(Ecofin Agency) - The government of Benin unveiled the strategy it has set to finance the agriculture sector from 2021 to 2030. The plan was revealed during the Ministers’ Council held yesterday November 10.
This roadmap aims to help all players in the various agricultural value chains access financial services. In Benin, like in most African countries, accessing financing is a headache. According to the government, implementing such a plan will boost the competitiveness of farms and bolster the creation of small and medium-sized enterprises. The implementation requires CFA220 billion investment.
In detail, CFA5.25 billion will be used to strengthen the regulatory and institutional environment for agricultural financing, CFA212.5 billion will go for the establishment of permanent support mechanisms for the agricultural sector and CFA2.2 billion will strengthen support for producers’ organizations and agricultural enterprises. "The objective in developing this strategy is to tap into the agricultural potential of our country and to derive substantial revenues for the benefit of the national economy. Such an instrument would strengthen the interventions of the State as well as private sector partners and financing institutions in a coordinated, harmonious and sustainable way," the statement reads.
As a reminder, agriculture generates 30% of Benin's GDP and 70% of total employment according to data from the International Fund for Agricultural Development (IFAD).