(Ecofin Agency) - The World Bank has approved an additional $150 million loan to support Benin's agricultural sector. This loan will aid the Project for the Competitiveness of Agricultural Sectors and Export Diversification (PACOFIDE) running from 2020 to 2026.

Benin's agriculture sector contributes nearly 30% of its GDP and employs over two-thirds of the active population. Cashew and pineapple, alongside cotton, shea, and soy, are key revenue sources.

The World Bank announced the loan in a statement released on June 11. The funds will be provided by the International Development Association (IDA) and will focus on enhancing pineapple, cashew, and vegetable production across the country.

Specifically, the funds will finance the development of a 3,000-hectare irrigated area for rice and vegetable production, rehabilitate 34,000 hectares of cashew plantations, and establish 7,000 hectares of new cashew plantations.

For the pineapple sector, plans include creating a training farm and setting up an industrial unit for in vitro plant production, with an annual capacity of 13.5 million plants to ensure a steady supply of healthy plant material. Nestor Coffi, World Bank Operations Manager for Benin, stated that this financial support will create new economic opportunities and more inclusive livelihoods for over 150,000 PACOFIDE beneficiaries.

Cashew is Benin's second-largest agricultural export after cotton, generating over CFA20.6 billion ($34 million) in 2022, according to the Agricultural Statistics Directorate (DSA). Pineapple is the leading horticultural export, bringing in CFA240 million ($395,700) in the same year.