The United Nations Conference on Trade and Development (UNCTAD) released its third generation of the Productive Capacity Index (PCI) on September 14, ranking Benin 161st out of 195 economies globally and 27th in Africa. The index assesses a country's productive capacity based on 43 indicators across eight aspects: human capital, natural capital, energy, transport, information and communication technology (ICT), institutions, private sector, and structural transformation.
According to the UNCTAD report, Benin's ranking contrasts with its economic growth, which averaged around 6% annually between 2016 and 2024. This growth indicates that the country has made progress in some areas but still faces challenges in others, such as skills development, infrastructure, and local product transformation. The report highlights that African countries generally have modest productive capacities despite abundant natural resources.
Only four African countries scored above 50 points out of 100: Mauritius, Seychelles, South Africa, and Cape Verde. Mauritius led the African ranking in 2021, placing 46th globally. The top 10 African countries in the PCI were: Mauritius (56th globally), Seychelles (68th), South Africa (70th), Cape Verde (72nd), Tunisia (99th), Morocco (101st), Botswana (116th), Namibia (122nd), Algeria (125th), and Egypt (129th).
The PCI calculation uses a geometric mean of the eight aspects to determine a country's overall score. Benin's score reflects its performance across these areas, with room for improvement in several sectors. The country's economy has shown resilience, but the PCI ranking suggests that efforts are needed to enhance its productive capacities and catch up with other nations.
In Africa, Benin ranks behind Togo (158th globally) and ahead of South Sudan. The country's productive capacity is influenced by various factors, including its human capital, infrastructure, and institutional framework. To improve its ranking, Benin may need to focus on developing its skills base, upgrading its infrastructure, and promoting structural transformation.
The UNCTAD report provides a comprehensive assessment of productive capacities across the globe, offering insights into areas where countries can improve. For Benin, the report's findings can inform policy decisions and guide efforts to enhance its productive capacity and drive sustainable economic growth.
Key areas for Benin's improvement include human capital, infrastructure, and structural transformation. By addressing these challenges, the country can work towards increasing its productive capacity and achieving higher rankings in future PCI assessments. The report serves as a diagnostic tool, highlighting areas where Benin and other countries can focus their development efforts.
Key points
- Benin's economy has grown at an average annual rate of 6% between 2016 and 2024.
- Only four African countries scored above 50 points out of 100 in the PCI.
- Benin ranks 27th in Africa and 161st globally in the UN's Productive Capacity Index.
