The Republic of Benin, previously known as the People's Republic of Benin (1975-1989) and the Republic of Dahomey (1960-1975), is a small West African country of 112,622 square kilometers. Benin shares borders with Nigeria to the east, Togo to the west and Burkina Faso and Niger to the north.

Political and commercial links between the United States and Benin were established in the 1960s and remained cordial until the 1980s. In the mid-1980s, under the former revolutionary regime, relations became tense as Benin forged closer ties with socialist countries and officially criticized U.S. policies. Since the democratic and economic reforms in 1989, the situation has improved considerably. Cooperation between the governments of Benin and the United States is excellent, as exemplified by President Nicephore Solglo's official visit to Washington in July 1995. Former West African Development Bank Director Boni Yayi is the Head of State and Head of Government Since March 2006 election for the presidency.

The best prospects for major projects are infrastructure projects (road, airport, port and rail way construction), housing, telecommunications, tourism, and the energy production sector.

The demand for electronic products from the U.S. is increasing because they are regarded as the best in this market. They include computer peripherals and software, audio and video products, and telecommunications software.

U.S. firms can take advantage of the privatization efforts and invest in one of the many state-owned companies scheduled to be privatized. Even though the infrastructure renovations are well underway, there will be a continuing demand for investment in the transportation sector (roads, bridges, etc.) in the coming years.

Benin's government maintains a welcoming posture to foreign investors and its 1990 Investment Code contains several incentives, in the form of tax reductions, for investors depending on the level and type of investment. Depending on the amount of the investment, investors do not have to pay taxes on profits, exports of finished products, or imports of industrial equipment. To obtain these benefits investors must meet several criteria including employing a minimum number of Beninese nationals, safeguarding the environment, and meeting national accepted accounting standards. The Investment Control Commission monitors companies which benefit from these benefits to ensure their compliance with the standards required for receiving incentives.

For more information, do not hesitate to contact us

U.S. Embassy in Cotonou, Benin
Doing Business in Benin: https://tms.buyusa.gov/westafrica/en/admin/benin_ccg.pdf