Benin Economy Grew 8.1% in 2025 on Port and Factory Work
Benin grew an estimated 8.1% in 2025 with 1.1% inflation. The AfDB sees about 7% growth in 2026-27 as the Port of Cotonou and the Glo-Djigbé industrial zone expand. The post Benin Economy Grew 8.1% in 2025 on Port and Factory Work appeared first on The Rio Times .
Benin's economy grew by 8.1% in 2025, according to the World Bank's Macro Poverty Outlook, published in April 2026. This growth is driven by a recovering port and an industrial zone that transforms cotton into clothing. The African Development Bank also reports the same growth figure for 2025. The International Monetary Fund (IMF) projects a slightly lower growth rate of 7.5% for 2025, followed by 7.0% for 2026 and 7.0% for 2027.
Inflation was unusually low at 1.1% in 2025, with projections of 1.7% for 2026. The World Bank expects inflation to rise to 7.0% in 2026, 7.2% in 2027, and 7.3% in 2028. Poverty rates are expected to decrease from 40.1% in 2025 to 33.1% by 2028. The Port of Cotonou, located in Benin, is the economic hub and the main driver of the country's growth.
The port's recovery is attributed to a low base after the closure of the Niger border and the completion of a €55 million loan approved by the African Development Bank in February 2025. This loan, along with €25 million from a joint fund with the People's Bank of China and about US$18.3 million from a Canadian climate fund, was used for port expansion, including a new 25-hectare terminal, dredging, channel widening, a sea wall extension, and a 14-hectare smart parking facility.
The industrial zone, located 45 kilometers from the port, aims to create 16,000 direct textile jobs and over 25,000 jobs in total across textiles, garments, and agribusiness. By 2030, the government aims to provide 300,000 direct jobs. The zone is capable of processing 40,000 tonnes of fiber and producing 24 million garments a year, which represents roughly an eighth of Benin's annual fiber output.
Cotton production remains significant, with 647,290 tonnes of seed cotton produced over 510,897 hectares for the 2025 and 2026 seasons. Cotton exports generated about 223.5 billion CFA francs, or roughly US$398 million, in 2025. The agriculture ministry aims for 700,000 tonnes of cotton production in the following season.
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