The World Bank in Benin

About

As the meeting point of two important regional corridors: the Abidjan-Lagos corridor and the Cotonou-Niamey corridor, Benin's geographical position makes this West African country a major commercial and tourist crossroads. Benin has 121 kilometers of coastline along the Gulf of Guinea and shares borders with Nigeria, Burkina Faso, Niger, and Togo.

The country enjoys a stable political situation, marked by successive democratic alternations. On January 8, 2023, the parties supporting the incumbent president, Patrice Talon, won the legislative elections, with 81 seats out of the 109 seats in the National Assembly. The main opposition party, the Democrats, won 28 seats, marking the return of the Beninese opposition to Parliament after a four-year absence. The next municipal and legislative elections will take place on January 12, 2026. The presidential election will be held on April 12, 2026.

The population was 14.5 million in 2024, with a fertility rate of 5.7 children per woman and a life expectancy of 61.2 years (up 0.5 years from 60.7 years in 2023). Between 2021 and 2022, the national poverty rate was at 36.2%, down 2.3 percentage points from 2018-2019. The unemployment rate was 2.4 per cent, while underemployment affected 72% of the labor force, and 90.1% of workers were employed in the informal sector.

Between 1990 and 2023, the value of Benin's Human Development Index increased from 0.351 to 0.515, an increase of 46.7%. Over the same period 1990 - 2023, life expectancy at birth in Benin increased by 7.8 years, the expected duration of schooling increased by 5.6 years and the average duration of schooling increased by 1.7 years. Benin's gross national income per capita has increased by about 70.9% between 1990 and 2023.

Economy

In 2024, growth remained robust at 7.5% and remained stable in the first half of 2025, reaching 7.5%, driven by strong performances in transport, trade, construction, agriculture and manufacturing. Services were the main growth driver in 2024 and early 2025, driven by trade and transport. Port activities have returned to their pre-Niger border closure levels, boosted by Nigerian demand and new trade routes. Industry and the primary sector have also contributed, through the construction of the Glo-Djigbé Industrial Zone, cotton production and agricultural diversification. Headline inflation fell to 1.2% in 2024, thanks to lower energy and transport prices, while food inflation doubled to 0.8%.

Benin's fiscal consolidation has reduced the deficit and public debt, reaching the WAEMU target of 3% of GDP in 2024 thanks to higher tax revenues and lower investment spending. This momentum continued in the first half of 2025, with public debt decreasing to 51.6% of GDP at the end of June 2025. The progress made reflects tax modernization, broadening the tax base and controlling expenditure. Benin has a moderate risk of debt distress.

Thanks to its strong commitments in terms of macroeconomic stability since 2016, the government has been able to count on fiscal leeway to support economic activities during the pandemic. The continuation of the economic recovery will depend on its ability to absorb the fragilities linked to its growth model. Indeed, the economy is dependent on exports of unprocessed agricultural products (cotton, cashew nuts) and the re-export of imported goods and commodities (used cars, rice, etc.) to Nigeria. Nearly 85% of the workforce works in the informal economy.

Last Updated: Oct 09, 2025

Partnership Framework

In July 2025, parliament approved the National Development Vision 2060. This vision, which will replace the Alafia Vision 2025, from January 2026, will serve as the basis for future five-year development plans.

Aligned with the government's development plan, the World Bank Group's Country Partnership Framework for Benin covering 2018-2023 focuses on three areas:

• Structural transformation of the economy to promote competitiveness and productivity.
• Investments in Human Capital.
• Building resilience and reducing climate vulnerability.

In 2025, the preparation of the new Country Partnership Framework for Benin (2025-2034) was launched with consultations extended to government, academia, civil society, the private sector and development partners to identify the country's main development priorities.

The World Bank Group's commitments currently stand at $3.3 billion, including $3 billion to finance 16 national projects and $300 million for seven regional projects.

IFC

The International Finance Corporation (IFC) is strengthening and amplifying its commitment as a key player in private sector development in Benin, in line with the government's priorities and the findings of the Private Sector Diagnostic (PSD) published in 2023. With this in mind, IFC intends to contribute to the expansion and industrialization of Benin's economy through an integrated approach focused on: (i) infrastructure development, particularly in the energy, transport and logistics, industrial zones, housing and digital sectors; (ii) promoting access to finance, in particular for local SMEs through financial intermediaries; and (iii) stimulating high-demonstration investments, including with local champions, in agricultural processing, manufacturing, tourism, cultural and creative industries, and retail.

Following the private sector diagnosis, IFC launched a study in 2024 on the integration of value chains between Benin and Nigeria, in order to identify investment opportunities and take advantage of the economic potential offered by neighboring Nigeria. The institution also provides advisory support in the development of creative industries, tourism, as well as logistics and digital infrastructure.

Last Updated: Oct 09, 2025

Development

Social protection

The World Bank is supporting a Social Safety Net Strengthening Program, which aims to expand the national productive social safety net program for poor households, known as Gbéssoké. At least 150,000 people, representing 61% of the extremely poor households listed in the Single Social Register (RSU), will benefit from the program.

The Youth Inclusion Project (PRODIJ) supports the deployment of the Azôli program, which aims at the economic and social inclusion of young people with little or no education, aged 15 to 30, by giving priority to young girls and young people from disadvantaged backgrounds, particularly from areas vulnerable to violent extremism. A total of 49,900 young people have already benefited from the Azôli program, 44% of whom are young women.

Benin is also participating in Phase 2 of the Regional Unique Identification Program for Regional Integration and Inclusion in West Africa (WURI), which aims to increase the number of people with unique proof of identity, thereby facilitating their access to services. The WURI program has already made it possible to grant the identification card (fID certificate) free of charge to nearly 6 million people.

Agriculture

The Agricultural Competitiveness and Export Diversification Support Project (PACOFIDE) aims to increase private sector investment in agriculture, increase productivity of targeted value chains, improve market access, and diversify exports. In June 2024, the Bank granted additional financing of $150 million to improve food security in northern Benin by supporting the development of 3000 ha of irrigated perimeters for rice production and market gardening in the communes of Malanville and Karimama and intensifying support for export sectors, mainly cashew nuts and pineapples. The project has already reached 351,851 beneficiaries.

Last Updated: Oct 09, 2025