(Ecofin Agency) - The government of Benin is stepping up initiatives to increase internet coverage and adoption across the country. As part of this ambition, the state is betting on the Benin Digital Infrastructure Company, which was officially launched in October 2022 and is managed by Sonatel.

The Benin Digital Infrastructure Company (SBIN) will enjoy an exemption from import duties and taxes on equipment for its telecom network expansion project across the country. This public company was granted a special investment regime for its expansion project during the Cabinet meeting on Wednesday, February 14. However, we learned that this exemption does not apply to roadway taxes, statistical taxes, customs stamps, community levy (PC), community solidarity levy (PCS), and solidarity levy (PS).

Through this initiative, the government seeks to "provide stable and reliable internet connection" nationwide as part of its efforts to accelerate the country's digital transformation and make it a driver of socio-economic development. For FY2024, the Digital and Digitization Ministry has been allocated a budget of CFA24.3 billion ($39.7 million), up from CFA31 billion in 2023.

According to data from the Electronic Communications and Postal Regulatory Authority (ARCEP), SBIN leads the fixed internet market with 19,154 subscribers out of 24,641 in the first quarter of 2023. The network expansion project should enable SBIN’s mobile telephony subsidiary, Celtiis, to reach millions of people and increase its market share against competitors like MTN Benin and Moov Africa Benin.

ARCEP statistics show that the company had about 1.7 million mobile telephony subscribers by the end of the third quarter of 2023, holding a market share of 10.52%, compared to 34.06% for Moov Africa and 55.42% for MTN. In the mobile internet market, it had 423,610 subscribers in the first quarter out of a total of 10.14 million.