Access to Financing: Unlocking Competitiveness, Innovation, and Business Growth in West Africa
Undergoing significant economic transformation, Benin is striving to become a regional hub for innovation and entrepreneurship. To achieve this goal, the country is implementing strategies to improve access to financing, particularly through venture capital, and to strengthen public-private partnerships (PPPs).
The Beninese government, in collaboration with international financial institutions such as the African Development Bank (AfDB), has launched programs to support small and medium-sized enterprises (SMEs) and innovative startups. For instance, the African Development Fund provided a loan of approximately €39 million to Benin in 2023 to boost the private sector's contribution to economic development, focusing on improving the business climate and fostering the agro-industrial sector.
Benin’s legal framework for PPPs has recently been revised to attract more private investment in key sectors such as infrastructure, energy, and information technology. This reform aims to create an environment conducive to collaboration between the public sector and private investors, facilitating the implementation of transformative projects.
In addition to venture capital, Benin is exploring other innovative financing mechanisms, such as green bonds and investment funds dedicated to tech startups. These financial instruments provide entrepreneurs with tailored resources to develop their projects and contribute to the country’s economic growth.
What roles can public-private partnerships play in developing innovative financial services for businesses? How can private investments, both domestic and international, be attracted and secured to support business growth and develop strategic sectors?
