The government of Benin has taken a significant step to boost the country's economy by introducing a new procurement policy that prioritizes local products. As of early September, public administrations can no longer easily replace local products with imported ones. A circular issued by the Minister of Economy and Finance, Aristide Médénou, on September 4, 2026, and published by the Autorité de Régulation des Marchés Publics (ARMP) on September 10, requires public administrations, institutions, and other entities to purchase locally produced goods from a list of eight categories.
The new policy aims to support local producers, artisans, and transformers by providing them with a stable and regular market. The list of products includes rice, gari, uniforms, juices, soaps, school furniture, and bricks, among others. To ensure the quality of the products, the government has established a Répertoire des prix de référence, which sets the standards and requirements for the products. The policy also requires public administrations to obtain prior authorization from the Minister before importing products that are available locally.
The impact of this policy on the local economy is significant, considering the weight of public expenditure in Benin. According to a study published in the Revue internationale des sciences de gestion, the average value of public contracts in Benin between 2020 and 2022 was approximately 534 billion FCFA, which represents about 23% of the country's general budget. This new policy is expected to have a positive impact on local businesses, particularly small and medium-sized enterprises (SMEs).
The policy has been welcomed by local businesses, who see it as a breath of fresh air. Ahissou Tohossi, a member of a rice producers' cooperative in the Ouémé valley, expressed his joy, saying that the policy will provide them with a stable and regular market. He added that this will enable them to sell their products to a reliable buyer and not just to anyone who comes with cash. Athanase Dégan, a menu maker and seller in Abomey-Calavi, also welcomed the policy, saying that it will enable him to keep his apprentices, buy good quality materials, and improve his products.
However, there are concerns that the policy could lead to higher prices for consumers if local production is limited. To mitigate this risk, the government has established a regulatory framework to ensure that the policy is implemented fairly and transparently. A circular issued by the ARMP on August 26, 2026, requires public administrations to reserve the right to reject bids only for serious and substantial reasons. A national campaign was also launched to educate stakeholders on the new policy and its implementation.
The government has also taken steps to ensure that small and medium-sized enterprises (SMEs) have access to public contracts. According to the Agence de développement des PME, an enterprise must be formalized to be eligible for a public contract. However, the framework is being relaxed to allow more SMEs to participate in public procurement processes. This is expected to promote competition and ensure that local businesses have a fair chance of winning public contracts.
The success of the policy will depend on its implementation and the response of local businesses and consumers. The government has set an example by prioritizing local products in its procurement processes, and it is now up to local businesses to respond by producing high-quality products at competitive prices. The policy has the potential to create a virtuous circle of regular demand, modernized equipment, and improved quality, which could lead to increased economic growth and development in Benin.
Key points
- The Benin government has introduced a new procurement policy that prioritizes local products to boost the country's economy.
- The policy requires public administrations to purchase locally produced goods from a list of eight categories.
- The policy aims to support local producers, artisans, and transformers by providing them with a stable and regular market.
