page_title: Benin
section_title: Economy
hierarchical_section_title: Benin / Economy
caption_attribution_description: English: Cotton field, northern Benin. Polski: Pole bawełny, północ Beninu
context_page_description: Benin, officially the Republic of Benin and formerly known as Dahomey, is a country in West Africa. It is bordered by Togo to the west, Nigeria to the east, Burkina Faso to the north-west, and Niger to the north-east. The majority of its population lives on the small southern coastline of the Bight of Benin, part of the Gulf of Guinea in the northernmost tropical portion of the Atlantic Ocean. The capital of Benin is Porto-Novo, but the seat of government is in Cotonou, the country's largest city and economic capital. Benin covers an area of 114,763 square kilometres and its population in 2018 was estimated to be approximately 11.49 million. Benin is a tropical nation, highly dependent on agriculture, and is a large exporter of cotton and palm oil. Substantial employment and income arise from subsistence farming.
  The official language of Benin is French, with several indigenous languages such as Fon, Bariba, Yoruba and Dendi also being commonly spoken. The largest religious group in Benin is Roman Catholicism, followed closely by Islam, Vodun and Protestantism.
context_section_description: The economy of Benin is dependent on subsistence agriculture, cotton production, and regional trade. Cotton accounts for 40% of the GDP and roughly 80% of official export receipts. Growth in real output has averaged around 5% in the past seven years, but rapid population growth has offset much of this increase. Inflation has subsided over the past several years. Benin uses the CFA franc, which is pegged to the euro.
  Benin's economy has continued to strengthen over the past years, with real GDP growth estimated at 5.1 and 5.7% in 2008 and 2009, respectively. The main driver of growth is the agricultural sector, with cotton being the country's main export, while services continue to contribute the largest part of GDP largely because of Benin's geographical location, enabling trade, transportation, transit and tourism activities with its neighboring states.
  Access to biocapacity in Benin is lower than world average. In 2016, Benin had 0.9 global hectares  of biocapacity per person within its territory, much less than the world average of 1.6 global hectares per person. In 2016 Benin used 1.4 global hectares of biocapacity per person - their ecological footprint of consumption. This means they use slightly under double as much biocapacity as Benin contains. As a result, Benin is running a biocapacity deficit.
  In order to raise growth still further, Benin plans to attract more foreign investment, place more emphasis on tourism, facilitate the development of new food processing systems and agricultural products, and encourage new information and communication technology. Projects to improve the business climate by reforms to the land tenure system, the commercial justice system, and the financial sector were included in Benin's US$307 million Millennium Challenge Account grant signed in February 2006.
  The Paris Club and bilateral creditors have eased the external debt situation, with Benin benefiting from a G8 debt reduction announced in July 2005, while pressing for more rapid structural reforms. An insufficient electrical supply continues to adversely affect Benin's economic growth though the government recently has taken steps to increase domestic power production.
  Although trade unions in Benin represent up to 75% of the formal workforce, the large informal economy has been noted by the International Trade Union Confederation (ITCU) to contain ongoing problems, including a lack of women's wage equality, the use of child labor, and the continuing issue of forced labor.
  Benin is a member of the Organization for the Harmonization of Business Law in Africa (OHADA).
  Cotonou has the country's only seaport and international airport. A new port is currently under construction between Cotonou and Porto Novo. Benin is connected by two-lane asphalted roads to its neighboring countries (Togo, Burkina Faso, Niger, and Nigeria). Mobile telephone service is available across the country through various operators. ADSL connections are available in some areas. Benin is connected to the Internet by way of satellite connections (since 1998) and a single submarine cable SAT-3/WASC (since 2001), keeping the price of data extremely high. Relief is expected with the initiation of the Africa Coast to Europe cable in 2011.
  Despite the GDP growth rate of 4-5% remaining consistent over the past two decades, poverty has been increasing. According to the National Institute of Statistics and Economic Analysis in Benin, those living under the poverty line have increased from 36.2% in 2011 to 40.1% in 2015.
caption: Cotton field in northern Benin.
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