Benin Country Profile

Snapshot of the Benin Country Profile


Benin has undergone vast political and economic transformations over the past several years. Yet, economic reforms have proven more uneven than political transformation. Although the basic institutional framework for a market economy has been increasingly strengthened, the economy remains dominated by the informal sector.The government's commitment to combat corruption and to attract investment has resulted in a number of laws, regulations and measures to improve the business climate. However, there are several obstacles to attracting foreign investors in Benin. The most important obstacle, according to many observers, is the widespread corruption in the country, both petty (facilitation payments and small bribes) and grand (government, contracts).

Positive developments in relation to corruption and investment:

  • The institutional set-up for fighting corruption is quite well-established and Benin´s anti-corruption strategy is seen as successful by many international observers.
  • The government has established a one-stop shop in order to simplify procedures for the start up of companies, registration, tax declaration and import licensing, thereby aggregating all the formalities facing a new investor in one place: the Guichet Unique within the Centre des FormalitĂ©s des Entreprises (CFE) of the Ministry of Trade (in French).

Risks of corruption:

  • Property rights, although adequately defined, are not safeguarded in practice due to corruption.
  • Foreign investors should note that bribes have to be given to obtain water connections, construction permits, commercial licences, etc. The bribes demanded are reported to be especially high for foreign companies due to their alleged 'capacity to pay'.
  • Companies report being expected to give gifts if they want to secure a government contract and companies looking to get government contracts in Benin should be aware that many observers find public procurement and contracting to be one of the most corrupt sectors in Benin
  • Customs and excise laws are not always enforced uniformly or without discrimination as corruption and bribery can be used to influence the application of these laws in practice.


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