COTONOU, June 26, 2023 – A renewed effort and increased investment in developing and modernizing the roads and ports network in Benin could help transform the country’s economy and the lives of its people, says the World Bank’s first-ever Benin Economic Update.
Titled “Taking Advantage of Benin’s Strategic Position by Investing in Economic Corridors”, the first part of the report analyzes the latest economic developments and provides a mid-term outlook for Benin. Annual growth is expected to hover around 6% over the medium term. While the macroeconomic outlook remains robust, there are vulnerabilities related to tighter access to international finance and uncertainty in aggregate demand, underscoring the importance of a credible fiscal consolidation path to ensure medium-term stability.
The second part of the report focuses on the potential for developing Benin’s transportation sector and economic corridors. It notes that Benin is strategically located in west Africa and serves as a gateway to landlocked neighboring countries, such as Niger and Burkina Faso. The country’s port of Cotonou is also the closest and fastest transshipment point to the port of Lagos in Nigeria, the largest economy in western Africa.
"Benin's economy will benefit from continued efforts to modernize essentials infrastructures to trade facilitation, both domestically and regionally. These efforts will stimulate the economy and help create better-paid jobs. Reliable and safe transport networks, efficiently linking centers of economic activity with the Port of Cotonou, can also help attract foreign direct investment," emphasizes Alexandre Henry, lead author of the report.
Continued improvement in investment and maintenance of national transport infrastructure will help reduce geographical inequalities within the country, while stimulating local production, particularly in the fragile northern regions.
The modernization of the road network and economic corridors will provide numerous benefits to the country. It will improve transportation links, facilitate the movement of goods and services, reduce travel time, and increase the efficiency of the transportation system. This will lead to lower transportation costs for businesses, increased trade and investment, and improved access to markets that will help stimulate economic growth.
“The need for massive investments in infrastructure represents an opportunity for Benin to anticipate the consequences of climate change on transport networks by ensuring connectivity and access to the most vulnerable areas,” said Théophile Bougna, co-author of the report.
Download the Benin Economic Update in French
