GLO-GJIGBÉ INDUSTRIAL ZONE (GDIZ), BY ARISE IIP
Why invest in Benin
STABLE DEMOCRACY
One of the most stable democracies in Africa, Republic of Benin has recently initiated major economic and structural reforms. Benin is ranked 149 in the ease of doing business, according to the World Bank annual ratings.
GEOGRAPHICAL POSITION
Benin enjoys a strategic geographical position, sharing its borders with Togo, Nigeria, Burkina Faso and Niger.
PROMISING GROWTH
Solid growth rate of 5.4% in 2017 and plans to reach 7.1% by 2021. Benin’s success has been achieved without harming the country’s overall economic health – the budget deficit was just 2.2% of the GDP in 2016.
NEW MOMENTUM FOR BENIN
Bénin Révélé is a large-scale investment program based on 45 flagship projects in 9 key sectors, and which aims to sustainably revive the country’s economy.
DIGITAL PLATFORM
Benin has been instrumental in creating digital platform for key administrative procedures, leading to a higher level of transparency and process efficiency comparable to any developed nation.
Investment opportunities
in Benin’s key industries
Tourism
Benin is full of enormous yet untapped tourist potential. This is evidenced by the lake city of Ganvié, a widely spread sandy beach along with two zoological parks in the country. Today, this sector represents 2.5% of GDP: 53 million CFA Francs in profits in 2008, against 29 million CFA Francs in 1997 – proof that the Benin destination is beginning to interest visitors. Most tourists are impressed by the cultural and heritage richness of Benin. However, it only ranks fifth among the countries most visited in West Africa. There is a pressing need for promotion of agencies and hotel infrastructure. The development of tourist activities is proving to be a godsend for investors looking forward to new sectors with opportunities.
Energy
Like other countries in the sub-region, the energy deficit is present, thus creating a great opportunity for alternative solutions in terms of production, namely solar photovoltaic. Solar energy is one of the most abundant natural resources in the country which enjoys more than 300 days of free sunshine each year.
However, rural areas do not have access to electricity. In most cities, power outages are a daily occurrence and people often rely on gasoline or diesel engines. Solar energy is free, clean and abundant. It offers the best alternative to the population that is struggling with their need for electricity grids.
Agri-food
Benin produces more than 400,000 tons of pineapples, meeting international standards. Its processing offers a range of varied products: pineapple juice, pineapple jam, dried pineapple, etc exportable to the West or to the growing regional market.
Fifth largest producer in the world, Benin exports 3% of cashew nuts in the international market. The production of juice and wine from this fruit presents an underexploited opportunity. In addition, various tropical fruits such as baobab, alone or mixed, are increasingly in demand by European consumers. The creation of processing plants for these products offers new business opportunities in the South.
Mineral resources
Beninese mineral resources are an opportunity for exploitation and export: iron, gold, phosphate, diamond, kaolin, marble, gravel, etc. Very recently, studies have confirmed the presence of unexploited oil in Benin. Black gold mining and related activities are areas where more business sectors are seeking investors.
Real Estate
Because the need to have your own house is so dear to all the Beninese, the construction sector makes for a great investment option. Buildings and public works are up by 3.9% in line with activity in the extractive industries (4%). The evolution of cement is pushed further by the supply of cement. It should be noted that the decline in cement production at the local level was triggered by cement imports which increased by 50%.
REGIONAL TREATIES
Benefits
- No Trade Barriers to intra-WAEMU trade, implementing fully the common external tariff (CET), coordinating further tax and customs practices facilitating labor mobility and developing regional structural policies.
- Benin being a WAEMU country has access to trade relations with these countries and will benefit from ECOWAS.
- While the region has relatively low skill, Benin has good labor, and the Transportation system within Benin is also developed.
- Benin forms an important member of the community with an enriched economic environment to do business with neighboring countries.
