economic and social development needs".
139 
135. The food crisis in mid-2008 highlighted the ro le of small-scale agri culture and farmers'' 
associations in food security.  Because of the few fina ncial resources available to most small farmers, 
increased yields largely depend on the support they  are given, particularly as regards land use 
management, the supply and financing of inputs a nd equipment, and guaranteed outlets for their 
production. 
136. It is the responsibility of the National Agricultural Income Support Board (ONS)140 to 
endeavour to secure and raise producers' incomes.   It is a government body that emerged from the 
former Stabilization and Support Fund for agricu ltural product prices, whose task was to support 
producers of seed cotton and guarantee them a profitable and attractive price.  In 2006, in order to 
enable other agricultural subsectors to benefit fro m the knock-on effects from cotton and to encourage 
effective diversification of agricultural products for export, the ONS was also given the task of 
promoting all agricultural subsectors in addition to cotton.  The ONS follows trends in prices for 
agricultural products and provides the necessary elem ents for determining the purchase price of seed 
cotton in consultation with the trade.  Its 2009 re port highlights some significant malfunctioning in the 
cotton subsector, including at SONAPRA (another body promoting agricultural subsectors - see below), and underlines the lack of financial res ources, which constrains action to promote the 
agricultural sector.
141 
137. In 2008, activities commenced under the Project to Support the Securitization of Agricultural 
Income (PASREA), a project that is being supervi sed by the ONS.  Progress was also made in the 
Mutual Agricultural Insurance of Benin (AMAB) pr oject, for which the contract was awarded to a 
Senegalese firm (ACAF) by means of a simple agre ement.  Another project supported by the ONS is 
the National Agricultural Development Fund (FNDA), which should help in financing the sector and 
                                                      
136 MAEP (2006);  see also Gletton-Quenum, M. (2009). 
137 Law 2007-03.  Viewed at:  http://f aolex.fao.org/docs/pdf/ben80722.pdf. 
138 Synergie paysanne, online information.  View ed at:  http://synergiepaysanne. over blog.com/. 
139 APAnews.net , "Le Bénin veut mobiliser 1 809 milliards de francs CFA pour la relance de son 
secteur agricole de 2009 à 2015", 18 July 2009.  Viewed at:  http://www.apanews.net. 
140 ONS online information.  Viewed at:  http://www.onsmaep.bj/index.php. 
141 ONS (2009). Benin WT/TPR/S/236/BEN 
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also contribute towards resolving pr oblems such as the high cost of capital compared to the internal 
profitability of the sector, the lack of proximity of  financial services for the beneficiaries, excessively 
stringent formalities for obtaining loans, etc. 
138. In order to ensure food security while at the same time minimizing the risk of shortages of 
food products, ONASA, set up in 1992, administers buffer stocks for certain food products such as 
maize, yams and cassava, but not rice.  ONASA buys products by announcing their collection on the radio, defining the criteria for participation, the specifications for the pro duct, the place of delivery 
and the purchase price.  If there is a serious shorta ge and the supply chain is broken, ONASA sells its 
stocks at subsidized prices on markets in those regions suffering from shortages. 
139. For several years, some institutions have been  promoting agriculture that obeys "organic" 
production criteria.  The Songhai project has been  promoting sustainable agriculture since 1985.
142  
The Beninese Organization for the Promotion of  Organic Agriculture (OBEPAB) has been in 
existence since 1997 and encourages sustainable deve lopment by focusing on making the best use of 
local resources and developing sustainable system s of agricultural production, as well as protecting 
the health of producers and c onsumers and the environment.143  OBEPAB promotes systems of 
production that do not use man-made chemical s to fertilize the soil and protect crops.144  Organic 
production and fair trade represent opportunities for increasing farmers' incomes because of the high 
prices which consumers are willing to pay, while at the same time having a positive impact on the 
environment, particularly the quality and fertility of the soil.145  At the international level, OBEPAB is 
a member of the International Federation of Orga nic Agriculture Movements (IFOAM).  It mainly 
cooperates with KIT/NIPS and Agro-Eco Consulta ncy, the International Development Research 
Centre (IDRC) and with Ecocert.  Nevertheless, the area under organic crops is extremely limited and 
in the case of cotton, for example, accounts fo r less than 0.2 per cent of total production. 
140. The principal instrument of trade policy in the sector is still the WAEMU CET, which is 
applied on an MFN basis.  Its average rate is 14. 6 per cent for agricultural products (WTO definition) 
(joint report, Chapter III(2) and Table III.1), altho ugh local agri food productio n is generally protected 
against competition from imports by the highest CET rate, i.e. 20 per cent.  ECOWAS members are 
considering introducing a new tariff band of 35 per ce nt for MFN imports (joint report, Chapter IV). 
141. In principle, the WAEMU and ECOWAS provisions guarantee the free movement of 
originating products, fully exempt from customs duti es and charges.  In this connection, Beninese 
exporters complain of the import bans which prevent the movement of a wide range of their food 
products within ECOWAS.  In WAEMU, Benin par ticipates fully in the trade facilitation programmes 
for road transport and transit, as well as in the pr ojects for the single window and juxtaposed control 
posts (on the border between two member States) gr ouping all the police and customs services (joint 
report, Chapter III(2));  the purpose of these initiatives is  to eliminate formal or informal barriers to 
trade in products originating in WAEMU, particular ly agricultural, livestock,  forestry and fisheries 
products. 
                                                      
142 Songhai online information.  Viewed at:  www.songhai.org. 
143 OBEPAB online information.  Viewed at:  http://www.obepab.bj/. 
144 According to its website, traditional cotton crops us e 25 per cent of all the pesticides sold in the 
world but only occupy 2.5 per cent of the world's agricultural land.  Pesticides traditionally used to produce 
cotton, especially Endosulfan, are hi ghly toxic and dangerous to humans, ca ttle and the environment in general 
and in the past have caused substantial damage in Benin. 
145 OBEPAB's principal partners at the national level are:  the Embassy of the Netherlands in Benin, the 
Beninese Centre for Sustainable Development, the Be nin National Agricultural Research Institute (INRAB), 
IITA-Benin;  SONAPRA;  and the University of Abomey-Calavi. WT/TPR/S/236/BEN Trade Policy Review 
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(iii) Policies by subsector 
(a) Cotton subsector 
142. Some 160,000 tonnes of seed cotton are produced annually (Table IV.4).  It is grown by 
farmers then sold to ginning companies, which transform it into cotton lint, and produce other 
by-products such as cottonseed cake and oil, whose export has developed strongly (Table IV.2).  After 
being one of the 20 leading global producers of  cotton lint, between 2004/2005 and 2005/2006 Benin 
experienced a sharp fall in production and export (Tab le IV.4).  Since then, the cotton subsector has 
not managed to regain its former  output levels and in 2009/2010 produc tion was less than one third of 
the ginning capacity installed (620,000 tonnes).  Likewise, in 2009/2010, production of cotton lint 
was less than half the level recorded in 2004/2005.  For several years, there have been large losses in 
the subsector and in 2009 these amounted to CFAF 11 billion (€17 million). 
Table IV.4 
Cotton indicators, 1999-2010 
('000 tonnes unless otherwise indicated) 
 1999/ 
2000 2000/ 
2001 2003/ 
2004 2004/ 
2005 2005/ 
2006 2006/ 
2007 2007/ 
2008 2008/ 
2009 2009/ 
2010 
Seed cotton   
Harvest 363.2 337.4 332.7 427.2 190.9 240.6 268.6 210.7 158.7 
Cotton lint   
Production 156.2 145.1 143.0 164.4 81.8 103.1 114.6 91.1 68.2 
Exports .. .. 153.9 126.8 161.1 .. .. .. .. 
Exports (CFAF billion) .. .. 101.2 107.7 88.5 .. .. .. .. 
.. Not available. 
Source :  National Agricultural Promotion Company (2002), Rapport Annuel 2001-2002. 
 
143. In order to revive the cotton subsector, its institutional framework was modified in 2006.  
Benin had already reformed the cotton subsector in 1988, notably through partial privatization of the 
marketing of seed cotton and by opening up the mark et for distributing inputs  to the private sector.  
Nevertheless, after the marketing of seed cotton ha d been transferred to farmers' associations, the 
latter increased to such an extent that they comple tely lost their representative nature.  Consequently, 
on 18 May 2006, Decrees Nos 2006-232, 2006-233 a nd 2006-234 were signed, providing a new 
institutional framework bringing t ogether ginners, importers and distributors of inputs, as well as 
producers in the cotton subsector. 
144. In 2006, local cotton producers' councils were set up as a framework for consultation among 
all the producers represented by their respective as sociations.  Subsequently, departmental cotton 
producers' councils (CPDC) were introduced, togeth er with a constituent general assembly of the 
National Cotton Producers' Council (CNPC).  The fo rmer structures, namely, the Federation of 
Producers' Unions (FUPRO-Bénin), the trade associ ation of cotton ginners of Benin (APEB) and the 
trade group of distributors of agricultural inputs (G PDIA) were replaced, respectively, by the CNPC, 
the National Cotton Ginners' Council (CNEC) and th e National Council of Cotton Input Importers and 
Distributors (CNIDIC). 
145. The Cotton Trade Association (AIC)146 has become the body for consultation among those 
working in the cotton subsector.  It draws up tr ade agreements, follows them up and arranges the 
negotiation of the price of seed cotton.  It is al so responsible for training and supporting producers, 
                                                      
146 AIC online information.  Viewed at:  http://www.aicbenin.org/. Benin WT/TPR/S/236/BEN 
 Page 125 
 
 
conducting research into cotton, ensuring the production and distribution of seed and collecting 
cotton-related statistics.  Its resources come from a levy on the price paid by the ginner to seed cotton 
producers' networks (CFAF 20 in 2009/2010).  The AIC is managed by a governing board comprising 
23 members appointed by the General Assembly a nd broken down as follows:  CNPC:  13 members;  
CNEC:  five members;  CNIDIC:  five members. 
146. The State regulates the criteria for engaging in the professions of manufacturer, importer or 
distributor of chemical inputs and draws up the list of the various types of chemical inputs and commercial phytosanitary products that can be so ld.  The Cotton Inputs Commission (CIC), which 
groups the CNIDIC and other stakeholders in the subsector, determines and negotiates with importers 
and distributors the selling prices for inputs, which are then approved.  Inputs are bought by producers 
on credit at a price that is generally lower than th e import price.  The AIC submits applications for 
subsidization of producers to the Government, whic h approves them in the Council of Ministers.  
Over the period 2009-2010, the Government a pproved expenditure of around CFAF 26 billion on 
inputs, with a subsidy of CFAF 12 billion (€17.5 million)
147;  the value of production was 
CFAF 34 million. 
147. Deregulation in the sector since the 2003/200 4 season has seen the formal removal of 
SONAPRA's purchasing monopoly for seed cotton.  Its industrial branch has been transferred to a 
new entity, SODECO, and SONAPRA now has the task of promoting agricultural subsectors.  There 
are currently some 20 private plants operating.  Seed cotton prices are negotiated between producers 
and ginners, with the aid of the AIC, then approved in the Council of Ministers.  After they have been 
approved, they become the compulsory benchmar k for all transactions.  If prices go down on the 
global market, the ginning plants have to bear the loss. 
(b) Other agricultural exports 
Cashew nuts 
 
148. Cashew nuts have become the second largest  source of export income from goods.  With 
3 per cent of production, Benin is reportedly the fi fth largest global producer of cashew nuts, after 
India, Brazil, Mozambique and Tanzania.  The la rge State-owned plantations now account for 20 per 
cent of the area under cashew nuts, while the major ity of plantations belong to farmers who grow 
cashew nuts individually on a small scale.  Almost all production is exported in the form of unshelled raw nuts, particularly to India.  The Government  is trying to encourage local processing of the 
product. 
149. Since 2000, the producer purchase price for cash ew nuts and shea nuts, as well as the price of 
inputs used to produce them, has been negotiated within the Commission on production factors and marketing of agricultural products, under the supervis ion of the Ministry responsible for trade, which 
acts as the secretariat.  This Commission brings together the various ministries involved, trade 
associations and civil society in the form of th e Chamber of Agriculture, the Chamber of Commerce 
and the Association of Importers and Distributors of Agricultural Inputs.  The Commission determines the floor price for the various products fo r the following season (Table IV.5).  This is the 
price below which the product may not be sold and ensures a minimum guaranteed price for producers.  The Departmental Trade Directorates are responsible for carrying out checks for this 
purpose.  Because they are of higher quality, raw cashew nuts of Beninese origin receive a 30 per cent 
premium compared to other nuts. 
                                                     
 
147 AIC Infos , monthly information and communication bulletin of the cotton subsector in Benin.  
Viewed at:  http://www .inter-reseaux.org/IMG/ pdf_AIC-Infos_40.pdf. WT/TPR/S/236/BEN Trade Policy Review 
Page 126 
 
 
Table IV.5 
Indicative producer purchase prices determined by  the Commission on production factors, 1997-2010 
(CFAF/kg.) 
Product 1997 1999/ 
2000 2000/ 
2001 2004/ 
2005 2005/ 
2006 2006/ 
2007 2007/ 
2008 2008/ 
2009 2009/ 
2010 
Cotton 200 185 220 200 185 175 180 210 210 
Palm regime 24 30 20 .. .. .. .. .. .. 
Cashew nuts 115 190 225 175 200 200 200 175 175 
Groundnuts in the shell 120 125 125 .. .. .. .. .. .. 
Shea nuts 120 55 55 40 40 40 40 60 60 
.. Not available. 
a CFAF/lb. - (index A (M 1-3/32"), Cotton Outlook Liverpool). 
b CFAF/tonne - (Malaysia, North-West European Ports). 
Source :  Beninese authorities. 
150. Dealers in cashew nuts appear to have a vi rtual monopoly of buying from producers and are 
sometimes in a position to prevent supplies reachi ng processing plants at profitable prices.  To 
encourage the development of a competitive and fair  export market, the Government and stakeholders 
have for several years tried to set up "grouped sales"  in which producers could join together and sell 
their products following control and inspection by th e competent services.  The advantage of this 
system is to protect the quality of Beninese nuts by preventing them being mixed with foreign nuts.  It 
also gives producers increased nego tiating power because they are united. 
Shea nuts 
 
151. It is estimated that 85,000 tonnes of shea nuts ar e harvested in Benin, mainly in the North, 
where the tree grows in the wild.  This is also th e main zone for the production of shea butter, chiefly 
manufactured on a small scale.  Shea is mainly exported in the form of nuts.  In 2007, exports of shea 
nuts amounted to 16,700 tonnes and mostly went to France, the Netherlands, the United Kingdom and Denmark, as well as Togo and Senegal.  Benin al so imports almonds from Nigeria and butter from 
certain countries in the subregion, especially Cô te d'Ivoire and Burkina Faso.  Two Beninese 
cosmetics industries use locally produ ced shea butter as an input:  Natura
148 and Biocos. 
Pineapples 
 
152. Pineapples have a significant share of agricultural production and some are processed locally 
into juice or dried products.  From Table IV.1 it can  be seen that there has been a marked increase in 
production since 2004.  According to the FAO (T able IV.2), in 2007, only 1,876 tonnes were 
exported, a very small share of the volume produced ;  according to those in the trade, exports are 
constrained by the lack of certification of compli ance with international standards.  In order to 
improve the subsector's organization, in Decemb er 2007 ADEx (Chapter II) commissioned a study on 
the development of the national programme for de veloping this subsector (PNDFA), an integrated 
programme that includes, inter alia , production, processing, certifica tion and marketing components.  
According to the authorities, this programme is  being implemented jointly by the ministries 
responsible for agriculture, industry and trade. 
153. A growing number of pineapple-producing organizations in Benin are turning towards the 
export of "organic" and "fair trade" pineapples, w ith organic (Ecocert) and fair trade (Fairtrade 
                                                      
148 Natura Pharma, online information.  Viewed at:  http://www.world-naturapharma.com/fr/ 
index.html. Benin WT/TPR/S/236/BEN 
 Page 127 
 
 
Labelling organization) certification.  The aim is to promote sustainable production of fresh 
pineapple, pineapple juice and dried pineapple, both for the local and subregional markets and for 
export.149  The two main varieties (sugar loaf and smoot h Cayenne) are mainly grown in the south of 
the Atlantic departments.  Producers are traine d and equipped by non-governmental organizations 
(NGOs) such as Claro, Manor and Coop (Switzerla nd), Solidarmonde (France), and Oxfam-Belgique.  
The quality of the processed products meets the re quirements of both national and international 
markets and employees have better working cond itions.  Access to the financing needed for 
production is facilitated through the NGOs ' participation.  Agents from local and regional agricultural 
promotion centres (CeCPA and CeRPA) cooperate in these efforts, together with national and foreign 
research institutes (INRAB, IITA150). 
(c) Livestock subsector and its by-products 
154. The livestock subsector is an important one in Benin and accounts for some 6 per cent of 
GDP.  The main species are bovine animals (some 1. 9 million head), goats (1.5 million), sheep, pigs 
and poultry.  Several production systems coexist,  including transhumance, grazing land and modern 
livestock farms near large cities.  According to the authorities, the modern livestock farms that have 
developed in semi-urban areas to produce eggs for consumption and chicken meat are suffering the 
full effects of competition from imports of frozen poultry and eggs. 
155. The authorities have indicated that Benin is seeking private investment to modernize livestock 
production.  In order to make this investment profita ble, the Government has declared its intention to 
give producers more technical support, particularly  for veterinary inspection and health monitoring 
and through the introduction of programmes to comb at animal diseases, while at the same time 
developing new waterholes.  The persistence of certain animal diseases and the risk that new ones 
may emerge requires constant epidemiological monito ring for which there are still few provisions.  By 
December 2007, Benin had eliminated local outbreaks of avian influenza (H5N1 virus). 
156. A number of measures and programmes have been introduced since 2004 to develop the 
livestock/meat subsector.  Liberalization of the veterinary profession should give better access to 
veterinary care.  Other measures include the modern ization of animal production systems and focus in 
particular on:  (i) building capacity for health monitoring and combating animal diseases;  (ii) improving the performance of local breeds, raising foreign dairy breeds and better "agriculture-livestock" integration;  (iii) developing livestock fodder and cattle feed;  (iv) developing 
new waterholes;  and (v) creating livestock markets.   The principal programmes are the programme to 
support the development of modern poultry br eeding (PADAM), amounting to CFAF 1.17 billion 
(some €1.8 million) for the period 2006-2009;  the project to support the development of livestock 
breeding (PADEL), with CFAF 0.625 billion for the period 2007-2008;  the project for meeting OIE quality standards in veterinary services, which is planned for 2010 (€20 million);  and the project in 
support of the dairy and meat subs ectors (PAFILAV), amounting to CFAF 1.6 billion, which began in 
January 2010. 
157. Benin imports large quantities of meat and edib le offal bearing in mind the size of its 
population (116,248 tonnes of poultry in 2009).  Over 90 per cent of the imports are probably informal re-exports.  This informal trade suggests th at there are large potential outlets for products of 
the livestock/meat subsector in the subregion. 
158. In the livestock subsector, the maximum MFN cust oms duty of 20 per cent applies to finished 
products and the 5 per cent rate to inputs (joint report, Chapter III). 
                                                     
 
149 Helvetas (2006). 
150 IITA online information.  Viewed at:  http://www.iita.org/. WT/TPR/S/236/BEN Trade Policy Review 
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(d) Fisheries production 
159. At the time of the previous TPR, the Government announced its objective of developing 
small-scale fishing sustainably, particularly fish farming on inland waters.  An increase in 
consumption, currently estimated to be 72,700 tonnes per year151, would in fact help to lessen iron and 
iodine deficiency, which is a major problem for the population.  Large-scale investment in the 
subsector is needed for this to be achieved.  Th e chief trade measure in the fisheries subsector has 
been the restrictions on the export of shrimps from Benin to the European Union for SPS reasons. 
160. Benin's drainage system comprises 3,048 km. of waterways and over 333 km2 of lakes and 
lagoons in the south of the country.  Some dozen traw lers are engaged in industrial maritime fishing 
in the exclusive economic zone, which yields around 700 tonnes a year.  This fishing is constrained by 
the low volume of upwelling cold water and th e narrowness of the continental shelf.  Around 
10,000 fishermen and fish traders are engaged in  small-scale maritime fishing (some 10,000 tonnes a 
year) using dug-out canoes.  Most fishing ta kes place in inland waters and employs over 
300,000 people along the country's major rivers and lagoons.  There is also fish farming.  Total 
fisheries production is currently estimated to be 40,000 tonnes annually and includes fish, crabs and 
shrimps. 
161. According to FAO statistics, five importers unload around 45,000 tonnes of frozen fish 
annually in Benin, mainly jacks, sardinella and mackerel.  Fresh and smoked crab and fish are 
exported informally to neighbouring countries.  Ther e have been problems with exports of shrimps to 
the European Union.  For health reasons, Benin had to suspend its exports of fisheries products, 
including shrimps, to the EU as of July 2003.  Measures were taken to facilitate the resumption of 
exports as of 1 February 2005.  Markets lost, however , are difficult to regain and the shrimp subsector 
in particular has apparently not fully recovered from this crisis. 
(e) Sugar 
162. Unlike most other countries in the subregion, Benin does not appear to apply any special 
restrictions on imports of sugar, except for the C ET (20 per cent) and the other import taxes.  In 
June 2005, Benin exported 6,000 tonnes of sugar to Po rtugal.  This was the first shipment of sugar 
from Benin, produced by the new company Sucrière Complant du Bénin (SUCOBE), established in Savè (some 300 km. from Cotonou);  this company em erged from the former Société sucrière de Savè 
(a State-owned company).  The plant started to operate in 2003, has 315 hectares of plantations and 
employs almost 3,500 people.  The parent company Complant is a Chinese firm that has already 
created some 60 sugar mills in other African countries.   This foreign direct investment has been given 
a number of tax exemptions, particularly  under the Investment Code (Chapter II(4)).
152  The sugar 
produced by SUCOBE meets European quality standard s and is exported to the European Union at the 
guaranteed European Union floor price, much higher than the global market price. 
(f) Forestry and timber products 
163. The Secretariat has not received any informati on from the authorities on this sector.  Although 
forests cover an area of around 6 million hectares, over half the land available,  the commercial timber 
sector is not highly developed;  it is estimated that 20,000 hectares of teak are exploited, as well as 
400,000 hectares of palm and coconut plantations.  Protected areas (e.g. national parks) cover an 
additional 2.7 million hectares, or almost 24 per cent of  the land in Benin.  At present, much of the 
                                                      
151 FAO (2008). 
152 Decree No. 2003-477 of 1 Decem ber 2003 listing the taxes from which SUCOBE is exempt.  
Viewed at:  http://www.cour-constitutionne lle-benin.org/doss_decisions/08127.pdf. Benin WT/TPR/S/236/BEN 
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forested area is used for firewood and this provid es some two thirds of the energy consumed in the 
country.  This situation, combined with the insta llation of dwellings in forested areas, migratory 
livestock herding and agricultural clearing are accelera ting the process of deforestation:  in 1980, the 
forested area was 7.8 million hectares, compared to 6.9 million in 1990 and 6.5 million in 1995. 
164. Since the 1980s, ONAB has conducted reforesta tion campaigns to provide 36,000 tonnes of 
firewood a year, but this does not meet annual dema nd, which is estimated to be 3 million tonnes.  
Supply and demand for "wood as energy" shows a defic it and in the medium term the timber supply 
may no longer cover household needs.  ONAB also  has a small and outdate d teak production unit, 
which sells logs, sawn timber, poles, fa ggots and furniture, including for export.153  The export of 
unprocessed teak wood is prohibited.  ONAB needs subs tantial investment for its rehabilitation.  As 
part of its programme to revive the State-owne d enterprises sector, in 1998 the Government decided 
to reorganize ONAB by privatizing its industrial bran ch, which became a subsidiary trading under the 
name "Industrie du bois du Bénin", combining for estry exploitation in teak plantations, local 
processing at sawmills and marketing of the pr ocessed product.  In May 2009, the 559 ONAB 
employees denounced the lack of progress made in th e announced privatization of the company.  At 
the end of 2009, it appeared that a private comp any had bought 65 per cent of the shares in ONAB. 
(3) MINING , ENERGY AND WATER  
165. Expanding energy supplies is a major challenge for Benin and will govern to some extent its 
industrial development.  Benin cu rrently depends on imports for over 98 per cent of its petroleum and 
electricity needs.  A strategy to develop local energy resources and an action plan for renewable 
energy were introduced in 2006 and Benin adopted new petroleum, mining and electricity codes.  The 
strategy has not yet been implemented, while in th e meantime the country is suffering serious energy 
shortages. 
(i) Petroleum and gas products 
166. The subsoil of Benin's coastal basin has several  potential oil deposits and exploration projects 
are under way.  Currently, all hydrocarbons are impo rted, including petroleum and diesel fuel.  The 
latter accounted for some 16.4 per cent of the total value of imports in 2009 (Table AI.1). 
(a) Regulation of production and trade in hydrocarbons 
167. The new Petroleum Code was adopted on 14 July 2006154 and defines the legal and fiscal 
regime for prospection, exploration, exploitation,  refining, transport and marketing of hydrocarbons 
throughout Benin.  The State remains the sole ow ner of all Benin's liquid and gaseous hydrocarbons 
resources.  The Code provides for the following author izations:  prospection, valid for two years and 
renewable for one further year;  exploration, which must begin within three months after the authorization has been granted and whose cumulati ve periods of validity amount to a maximum of 
nine years;  exploitation, granted for a minimum period of 25 years and a maximum of 35 years.  
Exploitation permits give their holders the exclusive right to prospection, e xploration and exploitation 
of the liquid or gaseous hydrocarbons within the perimeter attributed to them. 
168. Compared to the previous legislation, the Code introduces a number of innovations such as 
authorization for inland transport.  This right of transport, including the installation of pipelines in 
                                                     
 
153 Interministerial Order No. 008/MCAT/NDR/DC/DCE/SRE of 29 January 1997, containing detailed 
rules for the export of processed wood of teak and other forest species. 
154 Law No. 2006-18 of 17 October 2006 containing the Petroleum Code in the Republic of Benin.  
This document is apparently not available on the Internet. WT/TPR/S/236/BEN Trade Policy Review 
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land which the holder of the authorization does not own, can be transferred to third parties subject to 
authorization by the Council of Ministers. 
169. The petroleum contract - approved by a decree adopted by the Council of Ministers and 
signed by the Minister responsible for hydrocarbons - is a compulsory first step to obtaining a permit 
for exploration or exploitation, or an exclusive aut horization for exploration or exploitation.  The new 
Code provides for production-sharing contracts (PSC),  in addition to concession contracts (CC).  The 
holder of a CC finances the petroleum operations at  his own risk and has the right to the hydrocarbons 
extracted during the period of validity.  With a PSC , the holder also bears the financial and technical 
risks, but if oil is discovered the State interv enes and shares the hydrocarbons produced with the 
holder according to a scale that is defined in the contract.  Since 2000, only PSCs have been signed 
with State participation varying from 10 to 15 per cent. 
170. The fiscal regime provides for several types of rights related to prosp ection, exploration, 
exploitation and transport of hydrocarbons.  Firstly, a flat rate is levied for the issue and renewal of 
authorizations.  Secondly, there is an annual area royalty for each exploration or exploitation 
authorization, whose amount is determined in a decr ee adopted by the Council of Ministers.  Thirdly, 
the Code introduces a royalty of 8 per cent on the ex-oilfield value of the hydrocarbons produced.155  
Furthermore, the tax on gross profits is specified in the contract but may not exceed 45 per cent.  This tax is not levied in the case of a PSC. 
171. In order to obtain a petroleum permit, any fore ign entity must prove that it has at least one 
stable facility in Benin for prospection operatio ns and a company incorporated in Benin for 
exploration, exploitation and transport. 
172. The Code provides for the granting of a refining permit valid for a renewable period of 
50 years to companies that specialize in refining wi th possible State participation in the refinery's 
assets during its operation.  The holder of the refini ng permit is responsible for marketing the products 
produced in the refinery "on the external market".   Sale on the domestic market complies with the 
applicable texts (see below).  Holders of exploitatio n permits may refine oil in their own facilities in 
Benin or have them refined in other refineries in the country.  Refining companies may seek the 
incentives under the preferential regime s in the Investment Code (Chapter II).  Currently, there are no 
refineries in Benin. 
(b) Import and distribution of hydrocarbons 
173. Benin imports all its petroleum needs.  Within the country, the supply, storage, transport and 
sale of refined petroleum products and their by-products are a State monopoly, which may be 
entrusted either to a State-owned company or a se mi-public company or to one or more Beninese or 
foreign private companies.  In order to import a nd market petroleum products and their by-products, 
private firms must obtain an import and marketing authorization issued by means of a joint decree 
from the Ministers responsible for trade and for hydrocarbons.
156  Firms in the industrial sector, 
generating energy, automobile garages and road works are not entitled to such an authorization 
(Article 10).  The national company marketi ng petroleum products (SONACOP), which had a 
monopoly of the import and storage of finished petr oleum products until 1994, is now competing with 
other approved oil companies which supply major distributors in Benin with petroleum products. 
                                                      
155 The rate is 10 per cent for contracts signed before the Code came into force. 
156 Decree No. 2008-614 of 22 October 2008 containing detailed rules for the import and distribution of 
refined petroleum products and their by-products in the Republic of Benin, Article 4. Benin WT/TPR/S/236/BEN 
 Page 131 
 
 
174. The prices of the main petroleum products consumed are determined monthly by the 
Government on the basis of global prices.  Neverthe less, the sharp rise in these prices in 2008 was not 
wholly transferred to consumer prices (Chapter I).   The only product whose price is subsidized is 
butane gas (CFAF 69/kg.).  There are several fiscal levies on imports of petroleum products 
(Chapter III(2)(v)). 
175. In practice, although a national commission to stabilize the domestic market for petroleum 
products and their by-products (CONAMIP) has been  set up, there are still numerous petrol vendors 
along the roads selling petrol bought illegally in ne ighbouring Nigeria, much cheaper than that bought 
from approved distributors.  Three quarters of the petrol consumed in Benin probably comes from the 
informal sector.157 
(ii) Electricity 
(a) Production, import and distribution of electricity 
176. The population's access to electricity is still modest, with a rate of electrification of 24 per 
cent at the national level, 51 per cent in urban areas and 2 per cent in rural areas, with no great change 
since 2003.  Benin's industries still suffer from une xpected power cuts, and these have intensified 
since 2006.  In general, the endemic energy defic it, frequent power cuts, the problems of expanding 
the networks and inadequate maintenance of exis ting equipment are an obstacle to Benin's economic 
progress. 
177. The Benin Electricity Community (CEB, a binational company belonging to Benin and Togo) 
supplies 85 per cent of the electricity consumed in Benin, which is distributed by the SBEE.  Until 
2007, the SBEE had a monopoly of production and distribution and since 1974 has imported (by 
buying from the CEB), produced, transported and dist ributed electricity in Benin.  The SBEE operates 
some diesel-based thermal stations, which allow it to supply areas not covered by CEB supplies (Chart IV.2).  The national production of electric ity does not appear to have increased since 2000. 
178. The SBEE is supervised by the Ministry respons ible for energy, but has parastatal status, 
which gives it a degree of administrative autonomy.  Nevertheless, decisions on electricity rates are 
taken by the Council of Ministers.  In recent year s, the SBEE has suffered a serious financial crisis, 
partly caused by electricity rates th at are lower than the purchase price. 
179. Until 2007, electricity imports mainly came from the Volta Region Authority (VRA) in 
Ghana and the Ivorian Electricity Company (CIE), wh ich then substantially reduced their supplies of 
electricity to the CEB.  In February 2007, a ne w connection between the CEB's electricity networks 
and those of the Transmission Company of Nigeria star ted to operate in Sakété .  This interconnection 
links the networks in Nigeria, Benin, Togo, Côte d'Ivoire, Niger and Burkina Faso and gives the CEB additional power of 75 MW.  At an overall cost of CFAF 13 billion (€20 million), the project was 
financed by the West African Development Bank, the ECOWAS Bank for Investment and 
Development (EBID), and the African Development Bank.  According to the authorities, because 
Nigeria is close to Benin the cost of this new sour ce of electricity will be lower for the State than the 
energy supplied by Côte d'Ivoire and Ghana. 
 
                                                     
 
157 Interpresse News Agency , "Les trafiquants d'essence sceptiques pour leur reconversion", 
16 February 2009.  Viewed at:  http://ipsi nternational.org/fr/_note.asp?idnews=5222. WT/TPR/S/236/BEN Trade Policy Review 
Page 132 
 
 
0100200300400500600700800
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 20080510152025303540Chart IV.2
Trend in domestic production, import s and total supplies of electricity, 
1996-2008
GWh Percenta ge
Sourc e:Ministry of Mining, Energy and Water Resources.  Viewed at:  http://www.mepred.eu/MSD_ 
WEB/_docs/1_4_VF_Benin.ppt#2).Domestic production
CEB imports
Total supplies
Rate of self-sufficiency (right-hand scale)
 
 
180. Notwithstanding the extent of the hydrographic network which makes Benin a highly 
irrigated country, there is no large-capacity hydroe lectric dam in the country.  Some large-scale 
projects are under way, for example, the Adjrarala hydroelectric dam on the Mono River between Benin and Togo, at an estimated cost of US$162 million.  This should allow the two countries to 
lessen their dependence on energy from outside.  Th e only hydraulic dam is at Yeripao, in the 
north-west of the country, with a capacity of 500 kW, which operates on a seasonal basis and 
generates barely 0.2 per cent of th e electricity consumed in Benin. 
181. The completion of the project to lay a gas pipe line in West Africa linking Nigeria to Ghana 
should enable Benin to import natural gas from Nigeria in order to generate electricity, subject to prior 
transformation of the CEB's gas turbines.  The pipeline should start to operate in 2010.
158 
182. In December 2009, the European Investment Bank (EIB) gave Benin a loan of 
CFAF 20.9 billion (€32 million) for a project to rehabilitate the electricity network, notably by 
building a new 280 km. line linking Onigbolo to Para kou, and the expansion and modification of the 
existing substations in these towns.  The EIB's fina ncing of this project will extend over 22 years and 
is aimed at improving and expanding the electrici ty transport networks between Togo, Benin and 
Nigeria, as well as enabling the CEB to provide mo re reliable supplies, guarantee more reserves for 
local production facilities and lessen losses from the ne twork.  The total cost, estimated to be 
€73.2 million, is financed jointly by the EIB (47.8 per cent), the World Bank (24.6 per cent), the Kreditanstalt für Wiederaufbau (19.1 per cent) and th e developer (8.5 per cent).  Another aim of the 
                                                     
 
158 Togo Television, online information, "Le Direct eur général de WAPCo rend compte au chef de 
l'État de l'évolution des travaux du gazoduc".  Vi ewed at:  http://www.tvt.t g/tvt/spip.php?article1619. Benin WT/TPR/S/236/BEN 
 Page 133 
 
 
project is to rehabilitate the Lomé-Cotonou-Sakété  line, major electricity supply lines linking the 
southern part of Togo and Benin. 
183. Although since 1994 there have been some project s for electrification of rural communities 
situated far from the electricity networks of th e urban centres by using a photovoltaic solar system, 
solar energy appears to be little developed in Beni n and access to renewable energy is low overall.  
The Government also wants to encourage energy s ubstitution so as to obtain greater energy efficiency 
(replacing heavy fuel by natura l gas and charcoal by LPG). 
(b) Trade policy and regulation 
184. The Ministry responsible for energy and wate r resources is in charge of regulating the 
subsector.  According to the Ministry, the global  objective of energy policy is to ensure secure 
supplies for the country so that energy is made  available to households and economic sectors in 
sufficient quantities at the least cost a nd with a reduced environmental risk.159  In particular, it is the 
Government's intention to establish a legal and ins titutional framework that is attractive to private 
investment and to build up electricity supply capacity to respond to the national economy's needs.  To do this, Benin has adopted two new legal texts, na mely, the 2004 International Agreement revising the 
Benin-Togo Electricity Code, and Law No. 2006-16  of 27 March 2007 containing Benin's Electricity 
Code, which defines, inter alia , the criteria for intervention by oper ators in the electricity subsector. 
185. The Benin-Togo Code, in force since 2005, still gi ves the CEB the exclusive right to supply 
electricity as the sole transporter and sole buyer in  both countries.  The CEB may, if needed, also sign 
agreements with neighbouring countries on the im port of electricity.  It is empowered to sign 
agreements on transit and exploitation of surp lus electricity with countries neighbouring the 
two States. 
186. The revision of the Benin-Togo Code in 2004 ended the CEB's monopoly of production, 
opening up branches of production to private operators.  The CEB, however, remains the sole buyer of 
production surpluses.  In regions not covered by th e CEB, the SBEE is the sole buyer in Benin. 
187. Government departments, ministries and State institutions alone consume 8 per cent of the 
total electricity consumed in Benin.
160  This costs the national budget over CFAF 5.7 billion annually, 
and is steadily growing.  This high consumption pe rsists despite the introduction of an invoicing and 
monitoring unit for energy consumption in government departments. 
188. Because of the higher price of imported electric ity, in 2009 the Government decided to index 
electricity rates on production factor costs.  Prior to that, the SBEE supplied its major industrial 
clients (principally cement works and breweries) wi th electricity at highly subsidized prices, some 
90 per cent lower than the rate for shops, ha irdressing salons, dressmakers and restaurants 
(Table IV.6).  In July 2009, the SBEE increased the kWh price of electricity, thereby reducing the 
subsidy for electricity consumption by the same am ount.  The subsidy is currently estimated to be 
CFAF 10/kWh. 
                                                      
159 Ministry of Mining, Energy and Water Resources (2008). 
160 African Manager , "L'administration consomme 8 per cent de l'électricité du Bénin", 14 June 2009.  
Viewed at:  http://www.africanmanager.com/articles/123185.html. WT/TPR/S/236/BEN Trade Policy Review 
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Table IV.6 
Price of electricity, prior to July 2000 and after July 2009 
Price 
Prior to July 2009 After July 2009 Category of client Tranches 
(kWh) 
CFAF/kWh CFAF/kWh Euro cents/kWh 
Low voltage     
Household use 0-20 56 68 10.4 
Shops, hairdressing salons, 
dressmakers, restaurants .. 88 101 15.4 
Public lighting .. 98 112 17.1 
Medium voltage     
Hotels, services, businessesa .. 72 84 12.8 
Pure industries (cement works, 
breweries)b .. 56 68 10.4 
.. Not available. 
a At peak hours, the standing premium of CFAF 3,340/kVA (€6.1) , paid by consumers if there is a partial shutdown or no 
shutdown, rose to CFAF 4,500/kVA (€6.90). 
b At peak hours, the standing premium of CFAF 5,315/kVA (€8.1) rose to CFAF 7,000/kVA (€10.7). 
Source:   Online information from the Government of Benin, "La nouv elle grille tarifaire de l' électricité et de l'eau".  
 Viewed at:  http://www. gouv.bj/spip.php?article1124 
189. Moreover, the CEB and the SBEE both have large losses.  The CEB has heavy debts to its 
suppliers (the CIE and the VRA for buying hydroelect ricity and oil companies for buying fuel for its 
thermal centres) and to the banks (section (iv)).  Th e SBEE also has a deficit, because the average rate 
has remained unchanged at CFAF 81 while the average cost price per kWh of electricity distributed 
rose from CFAF 89 in 2002 to CFAF 104 in 2007 an d CFAF 122 in 2008, thereby becoming a heavy 
drain on the company's cash flow.  In 2006, lo sses were CFAF 12 billion, and in 2007 and 2008 
CFAF 15 billion (€23 million), notwithst anding the government subsidies. 
(iii) Water 
190. The country as a whole is well watered and has re latively large water resources.  According to 
the national vision of water resources in 2025, a st udy which dates back to 1999, by 2025 less than 
18 per cent of underground water reso urces and less than 40 per cent of surface water resources will 
be utilized to meet the water needs of Beni n's population in various branches of activity.161  The study 
indicates, however, that the water management si tuation in 1999 was defined by anarchic and 
uncontrolled exploitation of the resources available,  by inappropriate cultivation methods, by the use 
of increasingly higher doses of chemical fertilizer a nd pesticides (section (2)) and by the absence of 
an adequate sanitation system. 
191. The study recommended the introduction of sustainable management mechanisms for water 
resources in order to guarantee access to drinking water and a healthy environment for all.  The 
priority action to be taken was the following:  to en sure supplies of drinking water for urban and rural 
populations amounting, respectively, to 70 litres and 50 litres per inhabitant per day;  and to give all 
population centres an adequate sanitation network. 
192. According to statistics from the Ministry res ponsible for energy and water resources, some 
40 per cent of the rural population and 57 per cent of  inhabitants in the cities have access to drinking 
                                                      
161 Ministry responsible for energy and water resources (1999). Benin WT/TPR/S/236/BEN 
 Page 135 
 
 
water.162  In 2007, the Ministry recorded some 13,000 water sources - including wells and public taps 
- 13 per cent of which were not functioning properly.  In rural areas, there is one water point for every 
500 inhabitants, corresponding to ten lit res of water per person per day.  Not all regions of the country 
yet have drinking water.  One of the Millennium Development Goals, adopted by Benin, is to 
guarantee access to drinking water for 75 per cent of the urban population and 68 per cent of the rural 
population by 2015. 
193. As regards the distribution of urban drinking  water, the national vision document specifies 
that "the company responsible for distributing drinki ng water will pursue its efforts to provide social 
water connections and to expand the network in order to facilita te access to drinking water for urban 
populations".  SONEB was set up in June 2003 follow ing an institutional reform.  The task of this 
government body of an industrial and commercial nature  is to collect, transport, treat and distribute 
drinking water and dispose of sewage, and to implement government policy on supplying drinking 
water in urban areas.  In 2009, the SBEE provided wa ter to some 56,000 subscribers, with constant 
cuts in the water supply in both Cotonou and Parakou,  as well as many instances of polluted water.  In 
July 2009, SONEB announced an increase in the price of water.  It estimated that the average rate of 
CFAF 372/m3 only covered 86 per cent of the cost price.  The social tranche of 0 to 5 m3 was 
maintained at CFAF 198/m3, while the 5 to 50 m3 tranche rose from CFAF 415 to CFAF 453/m3. 
(iv) Mining products 
194. Benin has a new Mining Code, Law No. 2006-17  containing the mining and mining taxation 
code in the Republic of Benin.  Natural deposits of  mineral substances in the subsoil or on the surface 
throughout the territory of the Republic of Benin be long to the State.  Nevertheless, the holder of a 
mining exploitation permit has the ownership of the mineral substances it extracts.  The new Code 
provides for the following standard permits:  prospec tion authorization, which does not give its holder 
any right to dispose of the substances discovered, wh ich remain the property of the State;  exploration 
permit;  an operating permit valid for ten years and renewable for subsequent ten-year periods until 
the deposit is exhausted;  and sm all-scale or semi-industrial operati ng permits.  The latter only apply 
to indicators of mineral content or deposits wher e it can be proved that exploitation on an industrial 
scale would not be economically profitable. 
195. Exploration and exploitation permits involve an agreement signed by the Minister responsible 
for mining, following approval by decree in the Council of Ministers.  They are signed for a maximum period of 20 years and cover the explora tion period and the first period during which the 
exploitation permit is valid, and are then renegotiated each time the latte r is renewed.  During the term 
of validity of the exploration permit, only its hol der may request and obtain a permit to operate the 
deposits within the perimeter of the exploration permit.  Exploitation of a deposit by a company 
implies giving the State vendors' shares determined  as 10 per cent of the capital of the operating 
company throughout the life span of the mine. 
196. All the tax and customs exemptions provide d under the Code can only be granted in 
connection with a mining agreement duly signed between  the State and the beneficiary.  As far as tax 
is concerned, the exemption applies to the BIC tax and the business tax, as well as local taxes. 
197. The Code provides for an ad valorem  royalty on substances quarr ied, at a rate ranging from 
3 to 10 per cent of the value of the mining production, net of duties, taxes and transport costs.  During the exploitation period, in addition to the ad valorem  royalty, the State levies standing taxes, area 
                                                     
 
162 Afrique en ligne , "L'eau, de plus en plus chère et rare au Bénin", 9 October 2009.  Viewed at:  
http://www.afriquejet.com/afrique-de-l'ouest/benin/l'eau -de-plus-en-plus-chere-e t-rare-au-benin-200910093615
0.html WT/TPR/S/236/BEN Trade Policy Review 
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taxes (whose amount is determined in an order), the BIC tax and other non-deductible taxes covered 
by the General Tax Code.  Holders of exploitati on permits must also pay the business tax after the 
first five years of production and the property tax according to the criteria laid down in the General 
Tax Code.  Various fiscal exemptions ar e allowed during the exploration phase. 
(4) MANUFACTURING  
198. The manufacturing sector is only modest and its  development suffers from fairly high factor 
costs and their relative inefficiency.  According to  UNIDO, value added in the manufacturing sector is 
around US$33/inh. annually, one third of which is e xported;  in 2005, the sector accounted for some 
9 per cent of GDP, but this share had not risen since 2000.163 
199. In all, the products of some 40 companies ha ve been approved for the community preferential 
tax (TPC).  Around half of the 148 products approved  for the TPC (in order to be exported duty free 
within WAEMU - see joint report, Chapter III) are agrifood products:  flour, cereal products, cattle 
cake, cotton oil and other products, juice, preserves, concentrates, syrups and other fruit and vegetable 
preserves.  Other goods manufactured in Benin include those produced by the cotton textile mills.  COTEB is a cotton spinning and weaving complex, pa rtly State-owned;  spinning uses locally ginned 
cotton (see above).  The State also has shares in  SITEX (manufacturer of unbleached fabrics, whose 
privatization is planned), and th e Benin Textile Company (CBT).  SOBITEX (factory making printed 
fabrics) was privatized in 1990.  The made-up clot hing sector is fairly labour intensive and chiefly 
informal.  Because there is little competition among textile companies, cotton exports are mainly in 
the form of lint.  In addition to the food and te xtile industries, Benin produces the following products 
locally:  cement, acetylene, dressings, fertili zer, paints, shampoos and cosmetic products. 
200. Imports of manufactures amount to some €400 million annually, more than ten times the 
value of exports.  The latter are probably higher th an the statistics appear to indicate because of 
re-exports as a result of the important smuggling trade with Nigeria. 
(i) Principal trade regulations 
201. The WAEMU CET is the principal trade policy inst rument at the border.  The simple average 
of the CET, unchanged since 2003, is 11.7 per cen t on non-agricultural and non-petroleum products.  
Using the ISIC definition, the manufacturing sector has a tariff average of 12.2 per cent.  Some 
manufactures are subject to excise duty (joint report, Chapter III(2)). 
202. There are a number of mechanisms to encourage enterprises to seek certification, particularly 
to enhance their export potential, and these in clude the WAEMU quality enhancement programme, 
phase I (2002 to 2005) and phase II (2007 to 2010), the Benin Standardization and Quality 
Management Centre, the Business and Actions firm , and the Association of Quality Management 
Auditors and Consultants.  All these structures provi de training and select those companies to which 
they will provide certification support.  Accordin g to the authorities, six companies have been 
certified for the ISO 9001 standard, version 2000, in Be nin:  TUNDE (a printing firm), the Hôpital de 
la mère et de l'enfant lagune (HOMEL-hospital) ;  the Benin Oil Refining Company (SHB), an 
industrial plant producing refined cottonseed oil, co ttonseed cake and cattle feed;  the airport handling 
service company (see below) in 2008;  the Centre for R esearch into Perennial Plants at Pobè in 2008;  
and the Ecole PIGIER.  Over 25 other companie s have begun certification procedures, including 
                                                     
 
163 UNIDO (2009). Benin WT/TPR/S/236/BEN 
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12 hospitals and 13 companies in the agrifood sector .  Most of these enterprises have received support 
for ISO 9001/2000 certification from the French  Quality Assurance Association (AFAQ).164 
(ii) Upgrading programme 
203. WAEMU's Restructuring and Upgrading Progra mme was officially launched in Benin in 
February 2007.  Its aim is to revive production and enhance the competitiveness of economies at the 
regional and international levels  through reorganization and upgrading of selected companies with 
solid development potential (joint report, Chapte r IV(4)(ii)).  Under this programme, 46 national 
consultants have been trained in  the UNIDO methodology.  In Benin, 70 companies belong to the 
programme, 32 of which have been the subject of  pre-diagnostic studies and in the end 14 were 
approved for the diagnostic stage.  In May 2010, the reports were being examined in order to 
determine the amount of the premiums to be gran ted to these companies.  The planned study for 
preparing the national restructuring and upgrad ing programme has not yet been initiated. 
(5) SERVICES  
(i) Telecommunications and postal services 
204. In the opinion of the Government itself,  Benin is going through an unprecedented 
telecommunications and postal services crisis.  An example "virtually unique in Africa of perennial 
lack of organization combined with uncontrolled opening, with no long-term vision and the absence 
of any regulatory authority, has put the telecomm unications and ICT sector into an indescribable 
disorder that encourages all types of fraudulent practices".165 
(a) Telecommunications 
Overview of the market 
 
205. Since the previous TPR in 2004, Benin's telecommunications sector has grown rapidly, the 
number of mobile telephone subscribers increasi ng from some 236,200 active mobile telephone lines 
in 2003 to 3,625,400 at the end of 2008.166  Mobile telephone density rose from 4.6 per cent to 42 per 
cent.167  In December 2008, Benin had 103,200 fixed telephone lines, a 50 per cent increase in 
comparison with 2003, but the level of fixed teledensity is still low at 1.19 per cent (one telephone per 
100 inhabitants). 
206. The first licences to operate a GSM standard m obile telephony network were granted at the 
end of 1999.  Today, the market is shared between MTN (formerly Bénincell/Areeba, 1.6 million subscribers in December 2009, or 31 per cent of the market), MOOV (formerly Télécel, 
1.4 million subscribers in December 2008, or 27 per cent of the market), GLO 
(1.1 million subscribers, or 22 per cent of the market), BBCOM (850,000 subscribers in December 2008), and Libercom (149,000 subscribers).  Total turnover in the mobile telephony sector 
                                                     
 
164 AFNOR West African Group, online informati on.  Viewed at:  h ttp://www.ao.afnor.org/. 
165 Office of the President of the Republic (200 7), Plan TIC-Bénin, Feuille de route pour 
l'assainissement, le redressement et la dynamisation du secteur des télécommunications et des technologies de 
l'information et de la communication (TIC) au Bénin.  Viewed at:  http://www.cipbenin.org/documents/doc/ 
PLAN_TIC_BENIN%5B1%5D.pdf. 
166 ITU Statistics, online information.  Viewed at:  http://www.itu.int. 
167 ITU online information, "Telecommunication Developm ent Sector:  ICT Eye:  Benin".  Viewed at:  
http://www.itu.int/ITU -D/icteye/DisplayCoun try.aspx?code=BEN. WT/TPR/S/236/BEN Trade Policy Review 
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is CFAF 150 billion (€228 million), with 5 million subscribers.168  The quality of telecommunications 
services, however, is mediocre and suppliers have no t invested enough in the infrastructure:  out of 
100 incoming calls, on average 30 calls are connected automatically first time.169  According to a 
recent technical audit of the GSM operators, the situation appears to ha ve improved in 2010. 
207. There are around half a dozen Internet service providers (FAI-ISP) present in the market, the 
leading one being Bénin Télécoms, the historical opera tor, which sells its capacity to other providers;  
as well as other GSM operators (MTN, MOOV and GLO), although less than 2 per cent of the 
population has access.  Domain names within Benin's country code (".bj") area are administered by 
Bénin Télécoms.170  According to the authorities, a legisla tive text providing for unbundling of access 
to the Internet backbone exists, but by January 2010  it was not yet in force and Bénin Télécoms still 
had exclusive control of access. 
Recent legislative developments 
 
208. All the main government texts concerning the telecommunications sector are listed in 
Table IV.7.  These include Ordinance No. 2002-002,  which determines the basic principles for 
telecommunications services, defining the gene ral regulations for supplying and managing 
telecommunications services, and providing for competition as a principle for the sector's operation (particularly as regards management of the frequenc y spectrum, transparent procedures for attributing 
resources and restricting dominant positions, etc.).  It  also covers the regulation of services, ways of 
protecting the interests of the State (defence, nationa l security) and of users (including the principle of 
universal service, the quality of the service, etc.), and the method of encryption.  The Ordinance does 
not, however, refer to any particular type of ser vice or domain and the implementing decrees have not 
yet been adopted.  For example, in Benin there is  currently no national plan for allocating frequencies. 
209. Ordinance No. 2002-003 provided for the crea tion and laid down the functions of the 
Regulatory Authority for Telecommunications, but it w as not put into effect.  Regulation is currently 
the responsibility of the Ministry of Comm unications and Information and Communication 
Technology (MCTIC), which is in charge of both regulation and supervision of telecommunications 
and postal services. 
210. In 2004, the decree creating the company Bé nin Télécoms, and approving its statutes 
(Table IV.7) divided the Post and Telecommunications  Board (OPT) into two distinct entities:  the 
company La Poste du Bénin and the company Bénin Télécoms.
171  Bénin Télécoms is present in the 
markets for traditional fixed telephony, ADSL, a ccess to cellular telephony (Zékédé), GSM mobile 
telephony (Libercom) and the Internet (Kanakoo).  Although the Government announced the start of 
the procedure to privatize Bénin Télécoms at the e nd of 2008, this had still not occurred by 2010.  The 
company has debts amounting to CFAF 200 billion (some €300 million).172 
                                                      
168 ATRPT (2009). 
169 Online information from the Centre for International ITC Policies, Central and West Africa, 
"L'anarchie dans le secteur, cause d'immenses manques à gagner pour l'État".  Viewed at:  
http://www.cipaco.org/spip.php?article 1201&var_recherche=b per centE9nin. 
170 Online information from the Internet Assigned Nu mbers Authority, "Delega tion Record for BJ".  
Viewed at:  http://www.iana.org/root-whois/bj.htm. 
171 Bénin Télécoms, online information.  Viewed at:  http://www.benintelecoms.bj. 
172 La Nouvelle Tribune , 6 July 2009.  Viewed at:  http://www.lanouvelletribune.info. Benin WT/TPR/S/236/BEN 
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Table IV.7 
Texts and legislation on postal and telecommunications services, 2009 
Legal text Purpose 
Policy and strategy document (DPS) for the telecommunications , information and communication technology and postal sector 
Ordinance No. 2002-002 of 31 January 2002 Containing the basic pr inciples for the telecommun ications regime in the 
Republic of Benin 
Ordinance No. 2002-003 of 31 January 2002 Creating and specifyi ng the competence of the te lecommunications regulatory 
authority in the Republic of Benin 
Law No. 2001-31 of 2 April 2004 Basic principles for the postal regime in the Republic of Benin 
Decree No. 2004-365 of 28 June 2004 Creating the compan y "La Poste du Bénin SA" and approval of its statutes 
Decree No. 2007-209 of 10 May 2007 Creating and specifying the competence, organization and functioning of the 
Transitional Regulatory Authority for Post and Telecommunications 
Decree No. 2007-298 of 16 June 2007 A pproving the clauses of the terms of re ference and determining the conditions 
for establishing and operating the GSM st andard mobile telephony network in 
the Republic of Benin 
Decree No. 2008-507 of 8 September 2008 Conditions for accepti ng and allocating authoriza tions, permits and prior 
declarations for operating telecommunica tions networks or services in the 
Republic of Benin 
Decree No. 2008-780 of 31 December 2008 Approving the policy a nd strategy document (DPS) for the telecommunications, 
information and communication tech nology and postal services sector 
Order No. 2008-046/MCTIC/DC/SGM/CTJ/DGER/SA 
of 29 December 2008 Lifting the suspension of orders for the authorization and operation of the 
various telecommunications services 
Order No. 2008-043/MCTIC/DC/SGM/CTJ/DGER/SA of 29 December 2008 Criteria for the establishment a nd operation of an independent 
telecommunications network 
Order No. 2008-044/MCTIC/DC/SGM/CTJ/DGER/SA 
of 29 December 2008 Determining the list and detailed rules for declarations and commercial 
operation of value added services 
Order No. 2008-045/MCTIC/DC/SGM/CTJ/DGER/SA 
of 29 December 2008 Determining the regime for approval of terminal equipment and radio 
installations 
Order No. 2008-047/MCTIC/DC/SGM/CTJ/DGER/SA of 29 December 2008 Determining fees and royalties for operating non-GSM telecommunications 
services 
Source:   Information provided by the Beninese authorities. 
 
211. Pursuant to Ordinance No. 2002-002 (Artic le 45), Bénin Télécoms' monopoly of fixed 
services (i.e. fixed telephony and international acce ss) was abolished as of 31 December 2005, but no 
regulatory framework determined under what cond itions such services would be provided.  The 
Government adopted a series of orders authorizi ng new forms of telecommunications;  for example, 
one order173 defines the conditions for issuing authoriza tions to operate Internet protocol telephony 
(VoIP).  This order determines the regime and the t ypes of service authorized, defines the criteria for 
granting permits, the royalties and financial c ontributions.  However, according to Decree 
No. 2008-507 (Table IV.7), VoIP is not allowed. 
212. In practice, several operators ha ve set up without any authorization.  On 18 January 2007, to 
remedy the generalized disorder that followed, the Council of Ministers decided to restore Bénin 
Télécoms' monopoly of access to international fixed communications.174  As a result, all broadband 
Internet licences, Internet telephony, ADSL, as we ll as all the orders authorizing the supply of 
telecommunications services such as local radio loops, WiFi, Wimax and prepaid cards, with the exception of Internet service providers and operators of cybercafés operating legally, were suspended.  
It was also announced that the unauthorized technical installations for supplying satellite 
telecommunications services (VSAT) or used to provide  services open to the public in violation of the 
                                                     
 
173 Order No. 001/MCPTN/DC/SGM/DPPT/SA of 13 January 2005. 
174 Online information from the Centre for International ITC Policies, Central and West Africa, 
"L'anarchie dans le secteur, cause d'immenses manques à gagner pour l'État".  Viewed at:  
http://www.cipaco.org/spip.php?article 1201&var_recherche=b per centE9nin. WT/TPR/S/236/BEN Trade Policy Review 
Page 140 
 
 
texts were to be dismantled immediately;  the co st of licences, which had hitherto been granted at 
random, was raised;  and the interministerial or der giving Bell Bénin Communication authorization 
for direct interconnection to link its network to that of Telecel directly was cancelled.175 
Transitional Regulatory Authority for Post and Telecommunications (ATRPT) 
 
213. Pending the introduction of new regulatory texts,  the Transitional Regulatory Authority for 
Post and Telecommunications (ATRPT) was set up in  2007.  The purpose of this authority is to 
reorganize the sector and introduce fair competition.  It is administered by the Directorate-General of 
Surveys and Regulation at the MCPTN.  It re presents Benin in the Committee of National 
Telecommunications Regulators (CRTEL) of WAEMU member States and in the West Africa 
Telecommunications Regulators Assembly (WATRA - joint report, Chapter IV(5)(i)(a)).  Since it was 
set up, the ATRPT has reviewed the agreements and terms of reference for the various telecommunications operators, led the process of up dating the contractual texts in the sector, called 
for candidatures for the fifth GSM operating licen ce in Benin, and it also manages the national 
numbering plan and the radio frequency spectrum, prepares draft decrees for the sector, and settles 
disputes concerning interconnection between GSM operators. 
214. It is generally agreed that the current le gal framework is inadequate for the sector's 
development and does not meet the exp ectations of operators or customers.
176  I n  a d d i t i o n ,  t h e  
relevant WAEMU directives and the ECOWAS add itional acts still have to be transposed.  The 
Government has therefore embarked upon a new reform.177 
(b) Postal services 
215. La Poste du Bénin in its current form dates back to 2004.178  It has 155 offices (each office 
covering around 52,000 inhabitants) and the market is  estimated to be 1.7 million letters a month, 
generating turnover of CFAF 260 million (€400,000 ).  At the end of 2007, La Poste had 
663 employees. 
216. La Poste has a postal monopoly (Law of 16 June  1801), and is the exclusive intermediary 
between senders and recipients of the types of correspondence covered by the Law.  The monopoly 
covers letters, irrespective of their weight, do cuments and packages weighing less than 1 kg.  
According to La Poste, this monopoly is seriously compromised by some 20 individuals which offer some of these services either officially or uno fficially, including express delivery firms, transit 
companies, and the informal courier distribution an d money collection sector.  La Poste is responsible 
both for regulation and for supervisi ng postal services (Law No. 2001-31). 
217. In addition to postal services, in principle La Po ste also provides financial services, including 
money transfers, although it does not have the stat us of a bank.  At the end of 2008, there were 
42,625 post office checking accounts, with total a ssets of some CFAF 9,153 billion (€14 million);  
and 471,900 accounts with the National Savings Bank (CNE) for a total of CFAF 39 billion 
(€60 million).  One of the Government's foremost obj ectives is to draw up a plan for the State's "full 
reconstitution in cash" of the assets of depositors with La Poste.  Some of the other projects envisaged 
by the Government for La Poste include microfin ance postal programmes, programmes to disseminate 
                                                     
 
175 Le Matinal, "Assainissement du secteur des téléco mmunications au Bénin:  Les opérateurs sommés 
d'arrêter l'exploitation frauduleuse", 22 January 200 7.  Viewed at:  http://www.sonangnon.net/actualites/. 
2007/janvier/intlematinal2201_5.php. 
176 Ilougbade, M. (2009). 
177 ATRPT online information.  Viewed at:  http://www.atrpt.bj/missions.php. 
178 La Poste du Bénin, online information.  Viewed at:  http://www.laposte.bj. Benin WT/TPR/S/236/BEN 
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and expand use of the Internet and other related services through the postal network, particularly in 
rural and/or isolated areas. 
(ii) Transport 
218. The Government is aware of the urgent problem s affecting not only the national road network 
and the rail system, but also the port and the airport, which prevent economic growth and 
consequently better living standards for the popu lation.  The Government's objectives for the 
development of transport have been summarized in  a document entitled Sectoral transport strategy 
2007-2011, and investors are being sought to implement it.  This document also serves as a framework for cooperation between Benin and donor s for the financing of transport-related 
projects.
179 
(a) Port services and maritime transport 
219. The Ministry of the Maritime Economy, Maritime Transport and Port Infrastructure is the 
government body responsible for the maritime transport sector in Benin.180  The Autonomous Port of 
Cotonou (PAC), which is a government institution of an industrial and commercial nature with civil 
status and financial autonomy, is responsible fo r port management and inst allation and maintenance 
work.  As one of the major ports in West Africa181, the PAC plays a leading role in the country's 
development and its activities account for a large share of GDP. 
220. The PAC also has a regional role to play, and out of a total of 6.7 million tonnes that went 
through the port, 48.5 per cent was for other countri es, namely Niger, Nigeria and Burkina Faso.  In 
2004, this share was only 28.7 per cent for a total of 4.3 million metric tonnes.  Some of the 
constraints faced by the PAC include insufficien t loading and unloading capacity, and insufficient 
depth for vessels over 3,000 TEU ( 20-foot equivalent).  The slow pace of port services and congestion 
in the port are still identified as obstacles to the development of Benin's trade. 
221. The trend in container traffic is shown in Ta ble IV.8.  In 2007, the Government decided to 
build a new quay with a container terminal in orde r to remedy these problems.  In August 2009, the 
Bolloré Group (France) was entrusted with its plan ning, building, operation and maintenance and was 
given a 25-year concession for its management, against investment estimated to be around 
US$160 million;  the PAC will be responsible for port installation and maintenance.  Consideration is 
also being given to building a second port 20 km. away from Cotonou. 
Table IV.8 
Trend in container traffic, 2001-2009 
(thousands of TEU containers) 
 2001 2004 2005 2006 2007 2008 2009 
Imports 71.0 74.6  126.6  115.7  138.1  159.8  158.0 
Exports 18.1 23.2  31.6  24.9  29.6  34.1  36.8 
Source :  PAC. 
                                                      
179 An electronic copy of this strategy is not yet available on the Ministry's website. 
180 Ministry attached to the Office of the President of the Republic, responsible for the maritime 
economy, maritime transport and port infrastructure.  01 BP 1234 Cotonou - Republic of Benin.  Tel:  (229) 21 31 46 69 / 21 31 58 45, fax:  (229) 21 31 58 45 / 21 31 61 11, e-mail:  dirmarc@yahoo.fr. 
181 Investment Promotion Centre (2000) .  According to this guide, the Po rt of Cotonou is in fifth place, 
after the ports of Lagos (Nigeria), Téma (Ghana), Abidjan (Côte d'Ivoire) and Dakar (Senegal). WT/TPR/S/236/BEN Trade Policy Review 
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222. Two private companies have been operating in  the handling sector since 1998, the Cotonou 
container terminal handling company belonging to the Bolloré Group and the Cotonou Handling 
Company (COMAN) belonging to the Maersk-Seala nd Group, as well as the financially autonomous 
Benin Port Handling Company (SOBEMAP).182 
223. In 2009, 1,170 ships used the Port of Cotono u, including 435 container vessels.  Benin does 
not have any national merchant fleet.  Seven compani es (all foreign) operate in the maritime transport 
services sector in Benin183, the two major ones being the Maersk Line Group, which has its own port 
operations company, and CMA-CGM (Delmas), which has its own terminal in the PAC.  The Association of Benin Shipping Agen ts and Brokers (ACAD) represents these companies' interests.  
Until October 2008, freight rates for TEU containe rs were negotiated under the Europe West Africa 
Trade Agreement (EWATA), which governed much of Benin's port traffic.  EWATA ceased to 
operate in October 2008.  According to ACAD, the market is now highly competitive and new 
shipping companies have appeared in Benin (for example, the Kline compan y with Chinese capital).  
ACAD states that Benin's importers  and exporters do not have any in fluence on freight charges, which 
are dictated by multinational shipping companies. 
224. The CNCB, set up by decree in 1983, is responsib le for protecting the interests of importers 
and exporters, notably by negotiati ng freight rates on their behalf with the shipping companies.  The 
CNCB's resources come from annual subscriptions by importers and exporters, commission on goods 
imported into Benin, and commission paid by shippi ng companies whose vessels call at the Port of 
Cotonou (Chapter III(2)(v)).  According to ACAD, th ese charges raise costs for Benin's international 
trade.  Following the disappearance of the liner  conferences, Benin has still not modified its 
regulations on the CNCB's management of tra ffic rights.  The latter has been given new 
responsibilities by the Government, for example, mana ging the national transport monitoring centre 
and coordinating the Trade Point. 
225. According to an indicator drawn up by UNCT AD, it would appear that Benin's maritime 
transport has become more efficient, although much  remains to be done to make it more competitive, 
and thereby also make the goods and services exported more competitive as well.  The Liner Shipping 
Connectivity Index takes into account nine fact ors, including the number of container vessels 
deployed in liner shipping to and from a country's ports, and their load and container carrying capacity;  the number of ships deployed per capita, their carrying capacity and their frequency.  In 
2008, the highest index was for China (137.4);  in A frica, the countries at the top of the table, i.e. 
those with the best connectivity, were Egypt (48.8), South Africa (28.5), followed by Nigeria (18.3), 
Ghana (18.1), Senegal (17.6), and Côte d'Ivoire ( 16.9).  Benin's coefficient in 2008 was 12, progress 
in comparison with 2004 (10).
184 
(b) Land transport 
Road transport 
 
226. The Ministry attached to the Office of the Pr esident of the Republic responsible for land 
transport, air transport and public works is in charge  of regulating the road and air transport subsectors 
in Benin.185  In 2004, some 40 per cent of the road network of around 16,000 km. was sealed.  Since 
then, there has been investment in road infrastructure, particularly with aid from abroad.  In 
July 2009, a financing agreement for a programme in  support of the transport sector (PAST), part of 
                                                      
182 SOBEMAP online information.  Viewed at:  http://sobemap.com. 
183 Sea Rates, online information.  Vi ewed at:  http://www.searates.com. 
184 UNCTAD (2008). 
185 Online information from the World Road Organizatio n.  Viewed at:  http://www.piarc.org/fr/aipcr/. Benin WT/TPR/S/236/BEN 
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the annual 2008 action plan of the 10th European  Development Fund, involved CFAF 43 billion 
(€65.5 million) for a road project.  Also in July 2009, the Abu Dhabi Fund for Development announced a loan of US$10 million to finance a 75-km. motorway linking Benin, Togo and Nigeria. 
227. Rates for road transport have been liberalized  and access to the profession of carrier has been 
expanded to all WAEMU and ECOWAS nationals on th e same conditions as Beninese.  Nevertheless, 
there are still freight-sharing agreements with  several countries, including Burkina Faso. 
Rail transport 
 
228. The Cotonou-Parakou railway is owned and join tly operated by Benin and Niger, together 
with its road extension up to Niger (Dosso), but th ere is virtually no traffic.  The Benin-Niger joint 
railway and transport organization (OCBN) owns the infrastructure and the rolling stock, all of which 
is in an advanced state of obsolescence.  In 2009,  however, the OCBN received three new engines, 
which could allow it to resume its activities.  It was planned to resume goods transport in 2009 and passenger transport in March 2010.   More generally, the objectives announced by the Government are 
to rehabilitate the existing rail netw ork and to take part in regional development of the rail network. 
(c) Air transport 
229. Benin has only one international airport, the in ternational airport in Cotonou, managed by the 
Agency for Air Navigation Safety in Africa and Madagascar (ASECNA).
186  There are several 
domestic airfields, five of which are usable.187  The Ministry attached to the Office of the President of 
the Republic responsible for land transport, air tran sport and public works is in charge of regulating 
the air transport subsector in Benin. 
230. In principle, the National Civil Aviation Agen cy (ANAC) is the authority in charge of 
monitoring compliance, but is not yet fully operational.188  According to the audit reports by the 
International Civil Aviation Organization (ICAO), much remains to be done to eliminate the 
shortcomings in terms of s upervision of flight safety. 
231. Ordinance No. 26/GPRD/MTP of 26 December 1963 containing the Civil and Commercial 
Aviation Code of the Republic of Dahomey (the Civ il and Commercial Aviation Code in this report) 
is the main legislative provision on civil aviation in Benin.189  According to ICAO, this document 
needs to be revised.  In addition to the technolog ical and safety aspects, it does not incorporate the 
WAEMU regulations and directives (joint report, Ch apter IV), which are of a supranational nature 
and must be transposed into domestic  law in order to be enforceable. 
232. As can be seen from Table IV.9, cargo traffic increased over the past five years at a greater 
rate than passenger traffic.  The only companies pr esent in Benin are private.  Several non-Beninese 
African airlines fly to Cotonou airport in applica tion of fifth freedom rights under the Yamoussoukro 
Decision;  for example, in October 2009, Air Ivoi re was flying to Brazzaville from Cotonou.  There 
was a general ban on the operation of Benin ese air transporters in the European Union.190 
233. Cotonou airport is owned by the Beninese St ate.  The private company Aviation Handling 
Services provides ground handling and, for an indefi nite period, has been given all the operating 
                                                      
186 ASECNA online information.  Viewed at:  h ttp://www.asecna.aero/asecna_administrations.html. 
187 ICAO (2007). 
188 OECD (2009). 
189 ICAO (2007). 
190 European Commission (2009). WT/TPR/S/236/BEN Trade Policy Review 
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rights for restaurants, bars and catering.  "Self ha ndling" and "mutual handling" among airlines are not 
authorized.  In December 2008, the Government a nnounced the building of a new international airport 
at Parakou.191 
Table IV.9 
Indicators for activities at Cotonou airport, 2004-2008 
 2004 2005 2006 2007 2008 2009
Domestic passenger traffic (m illions) 0.004 0.004 0.000 0.004 0.002 ..
International passenger traffic (millions) 0.321 0.301 0.332 0.401 0.394 ..
Total freight ('000 tonnes) 3.0 3.1 4.1 5.6 9.9 ..
.. Not available. 
Source:  ATI online information.  Vi ewed at:  http ://www.rati.com/;  and information pr ovided by the Beni nese authorities.  
(iii) Tourism 
234. The income generated by tourism is a potentia lly major source of ser vices export revenue 
(estimated by the authorities to be CFAF 40 billion in 2008, or €61 million).  Benin's tourism sector 
accounts for some 2 per cent of GDP and is in second place by number of enterprises in the formal 
sector.  It employs some 6 per cent of the labour fo rce, corresponding to 7,500 formal jobs.  For these 
reasons in particular, since 2002 the Government has included tourism services in its enhanced 
development and poverty re duction strategy (2008-2012).192  The declared objective is to attract large 
amounts of private investment in tourism and to make it one of the bases for economic growth.  
Likewise, in its policy letter on development of the private sector, published in November 2006, the 
Government declared tourism development to be one of  its priorities.  The "strategic orientations for 
development in Benin, 2006-2011" declare the same objective. 
235. Benin is currently the fifth tourism destinati on in West Africa, but is far behind Senegal, 
Burkina Faso, Ghana and Nigeria in terms of reve nue and tourist arrivals.  In 2008 the number of 
annual arrivals of non-resident to urists was 188,000, a modest figure that only saw a slight increase 
since 2003 (175,000 arrivals).193  The average stay nevertheless increased from 1.24 days in 2004 to 
3.75 in 2008, in other words the average stay in Be nin tripled, according to the authorities because the 
country's image had improved.  The number of in ternational visitors a rriving in Benin probably 
reflects the extent of its commercial activities just as much as tourism. 
236. The Ministry of Tourism and Crafts is r esponsible for implementing the Government's 
decisions and directives on tourism, in partnership with the CPI.194  In order to improve the promotion 
of tourism in Benin abroad, the Directorate of Tourism Coordination and Pr omotion set up a website 
in 2008.195  The National Tourism Council (CNT) helps to draw up policy on tourism. 
237. Overall, the sector is open to foreign compani es.  Direct investment  has been bound by Benin 
under the GATS;  in its GATS Schedule of Specific Commitments, Benin undertook to maintain hotel 
                                                      
191 Agence de presse africaine , "Le Bénin disposera en juin 2010 d'un second aéroport international", 
29 December 2009.  Viewed at:  h ttp://apanews.net/apa.php?article84218. 
192 Online information from the Government of the Republic of Benin, "Document de stratégie de 
réduction de la pauvreté du Bénin (DSRP BENIN 200 3-2005)".  Viewed at:  http://www.gouv. bj/spip. 
php?article273. 
193 Online information from the World Tourism Organization, "Yearbook of Tourism Statistics".  
Viewed at:  http://www .unwto.org/index.php. 
194 CPI online information, "Tourisme".  Viewed at:  
http://cpibenin.com/index.php?page=tourisme&hl=fr_FR. 
195 Bénin tourisme, online information.  Viewed at:  http://benintourisme.com. Benin WT/TPR/S/236/BEN 
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and restaurant services open to foreign commercial presence.  The entry and temporary stay of 
directors, senior executives and specialists transf erred by a company establishing itself in these 
sectors in Benin were also bound.  Travel agencies installed outside Benin (cross-border supply) must 
work through a Beninese or foreign agency established in the country. 
238. The legislative framework for the tourism sector has apparently not changed since the 
previous TPR.  The main legislative instrument continues to be Law No. 93001 of 3 August 1993 on hunting and tourism, which made private investment in this sector possible.  Until then, FDI was not 
allowed in the hotel sector, which was fully ow ned by the State.  Currently, the number of 
establishments whose capital is partly or fully owned by the Government is five, including three 
hunting camps. 
239. Tourism is developing chiefly along the coast (e specially under the fisheries route project), 
but the country also has two natural reserves (P endjari Park and Park W).  Benin has around 
750 hotels, with accommodation capacity of some 20,000 beds.  It is often stated that the quality of 
accommodation and transport in the interior ( see the section on land transport) could do with 
improvement. 
240. Several other factors govern Be nin's expansion as a venue for tourism.  The stability and 
convertibility of the CFA franc is an undeniable a dvantage, but its strength in comparison with other 
currencies in real effective terms means that operato rs constantly have to keep the price for tourism 
services at competitive levels in comparison with ot her similar destinations outside the franc zone. 
241. The lack of competition among airlines flying to Benin and the absence of charter flights 
remain obstacles to development of tourism, a lthough some progress has been made, especially the 
arrival of some charter airlines.  Furthermore, th e quality of drinking water and electricity services 
(see above) also hampers the development of tourism.   Another subject of complaint by those working 
in the subsector is the high rate of VAT, at 18 per cent. 
242. Developing tourism also means confronting many environmental problems that threaten 
natural resources and are caused for the most part by  non-sustainable exploitation of resources.  In this 
connection, in 1997 Benin ratified the Abidjan Conve ntion, which serves as a basis for the policies 
implemented in several West African coastal countri es to remedy the ecological problems they share.  
The Abidjan Convention was signed in March 1981,  and came into force in 1984.  It covers 
22 countries, including Benin.
196 
(iv) Financial services 
(a) Banking services 
243. Banking services in Benin are subject to WAEMU's common banking regulations and the 
prudential measures determined by the WAEMU Ba nking Commission, which also has a monitoring 
role (joint report, Chapter IV).  Applications fo r approval of new credit institutions are submitted to 
the BCEAO, which verifies their contents and thei r compliance with WAEMU's banking regulations, 
and then forwards them to the Banking Comm ission, which gives its opinion.  Directive 
No. 8/2002/CM/UEMOA had not yet been transposed into domestic law by May 2010 (joint report, 
Chapter IV). 
                                                      
196 Online information from the Benin Information Exchange Centre, "Conventions liées à la diversité 
biologique:  Convention d'Abidjan".  Viewed at:  http://www.biodiv.be/benin/convention/fol899756. WT/TPR/S/236/BEN Trade Policy Review 
Page 146 
 
 
244. Under the GATS, banking services for deposits, loans, payments and transfers have been 
bound for modes 1 to 4.197  Banks must be established in the fo rm of public limited companies with 
fixed share capital having their principal place of business in Benin or, by special authorization, in the form of cooperative or mutual soci eties with variable share capital.
198  In addition, according to 
Benin's current labour legislation, any person acti ng as the director, administrator or manager of a 
bank or financial institution or one of their agenci es must be of Beninese nationality unless the bank 
has been allowed assimilation to nationals of the Republic of Benin under an establishment 
agreement. 
245. At the end of 2008, Benin had 12 banks a nd one financial institution approved by the 
BCEAO.199  The four largest banks controlled 75 per cent of market share in terms of the total amount 
on the balance sheet.  There is a strong foreign presence, with non-Beninese controlling some 50 per 
cent of the cumulative capital in the banking sector, whereas the percentage was 74 per cent at the end 
of 2007.  Seven of these 12 banks comply with the prudential and solvency requirements (joint report, 
Table IV.6).  In 2008, the average solvency ratio of  Beninese banks was less than 6 per cent, in other 
words below the regulatory minimum of 8 per cent.  One of the Beninese banks was ordered to bring 
its own funds up to the regulatory level before 30 June 2009 and to ensure compliance with all the 
prudential regulations, as well as implementing a credib le plan for sustainable recovery .  Four new 
"small banks" (whose total balance sheet did not  exceed CFAF 65 billion at the end of 2008, 
corresponding to €100 million) have been approved by the BCEAO since 2004. 
246. At the end of 2008, customers' total cred it was CFAF 692 billion (around €1 billion), and 
annual growth was 21.2 per cent compared to the 22.5  per cent recorded in 2007.  The five largest 
beneficiaries of loans were active in business and received half of all loans.  Short-term loans 
accounted for 55 per cent of the total funds granted to customers.200  Overall, access to credit remains 
a major problem for a large section of the population. 
247. Microfinance assists with loans to farmers and micro, small and medium-sized enterprises.  
These are mainly savings and loan cooperatives.  These "decentralized  financial systems" (DFS) are 
usually self-financed, but there are also institutions  financed by NGOs and others financed by the 
Government.  The DFS institutions are subject to common WAEMU regulations established by the 
member States.201  In Benin, the DFS are supervised by the Ministry responsible for finance.  Some 
30 microfinance institutions have been registered  with the BCEAO Directorate of Decentralized 
Financial Systems.202 
(b) Insurance services 
248. There are around ten insurance companies203 and at the end of 2007 around the same number 
of insurance brokers had been approved by the Mini stry of the Economy and Finance, the supervisory 
                                                      
197 WTO document GATS/SC/11 and GATS/EL/11 of 15 April 1994. 
198 Law No. 90-018 of 27 July 1990 containing the banking regulations. 
199 BCEAO (2009). 
200 Idem . 
201 Law No. 59/94/ADP of 15 December 1994 and its Implementing Decree No. 95-308/PRES/MEFP 
of 1 August 1995. 
202 BCEAO online information, "La microfinance dans l'UMOA".  Viewed at:  
http://www.bceao.int/inte rnet/sfd.nsf/wfrasfd. 
203 These are:  UBA-Vie (Life, capitalization), Afri caine des assurances (General), Assurance et 
réassurance du Golfe de Guinée (L ife, capitalization), Fédérale d'a ssurance (General),  Colina (Life, 
capitalization), NSIA (General), NSIA Vie (Life, capitalization), Générale des assurances du Bénin (General), 
SAARB (General), PAPME Vie (Life,  capitalization), SADES Bénin (Lif e, capitalization), AVIE (Life, 
capitalization) and AGF Bénin (General). Benin WT/TPR/S/236/BEN 
 Page 147 
 
 
body for the subsector, which publishes an annual report on the insurance subsector.204  According to 
the annual report for 2007, insurance companies on the domestic market wrote premiums for an 
amount totalling CFAF 25.7 billion (€39 million) in  2007.  The subsector's turnover corresponds to 
around 1 per cent of GDP with per ca pita expenditure of CFAF 3,285 ( €6).  Two thirds of the profits 
earned in 2007 came from investment management and the rest from the main insurance activity.  The 
amount of cumulative outstanding insurance prem iums in 2007 was CFAF 8.44 billion (almost 
€13 million), i.e. one third of the subsector's turnover.   According to the report, the measures taken by 
insurance companies for more efficient manageme nt of collection of premiums and reducing the 
outstanding amounts on the premiums written should allow this figure to be reduced. 
249. Fire, accident and risk insurance (general) acc ounted for 76.5 per cent of the total premiums 
written at the end of 2007, with the rest coming from life insurance (23.63 per cent).  The total 
premiums assigned to reinsurers from general in surance amounted to CFAF 3.2 billion (almost 
€5 million). 
250. The 1995 CIMA Code governs direct non-mari ne insurance activities (joint report, 
Chapter IV).  Insurance companies must be incorporated in Benin.205  In addition to third-party 
insurance for motorized road vehicles, which is compulsory under the CIMA Code, the following 
insurance is also mandatory:  third-party insuran ce for users of commercial or fishing vessels;  and 
insurance of goods at importation, irrespective of the mode of transport used (air, sea or land).206 
(v) Professional and business services 
251. Although professional services are regulated at the national level, the WAEMU Commission 
has adopted a number of directives since 2005 with  a view to allowing free movement for certain 
trades and the exercise of certain professions temporarily, on a self-employed or salaried basis, within the WAEMU area (joint report, Chapter IV(5)(v)). 
V. AID FOR TRADE
207 
(1) OVERVIEW  
252. Since the previous review of its trade policy in 2004, Benin has embarked upon an 
institutional and structural reform process with the aim of encouraging the emergence of a prosperous 
and competitive economy, in accordance with its vision  "Benin 2025-Alafia".  The reforms set out in 
its Growth Strategy for Poverty Reduction pr ogramme (SCRP 2007-2009) include most of the 
recommendations in the Diagnostic Trade Integrat ion Study (DTIS) for implementation of the 
Integrated Framework (IF). 
253. The Growth Strategy for Poverty Reduction receives support from Benin's bilateral and 
multilateral donors, the vast majority of which ha ve redirected their assistance programmes towards 
Benin's national trade-related priorities.  Accord ing to OECD statistics, between 2005 and 2008, Aid 
                                                      
204 Ministry of the Economy and Finance (2008). 
205 Law No. 92-029 of 26 August 1992. 
206 Decree No. 99-079 of 12 February 1999. 
207 Aid for Trade (AFT) aims to help developing countries to increase their exports of goods and 
services and to become integrated into the multilateral trading system.  The following are deemed to be 
AFT activities:  projects and programmes whose activities have been identified as trade-related development priorities in the national development strategies of the be neficiary country.  Six cate gories have been identified 
as coming under AFT:  (i) trade policy and regulations;  (ii)  trade development;  (iii) tr ade-related infrastructure;  
(iv) building up production capacity;  (v) trade-relate d adjustment;  and (vi) other trade-related needs. WT/TPR/S/236/BEN Trade Policy Review 
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for Trade (AFT) accounted for 30 per cent of official development aid (ODA) to Benin.  The 
authorities consider, however, that they have not benefited from AFT since 2005 and maintain that 
this special aid should be additional. 
254. As part of its national developm ent strategy and its plan to revive the private sector and for 
economic diversification208, Benin sees trade as an instrument  for growth and poverty reduction.  
Nevertheless, it is not yet possible to see the impact of trade on growth and poverty because there is no practical and operational action plan backed up by a financing plan. 
255. Benin continues to face many challenges in implementing its national development strategy, 
for example, the mobilization of external resources or aligning aid from its TFPs
209 with national 
development priorities.  Consequently, in order to  improve the mobilization of external resources and 
to strengthen its cooperation with its TFPs, Benin is currently prepar ing its national development aid 
policy (PNAD) and is putting in place a system for the management of information on development 
aid (SGIAD). 
256. The Ministry of Trade is not the leader in c oordinating and supervising the trade integration 
strategy210 or for the implementation of the AFT progra mme.  At the same time, Benin does not make 
sufficient use of the Enhanced Integrated Fr amework (EIF) mechanism for the purpose of 
implementing AFT.  The Government and its TFPs ther efore need to make further efforts to ensure 
that AFT is more effective through significant im provements in the coordination, predictability and 
alignment of donors with national priorities. 
(2) INTEGRATION OF TRADE INTO THE NATIONAL DEVELOPMENT STRATEGY  
257. The integration of trade into Benin's nati onal development strategy is part of the 
Government's 2006-2011 strategic development orientations (OSD), whose main objective is to lay 
the bases for an emerging economy. 
(i) National development strategy 
258. In order to make AFT operational in Benin,  trade was integrated into its SCRP II 
2007-2009211, which ended in December 2009.  The next SCRP III 2011-2015212, which was still 
being drawn up at the time this report was prepared, follows the same lines. 
259. The strategic axes chosen to serve as the bac kbone for the SCRP II's conceptual framework 
include the objectives in the OSD.  It should be not ed that the future SCRP  III has adopted the same 
strategic axes, but extended over five years instead of three.  The five strategic axes are the following:  
(i) accelerated growth;  (ii) development of infrastructure;  (iii) building up human capital;  
(iv) promotion of good governance;  and (v) balan ced and sustainable national development.  In each 
of these axes, different aspects of trade are taken into  account.  For the first axis, the priorities are to 
stabilize the macroeconomic framework, revive the private sector, diversify the economy and promote 
                                                      
208 Government of the Republic of Benin (2007). 
209 This expression refers to donors, development donors and financing sources alike. 
210 OECD online information, "Questionnaire sur l'Aide  pour le commerce aux pays destinataires, 2009 
- Bénin".  Viewed at:  http://www.oecd.org/dataoecd/2/11/43164302.pdf. 
211 UNDP online information.  Viewed at:  http://www.undp.org.bj/fr/doc_strategiques.html. 
212 The SCRP III is under pr eparation.  The preliminary draft is being examined with a view to the 
holding of departmental consultations and its subseque nt submission to the TFPs and national and diplomatic 
institutions. Benin WT/TPR/S/236/BEN 
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regional integration.  For the second axis, the fo cus is on developing the economic infrastructure213, 
including transport and energy, as well as water resources and sanitation infrastructure.  Better vocational training comes under the third axis.  The fourth lays emphasis on accelerating administrative reform, while the fifth focuses on the emergence of poles for development and growth.  
The SCRP II has a priority actions programme (PAP) intended to put the strategic axes into effect in 
terms of projects and programmes so as to cont ribute towards growth and poverty reduction. 
260. For the time being, the SCRP II is the refe rence framework for all Benin's development 
policies and strategies and has also served as a platfo rm for dialogue between the Government and its 
TFPs. 
(ii) Integrated Framework 
261. As an LDC, Benin has been a beneficiary unde r the Integrated Framework for trade-related 
technical assistance since 2004.
214  One of the important steps in this mechanism is the DTIS215, which 
was conducted by the World Bank in Benin between 2004 and 2005.  Through a detailed analysis of 
Benin's trade policy, the DTIS identified the main c onstraints on expansion of its foreign trade, as 
well as those sectors with high export potential.  Based  on the conclusions of this study, a certain 
number of recommendations on economic reform were  made, and the related technical assistance 
needs defined.  All these measures can be found in  the DTIS action matrix, which provides a list of 
the priority activities and the type  of technical assistance needed. 
262. The DTIS thus identified five economic reforms defined as "high" priorities, with 75 specific 
actions to be carried out in the short, medium and long terms.216  These are the following:  (i) to 
improve trade facilitation;  (ii) to combine and reorganize trade and investment support institutions 
into a single Export and Investment Promotion Agency (APEI);  (iii) to improve the judicial, legal and regulatory frameworks so as to increase private inv estment and trade;  (iv) to reform the cotton 
subsector;  and (v) to obtain better access to regi onal markets within WAEMU and ECOWAS and to 
create an environment that will incre ase trade between Benin and Nigeria.
217  Among these reforms, 
however, trade facilitation stands out as the most important.  It is underpinned by a series of 
21 measures to be implemented in order to improve:  the efficiency of port services, port 
infrastructure, customs administration and good governance in customs procedures, as well as the 
road and rail infrastructure. 
263. The DTIS and its action matrix were endorsed by the Government in March 2006.  Most of 
the trade-related priorities listed in the action matrix  were incorporated into Benin's SCRP 2007-2009.  
Currently, it is planned to update the DTIS in 2012, according to the Ministry of Trade. 
(iii) Supply-side constraints 
264. The various analyses of Benin's trade developm ent (DTIS, SCRP and Chapters II and IV of 
this report) provide a non-exhaustive list of the ma in constraints on Benin's development:  (i) the 
inadequacy and high cost of basic economic infrastructures (transport, telecommunications, energy, 
                                                      
213 Government of the Republic of Benin (2007), pp. 31 and 42. 
214 This mechanism was set up in 1997 with the aim of helping least developed countries to build up 
their trade capacity and integrate their trade priorities into their national global development strategies.  The 
implementation of the IF mechanism comprises four stages:  (i) preparatory activities;  (ii) a DTIS;  (iii) a plan 
to integrate trade strategy into the national developm ent strategy;  and (iv) implementation of this plan. 
215 World Bank (2005). 
216 Idem . 
217 Idem . WT/TPR/S/236/BEN Trade Policy Review 
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port, road networks, water and sanitation);  ( ii) the economy's strong dependence on cotton;  
(iii) insufficient agricultural and industrial production capacity;  (iv) the economy's low level of diversification;  (v) the high cost of production f actors;  (vi) complex administrative procedures;  
(vii) inadequate regulatory and judicial systems;   (viii) the overriding importance of the informal 
sector;  (ix) limited human and institutional capacity;  (x) a business climate (security of contract, 
security of land tenure, governance) that is still unfa vourable;  (xi) obstacles to internal and external 
trade facilitation;  (xii) little private/public sector  dialogue;  (xiii) the lack of accredited laboratories 
for controlling quality and product sta ndardization;  (xiv) the high cost of financing;  (xv) the 
problems faced by SMEs-SMIs in obtaining financ ing and complying with standards and quality 
requirements;  and (xvi) difficult access to information. 
(iv) Aid for Trade needs 
265. Because of the large number of constraints mentioned above, AFT needs are particularly 
important in order to build Benin's trade capacity  and eliminate the bottlenecks that are hampering 
trade. 
266. In its replies to the joint questionnaire on A FT, the Government identified those areas of 
intervention which it deemed to be priorities.  Fo r example, it mentioned the network infrastructure 
(electricity, water, telecommunications), the diversif ication of exports and trade facilitation.  These 
choices are justified for several reasons.  The economi c infrastructure indeed plays a strategic role in 
the development process, as underlined in the SCRP.  This is why this area requires more financing 
and investment in view of the weakness of the ex isting infrastructure (Chapter IV).  In addition, 
diversifying exports is also  another major challenge for Benin if it is to move away from its status as a 
single-crop exporter of cotton.  Aid would, inter alia , enable agriculture, fisheries and the agrifood 
industry, as well as other emerging sectors, to resolv e their quality control, marketing and financing 
difficulties.  Trade facilitation is another priority .  Despite the reforms undertaken to streamline 
customs procedures and port operations in the port of  Cotonou, assistance is needed not only to bring 
the single window into operation, and to computerize all customs posts, but also to buy scanners to 
control imports. 
267. At the same time, the authorities (officials a nd government bodies) together with the private 
sector have identified a certain number of technical assi stance needs, focusing in particular on human, 
institutional and training capacity building, deem ed essential for developing exports and promoting 
trade.  There needs to be a trained and qualified labour force in all the key sectors of the economy 
through appropriate vocational training structures. 
268. It is generally agreed that WTO technical assistance in this respect is indispensable.  
Understanding of the WTO Agreements and the DDA negotiations have to be  improved, both among 
officials from the ministries involved and in the pr ivate sector, so that the rules of the multilateral 
trading system become second nature and the be nefits derived serve to promote more active 
participation.  The private sector would like the Gove rnment to involve it more closely in the training 
provided by the WTO.  The country could also be nefit from workshops on specific topics that respond 
to its current concerns in implementing the Agr eements, such as preshipment inspection, customs 
valuation, SPS and TBT measures, or the dispute se ttlement mechanism.  In addition, the Secretariat 
could give Benin assistance for its notifications.  Si nce 2004, very few notifications have been made 
concerning tariffs and statistical data on im ports or SPS measures and rules of origin. 
269. Technical and scientific institutions have also expressed other needs such  as the need for new, 
modern equipment, access to new agricultural and industrial production technology.  Likewise, trade Benin WT/TPR/S/236/BEN 
 Page 151 
 
 
promotion institutions could benefit from assistan ce to create websites for putting trade information 
on line. 
(3) AID FOR TRADE ASSISTANCE  
(i) Overview of development aid flows in the economy 
270. OECD statistics show that the volume of ODA to Benin was US$2,715 million between 2005 
and 2008.  It is provided by Benin's 27 bilateral and multilateral donors.  These mainly direct their aid 
to budget support as a mechanism for financing the implementation of the SCRP.218  Although budget 
support remains the main financing tool, donors also provide support for projects or programmes through which they channel their financial aid.  In addition, Benin benefited on several occasions 
from special financial aid programmes under the Heav ily Indebted Poor Countries (HIPC) Initiative 
between 2000 and 2003 a nd under the Multilateral Debt Re lief Initiative (MDRI) in March 2009 
(Chapter I). 
(ii) Overview of Aid for Trade 
271. According to the database on aid activities in the OECD's Creditor Reporting System (CRS) 
(Table V.1), the amount of total AFT commitments for Benin was US$832 million
219 over the period 
2005-2008. 
272. Between 2006 and 2007, the six major AFT donors220 were the United States of America 
(US$94.9 million), the European Union (US$38.6 million), France (US$11.1 million), Denmark (US$7.2 million), Belgium (US$4.5 million) and the Netherlands (US$3.7 million), which alone 
contribute 93.8 per cent
221 of AFT for Benin (Table V.2 gives an overview of donors' action). 
273. Between 2005 and 2008, the three areas that received the majority of AFT were:  transport 
and storage, with US$348 million, trade policy an d regulations, US$187 million, and agriculture, 
US$122 million.  The sectors that received the most aid correspond in part to the priority areas for action identified by Benin in the AFT questionnair e.  Between 2005 and 2008, the flow of AFT was 
irregular and this raises the probl em of predictability.  In 2005, A FT represented 35 per cent of ODA, 
but it fell by half in 2007 when it was only 19 per cent.   There was a slight recovery in 2008, to 29 per 
cent, but there has been no return to the 2005 le vel.  Benin considers that since 2005 it has not 
received any flows of AFT.
222  It should be noted in this connection that the authorities have stressed 
that AFT should not be included in ODA but should  be completely separate for greater clarity and 
visibility regarding the areas it finances. 
                                                      
218 A consultation forum called the ABC Group (joint budget support) comprises nine bilateral and 
multilateral donors and provides support for the Government's budget on the basis of an unearmarked 
contribution that allows all current budgetary spending to be financed:  European Union, Denmark, Switzerland, the Netherlands, Germany, France, Belgium, World Bank, and the African Development Bank. 
219 Figures obtained after calculating the total amounts of AFT in the CRS table below. 
220 OECD/WTO (2009). 
221 Idem. 
222 OECD online information, "Questionnaire sur l'Aide  pour le commerce aux pays destinataires, 2009 
- Bénin".  Viewed at:  http://www.oecd.org/dataoecd/2/11/43164302.pdf. WT/TPR/S/236/BEN Trade Policy Review 
Page 152 
 
 
274. At the same time, as part of its reform of the cotton subsector, which aims at making it more 
competitive, Benin received specific developmen t aid for cotton amounting to US$69,470,266 
between 2002 and 2008.223 
Table V.1 
Aid for Trade flows:  CRS auxiliary data224, 2005-2008 
(US$ million, 2008 constant prices) 
CRS purpose codes Commitments 
 2005 2006 2007 2008 
Trade policy and regulation, a nd trade-related adjustment     
33110 Trade policy and administrative management 0.00 177.24 2.88 3.45 
33120 Trade facilitation 0.04 0.00 0.14 3.52 
33130 Regional trade agreements (RTAs) 0.00 0.00 0.00 0.00 
33140 Multilateral trade negotiations 0.00 0.00 0.00 0.00 
33150 Trade-related adjustment 0.00 0.00 0.00 0.00 
33181 Trade education/training 0.00 0.00 0.03 0.00 
 Subtotal 0.04 177.24 3.05 6.97 
Economic infrastructure     
21010 to 
21081 Transport and storage 124.15 83.01 24.83 113.39 
22010 to 
22040 Communications 0.02 1.86 0.30 1.75 
23010 to 
23082 Energy generation and supply 0.01 17.05 6.38 18.86 
 Subtotal 124.22 101.92 31.51 134 
Building productive capacity     
25010 Business support services and institutions 8.53 3.19 0.05 0.1 
24010 to 
24081 Banking and financial services 9.95 20.66 0.15 0.1 
31110 to 
31195 Agriculture 18.76 17.6 56.95 29.20 
31210 to 
31291 Forestry 60.16 0.01 0.00 0.00 
31310 to 
31391 Fishing 3.04 0.54 4.81 1.65 
32110 to 
32182 Industry 0.83 5.31 1.04 5.40 
32210 to 
32268 Mineral resources and mining 0.03 0.06 0.06 0.00 
33210 Tourism 0.00 0.00 0.00 0.06 
 Subtotal 101.3 47.37 63.06 36.51 
Total Aid for Trade 225 326 97 177 
Share of total ODA (%) 35 34 19 29 
Memorandum item:  Total ODA 636 957 514 608 
Memorandum item:  Populatio n (million) 7.8 8.1 8.3 8.6 
Source :  OECD online information.  Viewed at:  
http://www.oecd.org/documen t/21/0,3343,en_2649_34665_43230357_1_1_1_1,00.html. 
 
 
                                                      
223 WTO document WT/CFMC/6/Rev.7 of 9 November 2009, page 13. 
224 The AFT commitments may differ from the actual payments for several reasons, including the 
time-frame for payment. Benin WT/TPR/S/236/BEN 
 Page 153 
 
 
Table V.2 
Donor actions 
Donors Overview 
World Bank: 
Country Assistance Strategy 
(CAS) 2009-2012 The World Bank's portfolio, financed by the Intern ational Development Association (IDA), supports a 
number of projects for a total commitment for all the projects amounting to US$308.3 million.  Areas of 
intervention:  strengthening econom ic reforms;  private sector growth;  human development;  better 
infrastructure;  rural development and the environmen t.  The Bank also participates in the joint budget 
support. 
African Development Bank 
(AfDB): 
Country Strategy Paper (CSP) 2005-2009 The African Development Fund (ADF-X) pledged US$78 million in grants and loans to implement the 
CSP in Benin over the period 2005-2009.  Areas of intervention:  the agricultural sector in support of 
diversification of production;  build ing capacity and improving access to h ealth services.  The AfDB also 
participates in the joint budget support. 
European Union: 
Country Strategy Paper for 
Benin and European 
Development Fund The European Union gives Benin support through th e European Development Fund (EDF).  Under the 
9th EDF, €208 million were disbursed over the period 2002- 2007 to finance the road transport subsector 
and the health sector, to support eco nomic reform and to provide institu tional support.  Over the period 
2008-2013, the 10th EDF earmarked €334 million for financing four areas:  joint budget support for 
poverty reduction;  governance and local development;  infrastructure and horizontal activities.  The 
European Union also participates in the joint budget support. 
France: 
France-Benin Framework 
Partnership Document 
2006-2010 and French 
Development Agency (AFD) France was the leading bilateral donor between 2006 and 2007.  It disbursed US$70 million in ODA 
between 2006 and 2007.  Its aid is implemented by the French Development Agency (AFD).  The AFD's 
priorities focus on three areas:  e ducation, rural development and in frastructure.  Over five years 
(2003-2007), average annual commitm ents were €30.8 million and disb ursements €6.5 million.  France 
also takes part in the joint budget support. 
United States: 
United States Agency for 
International Development 
(USAID), Millennium 
Challenge Account (Millennium Challenge Corporation) The United States provided US$73 million through the USAID action programme between 2007 and 
2009.  This programme focuses on three sectors:  educati on, health and access to social services.  Benin is 
eligible for the Millennium Challenge Account (MCC) .  In February 2006, the MCC signed a compact on 
US$307 million for Benin for the period 2006-2011.  The priorities are access to land, to financial 
services, to justice and to markets.  Substantial su pport is given to the Port of Cotonou amounting to 
US$169,447,000 (construction and rehabilitation of waterside facilities). 
Denmark: 
Benin-Denmark Partnership 
Agreement 2004-2008 This strategy amounts to DKr 900 million or €175 mi llion, shared between the following sectors: 
agriculture (12%), water and sanitation (25%), tran sport (25%), education (13%), human rights and good 
governance (5%), budget support (15%) and other (5%).  Denmark is also the donors' facilitator under the 
EIF mechanism.  It also contributes to the global budget support. 
United Nations: 
United Nations Development Assistance Framework Plan 
(2009-2013) 
 
Other donors The Framework Plan has three areas of interven tion:  (i) poverty reducti on through accelerated rural 
growth and the promotion of decent jobs;  (ii) equal access to high-qua lity basic social services;  and 
(iii) promotion of good governance and participatory development.  An estimated amount of 
US$126 million has been earmarked to support these areas of cooperation. 
 
Belgium has committed €52 million to finance the h ealth and agricultural sectors over the period 
2008-2011.  In 2009, Germany gave €50 million in aid in tended mainly to build infrastructure in the 
energy sector, manage water resources and reduce poverty.  Switzerland committed CHF 34 million for 
the period 2007-2009 for four priority areas:  reviving the local ec onomy, strengthening local authorities, 
educating adults and improving health systems.  Ja pan also plays a role through its international 
development cooperation agency (JICA).  Its main pr ojects focus on education, health and agricultural 
and rural development.  It disbursed ¥41 milli on or US$0.4 million over th e period 2005-2009.  The 
Canadian International Development Agency (CIDA) implements its development assistance on behalf of 
Canada focusing during the period 2004-2009 on the environment and governance. 
South-South partners In 2007, China signed three financing agreemen ts with Benin for relief on part of its external debt, a loa n 
of Y 30 million or €2.9 million and financial aid to develop government departments and build road 
infrastructure.  Since 2009, India has contributed to th e financing of a certain number of projects such as 
the agricultural mechanization progra mme and the rural electrification project.  In 2009, it gave a line of 
credit of US$15 million to finance Benin's exports.  Brazil signed a cooperation agreement on biofuels 
with Benin in 2007. 
Source : WTO Secretariat. WT/TPR/S/236/BEN Trade Policy Review 
Page 154 
 
 
(iii) Trade-related technical assistance 
275. The technical assistance given to Benin by its  multilateral and bilateral partners pursues 
two essential objectives:  building institutional and human capacity, on the one hand, and 
strengthening export capacity, on the other. 
(a) Technical assistance to build institutional and human capacity 
276. The WTO Secretariat is at the origin of most  of the technical assistance activities intended to 
build institutional and human capacity in Benin in order to respond to the need for more active 
participation in the multilateral trading system.  For example, since 2005 Benin has taken part in 
27 activities at the national and regional levels .  Activities at the national level concern 
SPS notifications (2010), regional agreements ( 2008), government procurem ent (2008) and trade 
facilitation (2007).  At the regional level, Benin t ook part in a number of wo rkshops and seminars on 
WTO-related topics.225  It should also be noted that Benin h as been selected to host the regional trade 
policy course for French-speaking African countri es since 2008.  Beninese officials have attended 
training sessions organized in Geneva such as the special thematic courses relating, inter alia , to trade 
facilitation, technical barriers to trade and agricultural notifications.  They have also taken part in the 
three-month trade policy courses and introductory courses for LDCs. 
277. In addition to the assistance given by the WTO, Benin benefits from other programmes to 
build institutional and human capacity, provided inter alia by WAEMU and ECOWAS, through their 
joint capacity-building programme;  the European Union, through the "TradeCom Facility" of the 
ACP Group;  and the International Organisation of  La Francophonie (OIF), through its Hub & Spokes 
project. 
(b) Technical assistance to build export capacity 
278. In 2007, under Window II of the Integrated  Framework, Benin submitted an export 
development programme (PADex), which gives effect to  certain priority actions in the action matrix.  
The programme's ultimate objective is to develop trade capacity, particularly export capacity.  The 
PADex has three components, implemented by  United Nations agencies (ITC, UNDP and 
UNCTAD).226  It includes:  (i) building the capacity of institutions that provide  trade-related support 
for enterprises;  (ii) promoting local and sustaina ble tourism;  and (iii) a feasibility study for the 
introduction of an agro-industrial development fund.  All the activities under this programme will be 
finalized by September 2010. 
279. The other important projects implemented for this purpose are the Competitiveness and 
Integrated Growth Project (PROCCI), launched in 2009 and financed by the World Bank, which is 
designed around two components:  (i) improvi ng business development infrastructure through 
structural reform;  and (ii) developing products and ma rkets.  One of the main tasks of this project is 
the creation of the APIEX.  There are also other projects to build export capacity, for example, the 
STDF 127 project (support for SPS information systems in Benin)227, whose main objective is to build 
capacity in order to improve knowledge and competen ce in relation to SPS measures.  The project to 
                                                      
225 The topics covered by these regional activities included, inter alia , agriculture, non-agricultural 
market access (NAMA), services, trade negotiating techniques, sanitary a nd phytosanitary measures (SPS), 
technical barriers to trade (TBT), development-related issues and regional trade agreements. 
226 Component 1 was implemented by the ITC alone;  component 2 by the ITC and UNCTAD;  and 
component 3 by UNDP-Cotonou. 
227 CCIB online information.  Viewed at:  
http://www.economiebenin.org/index.php?option=com_content&view=article&id=814&Itemid=200025. Benin WT/TPR/S/236/BEN 
 Page 155 
 
 
support the private sector (PASP), financed by the European Union, has among its objectives the 
introduction of technical assistance for the private sector.228 
(4) MATCHING NEEDS AND ASSISTANCE  
(i) National coordination mechanisms 
(a) Official development aid 
280. ODA is coordinated at the national level by the Ministry of Planning, Development, 
Evaluation of Government Policies a nd Coordination of Government Action229 through the 
Development Aid Coordination Unit230 (CCAD).  This new structure is responsible for centralizing 
and managing information on development aid, coor dinating the flows of aid to Benin and building 
the Government's capacity  to absorb the aid. 
281. The implementation of the SCRP 2007-2009 highlighted the weaknesses of the national aid 
coordination mechanism and the lack of government l eadership.  Accordingly, in order to coordinate 
aid more effectively, Benin is currently for th e first time adopting a national aid policy, with 
assistance from UNDP, thereby responding to the principles in the Paris Declaration on aid 
effectiveness.  The Government is  planning to introduce an effectiv e mechanism to mobilize external 
aid so as to exercise better control over how th e aid is managed and bring it into line with its 
priorities. 
(b) Aid For Trade 
282. The Ministry of Trade is responsible for centralized coordination of the strategy for 
integrating trade into national deve lopment policy, but execution of the strategy is the task of each of 
the ministries involved in implementing trade policy.231  The Ministry of Trade's leadership in the 
trade integration strategy is w eakened as a result, which means inter alia that there is a lack of 
coordination among the ministries as a whole in the ma nagement of AFT projects.  On the other hand, 
the Government confirms that it has very regular contacts232 with the private sector in formulating and 
implementing trade policy, as it does in integrating trade policy into the development strategy.  The 
private sector, nevertheless, largely qualifies this statement and draws attention to the low level of 
dialogue and lack of consultation w ith the Government (Chapter II(3)). 
283. The National Steering Committee for the Integrat ed Framework, which is chaired by the 
Ministry of Trade, is responsible for monitori ng and coordinating the entire trade integration 
programme.  The Committee comprises all the sectoral ministries, the private sector (CCIB, CNPB, CA), and representatives of the development partne rs.  Ultimately, this Committee will become an 
AFT Committee, but in practice for the time being it do es not have any real power to direct and guide 
the strategy for integrating trade into national development policy, notably because of lack of 
                                                     
 
228 Idem . 
229 OECD online information, "Questionnaire sur l' Aide pour le commerce aux pays destinataires, 
2009 - Bénin".  Viewed at:  http://www.oecd.org/dataoecd/2/11/43164302.pdf. 
230 Order No. 2008 075/MPDEAP/DC/SGM/SA of 13 October 2008. 
231 OECD online information, "Questionnaire sur l' Aide pour le commerce aux pays destinataires, 
2009 - Bénin".  Viewed at:  http://www.oecd.org/dataoecd/2/11/43164302.pdf. 
232 CCIB, Beninese National Employers' Council (CNPB), National Chamber of Agriculture (CA), 
CIPB, Association for the Development of Exports (ADEx), etc. WT/TPR/S/236/BEN Trade Policy Review 
Page 156 
 
 
consultation within the Committee.  This is why in  April 2010 Benin submitted a Tier 1 project to 
reinforce the national structure233 for implementing the EIF in the country. 
284. It should also be noted that the financial needs fo r trade priorities, as stated in the SCRP, form 
part of the dialogue between Benin and its TFPs in  various consultation forums, including the annual 
review of the SCRP at the bilateral or regional le vel and the World Bank's country assistance strategy. 
(ii) Monitoring and evaluation 
(a) Aid monitoring 
285. Between 2005 and 2008, the flow of ODA to Be nin was an average of US$678 million, with 
an increase to US$957 million in 2006.  This averag e is almost 50 per cent less than the aid received 
by Mali and Burkina Faso.  Although the aid is still  deemed to be insufficient, managing it comes up 
against bottlenecks that prevent its  absorption by the priority sector s in the SCRP.  These constraints 
include, on the side of the beneficiary, the shor tcomings of the government finance management 
system, administrative red tape, and limited capacit y in government departments to draw up and 
implement projects/programmes.  On the donor side, the main problem underlined has been conditionality in granting aid and the slow disburse ment procedures.  According to the Government, 
all these factors detract from the predictability of ODA.  As an example, for 2006, donors planned to 
contribute US$326 million for AFT, but only US$77 m illion were disbursed that year (Table V.2).
234 
286. In order to improve the management and eff ectiveness of external aid, Benin has taken a 
number of measures for 2010, including the prepar ation of the national aid policy and also the 
introduction of an information management system on external aid combined with a mechanism for 
monitoring and evaluating national aid policy implem entation.  At the same time, the Government 
also plans to develop a strategy for coopera tion with its TFPs, as is already the case for Mali.235  This 
cooperation strategy should also serve as the basi s for building specific cooperation strategies with 
each of the partners, thereby making sure that they  are aligned with Benin's development priorities. 
(b) Evaluation of development tools 
287. The latest SCRP 2007-2009 was the subject of an  evaluation report prepared by the Ministry 
of the Economy and Finance and UNDP.236  In general, although the strategic thrusts adopted in this 
development strategy were deemed to be relevant w ith regard to growth and poverty, they could not 
be put into operation because of the shortcomings of its PAP, not sufficiently linked to the SCRP's 
priorities or the State's annual budget.  Likewise, no costs were given for the projects and programmes 
in the PAP, which did not have a detailed financ ing plan.  In view of these shortcomings, the 
objectives set in the SCRP could not be achieved. 
288. The evaluation report on the DTIS action matrix237 gives a detailed analysis of the 
projects/programmes carried out on the basis of the matrix.  The report lists some 100 under way in 
                                                      
233 "National Implementation Arrangement (ANMO)":  national structures for implementing the EIF in 
each LDC benefiting from the EIF, whic h usually include the focal point, the donors' facilitator, the national 
implementation units and the National Steering Committee. 
234 OECD online information.  Viewed at:  http://www.oecd.org/document/21/0,3343, 
en_2649_34665_43230357_1_1_1_1,00.html. 
235 Joint assistance strategy (SCA), signed between Mali and its TFPs on 7 December 2009. 
236 Government of the Republic of Benin (2007). 
237 National review of projects/programmes under way and planned within the framework of the DTIS 
action matrix in Benin (provisional report, April 2010). Benin WT/TPR/S/236/BEN 
 Page 157 
 
 
Benin.  Nevertheless, it underlines a lack of sy nergy and coordination among the various actors 
involved in conducting the projects, as well as the low rate of financial and ph ysical implementation. 
(5) OUTLOOK FOR AID FOR TRADE  
289. The year 2010 is a critical one for Benin in many respects, on the one hand in terms of its 
reform of ODA, through its national developmen t aid policy and its development aid information 
management system, and on the other, in terms of the forthcoming adoption of its new SCRP III 
2011-2015, which focuses more particularly on the cro ss-cutting nature of trade.  In this connection, 
the document indicates that "transport/logistics and trade" are the backbone of Benin's economic development.  These trade priorities having been clearly identified, for Benin it is important to create 
the conditions for effective implementation of this st rategy aimed at integrating trade into its national 
development policy by means of a priority action pl an with clear, achievable and quantified objectives 
included in the State's budget.  In order to ensure that AFT is effective and has an impact on capacity 
building, the Ministry of Trade should continue to  be the key ministry for the AFT programme and 
the IF and, accordingly, its human and technical ca pacity will have to be strengthened, and it should 
also be more closely associated with the national development aid policy. 
290. Benin still remains highly dependent on ODA fo r the implementation of its socio-economic 
programmes.  Long-term decisive mobilization of resources is an important element in guaranteeing 
the effectiveness of its next Growth Strategy fo r Poverty Reduction programme (SCRP III).  In this 
connection, the Government has started to moderni ze its public finance management system in order 
to encourage TFPs to make greater use of general budget support and to be cons istent with practices 
and procedures in Benin.  Bearing in mind the effort s made by Benin to make aid more effective, the 
TFPs, on their part, should continue to maintain  and increase their support, harmonizing it with 
Benin's national priorities and adopting a coordinate d approach both for their assistance and for their 
procedures. 
 Benin WT/TPR/S/236/BEN 
 Page 159 
 
 
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_Audit_Report_fr.pdf.  Organization for Economic Cooperati on and Development (OECD) (2009), African Economic 
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APPENDIX TABLES Benin WT/TPR/S/236/BEN 
 Page 165 
 
 
  Table AI.1 
Structure of imports, 2003-2009 
(US$ million and per cent) 
 2003 2004 2005 2006 2007 2008 2009 
Total imports c.i.f. (US$ million) 886.2 891.5 898.6 1 ,007.8 1,631.2 1,713.1 1,574.1
 Percentage share 
Total primary products 49.6 52.3 55.5 57.9 55.9 55.2 51.8
 Agriculture 28.2 28.2 34.2 35.3 34.7 39.7 34.6
  Food 24.2 24.6 29.9 30.7 31.2 36.1 31.2
   0123 Meat and offal of poultry, fresh, chilled or frozen 5.1 6 .3 5.3 4.4 4.7 7.2 9.2
   0423 Rice, semi-milled or wholly milled 4.4 6.1 11.2 11.2 12.9 10.8 6.0
   4222 Palm oil and its fractions 1.7 1.6 1.3 2.9 3.5 4.5 4.3
   0342 Fish, frozen (excluding fillets a nd minced fish) 1.0 1.1 1.5 1.8 1.4 1.8 1.8
   0222 Milk and cream, concentrated or sweetened 1.4 1.6 1.4 1.2 1.2 1.6 1.0
   0612 Other beet or cane sugar and pure sucrose, in solid form 1.2 0.7 0.9 1.2 0.6 1.0 0.9
   0989 Food preparations, n.e.s. 0.8 0.7 0.8 0.7 0.7 1.2 0.8
  Agricultural raw materials 4.0 3.7 4.2 4.6 3.5 3.6 3.5
   2690 Worn clothing and other worn textile  articles;  rags 3.8 3.6 4.1 4.4 3.3 3.4 3.3
 Mining 21.4 24.1 21.3 22.6 21.2 15.6 17.1
  Ores and other minerals 1.1 0.9 0.6 0.7 0.5 0.6 0.5
  Non-ferrous metals 0.2 0.2 0.2 0.3 0.3 0.2 0.2
  Fuels 20.0 23.0 20.4 21.6 20.4 14.8 16.4
   3510 Electric current 5.4 6.1 6.3 5.6 3.7 4.3 6.1
Manufactures 50.4 47.7 44.5 41.8 44.1 44.7 48.2
 Iron and steel 2.5 2.2 2.8 0.7 4.5 6.3 5.3
   6761 Bars and rods, hot-rolled, in irregularly wound coils, of 
iron or steel 1.1 0.9 1.5 0.1 2.7 4.7 3.6
 Chemicals 9.4 9.3 6.7 7.0 5.5 6.3 9.0
   5429 Medicaments (including veterinary me dicaments), n.e.s. 2.7 2.9 2.8 2.7 2.1 2.1 2.8
   5629 Fertilizers, n.e.s. 0.9 1.7 0.3 0.0 0.0 0.0 1.9
   5421 Medicaments containing antibiotics or derivatives 
thereof 0.9 1.0 0.8 0.9 0.7 0.8 0.9
 Other semi-manufactures 10.2 9.1 10.4 9.9 7.9 6.3 8.0
   6612 Hydraulic cements, whether or not coloured or in the 
form of clinkers 3.3 3.2 4.7 4.5 3.6 1.6 2.7
 Machinery and transport equipment 16.7 16.0 12.2 11.3 15.7 15.6 15.7
  Power-generating machinery 0.5 1.0 0.4 0.3 0.6 0.5 0.4
  Other non-electrical machinery 5.1 3.8 2.1 1.8 2.6 3.5 3.5
   Agricultural machinery and tractors 0.1 0.1 0.1 0.0 0.1 0.1 0.0
  Office machines and telecommunications equipment 3.4 4.1 2.9 3.2 2.0 3.1 3.0
   7641 Electrical apparatus for line telephony or line telegraphy 0.3 1.3 0.3 1.2 0.8 2.0 1.4
  Other electrical machinery 2.2 2.2 1.8 1.4 1.0 1.2 1.4
  Automotive products 4.4 4.0 4.0 3.6 3.7 4.6 5.1
   7812 Motor vehicles for the transport of persons, n.e.s. 3.0 2.6 2.9 2.8 2.5 3.1 3.2
   7821 Motor vehicles for the transport of goods 0.6 0.5 0.5 0.3 0.7 0.8 1.0
  Other transport equipment 1.0 1.0 0.9 1.0 5.7 2.9 2.4
   7851 Motor cycles and cycles fitted with an auxiliary motor;  
side-cars 0.5 0.6 0.5 0.5 0.7 1.6 2.0
  Textiles 7.2 6.4 6.1 6.0 4.5 3.9 3.4
   6523 Other woven fabrics,  containing 85% or more by 
weight of cotton, bleached, dyed, printed or otherwise 
finished, weighing not more than 200 g/m2 4.1 4.1 3.9 3.5 2.8 2.6 2.2
 Clothing 0.9 0.9 2.4 3.6 2.9 3.3 3.3
   8414 Men's trousers etc., not knitted or crocheted 0.2 0.1 0.6 1.0 1.0 0.8 1.0
 Other consumer goods 3.6 3.7 3.9 3.3 3.0 3.1 3.5
Other 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Source : WTO Secretariat calculations based on data provided by the authorities of Benin. WT/TPR/S/236/BEN Trade Policy Review 
Page 166 
 
 
  Table AI.2 
Structure of exports, 2003-2009 
(US$ million and per cent) 
Description 2003 2004 2005 2006 2007 2008 2009 
Total exports f.o.b. (US$ milli on) 271.6 300.5 290.5 223.2 273.0 420.3 451.0 
 Percentage share 
Total primary products 89.6 88.1 84.9 83.2 90.1 70.5 82.6 
 Agriculture 89.4 87.6 83.8 82.2 85.9 68.5 81.9 
  Food 19.2 18.1 24.2 39.3 38.0 30.1 51.1 
   0123 Meat and offal of poultry, fresh, chilled or frozen 0.0 0.0 0.0 0.0 2.1 0.0 15.4 
   0423 Rice, semi-milled or wholly  milled 0.0 0.0 0. 0 0.0 1.3 2.7 11.9 
   0577 Edible nuts (excluding nuts chiefly used for the extraction of 
oil), fresh or dried 6.4 5.7 6.9 7.4 9.5 8.8 7.4 
   4222 Palm oil and its fractions 1.1 0.5 0.2 1.4 1.5 2.4 4.0 
   4312 Animal or vegetable fats and oils , hydrogenated etc. 0.1 0.0 0.3 1.6 4.6 6.4 3.5 
   1222 Cigarettes containing tob acco 3.3 6.5 6.7 15.6 9.3 3.3 3.2 
   0611 Sugars, beet or cane, raw, in solid form, not containing 
added flavouring or colouring matter 0.0 0.0 0.9 2.1 2.9 1.6 1.9 
   0813 Oilcake and other solid residues (except dregs) 2.5 2.2 1.6 1.9 1.6 2.3 1.8 
   2232 Palm nuts and kernels 0.0 0.3 0.4 0.6 0.6 0.5 0.4 
  Agricultural raw materials 70.1 69.5 59.5 42.9 47.9 38.4 30.8 
   2631 Cotton (other than linters), not carded or combed 67.9 68.0 58.0 40.4 46.4 37.2 29.6 
   2484 Wood of non-coniferous species, sawn, sliced, etc., of a 
thickness exceeding 6 mm 0.6 0.5 0.5 1.1 0.5 0.7 0.8 
Mining 0.3 0.5 1.2 1.0 4.2 2.0 0.7 
 Ores and other minerals 0.2 0.4 0.5 0.6 1.2 1.8 0.7 
   2823 Other ferrous waste and scrap 0.1 0.2 0.4 0.4 0.5 1.0 0.4 
 Non-ferrous metals 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
 Fuels 0.1 0.1 0.7 0.4 3.1 0.3 0.0 
Manufactures 8.4 11.6 12.5 13.7 9.9 29.5 17.4 
 Iron and steel 0.6 2.3 2.2 3.9 1.3 12.4 8.6 
   6761 Bars and rods, hot-rolled, in irregularly wound coils, of iron or 
steel 0.0 0.4 0.9 1.1 0.4 2.5 3.6 
 Chemicals 0.8 1.5 0.9 1.1 0.9 0.6 0.8 
 Other semi-manufactures 2.4 4.3 5.0 5.0 2.3 0.8 0.8 
 Machinery and transport equipment 1.5 1.1 3.2 1.3 0.6 12.2 4.3 
  Power-generating machinery 0.2 0.1 0.1 0.0 0.0 0.1 0.1 
  Other non-electrical machinery 0.7 0.5 1.6 0.2 0.2 1.1 3.1 
   7231 Bulldozers, angledozers, graders and leve llers, self-propelled 0.1 0.2 0.2 0.0 0.0 0.1 0.7 
   7233 Machinery for moving, grading, levelling or scraping, etc., 
self-propelled, n.e.s. 0.2 0.1 0.3 0.0 0.0 0.3 0.5 
   7232 Mechanical shovels, excavators and shovel-loaders, 
self-propelled 0.2 0.1 0.2 0.1 0.0 0.1 0.4 
   7234 Construction and mining machinery, n.e.s. 0.0 0.0 0.3 0.0 0.0 0.1 0.4 
  Agricultural machinery and tractors 0.0 0.0 0.0 0.0 0.0 0.0 0.2 
 Office machines and telecommunications equipment 0.0 0.0 0.0 0.1 0.1 0.0 0.1 
 Other electrical machinery 0.1 0.0 0.1 0.1 0.0 0.0 0.1 
 Automotive products 0.1 0.3 1.2 0.6 0.2 0.5 1.0 
   7821 Motor vehicles for the transport of goods 0.0 0.1 0.7 0.1 0.0 0.2 0.6 
  Other transport equipment 0.4 0.3 0.3 0.2 0.1 10.4 0.0 
 Textiles 2.3 1.4 0. 9 1.9 2.6 2.7 2.3 
   6522 Other cotton fabric s, woven, unbleached 1.4 1.2 0.8 1.9 2.4 2.6 1.5 
   6565 Embroidery in the piece, in strips  or in motifs 0.0 0. 0 0.0 0.0 0. 0 0.0 0.6 
 Clothing 0.1 0.1 0.1 0.1 0.0 0.0 0.1 
 Other consumer goods 0.5 0.9 0.4 0.4 2.0 0.8 0.5 
Other 2.0 0.2 2.4 3.1 0.0 0.0 0.0 
 Gold 2.0 0.2 2.4 3.1 0.0 0.0 0.0 
Source : WTO Secretariat calculations based on data provided by the authorities of Benin.Benin WT/TPR/S/236/BEN 
 Page 167 
 
 
  Table AI.3 
Origin of imports, 2003-2009 
(US$ million and per cent) 
 2003 2004 2005 2006 2007 2008 2009
Total imports c.i.f. (US$ million) 886.2 891.5 898.6 1,007.8 1,631.2 1,713.1 1,574.1 
 Percentage share 
 America 4.3 3.5 2.9 3.6 6.2 6.0 5.9 
  USA 2.8 2.0 1.1 1.4 4.8 2.0 2.4 
  Other America 1.5 1.4 1.8 2.2 1.5 4.0 3.5 
   Brazil 1.0 1.0 1.1 1.2 1.2 2.6 2.9 
        
 Europe 45.7 46.5 42.9 41.7 38.9 41.2 43.8 
  EU(27) 44.7 43.1 38.5 36.7 35.2 36.2 40.4 
  France 24.2 21.8 18.4 17.4 17.4 16.8 17.6 
  Netherlands 3.1 2.9 3.1 2.6 3.0 3.9 5.0 
  Belgium 4.3 4.9 4.5 3.5 2.9 4.4 4.1 
  United Kingdom 4.7 5.2 5.7 6.3 5.5 2.9 3.7 
  Germany 2.5 1.7 2.0 1.5 1.6 1.3 3.2 
  Spain 2.1 2.6 1.7 1.7 1.6 2.0 2.1 
  Italy 2.2 1.6 1.2 1.1 1.0 2.0 1.4 
  Sweden 0.3 0.5 0.4 1.4 0.5 1.3 1.3 
 EFTA 0.4 3.2 4.1 4.8 3.6 4.7 3.0 
  Switzerland and Liechtenstein 0.3 2.3 2.6 3.5 2.3 4.0 1.7 
  Norway 0.2 0.9 1.5 1.2 1.3 0.7 1.3 
 Other Europe 0.5 0.2 0.3 0.2 0.1 0.3 0.4 
        
 Commonwealth of Independent States  (CIS) 0.4 0.0 0.0 0.1 0.3 2.1 0.1 
   
 Africa 28.1 30.3 27.7 28.6 22.5 19.7 21.4 
  Togo 4.0 4.5 5.7 5.3 8.1 7.0 10.8 
  Nigeria 4.3 4.0 3.0 4.1 4.3 3.6 3.1 
  Côte d'Ivoire 5.4 7.0 6.9 6.9 4.8 2.8 2.9 
  South Africa 4.8 2.2 0.7 1.1 1.1 1.8 1.3 
   
 Middle East 2.1 2.4 2.7 2.5 2.5 2.3 2.4 
  United Arab Emirates 0.2 0.2 0.9 1.5 2.1 1.8 1.7 
   
 Asia 19.3 17.2 23.7 23.6 26.9 28.3 26.0 
  China 7.1 6.7 8.8 8.5 10.0 13.3 13.4 
  Japan 3.4 1.5 2.3 2.8 1.6 1.7 1.4 
  Six East Asian Traders 6.5 6.7 9.4 8.2 12.0 11.8 8.9 
   Malaysia 1.4 1.0 0.6 1.7 2.6 2.8 3.2 
   Thailand 3.5 4.2 6.7 3.9 7.2 6.0 2.9 
   Hong Kong, China 0.2 0.1 0.5 1.1 0.6 1.1 1.5 
  Other Asia 2.4 2.3 3.3 4.0 3.3 1.5 2.3 
   India 1.7 1.0 1.6 2.3 1.9 1.0 1.0 
 Other 0.0 0.0 0.0 0.1 2.7 0.3 0.4 
Source : WTO Secretariat calculations based on data from the UNS D Comtrade database (SITC Rev. 3) and data provided 
by the authorities of Benin. 
 WT/TPR/S/236/BEN Trade Policy Review 
Page 168 
 
 
  Table AI.4 
Destination of exports, 2003-2009 
(US$ million and per cent) 
 2003 2004 2005 2006 2007 2008 2009 
Total exports f.o.b. (US$ milli on) 271.6 300.5 290.5 223.2 273.0 420.3 451.0 
 Percentage share 
 America 2.2 0.5 0.5 2.5 2.2 0.5 0.4 
  USA 0.3 0.1 0.0 0.1 0.1 0.1 0.0 
  Other America 1.9 0.4 0.4 2.4 2.1 0.4 0.4 
        
 Europe 14.4 8.7 12.3 12.5 12.3 6.5 4.9 
  EU(27) 12.9 8.1 10.1 10.8 11.9 6.3 4.7 
   Portugal 0.7 1.3 1.1 2.3 3.5 2.1 2.3 
   Denmark 2.8 1.1 0.1 2.0 3.8 2.2 0.8 
   France 1.6 1.2 2.9 3.3 1.7 1.0 0.5 
  EFTA 1.4 0.7 1.7 0.5 0.2 0.0 0.1 
  Other Europe 0.1 0.0 0.5 1.2 0.2 0.2 0.0 
        
 Commonwealth of Independent States  (CIS) 0.0 0.1 0.0 0.0 0.0 0.0 0.0 
        
 Africa 21.2 27.1 28.0 42.6 38.3 49.5 59.6 
  Nigeria 4.7 4.6 5.7 8.7 13.9 21.0 42.4 
  Chad 0.3 0.7 1.4 1.6 1.7 4.6 5.0 
  Côte d´Ivoire 0.5 0.4 1.5 5.8 4.3 2.3 2.4 
  Togo 4.6 4.8 3.4 2.6 1.0 1.4 2.3 
  Niger 2.9 6.0 5.3 7.2 4.5 1.1 1.9 
  Mali 0.1 2.4 2.6 3.4 2.4 1.2 1.1 
  Mauritius 0.2 0.4 0.4 0.2 0. 0 0.7 0.9 
  Morocco 1.2 1.1 0.7 1.6 1.8 1.3 0.7 
  Burkina Faso 0.8 1.5 0.8 3.6 3.2 1.2 0.6 
  South Africa 1.6 1.2 0.9 1.1 1.0 0.9 0.5 
  Cameroon 0.4 0.2 0.2 0.1 0.1 0.0 0.4 
        
 Middle East 2.6 2.4 0.4 0.2 0.2 0.0 0.1 
        
 Asia 59.7 61.2 58.9 42.2 47.0 43.5 35.1 
  China 23.0 31.2 36.2 24.0 24.0 16.6 18.0 
  Japan 0.1 0.0 0.0 0.0 0.0 0.0 0.0 
  Six East Asian Traders 9.5 6.5 9.6 5.6 3.5 6.2 3.1 
   Thailand 5.8 4.8 3.6 4.3 2.3 2.8 1.5 
   Malaysia 0.5 0.0 2.8 0.0 0.3 2.5 1.1 
  Other Asia 27.1 23.6 13.1 12.6 19.6 20.6 13.9 
   India 10.1 7.4 6.9 8.6 11.7 9.1 7.7 
   Viet Nam 1.5 3.4 1.5 1.2 2.1 3.2 3.3 
   Indonesia 9.3 8.1 3.6 1.7 3.3 5.8 2.1 
   Pakistan 1.6 2.0 0.5 0.8 1.5 2.4 0.8 
Source : WTO Secretariat calculations based on data from the UNS D Comtrade database (SITC Rev. 3) and data provided 
by the authorities of Benin.