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. Specific 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 $307 million Millennium Challenge Account grant signed in February 2006. 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, cashews; livestock
Industries
textiles, food processing, construction materials, cement
Industrial Production Growth Rate
8.3% (2001 est.)
Labor Force
3.211 million (1996)
Electricity production
105 million kWh (2005)
Electricity Consumption
587 million kWh (2005)
Electricity Exports
0 kWh (2005)
Electricity Imports
595 million kWh (2005)
Population Below Poverty Line
33% (2001 est.)
Household Income or Consumption by Percentage Share
Lowest 10%: NA%
Highest 10%: NA% (2003)
Budget
Revenues: $786 million
Expenditures: $1.024 billion (2006 est.)
Commercial Bank Prime Lending Rate
Market Value of Publicly Traded Shares
$NA
Reserves of Foreign Exchange and Gold
$912 million (2006 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 - 522.59 (2006), 527.47 (2005), 528.29 (2004), 581.2 (2003), 696.99 (2002)
