Benin ICT Sector Performance Review 2009/2010
Contribution of ICT to the Beninese Economy
The telecommunication sector has multiplying effects directly on other sectors of the economy.
Certain authors even go as far as establishing a positive correlation between the level of
development of telecommunications of a country and its economic growth.
Hardy et al. (1980) maintain that telecommunications only have an impact on economic growth
when the ICT penetration rate reaches 40 fixed telephone lines per 100 residents. We could, thus,
consider that the same results would be possible in the mobile telephone sector, keeping in mind
the increase in the penetration rate. Indeed, the telephone penetration rate increased to 61,16% in
2009 from 26,87% in 2007 (ATRPT, 2010).
Tcheng et al. (2009) examined the contribution of telecommunication to development in Africa.
Indeed, the positive impact of telecommunication can be felt earlier without waiting for the
country to be developed. In this way, ICT can contribute to the economic development of
countries, in the same way as access to drinkable water, electricity or transport.
The consequences of technology can be seen directly through the thousands of jobs created and
considerable receipts made and indirectly with the appearance of new goods and services that
contribute to the maintenance of activities in other sectors.
The following table presents the direct contribution of the telephone (fixed-line and mobile) sector
to job creation in Benin.
Table 6: Direct employment at telephone (fixed-line and mobile) operators.
Fixed Operator
Mobile Operators
Total Jobs
2006
2007
2008
2009
1 319
1 231
1 114
766
552
875
1 119
1 210
1 871
2 106
2 233
1 976
Source: ATRPT (2010).
Contribution to the creation of direct employment is due more to GSM operators than the fixedline operator. In fact, the fixed-line operator has seen the total number of its staff drop
progressively since 2006, decreasing from 1,319 employees in 2006 to 766 employees in 2009.
This drop in the total number can be explained, among others, by the freeze on recruitment of
new employees due to the streamlining programme in progress, and to the preparation for the
privatization of Bénin-Télécom SA. Apart from the direct jobs created, the ICT sector also
generates numerous jobs indirectly. In fact, the prepaid card system requires a distribution
network made up mostly of hawkers. But even more than job creation, ICT encourages the
development of a real entrepreneurial spirit. Thus, roll out of ICT has allowed a large number of
people to create their own companies by creating “telephone booths” and “internet cafés” on all
the street corners, even in rural areas.
The following table presents the evolution of income generated by telecommunication companies
over the 2006–2009 period.
Table 7: Annual turnover (in millions of FCFA).
2006
2007
2008
2009
Fixed Operator
33.982
40.618
34.705
10.808
Mobile Operators
62.262
72.540
118.081
148.911
Aggregate Turnover
96.244
113.158
152.786
159.719
Source: ATRPT (2010).
Analysis of the table shows that the fixed-line telephone sector in Benin is declining. Indeed,
despite all the recovery efforts undertaken since 2007, Bénin-Télécom SA, the only fixed-line
operator, sees its turnover declining brutally over the 2007–2009, decreasing by almost three
quarters. At the same time, the mobile telephone market presents significant growth in its receipts,
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The
telecommunication
sector has multiplying
effects directly on
other sectors of the
economy.