AfDF Approves $28m to Boost Benin’s Private Sector, SEZ Growth and Governance

The decision follows the successful implementation of PAGE-DSP Phases I and II in 2023 and 2024, with cumulative financing of nearly US$100 million.

 

The Board of Directors of the African Development Fund (AfDF) has approved US$28 million in additional financing to support the third phase of Benin’s Economic Governance and Private Sector Development Support Programme (PAGE-DSP). The funding, endorsed on 24 November 2025, will scale up ongoing reforms to strengthen private sector competitiveness, enhance economic governance, and promote resilient, climate-aligned growth.

The decision follows the successful implementation of PAGE-DSP Phases I and II in 2023 and 2024, with cumulative financing of nearly US$100 million. These earlier phases delivered strong progress in improving the business environment, strengthening fiscal governance, and increasing investment momentum in key sectors.

Aims of the New Financing: Accelerating Private Sector–Driven Growth

The newly approved financing aims to deepen and consolidate reforms needed to expand the private sector’s contribution to Benin’s economy. The programme focuses on four priority areas:

1. Improving the business climate and regulatory environment

2. Strengthening Special Economic Zones (SEZs) to attract investment

3. Supporting the agro-industrial sector to boost value addition

4. Enhancing climate resilience and safeguarding economic gains

Robert Masumbuko, the African Development Bank Group’s Country Manager in Benin, emphasised the significance of the decision. “This additional funding concludes the exemplary implementation of the first two phases of the programme by the Government of the Republic of Benin,” he said.

Ambitious Targets for 2025: Investment, Industrial Growth, and SEZ Expansion

PAGE-DSP Phase III is expected to deliver measurable outcomes by 2025. Key targets include:

• Raising private investment to 35.5% of GDP, up from 29.9% in 2022

• Boosting investment in the Glo-Djigbé Special Economic Zone (GDIZ) to 23 billion CFA francs (US$40.5 million), more than doubling the 2021 figure

• Increasing agri-food industry value added to 7.7% of GDP, compared with 6.1% in 2022

These outcomes are designed to position Benin as a leading regional destination for manufacturing, agro-processing and trade.

Ammar Kessab, Senior Programme Manager at the African Development Bank, said the new phase will deepen earlier reforms: “This programme consolidates the results of the first two phases, which totalled approximately $100 million.”

Strengthening Institutions: Competition, E-commerce, and Market Regulation

A central part of the reforms involves enhancing institutional effectiveness and regulatory governance to ensure better market performance and investor confidence.

Creation of a Functional National Competition Authority

The Council of Ministers will adopt a decree establishing:

• The mandate and powers of the National Competition Authority

• Its composition, governance model and roles

• A sustainable financing mechanism

With the Authority operational, Benin will have a dedicated institution responsible for enforcing fair competition, preventing monopolistic practices and strengthening trust in market systems.

Operationalising the Directorate for the Promotion of E-commerce

The programme will also support the launch of the new Directorate responsible for implementing the:

• National E-commerce Strategy 2025–2029

This move is expected to accelerate Benin’s digital economy, promote online business development, and expand opportunities for entrepreneurs—especially SMEs and youth.

Promoting Gender-Responsive Agricultural Policy

In line with the government’s commitment to gender equity, PAGE-DSP III includes measures to update the gender assessment of the agricultural sector. This reform will align the sector with Benin’s gender-responsive budgeting framework, which is now mandatory across all ministries.

Integrating this approach will help the state:

• Better target interventions that support women farmers

• Improve resource allocation for gender equality

• Enhance monitoring of gender-specific outcomes

Supporting Agro-Industrial Development and Climate Resilience

The programme also prioritises climate-smart, inclusive agribusiness development. Key measures will:

• Promote investments in agro-processing zones

• Strengthen SEZ capacity to host modern agro-industrial firms

• Improve environmental and climate-risk management across production systems

• Increase competitiveness in exports such as cashew, textiles, processed foods and horticulture

PAGE-DSP III is aligned with Benin’s national strategies, including the Government Action Programme (PAG), and supports long-term goals of economic diversification, private-sector-led growth, and resilience to climate and external shocks.

A Major Boost for Benin’s Economic Transformation

With this new round of financing, the African Development Fund reinforces its commitment to supporting Benin’s economic transformation. The programme will help the country strengthen institutions, grow its private sector, diversify exports, and create better opportunities for women, youth and rural communities.

By building on the strong achievements of earlier phases, PAGE-DSP III places Benin on a more resilient, competitive, and inclusive growth path for the years ahead.