Afdb Backs Benins Economic Overhaul

Benin has experienced a decade of robust economic growth and is poised to continue on this trajectory, with the African Development Bank AfDB projecting GDP growth of 6.4 in 2024. This growth positions Benin among the top 11 fastest-growing economies in Africa.

Despite this impressive economic performance, Benin faces significant challenges. The country struggles with underdeveloped and poorly maintained transport infrastructure, low integration of agricultural and industrial value chains, and high climate vulnerability.

To overcome these challenges and improve the quality of life for its citizens, the AfDB has urged policymakers in the West African country to step up the pace of structural economic transformation.

Notably, officials need to expand efforts to support agricultural transformation and industrial development, as agriculture accounts for approximately 25 of the countrys GDP, 70 of employment, and 80 of official export receipts, primarily driven by cotton.

In its latest strategy paper for Benin, the AfDB outlines its commitment to creating conditions conducive to agribusiness development. The Banks priorities include increasing agricultural production to enhance food security and climate resilience, developing agricultural value chains, fostering a favourable environment for private investment in agribusiness, and promoting industrialisation chiefly through special economic zones.