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INVESTING BENIN 2013

BENIN2013

Doing Business in Africa

05/02/13 17:33

The Republic of Benin has combined democracy and political stability for over 20 years. Since 1990 a multiparty system, dialogue, independent regulatory bodies, freedom of the press and freedom of association have been the social framework of this country of 9.6 million in the heart of West Africa. The result has been steady economic growth, stable inflation, healthy public finances and the trust of African and international financial institutions. In 2007, based on these sound foundations, Benin rolled out a development strategy aimed at gradually and steadily improving living conditions. The "emergent Benin" it strives to be by 2025 has already launched the transformation of economic structures that will allow the country to reach its goal. The business environment, infrastructure and public-sector investment in major programmes are gradually laying the groundwork for a buoyant, competitive economy. New growth clusters are emerging in such diversifying sectors as agro-industry, transport, logistics, commerce, construction, tourism and information and communication technologies. Benin has no shortage of assets to meet the challenges it faces and develop successfully. With neighbouring Nigeria's huge market and situated in the heart of ECOWAS, an economic community of 200 million people, Benin is by tradition a regional trade hub. The modernisation of its economy, a young, well-educated population and the considerable potential of its agriculture make it an attractive destination for international investments in Africa today.

KEY POINTS UNSHAKEABLE POLITICAL STABILITY Public works, successful reforms and improved port facilities are expected to push the economic growth rate up to 4.5% in 2013, compared to 3.5% in 2011 and 2012. Benin controls its prices and purchasing power. Inflation is regularly below the 3% ceiling set for the ECOWAS zone.

A STEADILY IMPROVING BUSINESS ENVIRONMENT In August 2011 Benin enacted a law to fight corruption and reforms under way in the areas of investment, competition, property and customs should quickly bear fruit. A singlewindow business creation office (GUFE) established in March 2012 already enables entrepreneurs to set up a limited liability company in 72 hours, compared to one month previously.

OPENNESS TO ALL THE WORLD'S COUNTRIES The President of the Republic pursues a pragmatic,

flexible foreign policy open to all. Benin feels equally comfortable with all its partners, be they American, Chinese, Nigerian, Turkish or French. The rising tide of bilateral and multilateral investors willing to support Benin hail the country's economic diplomacy.

A CROSSROADS OF WEST AFRICAN TRADE Benin offers West African countries privileged road access to Nigeria's huge market. The port of Cotonou, in the process of modernisation, is Niger's natural maritime outlet. It is also used by Nigeria, Burkina Faso and Mali.

A STEADFAST DESIRE TO COOPERATE President Boni Yayi has made public-private partnerships (PPP) the cornerstone for achieving Benin's development goals. They pull in investment and know-how as well as enhance governance and the business environment.

INVEST IN AGRICULTURE From grain to market crops, timber, fish and livestock, Benin boasts a huge untapped agricultural potential and high demand from nearby markets. It already exports grain and vegetable oil to many neighbours, including Nigeria.

INDUSTRY Benin is relying on the processing of its harvests to lay the groundwork for a successful industrial sector. Cotton is the main locally processed product. Major opportunities also abound in the construction sector.

SERVICES Benin, a sub-regional trade hub, offers many investment opportunities in importexport, transport and logistics. The tourism, ICT and higher education sectors also offer worthwhile prospects.

CONTENTS 4

INVESTING BENIN 2013

KEY POINTS

AGRICULTURE

POLITICS & SOCIETY

55 59

SERVICES

60 62

HISTORY

From ancient kingdoms to a modern republic Geographic map

Well-educated young people

FACTFILE OUTLOOK

FOREIGN TRADE

The 1990 Constitution has proved its worth FACTFILE POLITICS

Diplomacy at the service of the economy

FACTFILE INTERNATIONAL

Open to private-sector partners FACTFILE PRODUCTION FACTORS

West Africa is Benin's biggest customer FACTFILE FOREIGN TRADE

Driving sustainable development

The country's potential is luring investors Economic map

INFRASTRUCTURE

39 43

ECONOMY & BUSINESS ENVIRONMENT 24

OIL AND MINING

OUTLOOK

A targeted growth industry

AGRICULTURE

INTERNATIONAL

FACTFILE SERVICES

TOURISM

POLITICS

A major export potential

ENERGY

POPULATION

The top development priority

FACTFILE AGRICULTURE

An emerging country by 2025

West Africa's trade crossroads FACTFILE INFRASTRUCTURE

COMPANIES & MARKETS

TRAVEL DIARY 70

Your trip

COMPANY LIFE

46 49

A liberal, dynamic economy

FACTFILE COMPANY LIFE

BANKING AND FINANCE

51 53

Buoyant markets FACTFILE BANKING AND FINANCE

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politiCS & sociEtY

POLITICS & SOCIETY

HISTORY

From ancient kingdoms to the modern republic

Benin is a model of the democratic transition which has been under way since 1990

Béhanzin (1844-1906), the 11th king of Danhomè, resisted colonialism before being exiled to Martinique in 1894 (above) and, later, Algeria.

1960 Proclamation of

independence, 1 August

THREE AREAS OF INFLUENCE IN THE 16TH CENTURY The grouping together of three ancient communities led to the creation of the first kingdoms in the 16th century in what is today known as Benin. Thereafter, the country was steadily populated by waves of settlement .

INVESTING BENIN 2013

Alongside the Dendi (Northwest), Fulani (the Peul in the North) and Betammaribe, also known as the Somba, in the Atakora Mountains, three groups played a decisive social role: the Yoruba, who live in the southeast and centre of the country (the Savé and Kétou kingdoms), Bariba, who are concentrated in the East's

POLITICS & SOCIETY HISTORY

Borgou region and in the Northeast, and the Adja, who founded the kingdoms of Allada, Abomey and Porto-Novo.

THE KINGDOM OF DANHOMÈ In the 17th century Houégbadja (16451685) left Allada to create his own kingdom, Danhomè, which at the time was confined to the Abomey Plateau. A century later King Agadja ("the Conqueror") extended the borders to the Atlantic coast by taking Allada (1724) and Savi (1727), enabling the kingdom to grow wealthy by participating in the slave trade from Ouidah, where Europeans had established a foothold in 1556. Danhomè reached its peak in the 19th century under the reign of Guézo (1818-1858), who set up a standing army to fight the Yoruba and in 1851 signed a friendship treaty with the French. He promoted the cultivation of crops imported from Brazil (cassava, peanuts, bananas, etc.) and oil palms to develop his kingdom.

RESISTANCE TO COLONIALISM Guézo's son and successor, Glélé, let the French settle in Cotonou, but Glélé's son, Béhanzin, began fighting them again after ascending to the throne. He agreed to let them trade from Cotonou in exchange for high taxes, but not from Ouidah. France then built the wharf in Cotonou, which is still visible today, to prepare for troop landings. At first Béhanzin invaded land in the protectorate but he had to pull back under the onslaught of Colonel Alfred Dodds' 3,000 men. Béhanzin, whose statue stands in Abomey, was exiled to Martinique in 1894 and later to Algeria, where he died in 1906.

FRENCH DAHOMEY His successor ruled just six years before power was taken away from him and given to a French governor. In 1898 the United Kingdom, the colonial power in Nigeria, and Germany, which occupied Togo, reached an agreement on Benin's borders. In 1904 Dahomey became part of French West Africa (AOF). The school enrolment rate, which was high because of missionaries, made it one of the colony's main intellectual centres. In 1946 a new Constitution granted some Dahomians the right to vote. Ten years later a framework law established universal suffrage and gave the AOF territories a semi-autonomous system, the prelude to independence, which came on 1 August 1960.

THE ROCKY BEGINNING OF INDEPENDENCE Hubert Maga, Sourou Migan Apithy and Justin Ahomadegbé, who founded the first formal political parties in the 1950s, played the leading roles at independence. Maga became Dahomey's first president, Apithy its vice-president. The fragile new State's first decade was rocked by coups. In 1970 Maga, Apithy and

KEY FIGURES ◗ Area: 114,763 km2 ◗ Population: 9.6 million (projection, INSAE) ◗ Gross domestic product (GDP): $7.295 billion (2011) ◗ Per capita GDP/year : $760 (2011) ◗ Currency: CFA franc (1 euro = 656 CFA franc)

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1990

New Constitution, adopted on 2 December

POLITICS & SOCIETY HISTORY

Ahomadegbé set up a presidential council with a rotating presidency. Two years later, on 26 October, Major Mathieu Kérékou became head of a revolutionary military government, changed the country's name to Benin and established a single-party Marxist-Leninist regime, the People's Revolution of Benin (PRPB). The main private companies were nationalised and opinion was muzzled. The regime survived a coup d'État organised by France but not the consequences of the economic crisis that hit the country in the mid-1980s.

THE 1990 NATIONAL CONFERENCE Facing opposition from workers, bishops and angry army officers, Kérékou decided to hold a national

conference in 1989. Many African countries, such as neighbouring Togo, Burkina Faso and Niger, followed this example of democratic transition. In February 1990 rulers and opponents met to lay the groundwork for a new Constitution establishing a multi-party political system, the rule of law and a market economy. It was adopted by referendum on 2 December 1990. Prime Minister Nicéphore Soglo won the presidential election four months later and 21 parties were represented in the new Assembly chaired by Adrien Houngbédji. In 2006 Kérékou, who was democratically elected president in 1996 and 2001, decided to respect the Constitution, which limited the number of terms to two, and did not run again. ■

AN AGRICULTURAL COUNTRY Benin covers an area of 112,622km2 and stretches over 670km from the Atlantic Ocean in the south to the River Niger in the northeast. Its width ranges from 125km along the coast to 325km in the north, where the Atacora Mountain Range peaks at 658 metres. The hot, humid climate (between 65% and 95% humidity and 900 to 1,300mm of rainfall a year) has two dry seasons in the south (from November to April and August to mid-September) and one in the north (October to late May). An agricultural country, Benin is crossed by many rivers, including the Niger, which forms its natural border with the country of the same name. But the Ouémé is even more important to Benin. It takes its source in the Atacora Range and ﬂows 500km to the Atlantic Ocean through Lake Nokoué in Cotonou and the Porto-Novo Lagoon.

INVESTING BENIN 2013

POLITICS & SOCIETY HISTORY

3°E

NIGER

Barou Ni ge Rapids r Karimama

12˚ N

Malanville

ib o

W' NATIONAL PARK

12˚ N

BURKINA FASO Pendjari 1˚ E

j ari

Tanguiéta

10˚ N

Gogounou

Kérou

641 m

Bembèrèkè

Péhonko Guessou-Sud

1˚ E

Segbana

Kalalé

Sinendé

Kouandé

Boukoumbé

Kandi

K A T Mount Tanekas

Natitingou Korontiéré

Batia

Matéri

Banikoara

k r ou

Porga

ta So

Kérémou

PENDJARI NATIONAL PARK

Badjoudé

Nikki

Kopargo

Ndali

Djougou

Pèrèrè

Ouaké Wé-Wé

Bodi

Parakou

Bétérou

NIGERIA

Bassila

Tchaourou

TOGO

Mount Kagoulé 408 m

Pira

RELIEF

O kp a r a

Koulé Ekou 618 m

TOWNS AND CITIES

Ouessé

Banté

Number of inhabitants over 800,000

ALTITUDE in metres

from 100,000 to 300,000

over 500

Savalou

from 100 to 300

Savé 3˚ E

Dassa

from 20,000 to 40,000 less than 20,000

Zou

o uff

National Park

Abomey

Oué m

Aplahoué

Dogbo

Allada

Adjohoun

Hinvi Lake Lake Ahémè Ganvié Nokoué Abomey-Calavi

Athiémé

Main road Secondary road

Pobé

Railway International Airport

o M on

Lokossa

COMMUNICATIONS

Kétou

Zagnanado Cové

Bohicon

Sakété

Bopa

Comé

PORTO NOVO

Ouidah Cotonou

Grand-Popo 50 km

from 40,000 to 100,000

Agouna

less than 100

8˚ N

GULF

BENIN

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from 300 to 500

Glazoué

POLITICS & SOCIETY

PEOPLE

Well-educated young people The government earmarks nearly 20% of its budget for education

Primary school is free and 10,000 new classrooms have opened since 2006.

44% of the population is under 15 years old

ETHNIC DIVERSITY The Republic of Benin is home to around 40 ethnic groups but most of the population is made up of the Adja-Fon (40%), Yoruba (12%) and Bariba (9%), who are predominant

INVESTING BENIN 2013

in the East's Borgou region. Mixing is common and has given rise to new groups, such as the Gun, comprising Adja and Yoruba. Most of the Peul live in northern Benin, the Bétammaribès, also called the

POLITICS & SOCIETY PEOPLE

RELIGION COUNTS Religion is a key feature of life in Benin. According to statistics, 27% of the population is Christian, 22% Muslim and 37% animist, but the Beninese, especially the AdjaFon and Yoruba, are also deeply attached to Voodoo cults. There are also many evangelical churches, the largest being the Celestial Church of Christ. Islam has fanned out from the north (Peuls, Hausas and Dendis) and east (Yoruba). Syncretism is so widespread that the line between traditional and "revealed" religions is blurry.

EDUCATION COMES FIRST Long dubbed Africa's 'Latin Quarter" because of its high school enrolment rate at independence, Benin boasts many skilled executives, although education policy lagged in the 1980s. Major financial efforts boosted the sector during the first term of the current president, Boni Yayi. Primary school became free and 10,000 new classrooms opened, with school supplies provided for the most disadvantaged children. To offset the dearth of higher education institutions, the government allowed private schools specialising in various fields (business, law, ICT, etc.) to open and closed those that failed to meet certain standards.

The number of students in public universities soared from 52,000 in 2000 to 100,000 in 2010.

UNIVERSAL HEALTH INSURANCE The government has made huge investments in healthcare, offering free Caesarian sections and malaria treatments. Health infrastructure coverage has been on the rise for the last 10 years, exceeding 80%, but the average health centre visitation rate is just 36% due to the cost of care. The government is gradually rolling out a universal health insurance system (Ramu) to remedy the situation. ■

THE MAIN HUMAN DEVELOPMENT INDICATORS IN 2011 ◗ Life expectancy at birth: 60 years ◗ Population density: 84/km2 ◗ Population growth: 2,9% ◗ Population under the age of 15: 44% ◗ Median age: 17,6 years ◗ School enrolment rate (primary): 72% ◗ Literacy rate (15-24 years old): 65,5%

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SOURCE :INSAE

Somba, around Atacora, while the Mina, originally from Ghana, settled in the Grand-Popo region. Local populations use many dialects and the two main groups, the Adja and Yoruba, speak Fon, but Benin's official language is French.

POLITICS & SOCIETY

POLITICAL LIFE

The 1990 Constitution has proven its worth Institutions, civil society and the press see to it that democratic principles are respected

National Assembly in Porto-Novo, the administrative capital. There are 83 members who are elected by direct universal suffrage to a renewable four-year term. The president, who sits in Cotonou, cannot dissolve the Assembly, which in turn cannot topple the government.

NO PRIME MINISTER

The National Assembly in Porto-Novo.

YEArS

Length of presidential term, renewable once

A PRESIDENTIAL SYSTEM The new constitution adopted in 1990 set up a presidential system. The President of the Republic is the head of State, head of government and commander-in-chief of the armed forces. He is elected by universal suffrage to a five-year term renewable once. The unicameral legislative branch consists of the

INVESTING BENIN 2013

Benin's Constitution does not provide for the position of a Prime Minister from the parliamentary majority and responsible before the National Assembly. However, the title has been used for ministers holding varied and important portfolios. The practice was abandoned in 1998 but reappeared in 2011 for the Minister of Development and Planning, then the government's second-ranking member, Pascal Koupaki. He became Prime Minister with responsibility for the coordination of governmental action, the assessment of public policy, the denationalisation programme and social dialogue.

POLITICS & SOCIETY POLITICAL LIFE

Benin's Constitutional Court, the nation's highest oversight body and the guardian of the Constitution, regulates the functioning of institutions and the activity of public officials. Four of its seven members are appointed by the office of the National Assembly, three by the president. The Supreme Court, which ensures respect for legality with an eye towards bolstering democracy and the rule of law, is the highest administrative and judicial jurisdiction. It is also competent to settle disputes during local elections. Its decisions are binding on the executive and legislative branches and no appeal is possible.

AN OPEN POLITICAL SYSTEM Benin has many political parties. It is hard to tell which side they are on because alliances are made and unmade so fast. In 2008 the main three opposition movements ̶ the Democratic Renewal Party (PRD) led by Adrien Houngbedji, the alliance's candidate, a former Prime Minister and the current president of the National Assembly, Léhady Soglo's Benin Renaissance (RB) and Bruno Amoussou's Social Democratic Party (PSD) ̶ joined forces in "Unity builds the Nation" to defeat the incumbent president in 2011. Although they tallied up 55% of the votes in 2006, in 2011 Houngbedji lost to Boni Yayi, who won in the first round with 53.14% of the ballots cast. Since then Soglo, who is also deputy mayor of Cotonou, has joined the presidential coalition, Cowrie Forces for an Emergent Benin (FCBE), which

INDEPENDENT REGULATORY BODIES

The ﬁrst two presidents elected after the Constitution: Nicéphore Soglo (left, elected in 1991) and Mathieu Kérékou (1996 and 2001).

groups together around 20 parties. The 2013 municipal elections will test the opposition's strength.

A DEMOCRATIC MODEL Three strong figures vied with each other in the hotly contested 2011 presidential election, confirming that the democracy stemming from the February 1990 National Conference is alive and well. This meeting of the nation's vital forces brought together rulers, political opponents, social forces and religious leaders ̶ a thousand or so participants who laid the foundation for the country's development and democratic transition. Unlike other heads of State, in 2006 Mathieu Kérékou decided not to amend the Constitution to allow him to run for a third term. At the start of his second term in 2011 the current president said he had no intention of running again.

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POLITICS & SOCIETY POLITICAL LIFE

THE PRESS AND CIVIL SOCIETY

The 1990 Constitution guarantees freedom of the press and freedom of association.

The 1990 Constitution set up a multi-party system, structured the country's institutions and established freedom of the press and freedom of association. Today over 100 dailies and periodicals compete for readers eager for news and political debates, but only a few titles manage to come out on a regular basis and survive in the long term. Benin is also characterised by the number and variety of civil society organisations, which come in many forms (cooperatives, associations, etc.), pursue various goals (social partners, farmers' organisations, development aid) and act or group together on the local or national level. ■

PRESIDENT BONI YAYI

Boni Yayi, who was born in Chaourou, in the centre-east of Benin, in 1952, studied economics, banking and finance in Cotonou, Dakar and Paris. He became President Soglo's advisor on monetary and banking affairs in 1992 and head of the West African Development Bank (BOAD) in 1994. In 10 years he increased disbursements five-fold to 80 billion CFA francs, cleaned up the portfolio, brought the rate of unpaid loans down to below 2% and increased the capital from 140 billion to 700 billion CFA francs. Mr. Yayi left the BOAD in 2006 to run for the pres-

Bony Yayi, President of the Republic of Benin.

idency of Benin, defeating Adrien Houngbédji in the second round with 74.51% of

March 2011, a year later his peers chose him to head the African Union.

INVESTING BENIN 2013

the vote. Re-elected in the first round in

FACTFILE

POLITICS

BENIN'S CONSTITUTION, approved by referendum on 2 December 1990, set up a presidential system and a market economy after nearly 20 years of flexibly applied "MarxismLeninism". It affirms the Beninese people's "fundamental opposition" to "any regime based on arbitrary rule, dictatorship, injustice, corruption, embezzlement, regionalism, cronyism, the confiscation of power and personal power".

OF THE REPUBLIC embodies executive power as head of State, head of government and commander-in-chief of the armed forces. He is elected by universal suffrage to a five-year term, renewable once, and sits in Cotonou, Benin's economic capital. THE NATIONAL ASSEMBLY has 83 deputies elected by direct universal suffrage to a renewable four-year term. Based in the administrative capital, Porto-Novo, it exercises legislative power. The President of the Republic cannot dissolve the Assembly, which cannot overturn the government. President Boni Yayi's party won 41 seats during the legislative elections in May 2011.

THE FLAG features a vertical green stripe and red and yellow horizontal stripes. Green stands for hope, red for the ancestors' courage and yellow for wealth and development. This was Benin's flag when the country became independent in 1960. It was abandoned during the 1975 Marxist revolution but restored by the National Conference in 1990.

●

OFFICIAL GOVERNMENT WEBSITE www.gouv.bj

ECONOMY AND FINANCE Tel.: (+229) 21 30 02 81 Fax: (+229) 21 30 18 51 www.ﬁnance.gouv.bj AGRICULTURE, LIVESTOCK AND FISHERIES Tel.: (+229) 21 30 04 96 Fax: (+229) 21 30 03 26 www.agriculture.gouv.bj INDUSTRY Tel.: (+229) 21 30 76 45 Fax: (+229) 21 30 30 24 TRADE Tel.: (+229) 21 30 76 45 Fax: (+229) 21 30 30 24 www.commerce.gouv.bj

MAIN MINISTRIES ●

THE NATIONAL MOTTO Fraternity, justice, work jus THE PRESIDENT

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DEVELOPMENT, ECONOMIC ANALYSIS AND PLANNING Tel.: (+229) 21 30 83 45 Fax: (+229) 21 30 18 51 FOREIGN AFFAIRS, AFRICAN

HIGHER EDUCATION: GROWING AT A BRISK PACE

Public universities

INTEGRATION, FRANCOPHONIE AND BENINESE LIVING ABROAD Tel.: (+229) 21 30 04 00 /21 30 09 06 Fax: (+229) 21 30 18 21 www.etranger.gouv.bj

2001/2002

2004/2005

2009/2010

Private universities

Public university entities

Private university entities

Private centres of higher learning

Source: National Institute of Statistics and Economic Analysis (INSAE)

40% OF BENINESE LIVE IN CITIES Nearly half of Benin's population is concentrated in some 15% of the country in the south, particularly Cotonou (around 800,000 inhabitants), Porto-Novo, the administrative capital around 20 kilometres to the east (250,000) or Abomey-Calavi (300,000), where the national university is located, in the suburbs of Cotonou. The biggest cities in the north are Djougou (210,000 inhabitants), Parakou (200,000), Bohicon (113,000), Abomey (80,000) and Natitingou (76,000).

POLITICS & SOCIETY

INTERNATIONAL

Diplomacy at the service of the economy

漏 Mandel Ngan/AFP

Benin's presidency of the African Union in 2012 put the country in the spotlight

The president of Benin and his counterparts from Niger, Guinea and C么te d'Ivoire with Barack Obama at the White House in 2011.

2012 Benin chaired the African Union

A KEY LOCATION Benin shares some 2,000km of borders with four neighbours: Togo (west) and Nigeria (east) on the Atlantic coast, Burkina Faso (northwest) and Niger (northwest) in the hinterland. The country's strategic location on the

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sub-region's economic lifelines by land and, via the port of Cotonou, by sea has led it to develop a diplomacy open to its neighbours. This is enough of a reason for the Entente Council, currently being revitalised (read p.21), to choose President Boni Yayi as its leader.

POLITICS & SOCIETY INTERNATIONAL

Benin also belongs to the Economic Community of West African States (ECOWAS), a group of 15 countries with economies growing at a steady pace. Part of its monetary policy has been jointly implemented in the West African Economic and Monetary Union (WAEMU).

PRESIDENT OF THE AFRICAN UNION IN 2012

AFRICA'S VOICE IN INTERNATIONAL INSTITUTIONS As president of the African Union, Mr. Yayi is Africa's spokesman in New York (United Nations), Brussels (European Union) and the G8 and G20 summits. At the May 2012 G8 meeting in Camp David (United States) he called on Africa's partners to back the continent's agricultural development to achieve food self-sufficiency and boost producing countries' export earnings. A month later, at the G20 meeting in Los Cabos, Mexico, he asked the international community to appoint an African as head of the International Finance Corporation (IFC, a World Bank

ÂŠ Burhan Ozbilici

In 2012 the African Union's rotating presidency fell to Benin's head of State, whose task was not easy because of crises in Mali, Guinea-Bissau, the Democratic Republic of Congo and between the two Sudans. President Yayi espouses the principle that the eight sub-regional institutions the AU recognises must settle crises. He backs ECOWAS's position on the restoration of constitutional legality and the rule of law in Mali. Mr. Yayi is reaching the end of his four-year term as president of the Community of Sahel-Saharan States (Cen-Sad), which elected him at the Cotonou summit in June 2008.

President Yayi and his Turkish counterpart Abdullah GĂźl on a State visit to Ankara in July 2012.

subsidiary) and that the AU president be represented on the UN Security Council pending the outcome of the reform, after which he wanted two seats with veto power for Africa. At the UN General Assembly in November 2012 Mr. Yayi was vice-president of the committees on gender parity and women's leadership, with US Secretary of State Hillary Clinton, and on the abolition of the death penalty, with France's Minister of Foreign Affairs Laurent Fabius.

INVESTING BENIN 2013

POLITICS & SOCIETY INTERNATIONAL

ECONOMIC DIPLOMACY THAT PLAYS NO FAVOURITES

Representing the African Union at the June 2012 G20 summit, President Yayi is welcomed to Los Cabos by his Mexican counterpart Felipe Calderôn.

Benin pursues a diplomacy of development that seeks to make its embassies and consulates veritable profit centres, applying it in the framework of a pragmatic, flexible foreign policy that plays no favourites. The country feels as at ease within the framework of the Millennium Challenge Account ̶ an American programme that recently helped build a new quay in the port of Cotonou ̶ as in the economic ties it has forged with the People's Republic of China and the growing number of Turkish entrepreneurs interested in the country. Many bilateral and multilateral donors helping Benin achieve its development goals also praise the country's economic diplomacy. ■

THE REGION'S GOOD STUDENTS SET AN EXAMPLE Growth in the Economic Community of West African States (ECOWAS), which groups together 15 countries, reached 6.4% in 2011, and a similar rate is expected for 2012. The situation in Mali has driven that country into negative growth, but the strong comeback of Côte d'Ivoire, once French-speaking West Africa's economic driving force, is promising for the whole region. Another bright spot: in the past few years many ECOWAS countries, including Burkina Faso, Sierra Leone, Ghana and even Mali, have ranked among the world's best reformers when it comes to enhancing the business environment, an effort the World Bank hailed in its 2013 Doing Business report. Benin wants to join its neighbours in this area by pushing through reforms involving the investment code, the regulatory framework of public-private partnerships, access to property and so on.

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FACTFILE REGIONAL ORGANISATIONS ECOWAS Founded in 1975, the Economic Community of West African States (ECOWAS) is the main organisation coordinating the activities of its 15 member states: Benin, Burkina Faso, Cape Verde, Côte d'Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo. Its primary aim is to foster cooperation and integration with an eye towards creating an economic and monetary union. In 1990 its power was extended to maintaining regional stability with the creation of ECOMOG, a military intervention group. ECOWAS is an economic area of 295 million consumers. Its total GDP, calculated in purchasing power parity, stood at $585 billion in 2011. It is the world's 25th economic power, says the IMF. WAEMU The West African Economic and Monetary Union (WAEMU), founded in Dakar in 1994, brings together eight countries ̶ Benin, Burkina Faso, Côte d'Ivoire, Guinée-Bissau, Mali, Niger, Senegal and Togo ̶ with a total population of over 80 million. The WAEMU Commission runs the group on a day-to-day basis. All the members have a common currency, the CFA franc (100 CFA francs = 0.15 euros). The Central Bank of West African States (BCEAO) manages the common monetary policy. ECOWAS's total GDP is approximately $130 billion.

INTERNATIONAL THE ENTENTE COUNCIL The goal of this regional cooperation organisation created in 1959 by Benin, Burkina Faso, Côte d'Ivoire and Niger, and joined by Togo in 1966, is primarily economic. It is one of the regional economic recovery tools that Côte d'Ivoire wants to rely on in the framework of its reconstruction. Its headquarters is in Abidjan, Côte d'Ivoire's capital, and it is chaired by Benin. INTERNATIONAL ORGANISATIONS Benin is a member of most of the United Nations' institutions, be they financial (the World Bank and the International Monetary Fund) or social (the World Health Organisation, United Nations Programme for Development, Food and Agricultural Organisation, etc.). REPRESENTATIONS OF INTERNATIONAL BODIES ●

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INTERNATIONAL MONETARY FUND (IMF) Tel.: (+229) 21 30 04 90 WORLD BANK Tel.: (+229) 21 31 21 24

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UNITED NATIONS PROGRAMME FOR DEVELOPMENT (UNDP) Tel.: (+229) 21 31 30 45 www.undp.org.bj

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MILLENNIUM CHALLENGE ACCOUNT BENIN Tel.: (+229) 21 31 80 66 www.mcabenin.bj

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UNICEF Tel.: (+229) 21 30 02 66 21 30 09 42

●

UNESCO Tel.: (+229) 20 21 25 30 UNAIDS Tel.: (+229) 21 30 43 74

●

WORLD HEALTH ORGANISATION (WHO) Tel.: (+229) 21 30 19 07 21 30 17 53

●

UNITED NATIONS FOOD AND AGRICULTURE ORGANISATION (FAO) Tel.: (+229) 21 31 42 45 21 31 44 29

●

WORLD FOOD PROGRAMME (WFP) Tel.: (+229) 21 31 48 92 21 31 30 46 SUB-REGIONAL INSTITUTIONS AND AGENCIES

●

ECONOMIC COMMUNITY OF WEST AFRICAN STATES (ECOWAS) Cotonou Tel.: (+229) 21 33 40 80

●

CENTRAL BANK OF WEST AFRICAN STATES (BCEAO) Cotonou Tel.: (+229) 21 31 24 66 21 31 24 67

●

WEST AFRICAN DEVELOPMENT BANK (BOAD) Cotonou Tel.: (+229) 21 31 59 35

ECONOMY & BUSINESS ENVIRONMENT

ECONOMY AND BUSINESS ENVIRONMENT

OUTLOOK

An emerging country by 2025

ÂŠ DR

Benin is laying the groundwork for steady development

4.5% GDP growth rate forecast in 2013

Cotton, maize, rice and other agricultural products are Benin's main exports.

DYNAMIC GROWTH The economic recovery that began in 2011 is continuing: in 2013 Benin's growth rate should be back up to the levels it had reached from 1991 to 2002 (an average of 4.7% a year). The 2012 growth rate is expected to be 3.5%, below the 4.1% budget forecast, which is mainly due to the increased petrol price in neighbouring Nigeria,

INVESTING BENIN 2013

from where over half of Benin's petrol is illegally imported and sold locally at three times the price. Benin's authorities and smugglers have been constantly battling each other over the situaton, dubbed the "kpayo" ("poor quality") crisis. In late 2012, the President, determined to stamp out smuggling, stepped up the counter measures .

ECONOMY AND BUSINESS ENVIRONMENT OUTLOOK

INFLATION UNDER CONTROL Kpayo also explains why inflation doubled in Benin in 2012 and is expected to reach 6%, although higher food output and the stabilisation of household earnings usually enables the country to stay within the 3% limit set for the West African Economic and Monetary Union (WAEMU) zone. The situation is expected to return to normal in 2013 with estimated inflation put at 2,8% and a growth rate likely to reach 4.5%. Agriculture ̶especially cotton, the country's leading export product ̶ improved services in the port of Cotonou and civil engineering activities are the driving forces behind growth.

THE BET ON AGRICULTURE PAYS OFF In 2011 the primary sector accounted for 5.7% of national growth, the secondary sector 3.5%, the tertiary sector 2.1% and non-market services (mostly public administration) 2.9%. The primary sector, mainly agriculture, makes up 33.4% of GDP. Farming was hit hard by bad weather in 2010 but sharply recovered in 2011. The good results are also due to government programmes that have been implemented to facilitate farmers' access to seeds and other inputs. The cotton harvest, which reached 250,000 tons in 2011 ̶ an 80% increase over 2010 ̶ is expected to hit 360,000 tons in 2012 (up by 40%). The national record, 427,000 tons, was set in 2004. The production of maize and rice, which are local staples but also exported to the sub-region, is also expected to rise.

The port of Cotonou handles most of the trade with neighbouring countries.

FOOD AND TEXTILE INDUSTRIES LEAD THE WAY The secondary sector (20.3% of GDP) grew by 3.5% compared to 3.4% the year before. A poor cotton harvest in 2010 affected the ginning industries and, consequently, industry as a whole, which only grew by 2.6%. Most of the secondary sector's 2011 growth (14.8%) stemmed from food industries, especially drinks (14.4%), and textile industries (26.9%), buoyed by the production of the Complexe Textile du Bénin (64,2%). Chemical industries, especially soap and paint, also posted good results (24.6%), while civil engineering grew at a modest 6% with the availability of cement up by 11.9% (domestic output and imports). The government is planning to open six food-processing plants in the framework of the Strategic Plan for Agricultural Sector Recovery (PSRSA), which will boost the entire secondary sector's performance in 2013 and the following years.

INVESTING BENIN 2013

ECONOMY AND BUSINESS ENVIRONMENT OUTLOOK

most highly developed one in Bénin but the official figures do not tell all, for around 95% of the working-age population works in the informal economy. Officials are gradually regulating the situation in order to create jobs, increase productivity and boost tax revenues.

SOUND BUDGET MANAGEMENT

Benin focuses on food processing.

TRADE AND TRANSPORT IN THE LEAD

Increase in public investments in 2013

SECTOR CONTRIBUTION TO GDP

33.4%

46.3% 20.3% INSAE 2011

7.2%

The tertiary sector (46.3% of GDP, including 11% of non-market services) grew by 2.1% in 2011, compared to 2.5% in 2010. Telecommunications (20%) and banking fuelled most of that rise. Trade (re-export and transit) plays a key role in the sector's performance (over half the value of the country's exports). It is mainly based on port activities in Cotonou, one of the State's main revenue sources. The tertiary sector is the

In July 2012 the International Monetary Fund (IMF), which had come to assess Benin's macroeconomic situation, hailed the government's sound budget management. In 2011 government revenue rose by less than 1%, to 605.6 billion CFA francs, but officials are ramping up their efforts to raise non-tax customs revenues, particularly as part of reforms under way in the port of Cotonou and its revenue-collection departments. The earliest results, especially in the framework of the Import Verification Programme (PVI), are satisfying. Government revenue was expected to reach 784 billion CFA francs at the end of 2012 and Benin should have its deficit under control in the new fiscal year.

Primary

Secondary

INVESTING BENIN 2013

Tertiary

›››

FACTFILE

OUTLOOK

INTERNATIONAL RATINGS

INVESTMENT PROMOTION

ABEPEC. It will be made up of

The "Doing Business" ranking

CENTRE (CPI)) The CPI, which is under the

three one-stop offices: business

control of the Ministry of the

investment procedures.

(business environment): 175 th out of 185 in 2013

creation, export procedures and

Economy, Planning, Development

Transparency International

and the Assessment of Public

PRESIDENTIAL INVESTMENT

(perception of corruption):

Action (MEPDEAP), facilitates

COUNCIL

100th out of 182 in 2011

investment by meeting with

This consultative body was

Standard & Poorʼs: B Coface (foreign trade risk): C

entrepreneurs, improving the

set up in 2006 to promote

business climate, commissioning

continuous dialogue between

industrial surveys and

the public and private sectors,

implementing their findings.

which have representatives on

INVESTMENT ENVIRONMENT The investment code guarantees

BENIN TRADE PROMOTION

push for implementing all the

AGENCY (ABEPEC)

reforms likely to improve Benin's

the freedom to start up any

Created in 2007, ABEPEC, which

business climate. It is a key

is under the control of the

interlocutor for major investors.

(on a scale of A to D)

the council. Its members also

government-authorised business in Benin. Investors enjoy the right to manage their companies and to transfer capital. Priority and advantages are granted to companies that help to develop local resources and create jobs and value added. The code provides for various systems and incentives depending on the company's size and activity. The law against corruption passed in August 2011 is intended to fight money laundering, conflicts of interest, fraud, the rigging of bidding on government contracts and so on. Benin has made efforts to stamp out corruption in the past; none has succeeded so far. The new law sets up a National Authority for the Fight Against Corruption endowed with a legal personality.

Ministry of Trade, is responsible for developing and fostering trade between Benin and the rest of the world. It wants to

USEFUL NUMBERS ●

INVESTMENT PROMOTION CENTRE Tel.: (+229) 21 30 10 33 Fax: (+229) 21 30 01 67

●

BENIN TRADE PROMOTION AGENCY Tel.: (+229) 21 30 13 20 Fax: (+229) 21 30 04 36

●

BENIN CHAMBER OF COMMERCE AND INDUSTRY (CCIB) Tel.: (+229) 21 31 20 81 Fax: (+229) 21 31 32 99

become a trade and economic information clearinghouse and a powerful tool to help investors. SINGLE WINDOW FOR BUSINESS CREATION (GUFE) The purpose of GUFE, which was set up in 2009, is to make business creation formalities easier, in particular by saving time and cutting costs. AGENCY FOR THE PROMOTION OF INVESTMENTS AND EXPORTS (APIEX) Reforms under way call for the creation of this agency, which will rationalise and improve support for the private sector by joining the CPI, GUFE and

ECONOMY AND BUSINESS ENVIRONMENT OUTLOOK

›››

The port of Cotonou's customs revenues are set to rise by 10% in 2013.

RESUMPTION OF GROWTH 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

4.7%

average 1991-2002

4.5% 3.5%

3.1% 2.7%

2009

2.6%

2010

2011

2012

THE GOALS FOR 2013 In the 2013 economic programme agreed on by the government and the IMF, Benin's of f icials forecast that the improvement of the Impor t Verif ication Programme New Generation (PVI-NG) will enable customs revenues to rise by 10% (370.5 billion CFA francs, up from 334 billion CFA francs estimated in 2012). Public spending should increase by 7.2% to 906.3 billion CFA francs, fuelled in par ticular by staf f expenses (benef its granted to civil ser vants in 2011) and the continuation of social measures for vulnerable populations (free primar y school and medical care for cer tain conditions). Wage hikes in the civil ser vice, rising cot ton revenues and the pursuit of public investment, up by 6% to 272.9 billion CFA francs, will help buoy domestic demand and fuel dynamic grow th. ■

2013

DEVELOPMENT STRATEGY Since 2007 the country's economic policy has been part of "vision Bénin 2025 Alafia", the last word meaning peace and life. The programme, which aims to give Benin a competitive economy and triple its GDP, involves strategic development orientations (OSD) implemented by the Agenda for an Emerging Economy and the Growth and Poverty-Reduction Strategy (GPRS). For the 2011-2015 period GPRS identified five clusters on which the government should focus its efforts: agriculture and the food industry, cotton textiles, trade and logistics, civil engineering, tourism and ICT. Benin promotes public-private partnerships (PPP) in all these sectors to attract the necessary investments and skills. Development of the first cluster must meet three needs: food security, jobs and wealth creation through exports. Revenues must be raised by creating plants for the local processing of agricultural products, forming the basis of the industrialisation of Benin's economy.

INVESTING BENIN 2013

ECONOMY AND BUSINESS ENVIRONMENT

FOREIGN TRADE

West Africa is Benin's top customer

ÂŠ D.R.

The country makes the most of its location and agricultural exports

Cotton now accounts for over two-thirds of Benin's exports.

DIVERSIFYING PRODUCTS In bumper years, cotton alone accounts for over two-thirds of Benin's exports. Intent on making the most of this resource, the government has asked farmers to boost their output and given them

the wherewithal to do so. Meanwhile, it wants to diversify agricultural output by focusing on crops with a high export potential, such as palm oil, cashews and pineapples, which already account for nearly 10% of Benin's sales abroad.

INVESTING BENIN 2013

ECONOMY AND BUSINESS ENVIRONMENT FOREIGN TRADE

Cotonou is West Africa's main port of entry for pre-owned cars from Europe.

LOCAL VALUE ADDED

65%

of Benin's exports head to neighbouring countries

Benin's location next door to the huge Nigerian market and those of several landlocked countries enables it to re-export products imported via the port of Cotonou, but this activity is losing steam. Of 377,885 million CFA francs in export earnings in 2006, 65% came from products re-exported without being processed locally. In 2010 the figure fell by 40% in value, even as overall revenue rose by 60%. The increase stems from the policy of locally processing agricultural products. In 2013 it should soar as several plants created in partnership with Indian experts go on line to process pineapples, tomatoes, citrus fruits, mangoes and nuts.

NIGERIA GETS 43% OF EXPORTS West Africa, which accounted for 65% of exports in 2010, is

INVESTING BENIN 2013

Benin's leading of ficial customer. Neighbouring Nigeria, a market of 160 million consumers, makes up 43% of the total and imports nearly all of Benin's frozen meat and of fal, mainly chicken, its third-biggest export product, which is growing at a swif t pace. Nigeria is also the main customer for bulk or bagged rice and vegetable oils. Asia is Benin's second-largest customer (26% in 2010 and declining). China and Indonesia, both textileprocessing countries, buy up most of the cotton output, and India does the same with cashews. The European Union accounts for less than 8% of Benin's exports. Next come Ghana, Niger and Côte d'Ivoire, accounting for less than 4% each. But these are of ficial figures. If informal cross-border trade is taken into account, Frenchspeaking West Africa's share of Benin's exports rises from 9.7% (of ficial 2010 data) to nearly 35%, including the trade in pre-owned cars from Europe, imports of which are rising at the port of Cotonou. They are resold in neighbouring Burkina Faso, Togo and Niger.

A MARKET OF 200 MILLION PEOPLE Benin's of ficials intend to capitalise on the countr y's location at the hub of a region with over 200 million people stretching as far as Chad, whose building contractors buy their reinforced concrete bars in Cotonou. With that in mind, the port of Cotonou is getting ready to inaugurate two new 600m quays intended to accommodate the latest-generation container ships. ›››

FACTFILE

FOREIGN TRADE BALANCE OF TRADE

The port of Cotonou, Benin's trade hub

In billions CFA francs

2000

2006

2010

2006/2010

Exports

128.4

107.7

193.9

+80%

Imports

400.6

526.9

739

+40%

The port of Cotonou, which

Balance (deﬁcit)

272.2

419.2

545.1

+30%

accounts for over 60% of Benin's GDP, is the maritime

MAIN EXPORTS

outlet for Niger (80,000 tons from January to June

In billions CFA francs

2006

2010

Variation

Cotton

49.3

+15%

Grains

+1,000%

and Mali (85,000t). In 2011

0.042

46.5

+1,000%

import traﬃc fell by 5% to

8.7

16.3

+87%

5.6 million tons, but for the

8.36

+0.45%

Meat and edible oﬀal Fruit Fats and oils Source: INSAE/DSEE

2012), Nigeria (244,800t), Burkina Faso (244,600t)

ﬁrst time the port exported over a million tons of goods (720,000t in 2010).

MAIN IMPORTS

Container traﬃc is also rising at a steady pace, from

In billions CFA francs

2006

2010

Variation

Fuel

113.6

152.7

+34%

Motor vehicles

23.1

58.6

+153%

Clothing

43.7

+9.8%

The number of imported

Fats and oils

23.3

45.7

+96%

pre-owned vehicles rose

Metal products

7.4

39.7

+436%

as much, from 246,941 to

167,791 TEU (Twenty Feet Equivalent Unit) in 2007 to 231,486 in 2011 (38%).

Pharmaceuticals

21.1

32.1

+52%

341,004, during the same

Building materials

27.2

26.2

-3.6%

period. Other imported

Source: INSAE/DSEE

products are fuel, grain, food and cement. Timber, cashew nuts and cotton are

the main exports.

ECONOMY AND BUSINESS ENVIRONMENT FOREIGN TRADE

››› They were built in the framework of

a partnership with the Millennium Challenge Account-Benin for over $169 million. Three dr y ports in relation with the port of Cotonou have also been built or are under construction in Allada and Tori, near Cotonou, and in Parakou, northern Benin's main city, to improve traf fic. That is why Benin is carr ying out many road-building projects to ser ve neighbouring countries.

A WIDE RANGE OF IMPORTS Fuel, cars, textiles and food (meat, grain and oil) are Benin's main imports. According to of ficial statistics, Europe is the countr y's main import partner, accounting for 45.8% of goods sold in 2010 (15% from France), followed by Asia (26.3%, including 11.2% for China). Africa only ranks third, with a 23.5% market share. But if crossborder trade and corrections for intra-WAEMU trade are taken into account, the continent becomes Benin's second-biggest trading partner (Nigeria, Togo and Côte d'Ivoire are in the lead), with a 37.3% market share, of which the WAEMU zone accounts for 22%.

BALANCING TRADE

The expanded, modernised port of Cotonou accommodates a growing number of container ships.

INVESTING BENIN 2013

Benin, a net importer, has a structural trade deficit (545 billion CFA francs in 2010). In the long term, efforts to develop the national economy may lead to a trade balance. First quarter results for 2012 bear out that trend. Compared to the same period in 2011, exports rose by 8.3% to 60.2 billion CFA francs, while imports fell by 12.2% to 168.4 billion CFA francs. ■

ECONOMY AND BUSINESS ENVIRONMENT

AGRICULTURE

Driving sustainable development

ÂŠ DR

Modernisation and integrated agriculture are priorities

The Strategic Plan for Agricultural Sector Recovery promotes 13 products.

A PROACTIVE POLICY Since 2006 Benin's government has led a proactive policy to develop agriculture, which accounts for seven in 10 direct and indirect jobs and for the country's main exports. In the 1990-2011 period agriculture accounted on average for 32% of GDP, livestock breeding for 6% and fishing for 4%. Benin is facilitating access to inputs, insecticides and mechanisation in order to boost its agricultural output, reduce its

food bill and increase its export earnings. Officials also want to create more value added by stepping up the local processing of certain products. As a sign of the desire to lay the groundwork for integrated agriculture, the 2012-2013 budget for the Ministry of Agriculture, Livestock and Fisheries (MAEP) doubled to 11.80%.

A STRATEGIC RECOVERY PLAN The government has adopted a

INVESTING BENIN 2013

ECONOMY AND BUSINESS ENVIRONMENT AGRICULTURE

Local processing of agricultural products, livestock and ďŹ shing are government priorities.

11.7% The share of the government budget earmarked for agriculture

Strategic Plan for Agricultural Sector Recovery (PSRSA) as part of "vision Benin 2025 Alafia". Based on nine areas of development, it promotes 13 products (maize, rice, cassava, yams, cotton, pineapples, cashews, palm oil, market crops, meat, milk, eggs, fish and shrimp), six of which are in the framework of the 20112015 investment plan. The plan aims to facilitate access to inputs, quality seeds and training with the goal of making family farms, which account for 90% of the total and have an average size of 1.7 hectares, more professional. Officials hope to mechanise 20% of agricultural

INVESTING BENIN 2013

activities by 2015 (today 76% are manual, 24% rely on animals and 1% use motorised tools). An agricultural mechanisation agency will open in 2013 with backing from Indian partners.

A DEDICATED BANK AND SECURE PROPERTY The PSRSA also includes the creation of a national agricultural development bank to facilitate farmers' access to credit. Agriculture accounts for just 2% of bank loans, compared to 20% for the secondary and 78% for the tertiary sectors. Officials will do everything necessary

ECONOMY AND BUSINESS ENVIRONMENT AGRICULTURE

Maize ﬁelds and palm trees in the hills region.

to secure deeds so that they can cover loans to farmers. In addition to the bank, the plan will include an organisation dedicated to the promotion of agricultural products and an agency to develop irrigation.

TAKING BACK CONTROL OF THE COTTON INDUSTRY After a conflict with privatesector farmers in early 2012, the government took back control of the cotton industry and is developing a public-private discussion framework to track and monitor operations. Meanwhile, it directly imports inputs and supplies farmers. The result: the area under cultivation has increased fourfold. The 2012-2013 harvest is expect to exceed 35,000t, compared to 130,000t the previous season. This figure is well below the cotton industry's ginning capacity, estimated at 600,000t a year. To reach that level, the industry, rocked by the liberalisation of the economy in the past decade, has become a government priority again.

SIX PROCESSING PLANTS TO DIVERSIFY PRODUCTION While developing a strong cotton industry, Benin has begun to industrialise agriculture. Six foodprocessing plants are being built in the country. A tomato-processing unit will open in Kpomassè, 70km west of Cotonou, in 2013. Plants to process pineapples (Allada), citrus fruits (Bohicon), mangoes, cashew nuts and almonds are under construction. ■

FERTILE LAND Benin is divided into eight agricultural zones, ﬁve of which boast particularly favourable conditions. Examples include the cotton-growing zone (northeast) and the food crops zone (centre-east), characterised by a single growing season and low population density. The south's low-lying zone oﬀers a very high and still-untapped growing potential on account of its ferrallitic soils conducive to growing oil palms, fruit and food crops. The country has four other main soil categories, all adapted to food crops and sometimes to cash crops: iron-rich tropical soils (the most widespread), vertisols, para-vertisols and hydromorphic soils (favourable for rice and sugar cane).

INVESTING BENIN 2013

ECONOMY AND BUSINESS ENVIRONMENT

OIL AND MINING

The country's potential is luring investors

Several companies have invested in hydrocarbons

PROMOTING EXPLORATION

AIRBORNE PROSPECTING

For now, mining makes but a small contribution to Benin's economic growth (0.3% of GDP). Only a few minerals are extracted (sand, limestone, clay and cement) and their output can be counted in thousands of tons. Gold is extracted using traditional non-industrial methods. Yet the country has a high mineral resource potential and the government is determined to continue promoting exploration.

Benin also has 506 million tons of iron ore reserves (46%-52% iron and 13%-15% silica) in Loumbou-Loumbou and Madékali and 5.5 million tons of phosphates in the Mékrou region. To develop this mining potential, in November 2011 the country signed a contract with Canadian entrepreneurs to conduct a nationwide airborne geophysical survey. The findings could be decisive for the sector's development.

THE ORE-RICH NORTH

RESUMPTION OF OIL DRILLING

Geologists have found many proven reserves of building materials, including limestone (an estimated 140 million tons in Onigbolo, Massé and Bakpodji), marble (8.8 million tons between Idadjo and the Mono region), clay (16.5 million tons between GbédjiKotovi, Massi and Zogbodomey) and kaolin (a billion cubic metres in the Kétou region). Two gold-bearing metallogenic areas have been found in the Atakora Mountains (northwest) and in Alibori department (northeast).

Benin, a founding member of the African Petroleum Producers' Association (APPA), whose technical cooperation headquarters it hosts, was an oil producer from 1982 to 1998, when Norway's Saga Petroleum extracted over 22 million barrels of crude from the Sème deposit east of Cotonou. Production stopped when oil prices plummeted and operating costs became too expensive, but Saga Petroleum did not resume operations after they went back up. ›››

INVESTING BENIN 2013

ECONOMY AND BUSINESS ENVIRONMENT OIL AND MINING

AGRICULTURE, STOCKFARMING Ni

Subsistence crops

Al ib o

W' NATIONAL PARK

Pendjari

Kandi

Rice

Livestock farming Cattle

k r ou

Sheep and goats

National Park

Batia

Kérou

j ari

Ot i

ta So

Banikoara

PENDJARI NATIONAL PARK

Madécali

Mixed upland subsistence crops (maize, yams, cassava, sorghum) Maize with cassava, beans or groundnuts Maize and millet with cassava and yams Sorghum and yams with cassava and maize

Kouandé

Natitingou

Bembèrèkè

Péhonko

Cash crops Coffee

Biro

Ndali

Nikki

Tobacco Oil palms

Djougou

Groundnuts Cotton

Wé-Wé

Bodi

MINING AND ENERGY

Parakou

Major deposit

Shea (tree)

Iron

Limestone

Marble

Precious stones

Phosphates

Fruit and vegetables

Bassila

Cashew tree (cashew nuts)

Idadjo

Banté

Planned gas pipeline

Savé

Savalou

Glazoué

Couffo

Paouignan

Agouna

Traditional fishing

Ou é m é

Abomey

Bohicon

o Mon

Aplahoué

Brewery

Onigbolo

Massé

Pobé

Textiles Cement works Chemicals Cotton ginning

Dogbo

Ouidah 50 km

Agribusiness

Avogbana

Athiémé

INDUSTRY

Zou

o uff Co

Shipping

Railway

Ok p a r a

Oil

Planned oil refinery

Industrial fishing

Pineapples

Tchaourou

Leather and shoes

Avrankou Hinvi Ganvié

Cotonou

Cycle assembly Light metal metallurgy

PORTO NOVO

GULF OF BENIN

INVESTING BENIN 2013

Printworks

Gold

Hydroelectricity

Kapok

ECONOMY AND BUSINESS ENVIRONMENT OIL AND MINING

Benin has an estimated 506 million tons of iron ore reserves as well as many proven resources of building materials (limestone, marble, clay, etc.).

›››

The government signed a contract with Nigeria's South Atlantic Petroleum (SA Petro), which will pump out the deposit's residual reserves in 2013 and 2014.

sign is that three of the companies presently operating in Benin have penetrated the market since 2010, including Brazil's Petrobras, which arrived in February 2011.

CANADIANS, NIGERIANS AND BRAZILIANS OFFSHORE

AN OPEN REGULATORY FRAMEWORK

Foreign companies are exploring seven out of 15 offshore tracts. Archean Energy (Canada) has tract 2, Signet (Virgin Islands) tract 3, which the company calls "very promising", CDH (Australia), Petrobras (Brazil) and Shell (the Netherlands) tract 4, where the work is very advanced, Oranto Petroleum (Nigeria) has tracts 5, 6 and 8 and Moncrief Oil (United States) tract 7. Two onshore tracts in southern Benin are available or in the negotiation stages. An encouraging

Benin's petroleum code was revised in 2006 to make the industry more attractive. The fee is no longer fixed but varies, depending on the operations, and the tax rate has been lowered. The government says it is willing to discuss easy terms in the framework of explorations and operations in very deep water. Unlike many other African oil-producing nations, Benin sets no limit on the number of shares foreign companies can own. ■

INVESTING BENIN 2013

ECONOMY AND BUSINESS ENVIRONMENT

INFRASTRUCTURE

West Africa's commercial crossroads

ÂŠ Y. Trougnin

The goal is to become an indispensable regional hub

Benin is upgrading and expanding its road network in two directions: the north-south axis, which links it to neighbouring landlocked countries, and the east-west axis, to foster ties with Nigeria.

IMPROVING TRADE Benin's location is a major asset for economic development. The country lies at the heart of a market of 200 million people, 160 million of whom live in neighbouring Nigeria, whose economic capital, Lagos, has 15 million people 100km from Cotonou. Geographical and, often, cultural proximity already influences its foreign trade. Benin

embraces its role as a commercial crossroads and wants to benefit from it by improving trade by road, sea, air and rail.

ON THE ABIDJAN-LAGOS MOTORWAY The importance of the port of Cotonou means that Benin's road network is expanding not only on a north-south axis for neighbouring landlocked

INVESTING BENIN 2013

758KM Length of the rail network

ECONOMY AND BUSINESS ENVIRONMENT INFRASTRUCTURE

Cotonou is strategically located on the north-south Interstate 1 and the future east-west Abidjan-Lagos motorway.

500 KM of roads under construction

countries, but also along an east-west corridor due to Nigeria's commercial importance in the sub-region. In the east-west direction, the stretch of the future Abidjan-Lagos motorway along the Godomey coast to the border with Togo is being widened from one to two lanes each way with help from the World Bank and the African Development Bank (AfDB). One of the other main projects under way is paving 77km of road between N'Dali, in the north, and the border with Nigeria, with backing from the AfDB. Financing for the construction and paving of Interstate 7 (the 117km KandiSégbana-Nigerian border stretch), for 35 billion CFA francs, has been secured (read insert on p. 42). Further west, in early 2012 the Arab Bank for Economic Development in Africa (ABEDA) granted a $10.4-million soft loan to build a

INVESTING BENIN 2013

bridge over the River Mono in order to facilitate trade with neighbouring Togo.

LINKING COTONOU TO THE HINTERLAND COUNTRIES The north-south Interstate 1 will be rehabilitated to connect Benin with landlocked Burkina Faso and Niger. Work on the 103km Akassato-Bohicon stretch should begin in 2013 with help from China. So will the paving of the 142km Parakou-Béroubouay stretch, backed by the European Development Fund (€51 million). Cotonou has just received two overpasses and the Godomey interchange, which the China Railway Construction Company built north of the economic capital. Located on the Abidjan-Lagos motorway and Interstate 1, it eases traffic congestion on the link with Abomey-Calavi, a city with a booming population.

ECONOMY AND BUSINESS ENVIRONMENT INFRASTRUCTURE

Stretch of the future Abidjan-Lagos motorway. The coastal road between Cotonou and Togo has been widened to four lanes.

PORT EXPANSION Cotonou, Niger's maritime outlet, is also used by Nigeria, Burkina Faso and Mali. The sand trap was extended by 300 metres, at a cost of €22.2 million, to boost capacity, improve service and keep the channel from silting up. Two new 600m quays dredged at least 15 metres were completed in 2012 to accommodate the latest-generation container ships. The Millennium Challenge AccountBenin programme's port section made both facilities possible. In the same framework, two new 250-space lorry parks were delivered and the port's road network and security improved (video surveillance, lighting and fire prevention). Bolloré Africa Logistics, which has been running the terminal container on a concession basis since 2009, is building new infrastructure to boost annual container traffic from

the current 321,000 TEU to one million in 20 years. Meanwhile, officials are planning to build a 1,028ha, 400-billion CFA franc deepwater mineral and commercial port in Sèmè-Podji, near the border with Nigeria, that will be able to accommodate ships with a 20m draught.

A RAIL NETWORK AND ROAD-RAIL TRANSPORT FOR THE FUTURE Benin pins big hopes on its rail network, which is vital for making the country an indispensable regional transport hub. The system stretches out over 758km, of which 438km link Cotonou and Parakou, in the centre of the country. But the network's rundown condition means that most of the potential offered by the dry ports that have been built or are under construction goes untapped. The one in Allada, which the Beninese company Atral built approximately

INVESTING BENIN 2013

ECONOMY AND BUSINESS ENVIRONMENT INFRASTRUCTURE

30 kilometres north of Cotonou, has been in service since 2011. Two more are under construction in Parakou and another in Tori-Cada, near Allada. Benin is an integral part of the 2,970km Cotonou-Niamey-OuagadougouAbidjan rail loop project, of which 1,176km must be built and another 1,794 rehabilitated. The studies are nearly over and the countries involved hope to see work start in 2014.

THE NEW GLO-DJIGBÉ AIRPORT

The future 3,000ha Glo-Djigbé international airport will be located on the strategic east-west and north-south road corridors.

President Yayi's visit to South Africa in December 2011 sped up this project, which has been expected for years. The South African consortium Aerosun Aviation CC will build the 360-billion CFA franc, 3,000ha airport near Abomey-Calavi with direct access to the Abidjan-Lagos motorway and Interstate 1 in the framework of a BOT (Build-Operate-Transfer) contract. It will boast a 4,250m runway capable of accommodating every kind of aircraft. The terminal will be able to handle over 900 passengers an hour and 12,000 tons of freight a year. ■

LENDERS TRUST BENIN Benin enjoys full backing from most of the multilateral financing agencies. Aid from the European Union and China mainly consists of donations, while the African Development Bank (AfDB), World Bank, West African Development Bank (BOAD) and

ther funding from the Islamic Development Bank (IDB), Kuwait Fund for Arab Economic Development (KFAED), Arab Bank for Economic Development in Africa (ABEDA), Saudi Development Fund (SDF) and OPEC International Development Fund

Arab institutions provide soft loans. For example, Benin brought toge-

(OIDF) for the Kandi-Ségbana-Nigerian border road.

INVESTING BENIN 2013

FACTFILE INFRASTRUCTURE PROJECTS GLO-DJIGBÉ INTERNATIONAL AIRPORT Located on 3,000 hectares 30km from Cotonou, and designed as a multimodal hub that can process 12,000 tons of freight a year. COTONOU-NIAMEYOUAGADOUGOU-ABIDJAN RAIL LOOP Connecting Côte d'Ivoire, Burkina Faso, Niger and Benin, it will be 2,970km long, of which 1,176 will be built and 1,794 rehabilitated. The countries involved hope to start work in 2014. ADMINISTRATIVE TOWER IN COTONOU The nine-storey twin tower, completed in late 2012, will house several government agencies. China Eximbank granted a 15.6-billion CFA franc preferential loan to finance the project.

INFRASTRUCTURE DEEPWATER PORT IN SÈME Officials plan to build a 1,028ha, 400-billion CFA franc deepwater mineral and commercial port in Sèmè-Podji near the border with Nigeria. ABIDJAN-LAGOS MOTORWAY As part of the Abidjan-Lagos regional motorway project, Benin is widening the stretch between Cotonou and the border with Togo from two to four lanes. THE FISHING ROAD The fishing road project (read p. 64) plans to develop a world-class international tourist complex between Cotonou and Ouidah. Paving of the main access road will start in 2013. MARIA GLÉTA POWER PLANT Benin is financing an 80MW gas turbine power plant in Maria Gléta, in the town of AbomeyCalavi, which will be up and running in early 2013.

INFRASTRUCTURE RESOURCE BODIES ◗ MINISTRY WITH RESPONSIBILITY FOR LAND TRANSPORT, AIR TRANSPORT AND PUBLIC WORKS Tel.: (+229) 21 31 46 33 Fax: (+229) 21 31 06 17 ◗ DEPARTMENT OF PUBLIC WORKS Tel.: (+229) 21 31 21 00 Fax: (+229) 21 31 28 51 ◗ DEPARTMENT OF LAND TRANSPORT Tel.: (+229) 21 31 45 69 Fax: (+229) 21 31 01 33 ◗ DEPARTMENT OF BENIN-NIGER COMMON ORGANISATION (OCBN) Tel.: (+229) 21 31 01 77 Fax: (+229) 21 31 41 50 MINING RESOURCE BODIES ◗ MINISTRY OF PETROLEUM AND MINING RESEARCH Tel.: (+229) 21 31 29 38 ◗ BENINESE OFFICE OF GEOLOGICAL AND MINING RESEARCH Tel.: (+229) 21 31 03 09 Fax: (+229) 21 31 41 20 ◗ BENINESE HYDROCARBONS OFFICE (OBH) Tel.: (+229) 21 31 29 38 ◗ PETROLEUM OPERATIONS OFFICE Tel.: (+229) 21 30 68 28

◗ DEPARTMENT OF MINES Tel.: (+229) 21 30 30 33

COMPANIES & MARKETS

COMPANIES AND MARKETS

COMPANY LIFE

A liberal, dynamic economy

A host of development opportunities

Cornmeal in Bohicon, a transit hub between Cotonou, 130km to the south, and northern Benin.

137,000 companies have been counted in Benin

THE PRIVATE SECTOR IS PREDOMINANT In 1990, after 18 years of a MarxistLeninist planned economy, the government sold off most of the production operations it controlled. Nearly 60% of privatisations involved foreign investors and around 30% domestic ones. The

INVESTING BENIN 2013

rest concerned public-private partnerships. Most privatisations involved manufacturing (cotton, food, building materials and textile processing), tourism (hotels) and transport (storage and warehousing). Today the private sector is a key partner in the country's economic development.

COMPANIES AND MARKETS COMPANY LIFE

The Songhaï farm cooperative in Porto-Novo.

A mineral water bottling plant.

YOUNG, DYNAMIC COMPANIES

buoyancy. Other statistics also point to Benin's dynamism: 80% of business owners are under 45 and 50% are women.

In 2008 the first general census of companies since 1980 took place; the results were released in 2010. The Littoral department, whose capital is Cotonou, has 37% of the 137,000 businesses counted. Next come Ouémé (13%) and the Atlantic department (11%), both near the economic capital. The census shows that Benin's economy is increasingly service-oriented: just 26% of companies are involved in manufacturing or processing activities. The overwhelming majority are commercial (43% in retail sales of agricultural, textile and other products) or in manual trades (49% in textile processing, hairdressing, mechanical activities, food service, etc.), accounting for 16% of GDP. They export little. Four in 10 businesses are less than five years old, which attests to the difficulty of weathering hard times ̶ but also to the country's

A SHRINKING INFORMAL SECTOR Not surprisingly, 97% of businesses are micro-enterprises where the owner is the only employee. Of these, 98% are in the informal sector, leaving just 1.9% as registered companies, mainly with limited liability. Only 44 companies declare having over 10 permanent employees with 1,506 having between five and 10.The estimated amount of average capital is put at 6.4 million CFA francs but there are wide disparities: 88% have less than a million CFA francs, 11% from one to 10 million, 1% from 10 to 50 million and 0.2% over 50 million. Benin needs competitive, profitable, job-creating companies. That is why training centres help micro-enterprises develop financial records recognised by banks in order

INVESTING BENIN 2013

COMPANIES AND MARKETS COMPANY LIFE

integration of existing companies into official networks cannot. They are part of the Agenda for an Emerging Benin Action Plan (Alafia 2025). After analysis, five activity clusters appeared as the bestdeveloped and, therefore, the most likely to attract investors. They are agriculture (cotton-textiles and food, read p. 55); tourism; ICT (read pp. 60 and 63); international trade and commerce; and construction, civil engineering and construction materials. The real estate boom and infrastructure construction are fuelling growth in the building and civil engineering sectors.

to facilitate their access to credit. They pay a flat tax rate ranging from 50,000 to 100,000 CFA francs a year. Registrations of self-owned and limited liability companies rose in 2011.

FIVE COMPETITIVENESS CLUSTERS At the same time, officials are expecting five high value-added competitiveness clusters to energise the economy in a way that the slow

INDUSTRIAL OPPORTUNITIES IN CONSTRUCTION AND CIVIL ENGINEERING The government is particularly interested in the construction and civil engineering sector, which accounts for just 0.1% of Benin's companies and 4.3% of GDP even though demand is very high. Investments in this industry are all the more worthwhile: most of the companies are already in the formal sector and construction and civil ›››

A BIDDING WAR IN THE CEMENT INDUSTRY An investment war is on in the cement industry, the symbol of the construction and civil engineering sector's growth. In 2001 the state sold its shares (51%) in the Beninese-Nigerian Onigbolo Cement Company, founded in 1982, to France's Lafarge. In 2010 the Nigerian government sold its 43% stake in Dangote Cement. In early 2012 a Senegalese entrepreneur announced the building of a new cement plant (Nocibé) in Massé, around 50 kilometres north of Cotonou, which alone will double national cement output capacity to 1.5 million tons a year. Five banks (Ecobank, Société Générale, BOA, the Islamic Bank of Senegal and BOAD) are ﬁnancing the 170-billion CFA franc project, the biggest direct foreign investment in Benin's history. Over 4,000 direct and indirect jobs will be created.

INVESTING BENIN 2013

FACTFILE

COMPANY LIFE MAIN MINISTRIES

FOREIGN DIRECT INVESTMENT STOCK In millions of CFA francs

2000

◗ ECONOMY AND FINANCE Tel.: (+229) 21 30 02 81 Fax: (+229) 21 30 18 51 www.ﬁnance.gouv.bj

968

◗ AGRICULTURE, LIVESTOCK AND FISHERIES Tel.: (+229) 21 30 04 96 Fax: (+229) 21 30 03 26 www.agriculture.gouv.bj

213

2011

◗ INDUSTRY Tel.: (+229) 21 30 76 45 Fax: (+229) 21 30 30 24

Source: 2012 report on investment in the world, Cnuced

NUMBER OF COMPANIES PER SECTOR Sector

Number

% of total

Manual trades

71,464

51.80

Commerce

62,687

45.40

Education

1,509

1.10

Health

864

0.60

Manufacturing

526

0.38

Hotels

418

0.30

ICT

274

0.20

Construction and civil engineering

190

0.13

Agriculture

0.06

Transport

0.03 100 %

Source: 2011 census, 2008 data

NUMBER OF COMPANIES BASED ON TURNOVER Companies with total or simpliﬁed accounting Turnover (in CFA francs)

Number

Less than 100,000

1,228

23.62

100,000 to 1 million

1,215

23.37

1 million to 100 million

2,387

45.91

369

7.10

5 ,199

100

More than 100 million Total

◗ TRADE Tel.: (+229) 21 30 76 45 Fax: (+229) 21 30 30 24 www.commerce.gouv.bj ◗ SME AND PROMOTION OF THE PRIVATE SECTOR Tel.: (+229) 21 32 49 41 ◗ TOURISM AND HANDICRAFTS Tel.: (+229) 21 30 70 10 Fax: (+229) 21 30 70 31 ◗ PRESIDENTIAL INVESTMENT COUNCIL Permanent Secretariat Tel.: (+229) 21 30 98 52 ◗ INVESTMENT PROMOTION CENTRE (CPI) Tel.: (+229) 21 32 12 10 ou 21 32 47 71 Fax: (+229) 21 32 11 44 ◗ CHAMBER OF COMMERCE AND INDUSTRY (CCIB) Single Window for Business Creation (GUFE) Tel.: (+229) 21 31 43 86 www.ccibenin.org ◗ NATIONAL EMPLOYERS' COUNCIL (CNP-BENIN) Tel.: (+229) 21 31 77 90 ◗ AUTONOMOUS PORT OF COTONOU General Management Tel.: (+229) 21 31 52 80

COMPANIES AND MARKETS COMPANY LIFE

INVESTMENT SECURITY

Buildings in Cotonou's business district.

›››

72 HOURS

the time it takes to complete business creation formalities

engineering groups account for a large share of permanent employees (40%) and are very profitable. The real estate boom and major public works projects attracting multinationals, which sub-contract a large share of their activities locally, are fuelling growth in this sector.

CUTTING THROUGH RED TAPE Benin is pursuing its efforts to improve the business environment and services to facilitate investments. Since early 2012 the Single Window for Business Creation (GUFE) has cut the amount of time required to set up a limited liability company from one month to 72 hours and the number of procedures from six to three. The offices are being set up in the provinces in connection with the Millennium Challenge Account. Six special offices to facilitate companies' access to electricity have been active since 2011.

INVESTING BENIN 2013

In August 2011 Benin passed a law to fight corruption after a process that no previous government had been able to bring to a successful conclusion. A March 2012 law on the penal procedure code shortens case processing times in the event of disputes, including commercial ones. A law will be passed to facilitate companies' access to property, a recurring problem in Benin. Meanwhile, the time it takes to process transfer requests has been reduced from four months to five days at most, and to obtain a building permit from municipal authorities from three months to less than four weeks. Discussions on reforming the labour code are under way and a bill on competition will be drafted. The Presidential Investment Council, created in 2006, keeps up continuous dialogue between government and the private sector.

INSTITUTIONS IN THE SERVICE OF INVESTORS The Single Window for Business Creation (GUFE), Investment Promotion Centre (CPI) and Benin Trade Promotion Agency (ABEPEC) help entrepreneurs get up and running. They will soon merge into the Investment and Export Promotion Agency comprising three Single Windows (business creation, export procedures and investment procedures). The Competitiveness and Integrated Growth Opportunity Project (CIGOP) aims to identif y new economic opportunities by developing companies and entrepreneurship. ■

COMPANIES AND MARKETS

BANKING AND FINANCE

Dynamic markets

Thirteen banks, 12 insurance companies and many microďŹ nance networks

BOA-Benin, the country's biggest bank, has one-third of deposits.

THE BANKING MARKET Benin has the fourth-largest banking sector in the West African Economic and Monetary Union (WAEMU). It includes 13 banks. The latest, BGFI Bank, set up in May 2010, came from Gabon in the framework of its internationalisation strategy. The African Investment Bank is under State control. As in

most of the region's countries, of ficials from ECOWAS and the Central Bank of West African States (BCEAO) regulate banking activities. This community framework was strengthened in 2010, in particular by requiring each country's banks to have at least five billion CFA francs in capital and by tightening up prudential standards.

INVESTING BENIN 2013

COMPANIES AND MARKETS BANKING AND FINANCE

Ecobank and Diamond Bank are Benin's second- and third-largest banks, respectively.

THREE MAIN PLAYERS

16.3% Increase in short-term loans in 2010

Bank of Africa-Benin (BOA-Benin), the country's biggest bank, with onethird of deposits, has joined forces with the Moroccan group BMCE Bank. It is the only Beninese company listed on the Regional Securities Exchange (BRVM) in Abidjan. BOA-Benin, Nigeria-based Diamond Bank and Ecobank, a subsidiary of the panAfrican group, hold two-thirds of the market. All the banks are active in every market segment except Banque de l'Habitat, a BOA-Benin subsidiary specialising in housing and property.

2010 (the last known statistics), when the economic growth rate was 2.6%, the banks' total assets rose by 11.6%, collected funds by 15.5% and loans by 10.3%. Short-term loans (53.4% in 2010, up by 16.3%) and mediumterm loans (37.5% in 2010, up by 7.2%) dominate the market. As in the rest of the WAEMU zone, the share of longterm loans is too low (2.6% of loans in 2010, down by 9.1%). The tertiary sector accounts for 79% of loans, the secondary sector 19% and the primary sector 2%.

RISING PROFITABILITY STEADILY IMPROVING ACCESS TO SERVICES The ratio between loans to the economy and GDP is rising at a steady pace, attesting to the sector's buoyancy. It stood at nearly 25% in 2011, compared to 23% a year earlier and 22% in 2009. However, it is still lower than the average in subSaharan Africa, estimated at 40%. In

INVESTING BENIN 2013

Average interest rates on business and household loans stood at 11.3% in the 2009-2011 period, much higher than the WAEMU zone's average (8.5%). The quality of the loan portfolio is still rather poor but risky accounts are better provisioned. The improvement of the banking system's profitability is continuing, with net banking income up by 7.8%

›››

FACTFILE

BANKING AND FINANCE

Amounts in millions CFA francs

Market share

Bank of Africa

599,916

409,689

30.31%

363,983

256,464

18.97%

Diamond Bank

268,007

165,711

12.26%

Société Générale (SGBBE)

151,892

125,220

9.26%

Continental Bank (UBA)

149,056

76,268

5.64%

Banque Atlantique

127,099

69,915

5.17%

Orabank

114,440

87,613

6.48%

BGFI Bank

93,898

51,396

3.80%

Banque Internationale du Bénin

63,140

38,509

2.85%

Sahel-Saharan Bank for Investment and Commerce

57,823

39,233

2.90%

ECOBANK Tel.: (+229) 21 31 40 23 Fax: (+229) 21 31 33 85 www.ecobank.com

●

DIAMOND BANK Tel.: (+229) 21 31 79 27 Fax: (+229) 21 31 21 42 www.benin.diamondbank.com

●

SOCIÉTÉ GÉNÉRALE (SGBBE) Tel.: (+229) 21 31 83 00 Fax: (+229) 21 31 82 95 www.societegenerale.bj

●

CONTINENTAL BANK (UBA) Tel.: (+229) 21 31 24 24 Fax: (+229) 21 35 51 77 www.ubadirectafrica.com/benin

●

BANQUE ATLANTIQUE Tel.: (+229) 21 31 10 18 Fax: (+229) 21 31 31 21 www.banqueatlantique.net

●

Total deposits

Ecobank

BANKS IN COTONOU ● BANK OF AFRICA Tel.: (+229) 21 31 32 28 Fax: (+229) 21 31 31 17 boabenin.com ●

Total balance

ORABANK Avenue du Gouverneur-GénéralPonty, 01 BP 2700 Cotonou Tel.: (+229) 21 31 31 00 Fax: (+229) 21 31 31 02 www.orabank.net

MICROFINANCE INSTITUTIONS National Microfinance Fund 01 BP 909 Cotonou Tel.: (+229) 21 30 05 11/18 Fax: (+229) 21 32 67 80 http://www.fnmbenin.org Professional Association of Decentralised Financial Systems (APSFD Alafia) Sainte Rita in the Gbèdagba quarter opposite Colombe middle school Tel.: (+229) 21 32 47 30 Fax: (+229) 21 32 67 80 E-mail: contact@alafianetwork.org or alafia.network@intnet.bj www.alafianetwork.org INSURANCE Association of Beninese Insurance Companies (ASA Bénin) Tel.: (+229) 21 30 00 40 Fax: (+229) 21 30 15 61 www.asabenin.org LʼAfricaine Tel.: (+229) 21 30 90 90 Fax: (+229) 21 30 14 06 www. africaine-assur.com Colina Vie Bénin Tel.: (+229) 21 30 85 23/24 Fax: (+229) 21 30 55 46 groupecolina.com/fr/bj/index.php

CONFIDENCE IN THE BOND MARKET Through the Caisse Autonome d'Amortissement (CAA), in 2011 Benin collected 63.8 billion CFA francs (€97 million) after a successful bond release. The five-year (2011-2016) loan launched by the government at a rate of 6.5%, to finance part of the Public Investment Programme (PIP), was set at 50 billion CFA francs. It was 128% subscribed thanks to the participation of individuals, groups and companies, not only from Benin (41 billion CFA francs), but other WAEMU countries too, starting with Togo (1.135 trillion CFA francs) and Côte d'Ivoire (7.24 billion CFA francs). Benin's last releases on the regional financial market were in 2007 (54 billion CFA francs raised, 6% a year over five years) and 2000 (five billion CFA francs, 8% a year over five years).

Data at 30 June 2012

BENIN'S 10 BIGGEST BANKS

COMPANIES AND MARKETS BANKING AND FINANCE

›››

microﬁnance networks

to 89.6 billion CFA francs in 2010 and a particularly satisfying operating result (up 54% to 18.9 billion in 2010).

loans is put at over 60 billion CFA francs, or 7% all loans in the banking sector.

SUPPORT FOR MICROFINANCE

CLOSER OVERSIGHT

Benin has one of French-speaking West Africa's most active microfinance sectors. The government's interest in using this method to reduce poverty, prompted the creation of a National Microfinance Fund in 2006 to boost the intervention capacity and service quality of microfinance institutes (MFI); contribute to refinancing and the implementation of credit lines; and secure operations. A year after its creation, the government set up a microfinance programme for the poorest members of the population (MCPP). By late 2010, through the MFIs the national fund had helped over 850,000 people with a total amount of over 43 billion CFA francs in loans. The deposits of all the MFIs exceed 50 billion CFA francs, or approximately 5% of bank deposits, and the estimated amount of outstanding

Microfinance institutions in Benin offer not just savings accounts, loans, micro-insurance and money transfers, but also information, training, support and advice for creating businesses. The Alafia Consortium, the name given to the Professional Association of Decentralised Financial Systems (APSFD), is their main network. As of 31 December 2011, it brought together 36 of the country's most important mutual and cooperative savings and credit networks, including FECECAM, PADME, PAPME and FINADEV. Monitoring and oversight were strengthened after the failure of some institutions in 2010. In January 2012 a law authorised the BCEAO to intervene on decentralised financial systems holding loan portfolios of more than two billion CFA francs. ■

THE INSURANCE MARKET: SMALL BUT STRONG Despite a difficult socio-economic (the share of the informal sector) and tax environment, Benin ranks sixth among the 14 countries in CIMA (Inter-African Conference on Insurance Markets), posting 33 billion FCFA in turnover in 2010 (up 7% in one year), with liability insurance accounting for over 70% of the total. But the industry is still relatively small: premiums account for just 1.2% of GDP. From 1974 to 1990 the government managed the insurance market through the National Insurance and Reassurance Company (Sonar), created to handle all risks. The industry was liberalised in 1997 and L'Africaine des Assurances, founded in 1997, bought SONAR's contract portfolio. Benin then had three insurance companies. Today it has 12, with half specialising in life insurance and the other half in fire, accident, various risk and transport insurance. Two companies dominate the market: Colina Vie Bénin, the country's biggest life insurance company, and L'Africaine des assurances, the leader in the fire, accident, various risk and transport market.

INVESTING BENIN 2013

COMPANIES AND MARKETS

AGRICULTURE

The top development priority

ÂŠ B. de Ville d'Avray

High local and regional demand

UNDER-USED ARABLE LAND Just 17% of Benin's arable farmland, or 1.375 million hectares, is under cultivation each year. Only 7,000 in 60,000 hectares of lowlands are farmed. In addition, 117,000 hectares of flood plains and valleys can be cultivated. These figures give some idea of the agricultural production opportunities in Benin, especially

in light of the fact that it has direct access to a market of 200 million consumers where demand is high. Each year, Benin already exports huge amounts of agricultural products to neighbouring Nigeria (rice, oil, etc.) and Niger (grain). Based on that observation, the country is aiming for regional leadership in the food and agricultural sectors.

17%

of arable land is under cultivation

COMPANIES AND MARKETS AGRICULTURE

A maize ďŹ&#x201A;our mill (left) and a chicken farm: food is a competitiveness cluster with high value-added.

70% OF THE POPULATION LIVES OFF THE LAND

600, 0 00 TONS Annual cottonseed production target

Benin's government has targeted the construction, civil engineering, tourism and ICT industries to absorb urban joblessness, but they are also hoping that a "back-to-thesoil" movement will preserve and create jobs in rural areas and keep young people on the land in useful employment. According to their estimates, 70% of the population directly or indirectly makes a living from agriculture. Many reforms and projects are under way to help farmers organise themselves, starting with the Strategic Plan for Agricultural Sector Recovery (PSRSA) adopted in October 2012. Within that framework, a bank dedicated to agriculture and a farm mechanisation agency intending to equip farmers with machines at low cost should be up and running in 2013.

INVESTING BENIN 2013

PROCESSING LOCAL PRODUCTS President Yayi is relying on the processing of locally grown products to make agriculture a driving force for sustainable economic development and industrialisation. That is why the Agenda for an Emerging Benin (Alafia 2025) has identified agribusiness as one of the country's five high valueadded competitiveness clusters. Six tomato, pineapple, mango, cashew, palm oil and citrus fruit processing plants, built with Indian partners, will be up and running in 2013. These products are not the only ones identified as promising. The government also considers six other agricultural products priorities offering investment opportunities.

COTTON AND TEXTILES Benin's government wants to boost cottonseed output and stabilise it at

COMPANIES AND MARKETS AGRICULTURE

Benin exports pineapples all the way to Morocco.

it at 600,000 tons a year in 2015 (350,000 tons for the 2012-2013 season) in order to supply ginning mills, oil refineries and local textile mills with the raw materials they need. These developments also concern small businesses. The strategic option chosen aims to trigger the creation of a hub of small-scale knitting activities by pooling production, which at the same time would help bring many individual companies already operating in the industry into the formal economy. The 2010 census shows that one small-scale business in three is in the clothing and textile sectors.

GRAIN: FROM SELF-SUFFICIENCY TO EXPORTS Benin aims to grow more than enough rice and maize to meet its needs and to export the surplus. The

Making maize ďŹ&#x201A;our at the SonghaĂŻ cooperative in Porto-Novo.

organisation of the rice industry is paying off. Production is rising at a steady pace: it has tripled since 2005, reaching 150,000 tons in 2011. The goal is to produce 500,000 tons a year; estimated domestic demand is put at 200,000 tons. The production of maize, which is heavily consumed in Benin and the sub-region, is more uneven but has topped a million tons since 2008 and even reached 1.3 million tons in 2010-2011, 350,000 more tons than necessary to cover the country's needs.

PALM OIL The creation of many authorised private nurseries enabled Benin's oil palm production to rise from 130,000 tons in 1994 to 310,000 tons in 2007. Government measures to expand the sizes of private plantations of improved species have contributed

INVESTING BENIN 2013

COMPANIES AND MARKETS AGRICULTURE

problem affects shea, a locally grown nut that is exported unprocessed even though the demand for shea butter is strong on the international market, especially in the chocolate and cosmetics industries.

PINEAPPLES

Cashew trees produce nearly 80,000 tons of nuts.

to this growth but production is still too low to meet the needs of a regional market where there is a huge demand for vegetable oil, especially in neighbouring Nigeria, whose output, insufficient to cover its needs, is approximately a million tons of oil a year.

95% of cashew nuts are exported to India

CASHEW AND SHEA NUTS The production of cashew nuts in Benin rose from less than 1,000 tons in 1990 to 27,000 tons in 2000 and 80,000 tons in 2009. Nearly all the output ─ 95% ─ was exported to India in 2010. But the global market is changing with the emergence of Vietnam and India's decision to meet its own medium-term needs due to rising transport costs, compelling Benin to transform its production, which requires partnerships to satisfy high international demand. The same

INVESTING BENIN 2013

The government wants to push for local pineapple processing. For three years, the Benin Trade Promotion Agency (ABEPEC) has been stepping up efforts to improve the pineapple production chain from growing to processing and international distribution. The agency provides exporters with market studies to help them find new outlets. It helped growers win over the domestic market before setting out to conquer Nigeria, Burkina Faso, Niger, Mali and Morocco.

WOOD Benin is bursting with huge forests and wood processing (mostly teak but exotic species as well) is already the country's most highly developed manufacturing activity. Wood and wood products rank 10th among exports, with sales reaching 2.27 billion CFA francs in 2010. But the 2010 business census shows that processing is mostly primary (sawing). Secondary processing (furniture) is still on a craft basis, with small manufacturing units incapable of creating paying jobs. Officials have recently pushed for the creation of a local furniture market by requiring government offices to "buy Beninese". ■

FACTFILE

AGRICULTURE MAIN CROPS

In tons

2006-2007

2009-2010

2010-2011

2011-2012

Cotton

240,491

136,958

253,363

370,000

Maize

824,017

864,772

1,205,200

967,120

Rice

64,699

61,818

150,604

141,513

Groundnuts

154,551

112,520

129,814

127,689

Tomatoes

44,235

148,878

159,033

152,470

Pineapples

110,819

124,463

222,222

164,774

Sources: Ministry of Agriculture, Livestock and Fisheries/DPP, FAO

LIVESTOCK In tons

2005

2008

2011

Cattle

29,971

32,453

34,986

Poultry

13,255

9,750

11,677

Sheep and goats

6,819

7,456

7,888

Pigs

3, 672

3,960

4,596

969

1,562

1,875

Rabbits

FISHING In tons

2005

2010

604

897

329

Small-scale sea ﬁshing

5,320

8,700

9,778

Freshwater ﬁshing

26,400

29,100

30,400

Industrial sea ﬁshing

Sources: Ministry of Agriculture, Livestock and Fishing /DPP

LIVESTOCK AND FISHERIES: OPPORTUNITIES ABOUND To meet domestic demand, Benin imports livestock from neighbouring countries and frozen meat from Europe. This situation prompts many young farmers to buy animals from neighbouring countries, feed them up and then sell them for a good profit. The creation of stock farms and dairy processing plants is the only way to put a stop to this practice. Benin also has a fish shortage: it imports most of its needs from Europe (France, the Netherlands, Norway, etc.) and Africa (Angola, Mauritania, Senegal, Morocco and Ghana). The National Statistics and Economic Analysis Institute (INSAE) says Benin imported 75,868 tons of fish in 2010 (43,500 in 2005). Only shrimp is exported (1,674 tons in 2010, according to INSAE).

COMPANIES AND MARKETS

SERVICES

A large export potential

Developing trade, transport and digital technology for the region

textiles, etc.) or involve manual trades (49%, sewing, textile processing, hairdressing, mechanical activities and food service), two sub-sectors that accounted for 16% of GDP in 2011. But with an annual growth rate of around 2% a year, the tertiary sector has a long way to go before it can play a part in the country's growth dynamics.

DEVELOPING OVERLAND TRANSPORT

1.5 MILLION

The number of people who come to the Dantokpa market each day

A BUSINESS CROSSROADS The service sector accounts for 46.3% of Benin's GDP (11% of which are non-market services), making this the economy's biggest sector. In number, the overwhelming majority of Benin's businesses are commercial (43%, retail sales of agricultural products,

INVESTING BENIN 2013

Yet Cotonou's huge, 18ha Dantokpa market attests to Benin's historic reputation as a regional commercial crossroads. Each day, 1.5 million shoppers buy goods from 26,000 sellers from West Africa (Nigeria, Mali, Burkina Faso, Niger and C么te d'Ivoire) and central Africa, especially Cameroon. But less than one percent of Benin's companies export their products or services. Determined to end this paradox, the country's officials are laying the groundwork to develop overland transport by locating dry ports on road corridors from Cotonou to northern Benin and promoting the growth of

COMPANIES AND MARKETS SERVICES

Libercom, the public mobile telephony operator.

Activity in the port of Cotonou fuels the growth of new logistical services.

other logistical services such as warehousing and storage.

Africa via West Africa, but only 3% of the population uses the web. Internet service providers (ISP) consider the rates charged by the connection's only local manager, Benin Telecom, prohibitive. To foster competition, the state will call for tenders from the private sector to manage the Benin terminal of the Africa Coast to Europe (ACE) cable, which arrived in 2012 with financing from the World Bank.

MOBILE TELEPHONY The lack of a sufficient regulatory framework meant that mobile phones struggled to catch on but things have quickly changed since 2006 and by 2011 the share of the population owning a mobile phone topped 86%. Many problems remain, including interconnections and the management of numbers and frequencies, but the regulator is working hard to solve them. The reform should lead to an overhaul of long-time operator Benin Telecom, with the privatisation of its mobile branch (Libercom).

INTERNET: UNDER-USED INTERNATIONAL CONNECTIONS Since 2003, Benin has been connected to the SAT-3 international submarine cable, which links Europe to South

AFRICA'S "DIGITAL QUARTER" Improving local Internet connections is a prerequisite for successfully serving neighbouring landlocked countries from Cotonou. That is why the government has set up a plan to bring Internet service to over 70 towns nationwide. An e-administration programme is also under way. Just as Benin was once Africa's Latin Quarter, it aims to now become the continent's "digital quarter". â&#x2013;

INVESTING BENIN 2013

FACTFILE

SERVICES

2006

2008

2011

13.58

45.68

387.33

1.60

1.68

Mobile phones (%)

12.57

85.64

Internet subscribers (%)

0.08

0.54

85.64

Internet (20 hours/month, in dollars)

Mobile (100 min/month, in dollars)

Telephone penetration (%) Landlines (%)

Regulatory Authority of Posts and Telecommunications (ARPT)

THE MAIN TELECOM INDICATORS

TELECOM INVESTMENTS AND REVENUES 2006

2008

2011

Telecom investments

23.3

212.8

34.2

Of which mobile telephony

21.5

208.7

Telecom turnover

96.2

152.8

198.1

Of which mobile telephony

62.2

118

187.1

Source: ARPT

In billions of CFA francs

MOBILE OPERATOR RANKING 2006

2008

2011

MTN

450

1,182

2,485

Moov

330

978.5

2,406

564

1,627

Bell Bénin

110

710

978.5

Libercom (Bénin Telecom)

191

268

GLO

Source: ARPT

In thousands of subscribers

2001

2006

2011

166,581

180,000

209,475

45.20

Average length of stay

1.15

2.55

5.06

Number of employees

2,505

7,891

10,071

Number of beds

5,887

21,336

27,231

Number of tourists

Revenues (billions of CFA francs)

Source: Ministry of Tourism

MAIN TOURISM INDICATORS

COMPANIES AND MARKETS

TOURISM

A targeted growth industry Benin oďŹ&#x20AC;ers many opportunities in seaside, cultural, business and adventure tourism.

In agreement with the UNDP, Benin encourages the establishment of public-private partnerships in tourism development zones.

GREAT POTENTIAL Tourism, officially Benin's secondlargest source of foreign currency, still has a long way to go before fulfilling its potential: it accounts for less than 1% of GDP (accommodation and food service; the figure does not include transport and purchases of art objects and souvenirs). Yet Benin boasts considerable assets, including sandy beaches, lake

villages, a welcoming hinterland, parks (Atakora and W, in the north) and a rich historical and cultural heritage (kingdoms, voodoo and Brazilian architecture connected to the slave trade). The number of tourists has been rising at a steady pace for 10 years (209,475 arrivals in 2011 compared to 166,581 in 2001) but still falls short of the sector's potential.

INVESTING BENIN 2013

COMPANIES AND MARKETS TOURISM

sea and the lagoon will soon be open to investors and is important for leisure tourism and southern Benin's development. The goal is to develop an international-class tourist complex offering leisure, cultural and nature activities around beaches, scenic lake villages and vestiges of the slave trade and the colonial period in Ouidah, GrandPopo and Porto-Novo. The project includes the development of seaside resorts, sports facilities, a marina, a heliport, shopping malls and business centres. It also calls for complementary facilities such as hotel and tourism schools and stateof-the-art health centres.

Lake Nokoué is dotted by over 40 scenic villages.

209,475 tourist arrivals in 2011

BUSINESS TOURISM

TOURISM DEVELOPMENT ZONES

Judging from all the high-end hotels going up in Cotonou, a growing number of local and major international companies are interested in business tourism. In 2007 the Azalaï group, already present in five countries in the sub-region, bought the Hôtel de la Plage for a billion CFA francs and re-opened it in April 2012. Several private international companies Radisson Blu, Best Western, Marriott, Teylium and Onomo - have, alone or with local partners, built world-class hotel complexes in Benin, mostly in the economic capital.

Benin wants to boost ecotourism in order to include this sector in the framework of the Millennium Development Goals (MDG). In December 2010 it signed an agreement with the United Nations Development Programme (UNDP) setting up a publicprivate partnership initiative to achieve those goals. The accord should lead to the creation of Tourism Development Zones (ZAT) nationwide and raise funds to set them up. Other development programmes are under way in the framework of public-private partnerships, such as a sustainable tourism project in a network of protected cross-border parks in West Africa and a plan to preserve the historic quarter of Ouidah. ■

THE FISHING ROAD The Fishing Road project, stretching from Cotonou to Ouidah on about 40km of fine sand between the

INVESTING BENIN 2013

COMPANIES AND MARKETS

ENERGY

Open to private partnerships Numerous projects to boost electricity production

27.7% electriﬁcation rate

GROWING ELECTRIFICATION

ONE PLANT, TWO COUNTRIES

Benin's electrification rate rose from 24.7% in 2007 to 27.7% in 2009. In rural areas, it increased from 1.9 to 3.1%. National output is low, with a selfsufficiency rate of around 15%. The Société Béninoise d'Energie Electrique (SBEE) buys 88% of its power from other countries to meet its customers' needs. Several projects are under way, including the Maria Gléta gas-turbine power plant in Abomey-Calavi (read p. 43).

The other advanced programme is the $400-million, 147MW Adjarala hydroelectric plant that Benin and Togo are building on the River Mono, which forms a natural border between the two countries. The World Bank, BEI, KFW, AfDB, BOAD and Arab funds are financing the project, one of the priorities selected by the West African Power Pool (WAPP), a regional coordinating body set up in 2006.

INVESTING BENIN 2013

COMPANIES AND MARKETS ENERGY

RENEWABLE ENERGY Benin, considering that the energy market can be profitable, wants to foster public-private BOT (Build-OperateTransfer) partnerships. Projects already submitted to companies include the building of several dams on the River Ouémé. Hydroelectric power has a high development potential, but the government also plans to focus on solar, wind and biomass power.

WATER: AIMING FOR THE MDGS Benin's huge natural potential (around 13 billion cubic metres of surface water a year and two billion cubic metres of annual groundwater replenishment capacity) probably explains why the country can ensure its water better than its power supply. The Société Nationale des Eaux du Benin (SONEB) distributes water. The rural supply rate rose from 35% in 2002 to 57.2% in 2010; the target is 67.3% by 2015 within the framework

The 80MW Maria Gléta gas-turbine power plant near Cotonou.

of the Millennium Development Goals (MDG). The urban supply rate increased from 47% in 2002 to 58.5% in 2010; the MDG target is 75%. Public-private partnerships will manage drinking water supply facilities to maintain and strengthen those achievements. ■

INVESTING BENIN 2013

FACTFILE SALARIES Minimum wage 31,625 CFA francs a month for 40 hours a week. PAYROLL CONTRIBUTIONS Payroll contributions are based on all remuneration received, including per diems, bonuses and other cash benefits. Employer contributions are 9% for family services, 6.4% for pensions and 1% to 4% for occupational risks depending on the activity. COMPANY TAXATION The main taxes companies in Benin must pay are business profit tax (BIC), VAT, wage tax and single professional tax. ◗ The business profit tax rate ranges from 25% for mining and individual companies to 45% for companies active in hydrocarbons, including transport. The rate for most other companies is 30%. ◗ There is just one VAT rate, 18%. It applies to companies

PRODUCTION FACTORS with annual turnover exceeding $91,540 in the buying and selling sector and $34,327 in the service sector. Public-sector contracts with outside financing and authorised companies and promoters under the industrial free zone regime are exempt. ◗ Wage tax: employers pay an 8% tax on wages. ◗ Single professional tax (TPU): a 26% tax based on the rental market value of the means of operation or production. ENERGY AND WATER Energy (electricity and petroleum products), water (the same rate for every branch of economic activity) and rent are companies' biggest expenses but they are among the lowest in the WAEMU zone. Three electricity rates: ◗ Professional use (shops, hotels and other services): $0.19 to $0.21 per 250kWh consumed. ◗ Medium-voltage customers

(15 or 20 KV): $0.16 per 250kWh consumed by services and $0.13 per 250kWh consumed by industries. ◗ A "full service at peak times" supplement, which is higher for industries than services, may be added. INTERNATIONAL AGREEMENTS Benin has privileged access to West Africa's markets as part of its membership in WAEMU and ECOWAS (read p. 21). Its status as a Least Developed Country (LDC) also facilitates exports to international markets. Benin benefits from the US Africa Growth and Opportunities Act (AGOA) and duty-free contingent access to imports under the European Union's Everything But Arms (EBA) initiative.

TRAVEL DIARY

Your trip

View of the exterior and swimming pool of the Hôtel de la Plage.

HOTELS IN COTONOU AZALAÏ HÔTEL DE LA PLAGE This imposing hotel, the Azalaï group's eighth in West Africa, opened in the middle of Cotonou near the industrial and business centre in April 2012. The 120room, five-storey hotel boasts direct access to the beach and gorgeous views of the Atlantic Ocean. Tel.: (+229) 21 31 72 00 www.azalaihotels.com

setting, the four-storey hotel was

Tel.:(+229) 21 30 09 01

long popular with high society on account of its swimming pool, tennis court and golf course. It has 200 rooms, some of them overlooking the sea. Tel.: (+229) 21 30 01 00 www.benin-marina.com

www.maison-rouge-cotonou.com

MAISON ROUGE COTONOU

The Marina (ex-Sheraton), in the

Hotelkeepers in love with Benin opened this luxurious guesthouse on boulevard de la Marina in July 2011. They combine a warm family welcome with first-rate sports facilities (a gym and swimming pool) and

administrative quarter on the road to the airport and the president's residence, is an institution. Standing in a large, park-like

business amenities (meeting rooms). The decoration is tastefully based on Beninese and European art.

MARINA HOTEL

Lobby of Maison Rouge Cotonou.

DJIBSON HOTEL This 30-room hotel in Akpakpa, a quiet residential neighbourhood east of Cotonou's lagoon, stands out for its innovative design, especially the red and black piano bar. It of fers a swimming pool, mini-spa, business centre and meeting rooms. Tel.: (+229) 21 090 323 www. djibsonhotels.com

RESTAURANTS IN COTONOU LʼATELIER This is an ideal spot to enjoy delicious grouper steaks or slabs

TRAVEL DIARY

Djibson Hotel.

Marina Hotel.

Lounge on the top floor of Huit.

of beef in an elegant, relaxing setting. The restaurant, which features a magnificent period bar with an intact wooden counter, is adjacent to the Zinsou Contemporary Art Foundation and often hosts exhibitions. Tel.: (+229) 21 30 17 04

NEUER BIERGARTEN At this restaurant in a surprisingly quiet seaside quarter on the other side of the lagoon, you dine while digging your toes into the sand accompanied by the sound of crashing waves just a few metres away. Tel.: (+229) 21 33 38 52

An astonishing bright red building near the Autonomous Port of Cotonou. Customers are greeted upstairs in a large, perfectly kept room. Offering generous servings of delicious food in a relaxed atmosphere, this

LE HUIT Even if you can't make it for dinner, at least have a drink in the After-Eight lounge on the Myosotis Hotel's eighth and last floor, which offers a 360-degree panorama, one of the best views

is one of Cotonous best value-formoney restaurants. Tel.: (+229) 21 31 14 15

of Cotonou. Near the port. Tel.: (+229) 95 03 88 88

LE MAQUIS DU PORT

TRAVEL DIARY

Village de Moka. Cotonou offers a number of beautiful beaches...

24 HOURS OR MORE SIGHTSEEING IN COTONOU

SEASIDE COTONOU Take a few hours to relax on one of Cotonou's many beautiful beaches. The easiest way is to head west on the road to the airport. You will find several beaches with lifeguards on

Benin's economic capital is more than just a bustling, crowded, polluted city. Take its pulse by visiting the famous Dantokpa market, West Africa's biggest, or the Jonquet quarter, Cotonou's liveliest neighbourhood. The fishing village of Xwlacodji, Cotonou's first historic

district, and the Zinsou Foundation, West Africa's only museum entirely devoted to modern art, are also worth a detour.

...of which Obama Beach (above) is one of the most famous.

A religious sculpture in Ouidah.

duty, and which therefore charge admission, such as Obama Beach. Fidjrossè Beach is especially popular with young people, particularly on Sundays. Careful, the waves can be rough and the water gets deep very suddenly.

GANVIÉ AND THE LAKE VILLAGES Visiting Ganvié or another of the 42 villages that have been built on the shores of 26,000ha Lake Nokoué since the 17th century is an experience you will never forget. You can take a boat from Cotonou to the Hôtel du Lac but the most popular landing is to the north a few kilometres before AbomeyCalavi. Some of the dugout canoes are motorised. Choose one with the quietest and cleanest engine you can find to make the most of the peaceful ride.

TRAVEL DIARY

The Gate of No Return near Ouidah.

PORTO-NOVO

OUIDAH AND ITS BEACHES

Benin's administrative capital has a peaceful pace and an easygoing lifestyle that is probably due to its Afro-Caribbean culture and architecture. It takes just half an hour to get there by car Ěś if you avoid rush hour on this road, which leads to Nigeria. Walking is the best way to see the sometimes rundown but charming buildings, such as the central mosque built by freed slaves back from Brazil, who modelled it on a Portuguese church. The Da Silva Museum, named after the still-living descendant of a slave-owner and a slave, is also worth a detour. Do not miss the SonghaĂŻ agricultural centre either.

If you have a day, head towards Ouidah, a former slave-trading post and voodoo centre with magnificent Afro-Caribbean style buildings around an hour from Cotonou on the road to Togo. Amidst voodoo monuments, the slave road traces the slave trade all the way to the Gate of No Return on the beach. Travel seven kilometres to the west past many little fishermen's villages to Casa del Papa, nestling beneath huge coconut trees, which offers rooms, a swimming pool, tennis court, mini-golf and a restaurant that serves just about any kind of food on the beachview terrace of local wood. Tel.: (+229) 95 95 39 04 www.casadelpapa.com

In the garden of the Da Silva Museum, Porto-Novo.

TRAVEL DIARY

USEFUL INFORMATION ●

VISAS

Required for European Union citizens (an "'Entente visa" valid for Benin, Burkina Faso, Togo, Niger and Côte d'Ivoire can be requested). Citizens of ECOWAS countries do not need a visa. ●

HEALTH

The yellow fever vaccine is required and malaria treatments are recommended. ●

TIME ZONE GMT minus 1 hour in winter and minus 2 hours in summer.

●

CURRENCY

The CFA (African Financial Community) franc, which has fixed parity with the euro. 1 euro = 656 CFA franc 100 CFA francs = 0.15 euro

YOUR TRIP ●

GETTING THERE

The main airlines serving Cotonou Airport are Air France, Kenya Airways, Brussels Airlines, Royal Air Maroc, Air Nigeria, Arik Air (Nigeria), Air Mali and Air Burkina. If you only want to visit northern Benin (the cotton-growing area), you can land in Ouagadougou. Cotonou is Benin's only international airport. ●

ONCE THERE

The coast road to Togo in the west and to Nigeria in the east is relatively good. So is the one running along the Plateau department north of PortoNovo, which motorists take to reach Abomey because Interstate 1 is in poor condition and will soon undergo roadwords. A large part of Benin's road network, especially in the north, is made of laterite. A four-wheel-drive vehicle is indispensable there.

CLIMATE The south has two dry seasons, from November to April and August to midSeptember. In the north, the tropical climate has a dry season from October to late May. Most of the national parks are open from mid-December to mid-May.

USEFUL NUMBERS International dialling code: 229

AMBULANCE Tel.: 21 30 73 36

HOSPITAL EMERGENCY ROOM Tel.: 21 30 46 52/21 07 79 45

LA ROSERAIE POLYCLINIC (emergencies 7/7, an international assistance company correspondent) Tel.: 21 33 14 66

CAMP GUEZO PHARMACY (OPEN 24 HOURS A DAY) Tel.: 21 31 35 55/21 31 35 52

POLICE RESCUE Tel.: 117

NATIONAL POLICE HEADQUARTERS Tel.: 21 31 12 30/21 31 12 32

AIRLINES Air France : Tel.: 21 30 18 15 Brussels Airlines : Tel.: 21 30 16 82/83 Ethiopian Airlines : Tel.: 21 31 07 18 Royal Air Maroc : Tel.: 21 30 86 04 Kenya Airways : Tel.: 21 31 63 32 Asky : Tel.: 21 31 30 28 Senegal Airlines : Tel.: 21 31 25 29 Air Mali : Tel.: 21 30 98 55 Cardinal-Bernardin-Gantin International Airport in Cotonou Cadjehoun : Tel.: 21 30 14 13 www.aeroport-cotonou.com

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