Benin

Benin is a beneficiary of the the EU's "Everything but Arms" (EBA) scheme for least developed countries. The World Bank considers Benin a lower-middle-income economy with a per-capita income of $1.400 in 2022. Overall imports from Benin have been increasing in recent years and amounted to about EUR 42 million in 2022. Preferential imports to the EU amounted to about €5,1 million in 2022.

What is the EBA?

The “Everything but Arms”(EBA) scheme is a permanent arrangement covering Least Developed Countries (LDC’s) as classified by the United Nations. This arrangement enables duty-free and quota-free access for all products (7200 products in total) originating in LDC’s except for arms and ammunition. Different from the Standard GSP and GSP+, LDC’s are not excluded from the scheme if they benefit from other preferential arrangements.

Benin flag

At a glance: EBA beneficiaries' preferential imports to the EU

group

13,35 M

Population

account_balance
Presidential Republic

Government

trending_up

6.30%

GDP Growth

equalizer

2.50%

Inflation

money

$ 17,40 B

GDP

61 ^

Freedomhouse index

4 -

ITUC Global Rights Index

29.6 v

Environmental Performance Index

Facts about Benin's economy

Cotton Production

Economic development in Benin was mainly driven by cotton production, which can look back on a decade of impressive growth rates and has made the country one of the leading producers in the region. Cotton currently accounts for about 40% of the Benin’s GDP.

Export Products

By far the most important export product for Benin is raw cotton, followed by cashew nuts, oil seeds and medium oils.

Trade Partners

The EU, India and China are Benin's most important trading partners, account for a total share of 48%. Bangladesh and India are the most important markets for Benin's export products, while most imported goods originate from the EU, India, and China.

Economic Structure

Agriculture and particularly the cultivation of cotton, are important for Benin's economy accounting for about 1/4 of the GDP. Industrial activities include the processing of cotton, palm oil and shrimp as well as textile milling and sugar refining.

Usage of EBA Preferences

About 12% of total imports from Benin make use of the preferential access granted by the EBA scheme. The preference utilisation rate, which represents the ratio of preferential imports to GSP eligible imports, currently stands at 50.2%.

Trade with the EU

Total trade with the EU amounted to € 877 million in 2022. With a share of 18%, the EU is Benin's second most important trading partner.

Benin and the EU (2022)

Imports from Benin by product section

Imports from Benin over time (in € m)

BENIN AND THE EU’s GSP

Economic Impact

24%

About 18% of Benin's exports to the EU are eligible for EBA preferences.

50.20%

Preference utilisation dropped by almost 30% between 2020-2022

Preference utilisation and export diversification

Benin's imports to the EU

Preference Utilisation vs. total eligible imports

Despite some fluctuations, Benin’s preference utilisation rate is high and consistently ranges above 70%, though except for 2022, when the utilisation rate dropped to 50%. This is also reflected on the level of the individual product sections. In most prominent import groups, including animal and vegetable fats, fruits and vegetables, cereals and grains, and foodstuffs and beverages, preferences were used for around 80% of eligible imports or more.

The largest product sections under EBA

In 2020 the major export products to the EU fruits and vegetables, cereals, grains and seeds ( s02b, s02d), and these products are also the most eligible for GSP preferences under the EBA. This means that Benin has taken more advantage of the scheme since 2018 and increased exports of products that are EBA eligible. However, in 2022 machineries was the largest product section under the GSP, but utilisation rate was equal to zero.

SUSTAINABLE DEVELOPMENT

As a beneficiary of the EBA, Benin is not obligated to ratify any conventions to be able to benefit from preferential access to the European market. Nonetheless, Benin has ratified all 15 core international conventions on human and labour rights. This includes 7 UN human rights conventions and 8 ILO conventions on labour standards. Additionally, Benin has ratified 8 conventions on environmental protection and 4 conventions on good governance aspects.

Core international conventions on human rights and labour standards

Ratified

  • Convention on the Prevention and Punishment of the Crime of Genocide (1948)
  • International Convention on the Elimination of All Forms of Racial Discrimination (1969)
  • International Covenant on Civil and Political Rights (1976)
  • International Covenant on Economic Social and Cultural Rights (1976)
  • Convention on the Elimination of All Forms of Discrimination Against Women (1981)
  • Convention Against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment (1987)
  • Convention on the Rights of the Child (1990)
  • Convention concerning Forced or Compulsory Labour, No 29 (1930)
  • Convention concerning Freedom of Association and Protection of the Right to Organise, No 87 (1948)
  • Convention concerning the Application of the Principles of the Right to Organise and to Bargain Collectively, No 98 (1949)
  • Convention concerning Equal Remuneration of Men and Women Workers for Work of Equal Value, No 100 (1951)
  • Convention concerning the Abolition of Forced Labour, No 105 (1957)
  • Convention concerning Discrimination in Respect of Employment and Occupation, No 111 (1958)
  • Convention concerning Minimum Age for Admission to Employment, No 138 (1973)
  • Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, No 182 (1999)

Additional Conventions

  • Convention on International Trade in Endangered Species of Wild Fauna and Flora (1973)
  • Montreal Protocol on Substances that Deplete the Ozone Layer (1987)
  • Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (1989)
  • Convention on Biological Diversity (1992)
  • The United Nations Framework Convention on Climate Change (1992)
  • Cartagena Protocol on Biosafety (2000)
  • Stockholm Convention on persistent Organic Pollutants (2001)
  • Kyoto Protocol to the United Nations Framework Convention on Climate Change (1998)
  • United Nations Single Convention on Narcotic Drugs (1961)
  • United Nations Convention on Psychotropic Substances (1971)
  • United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988)
  • United Nations Convention against Corruption (2004)

EU-Benin Bilateral Development Assistance

DG INTPA

Access all info about EU-Benin relations on the International Partnerships website: https://international-partnerships.ec.europa.eu/countries/benin_en

Opportunities in Benin

  • Potential to serve as a regional hub for West Africa due to its proximity to major regional markets
  • Increasing domestic demand particularly regarding food products, hygiene products, and vehicles
  • Since 2016, the government introduced a number of economic reforms which had a positive impact on the business environment

Contact points