Benin ICT Sector Performance Review 2009/2010 General Introduction The Republic of Benin is a small country with a surface area of 114,763 km2, located in Western Africa in the tropical area between the Equator and the tropic of Cancer. To the south it is bordered by the Atlantic Ocean and to the north by the Niger River (which separates it from the Republic of Nigeria). To the northwest it is bordered by Burkina Faso, to the west by Togo and to the east by Nigeria. The official capital of Benin is Porto-Novo. However, due to its geographical position, the city of Cotonou remains the centre of economic activity and the headquarters for most institutions in the Republic. In the last general population and housing census in 1992, Benin had a population of 6,769,914 inhabitants, of which 3,485,795 (or about 51,5%) are women. Benin is divided into twelve departments and 77 communes, three of which (Cotonou, Porto-Novo and Parakou) have special status. Benin is a member of the West African Economic and Monetary Union (UEMOA) and its monetary policy is pursued regionally by the regional Central Bank, the BCEAO. Benin is also a member of the Economic Community of West African States (ECOWAS). For a few years now, the government of Benin has been implementing a development programme with the objective of strengthening the macro-economic framework of the country in the midterm. Steps were thus taken to improve the macro-economic environment through the implementation of structural reforms. The analysis of macro-economic indicators (table 1) shows that on the whole the macro-economic and social situation in Benin improved over the past few years. Nevertheless, growth remains weak and does not allow for a significant reduction of poverty. In addition, the economy remains highly dependent on the activities of the cotton sub-sector and foreign trade, notably with their larger neighbour, Nigeria. The problem of diversifying the economy still constitutes a major constraint in reaching strong growth, which is less vulnerable to exogenous blows. Delays in the implementation of important structural measures by the government (notably the privatization of public companies and certain reforms relating to the Cotonou harbour) have largely contributed to the underachievement observed in the country. The Government undertook to carry out essential reforms over the years to come. Table 1: Macro-economic indicators in Benin. 2007 GDP (thousand millions) 2008 2009 5,4 6,6 7,16 GDP per capita (1000 FCFA) 273,1 362 ND HDI 0,492 0,484 0,493 Real growth rate 4,6 5 ND Inflation rate 3,8 1,3 ND Trade balance -34,9 -30,0 ND Transport and Communication (in thousand millions) 56,9 60,7 ND 48 46,3 43,8 FDI (million FCFA) Source: INSAE, UNDP 2009. In spite of the food and energy crisis, Benin has made notable progress in GDP. On a macroeconomic level, this progress is translated by real growth in gross domestic product (GDP) of close to 4%, inflation control, and a bearable budget deficit. The upward tendency of the GDP in these past few years is mainly linked to the implementation of economic reforms, notably the reorganization of public finances and the progressive settling of State debt to the private sector, to the dynamism of infrastructure works and to ICT. Benin thus has significant assets to accelerate its growth and to reduce poverty by 50% by 2015. These assets can predominantly be found in its agricultural capacity and the promotion of services linked to its traffic service position in the sub-region. 1