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China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
FDI in Figures
Most of the FDI in Benin arrived through the acquisition of interests in privatised companies. Many infrastructure projects are funded by grants or loans from the World Bank or other international development banks. In 2013, France agreed on an aid plan to develop the energy sector. In 2014, Benin received EUR 9.6 billion in aid to develop its port infrastructure. FDI in-flows slowed down during the 2008 global economic crisis and have since remained weak. However, there have been signs of a strong recovery and, in 2014, FDI reached USD 377 million, which represents a marked increase compared to previous years. Between 2006 and 2014, the cumulative increase reached 600% as well. According to the risk assessment agency Coface, FDI flows are expected to double in 2016 thanks to spending on infrastructure development, including ports.
Corruption, poor quality of infrastructure and problems related to the electricity supply limit the country's potential attractiveness. Benin's strong points are its strategic location near a potential market of 200 million inhabitants, its role as a trade hub for second-hand vehicles imported from Europe and resold throughout Western Africa, and the fact that it is one of the most democratic nations in the African continent. Benin has taken several initiatives to attract foreign investment (particularly in the electricity production sector), such as creating a Presidential Investment Council. Although more effort is still needed, the country's business climate has improved considerably, and Benin ranked 158th out of 189 in the 2016 Doing Business report of the World Bank.
In 2015, France remained Benin's number one investor. The other main foreign investing countries are other European countries and Canada.
