Economy Overview
The economy of Benin remains underdeveloped and dependent on subsistence agriculture, cotton production, and regional trade. Growth in real output has averaged around 5% in the past six years, but rapid population growth has offset much of this increase. Inflation has subsided over the past several years. 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. Many of these proposals are included in Benin's application to receive Millennium Challenge Account funding - for which it was a finalist in 2004-05. The 2001 privatization policy continues in telecommunications, water, electricity, and agriculture in spite of government reluctance. 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. Benin continues to be hurt by Nigerian trade protection that bans imports of a growing list of products from Benin and elsewhere, which has resulted in increased smuggling and criminality in the border region.
Agriculture Products
cotton, corn, cassava (tapioca), yams, beans, palm oil, peanuts; livestock
Industries
textiles, food processing, construction materials, cement
Industrial Production Growth Rate
8.3% (2001 est.)
Labor Force
3.211 million
Electricity production
69 million kWh (2003)
Electricity Consumption
538.2 million kWh (2003)
Electricity Exports
0 kWh (2003)
Electricity Imports
474 million kWh (2003)
Population Below Poverty Line
33% (2001 est.)
Household Income or Consumption by Percentage Share
Lowest 10%: NA%
Highest 10%: NA%
Budget
Revenues: $766.8 million
Expenditures: $1.017 billion; including capital expenditures of $NA (2005 est.)
Commercial Bank Prime Lending Rate
Market Value of Publicly Traded Shares
Reserves of Foreign Exchange and Gold
$676 million (2005 est.)
Debt External
$1.6 billion (2000)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
Communaute Financiere Africaine francs (XOF) per US dollar - 527.47 (2005), 528.29 (2004), 581.2 (2003), 696.99 (2002), 733.04 (2001)
