• Benin will build a new Special Economic Zone (SEZ) in Kétou to target the Nigerian market.

• The 983-hectare site will focus on cereals and integrated industries.

• The move follows a 2025 bilateral deal aiming to deepen Benin-Nigeria trade ties.

Benin’s government has greenlit the creation of a new Special Economic Zone (SEZ) in Kétou, as part of its push to drive industrial growth and deepen trade with Nigeria.

On July 23, the Council of Ministers approved the classification of a 983-hectare area in Illara as a site of public interest. This move clears the way for construction of the new SEZ, which will focus on cereal production and processing, targeting strong demand from neighboring Nigeria.

This development is designed to strengthen trade ties with Nigeria, Benin’s leading economic partner in West Africa. The future SEZ will host competitive, integrated industries aligned with Nigerian market needs.

The initiative builds on the momentum of the Cotonou-Abuja bilateral agreement signed in June 2025 during the first West Africa Economic Summit (WAES 2025). The pact aims to promote economic integration between the two countries and set an example for regional cooperation.

In 2024, trade between Benin and Nigeria reached $129.3 million, according to the International Trade Centre (ITC). But Benin’s agricultural exports to Nigeria have been in sharp decline.

Between 2010 and 2012, Nigeria imported an average of $86 million in agricultural goods from Benin. That figure plummeted to just $10.3 million between 2020 and 2022, an 88% drop, according to the Africa Agricultural Trade Monitor 2024.

This decline is largely the result of Nigeria’s border restrictions from 2019 to 2023, aimed at curbing smuggling and protecting local industries.

Despite official controls, much of the trade between the two nations continues informally. Products like rice, poultry, tomatoes, and edible oils frequently cross the border via unofficial routes, particularly through Sèmè-Kraké.

While this parallel economy supports local markets, it also deprives both governments of significant tax revenue and clouds trade transparency.

Since January 2023, Benin has made SEZ development a pillar of its economic policy. The zones offer administrative streamlining and tax incentives tailored to firms investing in exports or regional markets.

The flagship project, Glo-Djigbé Industrial Zone (GDIZ), is already operational and focuses on textiles, agro-industry, and local raw material transformation. It enforces strict environmental and safety regulations, setting a high standard for future zones like Kétou.

This article was initially published in French by Charlène N'dimon

Edited in English by Ange Jason Quenum