Benin is seeking to increase the value of its crops, such as cotton, cashews, shea, and soybeans, by turning them into finished products. The country recently hosted the FocusSEZ 2026 investment forum in Cotonou, which aimed to attract industrial investors to the Glo-Djigbé Industrial Zone (GDIZ). Discussions at the forum highlighted the need for reliable electricity, stronger African trading networks, and support for local businesses to access funding. The goal is to move beyond exporting raw materials and focus on manufacturing high-value products. This initiative is part of Benin's broader economic development strategy.
The GDIZ has made significant progress in transforming Benin's cotton production. According to Létondji Béhéton, managing director of SIPI-Benin S.A., the company responsible for developing and managing the GDIZ, the zone has transformed 40,000 tons of cotton annually, representing approximately 12.7% of the country's national cotton production. This has enabled the manufacture of 50 million garments. The zone's annual production is projected to reach approximately 100,000 tonnes of cotton by 2030. Béhéton also noted that the GDIZ has helped increase Benin's GDP to US$19.4 billion in 2023 for a population of 13.4 million.
The GDIZ is expected to create 300,000 jobs by 2030 and is helping to diversify Benin's manufacturing base. With 17 companies operating on the site, the zone has the potential to drive economic growth and development. However, to sustain this growth, manufacturers will need access to buyers and efficient ways to trade across borders. The African Continental Free Trade Area (AfCFTA) Agreement has been touted as a key enabler of intra-African trade. Afreximbank, a key player in financing logistics infrastructure and intra-African trade networks, has implemented the Pan-African Payment and Settlement System (PAPSS) to facilitate transactions in local currencies.
One of the major challenges facing the GDIZ is ensuring a reliable electricity supply. Béhéton noted that the zone currently supports 25,000 jobs and outlined investments intended to improve energy supply. A 30km gas pipeline has been completed, and solar power plants are being developed, with the first series expected to be ready in 18 months, producing 300 megawatts of power. The surplus energy will be fed into the national grid. Expert panels at the forum emphasized the connection between factory growth and the systems supporting it, including logistics, distribution, and industrial hubs.
Mobilizing finance for industrial expansion requires more than just identifying available capital; businesses need projects that investors can assess and back. According to Maryse Lokossou, Director General of the Benin Deposit and Consignment Fund (CDC Benin), Beninese SMEs are gradually moving into processing and manufacturing, but many remain at an early stage. Lokossou emphasized the need for stronger project preparation to turn business ideas into proposals capable of attracting investment. The main challenge lies in the ability of project leaders to present a technical and financial structure capable of attracting investors.
Local businesses need support to prepare credible investment proposals and access funding. Ramanou Kouferidji, founder of a communications group focused on entrepreneurship, called for a fund to help local businesses grow and retain a stake in the expanding industrial economy. Kouferidji emphasized the need for technical support to make local projects ready for investment and financing suited to their development. This would enable domestic businesses to compete and retain more value locally.
The discussions in Cotonou highlighted the need for connecting factories with reliable power, local businesses with suitable finance, and manufacturers with dependable markets. A visit to GDIZ's factories illustrated the scope for processing more resources locally and raised questions about how manufacturers can turn production into repeat orders. Experts emphasized the importance of bridging the gap between quality manufacturing and market needs, while offering vital insights into regional business realities.
Key points
- Benin aims to increase the value of its crops by turning them into finished products.
- The Glo-Djigbé Industrial Zone (GDIZ) is expected to create 300,000 jobs by 2030.
- Reliable electricity, stronger African trading networks, and support for local businesses are key priorities for industrial expansion.
