Tuesday, October 27, 2009

Benin, Economy

The economy of Benin remains underdeveloped and dependent on subsistence agriculture, cotton production and regional trade. Cotton accounts for 40% of GDP and roughly 80% of official export receipts. Growth in real out put has averaged around 5% in the past seven years, but rapid population growth has offset much of this increase.
Inflation has subsided over the past several years, Benin uses CFA franc, which is pegged to Euro.
In order to raise growth still further, Benin plans to attract more foreign investment , place more emphasis on Tourism,facilitate the development of new food processing system and agricultural products, and encourage new information and communication technology. Projects to improve the business
climate by reforms to the land tenure system
the commercial justice system, and the financial sector were included in Benin's US$ 307 million Millennium Challenge Account Grant signed in 2006.The Paris club and bilateral creditors have eased the external debt situation, with Benin benefiting from G8 debt reduction announcement in July 2005, while passing for more structural reforms.An insufficient electric supply
continues to adversely affect Benin's economic growth though the govt. recently has taken steps to increase domestic power production.
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.

Benin is a member of the Organisation for the Harmonization of Business law in Africa (OHADA).
Cotonou's harbour is
the only sea port and
International airport.
A new port is
currently under
construction between
Cotonou and port
Novo. Benin is
connected by 2 lane asphalted roads to its neighbouring countries (Togo, Burkina Faso, Niger and Nigeria). Mobile telephone service is available across the country through various operators. ADSL connections are available in some areas.
Benin is connected to Internet by way of satellite