Beach on the Atlantic coast of Benin, near the town of Ouidah

Benin Ambitious policy course for economic reforms

Benin's current government under President Patrice Talon is pursuing an ambitious course of economic policy reforms, which it has been implementing systematically. The reforms are geared towards the processing of products within Benin, economic growth, efficient financial management, vocational education, and digital technology.

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An employee at a cotton ginning factory in Benin

A great deal of progress has already been made. For example, an industrial zone has been established for the processing of agricultural products, and the introduction of digital technology at public authorities is moving forward. Benin is working to implement the 2030 Agenda. Improvements are evident, for instance, in the field of water supply. Whilst these reforms are ongoing, there nevertheless remain restrictions on the freedom of the press, democratic liberties, and the separation of powers.

The continuous economic growth which Benin has experienced in the last few years was slowed a little by the decision to close the border between Benin and Niger, which was taken in response to the coup in Niger in mid-2023. Moreover, the government has not yet been able to tangibly reduce poverty in Benin. One factor that is slowing down development is the high rate of population growth. The current Human Development Index (HDI) ranks Benin 173rd out of 193 countries.

The increasing spread of radicalising and terrorist influence from the Sahel in northern Benin is a cause for concern. In May 2023, targeted brutal killings of civilians took place in northern Benin.


German development cooperation with Benin

The Federal Ministry for Economic Cooperation and Development (BMZ) supports Benin's ambitious reform course. It also supports Benin in the face of the increasing spread of radical groups in the northern part of the country.

Germany's development cooperation with Benin is geared towards fostering poverty reduction and stability through sustainable economic growth that benefits all segments of the population while conserving natural resources. Increased employment and incomes and good public financial management are hoped to make an effective contribution to poverty reduction. In the northern part of the country, which is experiencing increasing violence, efforts are under way to build people's resilience and protect biodiversity and water resources.

The BMZ is assisting Benin's government in implementing its current action programme and its national development plan, both of which make explicit reference to the goals of the 2030 Agenda for Sustainable Development and of the African Union's Agenda 2063 (External link). The BMZ has supported the establishment of a monitoring system for the implementation of these goals.

In 2023, Germany committed 90 million euros in new funding to its partner country. This amount comprises 55 million euros in Financial Cooperation funding and 34.5 million euros for Technical Cooperation, plus 0.5 million euros under the Special Initiative “Transformation of Agricultural and Food Systems”.

Development cooperation focuses on the following core areas:

  • Peaceful and inclusive societies
    Area of intervention: good governance
  • Sustainable economic development, training and employment
    Areas of intervention: technical and vocational education and training, private sector and financial sector development
  • Conserving nature and natural resources, protecting life on Earth
    Areas of intervention: water, biodiversity

As part of the initiative area “Digital technology and data”, the BMZ also supports the strong efforts of the Beninese government to harness the opportunities of the digital transformation for national development.

Germany's long-standing involvement in agriculture, which used to be a priority area of bilateral cooperation, is being phased out, as Benin's government wishes to put a new focus on vocational education and sustainable economic development. For many years, Germany assisted Benin in the agricultural sector on aspects such as value chain development and adaptation to climate change. Some of the successful approaches used in these programmes are being applied now in other core areas, for instance vocational training.

Meeting in the village of Kotokpa in Benin

Core area “Peaceful and inclusive societies” Improving public financial management, increasing government revenue Internal link

Through its development cooperation, Germany is supporting the ambitious reform agenda of the Beninese government, which wants to improve public financial management and increase domestic revenue. The purpose of this support is to enable the people, in particular women, to benefit from improved public services and investments.

Scooters in Cotonou

Core area “Sustainable economic development, training and employment” Improving the quality of vocational training and strengthening enterprises Internal link

Benin's economy needs many well-trained skilled workers. The government has therefore resolved to expand and modernise the country's vocational training system so that enough young people will acquire the skills that are needed. Through its development cooperation, Germany is assisting the Beninese government in improving the quality of vocational training and broadening the range of available training programmes, in simultaneously promoting enterprise development, and in creating a conducive environment for more employment.

Public water tap in Benin

Core area “Conserving nature and natural resources, protecting life on Earth” Safe drinking water for all and conservation of biodiversity Internal link

Climate change and population growth are putting growing pressure on natural resources in Benin. Germany is assisting its partner country in the areas of water resource management, wastewater management, and biodiversity conservation. One focus is on support in the country's northern part, where competition over scarce natural resources is adding fuel to conflicts.

Current situation

As at: 08/02/2024