What measures is Benin taking to strengthen inclusive policies for economic transformation
Introduction
Benin is implementing several measures to strengthen inclusive policies for economic transformation:
Economic Diversification and Growth
The government has launched the Glo-Djigbé Industrial Zone (GDIZ) to attract foreign private capital and foster economic transformation.
GDIZ aims to become a multi-sectorial industrial park, promoting new businesses beyond processing cashews, soy, and cotton, including wood industry, assembly of phones and computers, manufacturing of electric vehicles, and pharmaceuticals.
Benin is focusing on developing agroindustry, services, and tourism to achieve sustainable and inclusive growth.
The country is working to increase value addition in exports by transforming local commodities.
Fiscal and Investment Policies
The 2025 budget targets compliance with the West African Economic and Monetary Union (WAEMU) fiscal deficit norm of 3% of GDP while scaling up social spending.
Benin is implementing a Medium-Term Revenue Strategy to enhance domestic revenue mobilization.
The government is pursuing efforts to ensure transparency in the selection of Special Economic Zone (SEZ) related incentives.
Social Protection and Inclusion
A new social protection strategy for 2024-2028 has been approved with a budget of over CFA709 billion ($1.13 billion).
The strategy focuses on improving household incomes, enhancing access to social services, adapting to crises, and better coordinating the social protection system.
The ARCH project (Insurance for Strengthening Human Capital) provides essential social services and health coverage to vulnerable groups.
The ACCESS project aims to improve infrastructure and foster social cohesion in the most fragile areas.
Human Capital Development
Benin is increasing investment in education and health to promote human capital accumulation and generate adequate labor supply for the transforming economy.
The country is modernizing Technical and Vocational Education and Training (TVET) to align with market needs, focusing on agriculture, digitalization, and tourism.
Private Sector and Entrepreneurship Support
Benin is a pilot country for the Team Europe Initiative ‘Investing in Young Businesses in Africa (IYBA)’, providing finance and expertise to early-stage businesses and young entrepreneurs.
The government is fostering the growth of business incubators, venture capital funds, and other organizations supporting entrepreneurs.
Efforts are being made to improve the business environment and investment climate.
Climate Resilience and Sustainable Development
Benin has implemented climate budget tagging under the 2025 budget and adopted a predictable price adjustment mechanism for fuel products.
The country is working on adapting agricultural practices, restoring and protecting forests, and investing in water resources to address climate change impacts.
Conclusion
By implementing these measures, Benin aims to create a more inclusive economic transformation that generates jobs and benefits all Beninese citizens while addressing key challenges such as poverty reduction, human capital development, and climate resilience.
