(Ecofin Agency)

• Benin’s economy grew by 7.5% in 2024, up from 6.4% in 2023, according to the National Institute of Statistics and Demography (Instad).

• Growth was driven by strong performances in services, industry, and agriculture.

• The government continues to focus on boosting private investment and long-term projects like the Glo-Djigbé Special Economic Zone to strengthen competitiveness.

Benin’s achieved an economic growth of 7.5% in 2024, compared to 6.4% the previous year. The National Institute of Statistics and Demography (Instad) highlighted this positive shift in its quarterly national accounts report released on March 27, 2025. The growth is attributed to a strong performance across all major sectors.

The services sector, which makes up 47.5% of the real GDP, remains the key driver of the economy, with a growth rate of 7.5%—an improvement from 6.6% in 2023. The sector’s dynamism is largely due to the increased activity in trade and the growth of public services.

The industrial sector also showed a notable improvement, with a growth of 9.7% in 2024, compared to 7.3% in the previous year. This expansion is primarily due to the growth of agro-industry and the acceleration of large-scale construction projects across the country.

Meanwhile, the agricultural sector, which encompasses farming, livestock, fishing, and forestry, grew by 5.9%, up from 5.1% in 2023. This growth is largely driven by favorable conditions in agriculture and the fishing industry.

The report also notes the government's ongoing efforts to transform Benin into a prosperous and attractive economy. Key initiatives, such as the Glo-Djigbé Special Economic Zone (GDIZ), aim to reduce the trade deficit and enhance national competitiveness in the long term. The operationalization of industries in the GDIZ strengthened in 2024, further contributing to the economic boost.

Investment activity has continued to rise, though at a slower pace. Investments in constant prices grew by 10.5% in 2024, down from 15.7% in 2023. Private investment remains crucial, contributing 3.0% to real GDP growth, while public investment showed a slight decline, with a contribution of -0.2%. However, the share of investments in GDP stood at 35.1% in 2024, slightly up from 34.5% in 2023, reflecting sustained efforts to maintain investment levels in the economy.

Despite external challenges, including a devaluation of Nigeria's naira and strained relations with some neighboring countries, Benin's economy has proven resilient, according to the World Bank.

Looking ahead to 2025, the government has revised its growth forecast to 6.8%, surpassing initial projections. This growth is expected to be driven by the modernization of agriculture, continued momentum in the industrial sector, and the expansion of services, particularly through the Port of Cotonou, tourism, and enhanced trade relations with Nigeria.

Charlène N’dimon