Towards Evidence-based ICT Policy and Regulation
Measures will need to be taken whose combined effects will have a positive impact on competitiveness
and economic growth, thus contributing to growth and the reduction of poverty.
Even though it
possesses
undeniable assets
(growing GDP,
declining corruption,
stable political
situation, favourable
geographic
location), Benin
remains a country
where poverty is
significant and
which necessitates
structural reforms to
make the business
climate more
competitive and
conducive to growth
As for governance, Benin is characterized by remarkable political stability and progress in the deeprootedness of democracy.
According to international criteria such as the “Doing Business” indicators or the “Global
Competitiveness Index”, Benin was classified among the bottom 20 countries in 2007. Indeed, its
business environment and governance remain a real challenge since, according to “Doing
Business”, the country has dropped 12 places in one year, going down from 157th in 2008 to
169th in 20091 . In Benin, it takes 410 days on an average to obtain licences and permits from
administrative authorities, while it takes only 271 days in sub-Saharan Africa. This substantially
increases business costs in Benin and seems to indicate an increase in corruption. It takes four
years, considerably more than the average of 3.4 years in sub-Saharan Africa, to settle the balance
of accounts in the case of closing down a company in Benin. In this regard too, Benin moved
down 21 places in 2009 from 20082.
In addition, concerning the perception of corruption in Africa, the organization Transparency
International classified Benin 96th out of 180 countries in 2008 with an index of 3.1, a great
improvement compared to 2007 (118th out of 179 countries and an index of 2.7).
Benin established itself progressively in the re-exportation economy since 41.2% of its main exports
in 2006 consisted of re-exports. This strengthens the share of services in the GDP of the country
(48.4%) while agriculture, though still relatively significant (37.1% of GDP), only increased very
slowly in productivity.
Even though it possesses undeniable assets (growing GDP, declining corruption, stable political
situation, favourable geographic location), Benin remains a country where poverty is significant and
which necessitates structural reforms to make the business climate more competitive and
conducive to growth.
1
2
IFC, Doing Business 2009, http://www.doingbusiness.org/ExploreEconomies/?economyid=22
Ibid, "Closing a business"
2