Economy of Benin
News •
Since independence, Benin’s regular and developmental budgets have been dependent on external support, primarily from France and international organizations. This support has rendered a little less painful the formidable economic stagnation and low standard of living of the overwhelming majority of the population.
The regime that came to power in a 1972 coup attempted from 1975 to restructure the economy more or less along socialist principles and to disengage from dependence on France. Most sectors of the economy were nationalized or otherwise turned over to government control, and economic relations were established with the Soviet Union and other socialist countries, as well as with Benin’s neighbours. By the early 1980s it was clear that—though the economy was restructured and, at least on paper, more efficient and diversified and France’s contribution to Benin’s economy diminished—corruption persisted and that the overall economic situation had not improved. “Liberalization” of the economy in the mid-1980s also failed to produce positive results. Accompanying changes in the constitution and regime in the early 1990s, the remnants and slogans of Marxism were wiped out, and privatization of the economy began.
Resources
The few stretches of tropical forest that remain in Benin, mostly in the southwest and central areas, contain mahogany, iroko, teak, samba, and other tropical hardwoods. The rivers and lagoons are rich in fish. Mineral deposits include iron ore both in the Atakora Mountains and northeast of Kandi, limestone deposits at Onigbolo, chromium ore and a little gold in the northwest near Natitingou, marble at Dadjo, an important deposit of pottery clay at Sakété, and ilmenite (a mineral source of titanium) near the coast. Offshore oil was discovered in 1968 in the Sémé field near Cotonou and has been exploited since 1982.
Agriculture and fishing
About 70 percent of the working population depends on agriculture. Since the mid-1980s Benin has produced yams, cassava, corn (maize), millet, beans, and rice to achieve self-sufficiency in staple foods. Among cash crops, the formerly predominant palm product output declined considerably in the 1980s, but cotton output rose. The output of karité, peanuts (groundnuts), cacao beans, and coffee also has increased. Livestock include cattle, sheep and goats, pigs, horses, and poultry. Substantial quantities of fish are caught annually in the lagoons and rivers, while coastal fishing produces a smaller, but growing, amount. Most of the fish is exported to Nigeria or Togo. Shrimp and deep-sea fishing are developing, using modern vessels.
Industry
Manufacturing plants and secondary industries include several palm-oil-processing plants in Ahozon, Avrankou, Bohicon, Cotonou, Gbada, and Pobé; cement plants at Onigbolo and Pobé; several cotton-ginning facilities in the north; a textile mill at Parakou; a sugar refining complex at Savé; a soft-drink plant; a brewery; and two shrimp-processing plants.
Electricity is generated thermally by plants located at Bohicon, Parakou, Cotonou, and Porto-Novo. About half of Benin’s demand for electricity is met by importing power from Ghana’s Volta River Project at Akosombo. In 1988 operations commenced at the hydroelectric installation of the Mono River Dam, a joint venture between Benin and Togo on their common southern boundary.
Finance
Liquidation of Benin’s three state-owned banks took place in the late 1980s and early 1990s as part of economic privatization, and four private banks opened, including the Bank of Africa-Benin. Citizens of Benin began to transfer their savings from foreign banks. With the advent of privatization, foreign aid and assistance grew, particularly funding for developmental projects from the United States and the European Economic Community (later succeeded by the European Union), the latter of which also agreed to help pay the wages of civil servants. France continues to provide financial assistance. The currency of Benin is the CFA (Communauté Financière Africaine), which is fully guaranteed by and pegged to the French franc.
Trade
Benin’s export earnings rely on agricultural products, such as cotton, palm oil, cocoa, and coffee, exported to such countries as India, Malaysia, and Bangladesh. Informal trade (smuggling) across the border with Nigeria has also affected Benin’s negative trade balance. One of Benin’s main, albeit underexploited, trade assets is the deepwater port at Cotonou, which serves as a sea outlet for the Republic of Niger and as a secondary port for Nigeria and thus holds a potential to earn lucrative customs duties.
Benin has traditionally imported various manufactured products, machinery, chemicals, beverages, and tobacco, as well as cereals. Benin sources its imports from several countries, including India, Thailand, and France.
Transportation
There are two paved, mostly two-lane, road networks. One runs parallel to the coast of the Gulf of Guinea from the Togolese border, through Cotonou and near Porto-Novo, to the Nigerian border. The other road runs north from Cotonou, near Abomey and Dassa, to Parakou in the north. Roads from Parakou to Niger’s border and from near Abomey to Burkina Faso’s border are unpaved and are barely passable in the rainy season.
There is a railroad from Cotonou to Parakou. Another railroad, parallel to the coast, does not extend to either the Togolese or the Nigerian border.
Interconnected coastal lagoons are navigable by small craft known as pirogues. The Ouémé, Couffo, and Mono rivers are navigable by small boats for several dozen miles. The country’s only port is at Cotonou. An international airport in Cotonou links Benin with other countries of Africa and with Europe. There is also limited domestic airline service.
Stanislas Spero Adotevi Dov RonenAdministration and social conditions
Benin has experienced much political instability and unrest. It suffered through 12 years of unstable government, including several coups d’état, beginning three years after independence. The regime of President Mathieu Kérékou, who came to power in a 1972 coup, enjoyed almost two decades of fragile but unprecedented stability. The Marxist rhetoric introduced in 1974 culminated in repressive military rule in the late 1970s, but this had largely ceased by the early 1980s. During this period, however, the Benin People’s Revolutionary Party (PRPB) was the only legal political party. A National Revolutionary Assembly, elected by citizens, chose the president, who was also head of state.
Benin was the first African country to make a post-Cold War transition away from Marxism-Leninism. In December 1989 Kérékou himself abandoned the Marxist-Leninist ideology that he had promulgated in the mid-1970s. In December 1990 a new constitution was approved, guaranteeing human rights, freedom to organize political parties, the right to private property, and universal franchise.
Under the 1990 constitution, Benin is a multiparty republic. The president, who is directly elected to no more than two consecutive five-year terms, serves as head of state and government. The president may be assisted by the prime minister, though the position is not required by the constitution and was vacant from May 1998–May 2011 and again from August 2013. Legislative power is vested in the National Assembly, consisting of members who are directly elected to serve four-year terms.
The constitution provides for an independent judicial branch of government. Benin’s judiciary comprises the Constitutional Court, which is the highest court in constitutional-related affairs, the Supreme Court, which is the highest court for administrative and judicial matters, and the High Court of Justice, which hears cases against the president and other government officials in matters pertaining to crimes committed while in office and high treason. The Constitutional Court and Supreme Court are located in Cotonou, while the High Court of Justice is located in Porto-Novo.
Education
The public education system has followed the French pattern since colonial times. A six-year primary school cycle (for children ages 6–11) is followed by six years of secondary education (ages 12–17). In the mid-1970s major reforms were introduced both to conform to the then-prevalent Marxist-Leninist ideology and to shed French influence. The reforms failed as teachers, parents, and university-bound students objected to the lowering of standards, and the reforms were largely abandoned by the late 1980s.
The University of Abomey-Calavi (previously known as the University of Dahomey [1970–75] and the National University of Benin [1975–2001]), located in Cotonou, was founded in 1970. The university’s student body has been, along with workers, the main political force in the country since the early 1980s. The University of Parakou was founded in 2001.
Health and welfare
Benin has a national health care system that maintains hospitals in Cotonou, Porto-Novo, Parakou, Abomey, Ouidah, and Natitingou, in addition to medical dispensaries, maternity centres, and other small, specialized health care facilities in these and smaller towns. Financial aid from international organizations provides resources to compensate for a shortage of medical personnel and medications. Malaria is a health concern, especially for young children. The HIV/AIDS prevalence rate in Benin is well below the average for sub-Saharan Africa but is similar to or lower than that of neighbouring countries.
