While economic attention in West Africa is often directed toward larger economies, Benin is emerging and proving itself as one of the most prosperous economies in the region, thanks to agricultural modernization and digital innovation.
Benin has always been West Africa’s best-kept secret. Sandwiched between two economic giants of the region, Nigeria and Ghana, this country of 13.7 million inhabitants has long served as a vital commercial corridor to neighboring landlocked countries. Benin is transforming, evolving from a simple passage to a preferred destination.
With a gross domestic product (GDP) of 7.5% in 2024, compared to 6.4% in 2023, Benin ranks among the three fastest-growing African economies. Inflation stood at 1.2% despite global pressures. The budget deficit is at 3% of GDP in 2024. Benin aligns with the convergence criteria of the West African Economic and Monetary Union (WAEMU) for the first time in five years.
The Agricultural Revolution
Benin’s success begins in an unexpected place: cotton fields whose production is now processed locally into clothing, generating substantial export revenues for the country.
Agricultural yields have increased thanks to producers’ access to inputs. The country has almost doubled its rice production, which rose from 406,000 tons in 2020 to 712,000 tons in 2023, exceeding ambitious initial targets. Corn production climbed to 1.7 million tons. Cashew processing more than doubled, rising from 19% to 40.26% of national production, boosted by the Glo-Djigbé Special Economic Zone, located in the commune of Abomey-Calavi.
The agricultural infrastructure projects implemented have helped stimulate farmers. The Ouémé Valley Agricultural Infrastructure Support Project, financed for 63.63 million euros by the African Development Bank, supported 21,000 farmers in 14 localities, which increased food crop production from 70,100 tons to 90,300 tons upon project completion.
Infrastructure That Pays for Itself
Benin’s strategic position has made infrastructure development both necessary and profitable. The Glo-Djigbé Special Economic Zone, which today hosts 31 industries, is expected to attract up to $1.4 billion in investment in its first phase. It has already created 6,714 jobs and has begun exporting its first “Made in Benin” garments for international brands like U.S. Polo Assn.
The approach is strategic rather than scattered. Road projects connect rural areas – production zones – to markets and allow farmers to sell their products at better prices. The modernization of the Port of Cotonou facilitates regional trade. Energy infrastructure development has improved electricity access from 36.5% in 2020 to nearly 40% in 2023, supporting both household and business needs.
These projects work because they are designed to generate economic returns, not just provide services. When infrastructure pays for itself through increased economic activity, it becomes sustainable rather than a burden.
Green Growth and Climate Adaptation
Sustainable bond issuances have expanded the school feeding program to 1.2 million children. They have enabled the dredging and maintenance of 2.55 million kilometers of primary and secondary sanitation infrastructure, and have provided drinking water to 43,356 people, while climate-smart agriculture programs help farmers adapt to changing conditions.
Climate adaptation has practical benefits for farmers. Targeted projects have provided drought-resistant seeds and improved irrigation systems, resulting in better crop resilience and preservation of arable land. These initiatives demonstrate how countries can address climate change while building economic growth.
Innovative Financing and Strategic Partnerships
The African Development Bank’s $1.3 billion portfolio supports seventeen operations across Benin. The Bank provided catalytic financing in the form of a $200 million partial credit guarantee, which unlocked 350 million euros (approximately $406 million) in private financing allocated to projects related to the Sustainable Development Goals (SDGs). This financial sophistication matters. When countries can leverage development financing to access broader funding sources, they multiply their investment capacity while strengthening national financial sector capacity.
This strategic approach works because it is comprehensive without being scattered. Agricultural modernization, supported by the transformation of raw materials into finished products, accelerates value-added creation while protecting long-term assets. Infrastructure investment attracts private capital.
A Gateway Model
Benin’s trajectory offers perspectives to other African countries. The approach succeeds because it builds on comparative advantages while creating new sources of competitiveness. Agricultural modernization leverages natural resources. Infrastructure investment capitalizes on geographical position. Industrial development adds value to existing production.
As Benin continues to work toward achieving the objectives of the African Union’s Agenda 2063, its experience demonstrates how countries can leverage geographical advantages while creating new sources of competitive advantages.
This analysis is based on the findings of the African Development Bank’s 2025 Country Report titled: Benin, highlighting the country’s achievements in leveraging human, natural, and financial capital for transformational development.
