Overview 

Benin is open to foreign trade, with international trade accounting for 70% of GDP (2017 World Bank data). The country is a member of various trade organizations including the WTO and UEMOA (West African Economic and Monetary Union). There is an immense possibility to procure food and other non-food items from on the local markets, depending on the commodity itself. The local market can meet demands and scale up if required.  Most goods that are traded pass through the port of Cotonou. In 2015, an external tariff common to all of ECOWAS was introduced. 

The trend of structural trade deficit for Benin is expected to continue in 2018. Exports are mostly composed of low-cost agricultural products. The country is largely dependent on imports for, especially for its supply of oil and electricity. The trade deficit fell to $ 1.22 billion in 2016 as imports fell at a faster pace than exports. The steady growth of cotton production might partially reduce the trade deficit. According to the National Institute of Statistics and Economic Analysis of Benin (INSAE), exports amounted to 80.98 million XOF in Q4 2017 (an increase of 165.5% compared to the same period of the previous year), while imports increased by 483.63 million XOF at the same time (an increase of 12.7%). 

Local manufacturers face some challenges of electricity costs, but can accommodate the multiple demands from different layers of the populations.  

Benin's primary exports are cotton, cashew nuts, coconuts, Brazil nuts, shea nuts, boats, cement, textile products and seafood to India, Niger, Malaysia, Singapore, Vietnam and Bangladesh. The main imported products are foodstuffs (rice, meat), petroleum products, electricity, drugs and capital goods from France, China, India, Thailand. Benin is also very active in re-export, mainly to Nigeria. 

In 2016, the key exports, imports and the trade balance were presented as below 

• Imported $4.75B, making it the 128th largest importer in the world. During the last five years the imports of Benin have decreased at an annualized rate of -13.3%, from $9.5B in 2011 to $4.75B in 2016. The most recent imports are led by Rice which represent 19.8% of the total imports of Benin, followed by Palm Oil, which account for 5.98% 
• Exported $1.11B, making it the 146th largest exporter in the world. During the last five years the exports of Benin have decreased at an annualized rate of -0.7%, from $1.14B in 2011 to $1.11B in 2016. The most recent exports are led by Gold which represent 34.4% of the total exports of Benin, followed by Raw Cotton, which account for 17.9%. 
• Trade balance was negative of $3.65B in net imports. As compared to their trade balance in 1995 when it still had a negative trade balance of $554M in net imports. 

(Source available here)

Smaller private companies are owned by citizens of Benin, and some companies are of foreign origin, mainly French and Lebanese. Private commercial and agricultural sectors remain the main contributors to growth. Benin was affected by the global economic crisis in 2008/2009, seeing its growth rate halved from 5.0% in 2008 to 2.7% in 2009 and 2.6% in 2010. After this slowdown, Benin experienced a moderate recovery to 3.5% in 2011. In 2012, Benin's average monthly income per capita was $ 63, or $750 per year.  

The manufacturing sector is primarily involved in processing commodities and the production of consumer goods. The recent World Bank report "Doing Business 2016" ranked Benin for the second time among the 10 most reforming countries in the world. In 2015, Benin recorded three reforms in terms of business creation indicators, building permits and cross-border trade.  

For a general overview of country data related to the service and supply sectors, please consult the following source: Benin - The Observatory of Economic Complexity – MIT (OEC)   

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