<\/p>\n
Benin\u2019s economy expanded by 8.1% in 2025 and recorded average annual growth of 7.1% between 2021 and 2025, making the economy one of the fastest-growing in the region.<\/p>\n
<\/p>\n
The fiscal deficit declined to 2.7% of gross domestic product in 2025, below the West African Economic and Monetary Union limit of 3%.<\/p>\n
<\/p>\n
Inflation remained low at 1.1%.<\/p>\n
<\/p>\n
However, the fourth edition of the World Bank\u2019s Benin Economic Update found that growth was not creating sufficient formal and well-paid employment.<\/p>\n
<\/p>\n
About 96.3% of workers were employed in the informal sector in 2022, while eight out of every 10 jobs created involved self-employment.<\/p>\n
<\/p>\n
Fewer than one in five workers held a salaried position in 2024. The share fell to 9% among young people. \u201cThe good health of Benin\u2019s economy is a solid foundation,\u201d World Bank Economist and Report Lead Author Mamadou Tanou Bald\u00e9 said.<\/p>\n
<\/p>\n
\u201cThe challenge now is to maintain strong economic fundamentals and ensure that this growth is supported by productivity gains and creates more and better-paid jobs, especially for young people.\u201d<\/p>\n
<\/p>\n
The Glo-Djigb\u00e9 Industrial Zone demonstrated the potential for formal industrial employment, with the number of jobs increasing by 28.8% to 22 798 in 2025.<\/p>\n
<\/p>\n
The Bank said reliable electricity would be essential for expanding similar employment opportunities.<\/p>\n
<\/p>\n
Almost half of Beninese businesses regarded electricity access as a major obstacle, while 86.1% experienced power interruptions.<\/p>\n
<\/p>\n
Electricity-grid losses reached 24.7% in 2024, while about half of transmission lines and substations were more than 25 years old.<\/p>\n
<\/p>\n
Gas shortages had also forced greater reliance on expensive heavy fuel oil. \u201cImplementing the Mission 300 Compact could generate nearly 159 000 additional and better-quality jobs,\u201d World Bank Group Country Manager in Benin Karine Bachongy said.<\/p>\n
<\/p>\n
The Bank said Benin should diversify energy sources, modernise electricity networks, reduce supply costs and improve sector governance.<\/p>\n
<\/p>\n
The Bank concluded that stronger regional trade with Nigeria could generate as much as $1.3 billion annually and create 26 000 direct jobs in grain processing, textiles, energy, higher education, and tourism.<\/p>\n
<\/p>\n
–WorldBank\/ChannelAfrica–<\/p>\n","protected":false},"featured_media":43006,"template":"","meta":{"_acf_changed":false,"_members_access_role":[],"_members_access_error":"","_links_to":"","_links_to_target":""},"news-type":[44],"class_list":["post-50424","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"Electricity-sector reforms could create nearly 159 000 jobs in Benin as the country seeks to turn strong economic growth into better-paid formal employment, the World Bank says.","published_date":"","news_description":"Electricity-sector reforms could create nearly 159 000 jobs in Benin as the country seeks to turn strong economic growth into better-paid formal employment, the World Bank says.","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/50424","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":3,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/50424\/revisions"}],"predecessor-version":[{"id":50433,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/50424\/revisions\/50433"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/43006"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=50424"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=50424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}