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 seven 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 though the government annulled the privatization of Benin's state cotton company in November 2007 after the discovery of irregularities in the bidding process. 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.
Agriculture Products
cotton, corn, cassava (tapioca), yams, beans, palm oil, peanuts, cashews; livestock
Industries
textiles, food processing, construction materials, cement
Industrial Production Growth Rate
3.5% (2008 est.)country comparison to the world: 71
Labor Force
3.662 million (2007 est.)country comparison to the world: 90
Electricity production
124 million kWh (2007 est.)country comparison to the world: 185
Electricity Consumption
597 million kWh (2007 est.)country comparison to the world: 157
Electricity Exports
0 kWh (2008 est.)
Electricity Imports
588 million kWh (2007 est.)
Population Below Poverty Line
37.4% (2007 est.)
Household Income or Consumption by Percentage Share
Lowest 10%: 3.1%
Highest 10%: 29% (2003)
Distribution of Family Income Gini Index
36.5 (2003)country comparison to the world: 82
Budget
Revenues: $1.407 billion
Expenditures: $1.291 billion (2008 est.)
Central Bank Discount Rate
4.75% (31 December 2008)country comparison to the world: 114 4.25% (31 December 2007)
Commercial Bank Prime Lending Rate
Stock of Domestic Credit
$NA (31 December 2008)$520.6 million (31 December 2007)
Market Value of Publicly Traded Shares
$NA
Reserves of Foreign Exchange and Gold
$1.261 billion (31 December 2008 est.)country comparison to the world: 122 $1.209 billion (31 December 2007 est.)
Debt External
$1.2 billion (2007)country comparison to the world: 150
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
Communaute Financiere Africaine francs (XOF) per US dollar - 447.81 (2008 est.), 493.51 (2007), 522.59 (2006), 527.47 (2005), 528.29 (2004) note: since 1 January 1999, the West African CFA franc (XOF) has been pegged to the euro at a rate of 655.957 CFA francs per euro; West African CFA franc (XOF) coins and banknotes are not accepted in countries using Central African CFA francs (XAF), and vice versa, even though the two currencies trade at par
