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, 11 The telecommunication sector has multiplying effects directly on other sectors of the economy.