Benin

The partnership between Luxembourg and Benin was formalised in December 2022 with the signing of a general cooperation agreement, followed by the establishment of LuxDev’s country office in February 2023.

Since then, Luxembourg has been supporting Benin’s development, focusing on three key areas aligned with national priorities: vocational training, digitalisation, and inclusive finance.

LuxDev works closely with government ministries, agencies, NGOs, and other stakeholders to ensure ownership, efficiency, and long-term impact of its programmes.

Benin, classified as a lower-middle-income country, has made significant progress in various sectors. However, substantial efforts are still needed to reduce poverty levels.

Despite technological advancements, a large portion of the population remains excluded from formal financial services. Access to credit – especially for small and medium-sized enterprises and rural communities – is hindered by limited banking access, stringent collateral requirements, and a lack of tailored financial products.

Youth unemployment remains an urgent concern for public authorities. The gap between graduate skills and labour market needs slows the creation of competitive and sustainable jobs. Additionally, a lack of infrastructure, modern equipment, and strong partnerships with businesses further exacerbates the problem.

Furthermore, Benin faces obstacles in the digital transformation of both the public sector and small and medium-sized enterprises, as well as challenges related to cybersecurity. These limitations reduce the country’s appeal as an investment destination, undermine trust in online services, and hinder local businesses’ competitiveness in global markets.

Le chômage des jeunes constitue également une préoccupation importante des pouvoirs publics. Le faible alignement entre les compétences des diplômés et les besoins du marché freine la création d’emplois décents et compétitifs. À cela s’ajoute le manque d’infrastructures, d’équipements modernes et de partenariats solides avec les entreprises.

Par ailleurs, le pays est confronté à des difficultés de transformation numérique du secteur public et des petites et moyennes entreprises, ainsi qu’à des problèmes de cybersécurité. Ces manquements pèsent sur l’attractivité de la destination Bénin, la confiance des citoyens et des entreprises envers les services en ligne, ainsi que la compétitivité des entreprises locales sur le marché international.

To address these challenges, LuxDev implements targeted programmes aimed at supporting digital transformation, enhancing vocational training, and promoting financial inclusion.