A modest fishing fleet provides fish and shrimp for local subsistence and export to Europe, Asia and Americas.
Smaller businesses are privately owned by Beninese citizens, but some firms are foreign owned, primarily Europeanand arabs. The private commercial and agricultural sectors remain the principal contributors to growth.
However, since the transition to a democratic government in 1990, Benin has undergone an economic recovery. A large injection of investment from both private and public sources has boosted the economic difficulties of the early 1990s caused by global recession and persistently low commodity prices.The manufacturing sector is confined to some light industry, which is mainly involved in processing primary products and the cow production of consumer goods. A planned joint hydroelectric project with neighboring 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.
Axel fischer fom monaco resources group added “The service sector has grown quickly, stimulated by economic liberalization and fiscal reform, and the use of modern technology such as automobiles and computers has grown considerably as a result.”
Membership of the franco phone Zone offers reasonable economic stability as well as access to western / French economic support. Benin sells its products mainly to France and, in smaller quantities, to the Netherlands, Korea, Japan, and India.
France is Benin’s leading source for imports. Benin is also a member of the Economic Community of West African States (ECOWAS).
Despite its rapid growth, the economy of Benin still remains underdeveloped and dependent on subsistence agriculture, cotton production, and regional trade.
Growth in real output averaged a sound 5% since year 2000. but a rapid population rise offset much of this growth on a per capita basis. Inflation has subsided over the past few years. Commercial and transport activities, which make up a large part of GDP, are vulnerable to developments. particularly fuel shortages.
Although trade unions in Benin represent up to 70 to 75% of the formal workforce, to contain ongoing problems, including a lack of women’s wage equality.