Economy of Benin: growth, key sectors, trade and investment

The economy of Benin: definition and characteristics

The economy of Benin rests on agriculture, transit trade with neighbouring countries and a services sector that dominates output. A member of WAEMU, the country uses the CFA franc (XOF). Growth reached 7.5% in 2024 according to the National Institute of Statistics (INStaD), then about 8.1% in 2025 according to the African Development Bank (AfDB).

Growth of the economy of Benin

Real gross domestic product grew by 7.5% in 2024, against 6.4% in 2023, according to INStaD. The fourth quarter of 2024 showed 9.2% year on year. By sector, the secondary sector grew by 9.7%, the tertiary sector by 7.5% and the primary sector by 5.9%. Nominal GDP reached 13,025.9 billion CFA francs in 2024.

The African Development Bank reports growth of about 8.1% in 2025, driven by construction, manufacturing, transport, trade and public and private investment. Inflation remained contained, at 1.1% in 2025, according to the World Bank and the AfDB.

Sectors: agriculture, industry and services

In 2024, the tertiary sector accounts for 48.9% of nominal GDP, the primary sector for 24.2% and the secondary sector for 17.4%, with taxes net of subsidies making up the remainder at 9.5%, according to INStaD. Agriculture employs a large share of the workforce. Cotton is the main export crop, ahead of cashew nuts and soya.

Industry is developing around agricultural processing, notably in the Glo-Djigbé industrial zone, near Cotonou. Services rely on trade, transport, port logistics and a tourism potential that is still being built.

Foreign trade and investment

According to Coface, cotton accounted for about half of exports in 2025. Bangladesh and India are among the country's leading customers. On the import side, Benin buys in particular energy products and rice to supply its domestic market.

The Port of Cotonou also serves the neighbouring landlocked countries. Transit and re-export trade remains important, and the closure of the border with Niger, which came in July 2023, has weighed on these flows. The AfDB estimates that the country needs to mobilise about 2.43 billion dollars a year until 2030 for transport, energy, education and innovation. It cites public-private partnerships, domestic savings and diaspora investment among the levers.

Currency, public finances and challenges

The CFA franc of West Africa (XOF) is issued by the Central Bank of West African States (BCEAO), in Dakar, and remains pegged to the euro at a fixed parity. Membership of the West African Monetary Union guarantees monetary stability but frames public finances: the WAEMU deficit criterion is set at 3% of GDP and the debt criterion at 70%.

Public debt stood at 60.5% of GDP in 2024 and 57% in 2025 according to Coface. Tax revenue reaches only about 14% of GDP. According to the World Bank, 36.2% of Beninese lived below the national poverty line in 2021-2022. The challenges lie in the narrowness of the productive base, the weight of the informal sector and the need for infrastructure.