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Business images of Benin

Economy of Benin

The economy of Benin remains underdeveloped and dependent on subsistence agriculture and cotton. Cotton accounts for 40% of Benin's GDP and roughly 80% of official export receipts. There is also production of textiles, palm products, and cocoa beans. Maize (corn), beans, rice, peanuts, cashews, pineapples, cassava, yams, and other various tubers are grown for local subsistence. Benin began producing a modest quantity of offshore oil in October 1982. Production ceased in recent years but exploration of new sites is ongoing.<br>A modest fishing fleet provides fish and shrimp for local subsistence and export to Europe. Formerly government-owned commercial activities are now privatized. A French brewer acquired the former state-run brewery. Smaller businesses are privately owned by Beninese citizens, but some firms are foreign owned, primarily French and Lebanese. The private commercial and agricultural sectors remain the principal contributors to growth.

Top Sectors in Benin

Agriculture in Benin

Cotton: Benin is one of Africa’s largest cotton producers, and cotton is the country's most significant export product.<br>Food Crops: Important crops include yams, maize, cassava, sorghum, millet, beans, and rice. Agriculture employs a large portion of the population and is crucial for food security.<br>Cash Crops: In addition to cotton, Benin produces palm oil, cashew nuts, and peanuts, which are important for both domestic consumption and export.

Trade and Commerce in Benin

Port of Cotonou: This port is a vital gateway for regional trade, serving as a major transit point for goods destined for landlocked countries such as Burkina Faso, Niger, and Mali.<br>Informal Sector: A significant part of Benin’s economy operates in the informal sector, encompassing small-scale traders and businesses that play a crucial role in the economic landscape.

Services in Benin

Retail and Wholesale Trade: The service sector, particularly retail and wholesale trade, is a substantial part of Benin’s economy, driven by the busy markets and commercial activities in urban areas.<br>Financial Services: The banking and microfinance sectors are growing, providing crucial financial services to businesses and individuals.

Mining and Natural Resources in Benin

Limestone and Marble: Benin has deposits of limestone and marble, which are used in the construction industry.<br>Oil Exploration: While not a major oil producer, Benin has potential reserves and ongoing exploration activities aimed at developing this sector.

Tourism in Benin

Cultural Tourism: Benin attracts tourists to its historical sites, such as the Royal Palaces of Abomey and the city of Ouidah, known for its role in the slave trade and Voodoo culture.<br>Eco-Tourism: National parks like Pendjari offer wildlife safaris, drawing eco-tourists interested in the country's natural heritage.

Manufacturing in Benin

Textiles and Garments: The textile industry, including the production of traditional fabrics like wax prints, is a notable manufacturing sector.<br>Agro-processing: Processing agricultural products such as palm oil, cotton, and cashew nuts adds value to primary products and creates employment.

Energy in Benin

Electricity Production: Efforts are being made to improve electricity production and distribution, including investments in renewable energy sources like solar power.<br>Oil and Gas Potential: There is ongoing exploration to develop potential offshore oil and gas reserves.


Benin - Key Economic Indicators

Exports and Imports

In 2022, Benin's total exports were approximately $1.5 billion, with cotton being the dominant export commodity, accounting for about 70% of export earnings. Other significant exports include cashew nuts and shea butter. On the import side, Benin imported goods worth about $3.8 billion, primarily comprising foodstuffs, capital goods, and petroleum products. The significant difference between the value of imports and exports underscores the country's reliance on imported goods to meet domestic demand and support economic activities.

Infrastructure

Benin's infrastructure includes a road network of approximately 16,000 kilometers, with around 25% of these roads paved. Major infrastructure projects have been undertaken to improve connectivity and support economic growth. Notable among these is the rehabilitation of the Cotonou-Porto-Novo road, a key route that enhances trade and movement between major cities. Additionally, the construction of the Womey Bridge has significantly improved local connectivity and transportation efficiency. The Port of Cotonou remains a critical infrastructure asset, handling over 90% of the country's maritime traffic and serving as a vital regional trade hub.

Balance of Trade

Benin consistently runs a trade deficit, with imports significantly exceeding exports. In 2022, the trade deficit was approximately $2.3 billion. This trade imbalance reflects the country's dependency on imported goods, including essential items like food and fuel, and highlights the need for economic strategies to boost export capacity and diversify the economy. The substantial trade deficit poses challenges for the country's balance of payments and overall economic stability.

Fiscal policy

Fiscal policy in Benin is characterized by government spending aimed at stimulating economic growth and improving public services. In 2022, government expenditure was about $3.5 billion, with significant investments in infrastructure, education, and health sectors. The tax-to-GDP ratio stands around 15%, indicating the government's reliance on tax revenue to fund its budget. Key taxes include a value-added tax (VAT) of 18%, a corporate income tax rate of 30%, and personal income tax rates ranging from 10% to 35%. These fiscal measures are designed to balance the need for revenue generation with the aim of fostering economic development.

Monetary policy

Monetary policy in Benin is managed by the Central Bank of West African States (BCEAO), which oversees monetary policy for the WAEMU region. The BCEAO's main refinancing rate is set at 2%, a measure aimed at controlling inflation and promoting economic growth. In 2022, inflation in Benin was approximately 2.7%, staying within the WAEMU's target range of 1-3%. The central bank's policies focus on maintaining price stability and ensuring a favorable monetary environment to support economic activities and investment.

Trade agreements

Benin is an active participant in several significant trade agreements that facilitate regional and international trade. The country is a signatory to the African Continental Free Trade Area (AfCFTA), which aims to create a single market for goods and services across Africa, enhancing intra-African trade. Additionally, Benin is part of the Economic Partnership Agreement (EPA) with the European Union, providing duty-free and quota-free access to EU markets for most products. As a member of the West African Economic and Monetary Union (WAEMU), Benin benefits from regional economic integration and common external tariffs, which facilitate trade within the region.

Environmental regulations

Environmental regulations in Benin are overseen by the Environmental Protection Agency (ABE), which focuses on promoting sustainable development and preventing environmental degradation. Benin has committed to reducing its greenhouse gas emissions by 21.4% by 2030 as part of its Nationally Determined Contributions (NDCs) under the Paris Agreement. The country has implemented laws and regulations aimed at managing waste, controlling air and water quality, and protecting biodiversity.

Tax System in Benin

Capital Gains Tax: Benin does not have a specific capital gains tax. Instead, gains from the sale of securities and other investments are typically taxed under the broader income tax regime. However, the taxation of capital gains can depend on the nature of the investment and the period it has been held. There are provisions for different tax treatments for gains derived from business assets versus personal investments.
Corporate Tax Rate:The corporate tax rate in Benin is set at 30%. This rate applies to the taxable profits of companies operating within the country. Additionally, there is a minimum tax requirement, ensuring that all corporations contribute to the tax revenue, even if they declare low or no profits. This minimum tax is typically a fixed percentage of turnover.
Sales Tax:Benin imposes a value-added tax (VAT) on goods and services, which is a major source of revenue. The standard VAT rate is 18%. Certain goods and services may be exempt or subject to reduced rates, particularly those considered essential or basic.
Property Tax:Property tax in Benin is levied on real estate, including both land and buildings. The tax rate can vary depending on the location and value of the property. Municipalities are responsible for assessing and collecting property taxes, which are used to fund local services and infrastructure.
Payroll Tax:Benin's payroll tax system includes contributions to social security, which are mandatory for employers and employees. Employers are required to contribute approximately 15.4% of an employee's gross salary to social security, while employees contribute around 3.6%. These contributions fund social benefits such as pensions, healthcare, and unemployment insurance.
Tax Deductions and Credits: Benin’s tax system includes various deductions and credits designed to reduce tax liability and encourage certain economic activities. For instance, businesses can benefit from deductions for reinvested profits, research and development expenses, and investments in specific sectors like agriculture and renewable energy. Individuals can also claim deductions for dependents, education expenses, and certain medical costs.
Tax Compliance: Tax compliance in Benin has been improving, though challenges remain. The government has been working on modernizing its tax administration system to enhance efficiency and reduce evasion. Measures include digitalizing tax filing and payment processes, as well as increasing taxpayer education and support. However, the informal economy, which constitutes a significant part of Benin’s overall economy, poses ongoing challenges for comprehensive tax collection.
Tax Burden: The overall tax burden in Benin, which refers to the total amount of taxes paid by individuals and businesses as a percentage of GDP, is relatively low compared to many developed countries, but significant for the region. The tax-to-GDP ratio is approximately 15%. This ratio reflects the combined impact of various taxes on economic activities, with the government striving to balance revenue generation with economic growth and social development goals.

375 Live Notices for Benin ....

Showing 1 to 20

Renovation work on the hut at the Kanakoo site
country Benin
posting date18 Jan 2025
deadline24 Jan 2025
Ami - Benin - Implementation Of Environmental And Social Safeguard Instruments (Eies, Par And Functional Framework) Of Sub-Projects - Promac
country Benin
posting date17 Jan 2025
deadline31 Jan 2025
Lot 2: 10.42 ha of rice fields and 1 ha of horticultural area in Alayomdè
country Benin
posting date14 Jan 2025
deadline31 Jan 2025
Lot 1: 12.50 ha of rice fields and 1 ha of horticultural area in Founga
country Benin
posting date14 Jan 2025
deadline31 Jan 2025
Consulting Services, Elaboration of a Performance Initiative Programme (Energy Sector)
country Benin
posting date14 Jan 2025
deadline29 Jan 2025
Consulting Services, Feasibility Study (Hydropower/PV System)
country Benin
posting date14 Jan 2025
deadline03 Feb 2025
Carrying out development/rehabilitation works on 51,146 km of rural roads in the municipalities of Cobly, Tanguiéta, Djougou and Ouaké, in four (04) lots
country Benin
posting date14 Jan 2025
deadline06 Feb 2025
Elaboration of a Performance Initiative Programme in the Energy Sector in the ECOWAS Countries via the WAPP
country Benin
posting date08 Jan 2025
deadline29 Jan 2025
Construction Of Gutters On The Old Rnie Axis (Agani Franck House Up To Caveca) In The Toui District (Lot 1); On The Two Left And Right Wings On The Crossroads Axis (Rn27-Danigbé) Towards Chabi House In Danigbé In The Ouéssè District (Lot 2); Completion Of Rubble Gutters And Resurfacing Of The “Awounoudé-Maison Adjogno” Road In N’Gbéhouédo (Sbee Road) In The Odougba District (Lot 3): Construction Of Gutters Leaving Boni Eugène’S House To Go Towards The Cemetery Of The Catholic Church In The Ikemon District (Lot 4) Construction Of Gutters On The Cv Laminou Crossroads Section Towards Caveca Gbémè-Kpassa In The Laminou District (Lot 5)
country Benin
posting date07 Jan 2025
deadline20 Jan 2025
Maintenance And Cleaning Of The Agency'S Offices Throughout The National Territory By Framework Agreement Over 3 Years With Purchase Order (Lot 1-2-3).
country Benin
posting date07 Jan 2025
deadline20 Jan 2025
Recruitment Of A Consulting Firm For The Implementation Of The Post-Support And Data Recovery Module For The E-Pme Platform (Selection Based On Quality And Cost)
country Benin
posting date07 Jan 2025
deadline21 Jan 2025
Construction Of Two Modules Of Three Classrooms Plus Office And Store With Equipment In The Epp.(Relaunch)
country Benin
posting date07 Jan 2025
deadline21 Jan 2025
Acquisition And Installation Of Solar Street Lights In The Commune Of Aplahoué
country Benin
posting date07 Jan 2025
deadline21 Jan 2025
Btc Production Works As Part Of The Construction Of The Tantéga Market
country Benin
posting date07 Jan 2025
deadline22 Jan 2025
Routine Maintenance And Development Work On Tracks In The Commune Of Toffo
country Benin
posting date07 Jan 2025
deadline22 Jan 2025
Construction Works Of A Classroom Module And A Store Plus Equipment In The Commune Of Abomey In 2 Lots (A Module Of Three (03) Classrooms + Office + Equipment At The Epp Adamé In The District Of Djegbe And A Module Of 2 Rooms + Equipment At The Em Of Zounzonmé (Lot 1) And A Store + Equipment For Storing Pharmaceutical Products In The Health Center Of Djegbe (Lot 2)
country Benin
posting date07 Jan 2025
deadline23 Jan 2025
Construction Of Buildings Housing The District Offices Of Kpomè And Colli
country Benin
posting date07 Jan 2025
deadline24 Jan 2025
Refurbishment And Rehabilitation Of Classroom Modules In Various Epps.
country Benin
posting date07 Jan 2025
deadline27 Jan 2025
Acquisition Of It Consumables For The Benefit Of The Cotonou City Hall
country Benin
posting date07 Jan 2025
deadline27 Jan 2025
Construction Work On The Enclosure Walls Of Four (04) Epps (Aglomé, Gbècon-Houégbo, Adandokpodji And Epp Detohou) In The Commune Of Abomey
country Benin
posting date07 Jan 2025
deadline27 Jan 2025

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