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• GDP: US$3.7 billion (2003).
• 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 
