Spurred by indicators that show 40% of the population living below the poverty line and Benin ranked 166th out of 177 in the human development index, the president is focused on pulling in the private sector to create beneficial PPPs. To attract investors, he is also focused on creating an open and transparent system of governance.
In a statement made shortly after his nomination, the president said that it was a matter of urgency that they tackle political reforms, restructuring of the national economy and strengthening the social fibre in order to restore public confidence and the country’s credibility.
African Trade Insurance Agency (ATI) CEO, George Otieno, was one of the first people to call on the new president. “As an African institution, ATI understands the challenging environment in which many of our governments work. This is where we can add the most value because we understand the risks involved and how to mitigate them. Benin is no different. We’re here to help by providing comfort to investors,” said Otieno.
During ATI’s four-day stay in Benin, the company met with the highest ranked ministers and also hosted a workshop for government agencies to explain the benefits of their products. These include providing guarantees to suppliers and contractors of government tenders. With guarantees in place, Benin can attract the best possible goods and services that will greatly help its development efforts. ATI is also able to help the government lower their debt levels by offering guarantees to investors in place of costly government guarantees.
The agency has estimated $760m worth of investments in its current project pipeline. These include renewable energy, manufacturing, agribusiness, investments that will help finance small and-medium sized (SMEs) companies, and supporting the government’s proposed bond issue.
In 2013, Benin became the first West African country to join ATI, a pan-African institution that provides political, investment and commercial risk insurance products. Côte d’Ivoire is expected to finalise their membership in early 2017. ATI’s next membership focus is the other large West African economies of Ghana, Nigeria and Senegal.
