Benin: €15 Million to “boost” industrialization

In a decisive step towards strengthening its economy, Benin has secured a €15 million Trade Finance Transaction Guarantee Mechanism from the African Development Bank (AfDB). The African Development Bank Group’s Board of Directors approved the operation on Wednesday, November 18, 2024, in Abidjan. This will enable Cotonou to bolster strategic imports of inputs, machinery, and essential telecommunications equipment for its industrialization process, solidifying its role as an economic driver in the Gulf of Guinea.

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The agreement aims to directly support key sectors such as agribusiness and light manufacturing, which are crucial for diversifying Benin’s economy and creating quality jobs. Additionally, it is expected to ensure the availability of essential goods, a strategic move to stabilize the domestic market and shield local consumers from potential external shocks. This dual approach reinforces both the country’s resilience and economic growth.

“This guarantee will allow Beninese companies, particularly SMEs, to access critical financing to acquire advanced technology and machinery. This will not only enhance productivity but also open new opportunities to compete in the regional market,” emphasized Lamin Drammeh, Head of Trade Finance at AfDB.

The potential impact of this initiative extends beyond trade transactions. According to Robert Masumbuko, head of AfDB’s office in Benin, the mechanism aligns with three of the Bank’s strategic priorities: feeding Africa, industrializing Africa, and improving the quality of life for Africans. This positions Benin as a model in leveraging strategic financing to achieve sustainable and balanced development.

The Executive Director of Bank of Africa Benin, Abdel Mumin Zampalégré, highlighted the significance of this collaboration in boosting international trade, an essential pillar for the country’s growth. Projects focusing on sustainability, inclusion, and emissions reduction will directly benefit, ensuring a positive impact on the local economy.

With this guarantee, Benin not only secures the resources needed for its industrialization but also reaffirms its commitment to leading economic transformation in West Africa, laying the foundation for resilient and self-sufficient development.