Benin Telecommunications Sector Performance Review 2007

Benin
FIGURE 1: ANNUAL TREND OF SOME MACROECONOMIC INDICATORS
(2001-2005)
Source: Based on data from INSAE.
The economy of Benin depends primarily on agriculture that is little
diversified or mechanised and dominated by the production of cotton
that accounts for about 90% of export revenue, employing about 56% of
the working population.
The secondary sector still does not attract foreign investors despite the
reforms on the improvement of the institutional framework and the economic
revival strategies implemented since the early ’90s. As a result the
investment rate has plummeted to about 17%.
Commercial activities dominate the tertiary sector thanks to the geographical
location of Benin. The actual value of the tertiary sector in the
GDP is typically underestimated due to the open nature of the borders
and the vitality of the informal sector. More than two-thirds of imports
are re-exported to countries like Burkina Faso, Mali, Niger and especially
Nigeria.
The ongoing reforms, from a structural standpoint, relate to the restructuring
of public enterprises and the revival of the private sector. The
objective is to redefine the role of the State in society and to provide legislative
and regulatory environments that are consistent with the principle
of economic liberalism.
Benin is a member of the West African Economic and Monetary Union
(WAEMU) and its monetary policy is controlled at regional level by the
regional Central Bank of West African States, BCEAO. Intra-community
exchange within the WAEMU zone has developed in recent years but the
growth rate is still low. Nevertheless, the adoption of a preferential trade
arrangement in 1996 and the harmonisation of external taxation through
the introduction of the Common External Tariff (CET) since 2000 are
efforts toward improving the level of intra-community exchange.
3 http://www.rita.gov.rw/laws/ict_policy.html
2007 Telecommunications Sector Performance Review
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