Benin has secured the 99th position in the 2026 global economic freedom index, climbing to 11th place in Africa, according to the latest annual report. This milestone underscores the nation’s commitment to structural reforms aimed at boosting private sector growth, attracting foreign direct investment, and modernising its economic framework.

Understanding the 46-indicator assessment

The index evaluates the extent to which individuals and businesses can make economic decisions free from undue restrictions. It assesses 165 jurisdictions across 46 key indicators, grouped into five core categories:

• Government size: Public spending, transfers, and taxation levels.
• Legal system and property rights: Judicial independence, court impartiality, and private property protection.
• Sound money access: Inflation control, monetary stability, and financial freedom.
• International trade freedom: Tariff levels, non-tariff barriers, and trade fluidity.
• Business, labour, and credit regulation: Employment market flexibility, ease of business formation, and banking sector oversight.

Note: The 2026 edition relies on consolidated 2024 data to ensure accurate comparisons across jurisdictions.

Africa’s economic freedom landscape

While Africa’s overall performance remains mixed, Benin is closing in on the continent’s top 10. The ranking is led by island nations and highly open economies, with Mauritius at 9th globally, Seychelles at 35th, and Cape Verde at 42nd.

Mid-tier African performers include Gambia (66th), Botswana (67th), Rwanda (73rd), Uganda (78th), Kenya (83rd), and South Africa (85th). Morocco narrowly edges out Benin, securing the 10th African spot (97th globally). Benin’s 11th continental rank and 99th global position place it just behind Morocco and ahead of several major regional economies.

Drivers behind Benin’s ascent

Benin’s entry into the global top 100 stems from sustained reforms in key areas:

• Public service digitalisation: Online business registration, electronic tax payments, and digital land records have streamlined bureaucracy and enhanced transparency.
• Industrial appeal: The Glo-Digbé Industrial Zone (GDIZ) exemplifies efforts to add value to raw materials locally while providing investors with a supportive regulatory and fiscal environment.
• Macroeconomic stability: Backed by the BCEAO’s monetary policy within the WAEMU, Benin maintains controlled inflation and resilient growth, consistently recognised by the World Bank and IMF.

Challenges to crack Africa’s top 10

To advance further and join Africa’s top 10, Benin must address critical hurdles:

• Judicial efficiency: Speeding up commercial dispute resolution and strengthening investment protections.
• Financing access: Easing credit for micro, small, and medium enterprises (MSMEs), the backbone of the local economy.
• Economic formalisation: Encouraging informal sector players to transition to the formal economy through simplified, adaptive frameworks.

By Maimouna Kaboré — Journalist