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• GDP: US$4 billion (2005).
• Main exports: Cotton, peanuts, coffee and palm oil.
• Main imports: Energy.
• Main trade partners: Nigeria, France, China and India.
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Since the transition to democratic government in 1991, Benin has undergone a remarkable 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).
Benin, poor in natural resources, is traditionally a trading nation and its economy is heavily dependent on the success of
its much larger neighbour, Nigeria. Benin is hugely dependent on its import/export trade with the latter. A large part of
the economy is based on the re-export of goods to Nigeria.
Benin’s economy is principally agricultural – it is self-sufficient in basic foodstuffs, the main export commodities being
cotton, peanuts, coffee and palm oil. The manufacturing sector is confined to some light industry, mainly involved in processing
primary products and the production of consumer goods.
A planned joint hydroelectric project with neighbouring 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 liberalisation and fiscal reform. Membership of the CFA Franc
Zone offers reasonable currency stability, as well as access to French economic support.
Benin is also a member of the West African economic community ECOWAS. The economy remains fragile and largely dependent on
international aid.
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Overview 
