Economy of Benin
From Wikipedia, the free encyclopedia
| Economy of Benin | |
| Currency | CFA franc (XOF) |
|---|---|
| Fiscal year | Calendar year |
| Trade organisations | AU, ECOWAS, WTO |
| Statistics | |
| GDP | $12.18 billion (2007 est.) |
| GDP growth | 4.5% (2007 est.) |
| GDP per capita | $1,500 (2007 est.) |
| GDP by sector | Agriculture (33.2%), industry (14.5%), services (52.3%) (2007 est.) |
| Inflation (CPI) | 2.5% (2007 est.) |
| Population below poverty line |
37.4% (2007 est.) |
| Labour force | 5.38 million (2007 est.) |
| Main industries | Textiles, food processing, construction materials, cement |
| External | |
| Exports | $708.7 million (2007 est.) |
| Export goods | Cotton, cashews, shea butter, textiles, palm products, seafood |
| Main export partners | People's Republic of China 20.9%), Indonesia 7.7%, India 7%, Netherlands 6.2%, Niger 5.7%, Togo 4.6%, Nigeria 4.3% (2006) |
| Imports | $976.3 million (2007 est.) |
| Import goods | Foodstuffs, capital goods, petroleum products |
| Main import partners | People's Republic of China 46.6%, France 7.5%, Thailand 6% (2006) |
| Gross External Debt | $1.2 billion (2007) |
| Public finances | |
| Revenues | $936.9 million |
| Expenses | $1.226 billion (2007 est.) |
| Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars |
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The economy of Benin remains underdeveloped and dependent on subsistence agriculture and cotton. Cotton accounts for 40% of GDP and roughly 80% of official export receipts. There is also production of textiles, palm products, and cocoa. 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. 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.
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[edit] Economic Development
Since the transition to a democratic government in 1990, Benin has undergone an economic recovery. A large injection of external investment from both private and public sources has alleviated the economic difficulties of the early 1990s caused by global recession and persistently low commodity prices (although the latter continues to affect the economy). The manufacturing sector is confined to some light industry, which is mainly involved in processing primary products and the production of consumer goods. A planned joint hydroelectric project with neighboring Togo is intended to reduce Benin's dependence on imported energy mostly from Ghana, which currently accounts for a significant proportion of the country's imports. The service sector has grown quickly, stimulated by economic liberalization and fiscal reform, and the use of modern technology such as automobiles and computers has grown considerably as a result. Membership of the CFA Franc Zone offers reasonable currency stability as well as access to French economic support. Benin sells its products mainly to France and, in smaller quantities, to the Netherlands, Korea, Japan, and India. France is Benin's leading source for imports. Benin is also a member of the West African economic community ECOWAS.
Despite its rapid growth, the economy of Benin still remains underdeveloped and dependent on subsistence agriculture, cotton production, and regional trade. Growth in real output averaged a sound 5% since 1996, but a rapid population rise offset much of this growth on a per capita basis. Inflation has subsided over the past several years. Commercial and transport activities, which make up a large part of GDP, are vulnerable to developments in Nigeria, particularly fuel shortages.
Although trade unions in Benin represent up to 75% of the formal workforce, the large informal economy has been noted by the International Trade Union Confederation (ITCU) to contain ongoing problems, including a lack of women's wage equality, the use of child labour, and the continuing issue of forced labour.[1]
[edit] Banks
- Banque Internationale du Bénin (I.BE)
- Bank of Africa Benin
- Continental Bank Benin
- Diamond Bank Benin (DBB)
- Ecobank
- Financial Bank
- Finadev
- Caisse Nationale d'Epargne
- Credit du Benin
- Equibail
[edit] References
- ^ "Serious violations of core labour standards in Benin, Burkina Faso and Mali". ICFTU Online. http://www.icftu.org/displaydocument.asp?Index=991220267&Language=EN. Retrieved on 2007-07-30.
This article incorporates public domain material from websites or documents of the CIA World Factbook.
[edit] External links
- Economy of Benin at the Open Directory Project
- West African Agricultural Market Observer/Observatoire du Marché Agricole (RESIMAO), a project of the West-African Market Information Network (WAMIS-NET), provides live market and commodity prices from fifty seven regional and local public agricultural markets across Benin, Burkina Faso, Côte d'Ivoire, Guinea, Niger, Mali, Senegal, Togo, and Nigeria. Sixty commodities are tracked weekly. The project is run by the Benin Ministry of Agriculture, and a number of European, African, and United Nations agencies.
