1. Awaited for many years by industrialists facing multiple constraints, Benin’s industrial free trade zone is almost completed. A deci-
sive step was taken at the end of September, with the holding of the constitutive general meeting of its Administrative Agency
The constitutive general meeting of Benin’s Free Trade Zone’s Administrative Agency (A-ZFI) took place on September 1, 2004. The
building of the first free zone including a $10 million industrial development of 300 buildings is only possible now the Agency is
formally created.
A-ZFI’s capital amounts to 1.2 billion CFAFr, of which 80% belongs to private shareholders, 20% to the government. The board
of directors, chaired by Ataou Soufiano, is composed of 12 members : one representative of the Ministry of Trade and Industry,
one of the Ministry of Finance, one of the Chamber of Commerce, the Mayor of Sémé, a repre-
sentative of Africaine d’Assurances, and some shareholders (1).
The industrial free trade zone is located at Sèmè-Kpodji, between Cotonou and Porto Novo, on
land measuring 500 hectares. Today about 80 hectares of this is serviced. (ending page 2)
T H E E C O N O M Y O F B E N I N N O V E M B E R / D E C E M B E R 2 0 0 4 - N ° 1 3
Coming up................p. 2 & 3
Creating-Produs-cing.. p.2
Funding-Developing.....p. 3
Procurement..............p. 4
Highlights..................p. 2 & 3
Industry
Industrial Free Trade zone on track
It has been feared that
the inexorable opening
up of markets and set-
ting of universal norms
worldwide (quality, tra-
ceability, standards) in which we, in
Benin, have little say, should distance us
further from international trade. I am
definitely not of that opinion. It is greatly
up to us : we can encourage success
through work, a dynamism that will ren-
der our economies more competitive,
able to export and increase our share in
international trade.
Awareness at the highest levels of
government that investment in infras-
tructure is a priority, is a first step.
However, moving raw materials is not
the only thing: we must process more
domestically, given the lack of influence
we have on international raw materials
markets.
Domestic industry must be encouraged
by all means and direct trading of our
raw materials on international markets
discouraged. Until a forceful supply
policy is effectively in place, support for
existing industry must be unfailing
Société des pansements du Bénin
(SOPAB), ex-Pansements du Dahomey
(PANDAH) created in 1974 by Adebayo
Ananie Abimbola, is an example of a
local industrial processor of Benin cotton
fibre. Today the company, which qualifies
as a pharmaceutical laboratory, produ-
ces about twenty articles complying with
European pharmaceutical standards 4th
edition and Codex. SOPAB exports on
average 70% of its production, is fully
committed to a quality process in view of
obtaining ISO 9001-2000 certification,
and adds value to the « Made in Benin »
trademark.
While up to now the economy of Benin
was strictly turned towards trade,
SOPAB, an incorporated company with
100% domestic capital, was a pioneer.
Today no-one doubts the need to build a
strong Benin economy, determined to
resolve the problems that could slow
down its development.
Jean-Michel Abimbola
Company Manager

2. New IMF Program
The government of Benin and the
International Monetary Fund (IMF)
will soon start negotiations to set
up a new financial programme.
The current Poverty Reduction and
Growth Facility (PRGF) came to an
end last April.
Third bridge to open
soon
Cotonou’s third bridge should be
running by next December.
Located on Lake Nokoué, the third
bridge was programmed in the
city structure. Costing some 20
billion CFAFr, it was funded by
Germany and the national budget.
Cotonou port trade
campaign
A large Beninois delegation led by
the Minister of Public Works and
Transport, will take part from 8 to
12 November 2004 in the interna-
tional partnership forum between
the ports of Marseille and
Cotonou, with the support of the
Marseille town hall and port.
Benin intends to promote the Benin
port zone and conclude
partnership agreements between
the port and various international
actors.
The end of leaded
petrol ?
Before the end of the year, Benin
should have converted to unlea-
ded petrol, according to the
Minister of Mines, Energy and
Hydraulics, Kamarou Fassassi.
A better road
network ?
Benin, Burkina Faso, Togo and
Niger are considering building up
their road network by setting up a
cooperation agency, according to
a statement by Nigerien Transport
Minister, Souleymane Kane.
The World Bank approved a $50 million loan to Benin to improve access by the poorest
to basic financial and social services. The funds are due to enable the finalising of the
government’s decentralisation scheme and to support reaching the Millennium Development
Goals, set in 2000 by the UN, in terms of education, health, water and gender.
The $50 million were composed of a $37.7 million credit repayable over 40 years, with a
10-year grace period, and a grant worth $12 million.
The African Development Fund (ADF) has granted a loan of $11.39 million intended for
Benin’s road network program. The project provides for the rehabilitation of the Pobé-Kétou-
Illara road, and the building of more than 250 km of tracks. These tracks should be useable
all-year round and help access markets in the area, thus increasing sales of farm produce.
The European Union granted a subsidy worth 1.3 billion CFAFr in support of the transport sector.
H I G H L I G H T SH I G H L I G H T S
Chrono Services’ activities were officially
launched on September 29 last. This new
company, headed by Georges Yayi, seeks to
facilitate the payment of bills by customers
of the national water utility Société
Chrono Service to aid billing
for national utilities
The setting up of roadblocks and subsequent
perception of toll-taxes by local authorities,
along national and international routes,
should soon be a thing of the past. This prac-
tice, often decried by various operators, is for-
bidden by ministerial order since October 6,
2004. Indeed, the perception of toll-taxes by
local authorities on national roads contradicts
An end to road blocks!
the articles on the free circulation of people
and goods of the WAEMU and ECOWAS. In
addition, it violates the law regarding the
financial framework of local authorities in
Benin. If this latest decision is abided by, it
should substantially reduce the cost of transit
along the Benin corridor and contribute to
rendering Cotonou’s port more attractive.
béninoise d’énergie électrique (SBEE), the
national post and telecom company Office
des postes et télécommunication (OPT) and
the water company Société nationale des
eaux du Bénin (SONEB).
The industrial sector currently contributes
just 14% of GDP and its share tends to
decline. High factor cost, competition from
illegal imports from Nigeria, high taxes are
all factors which contribute to this situation.
The lack of industrial sites to absorb invest-
ments is also mentioned. Serviced industrial
zones are an answer to this situation. Benin
intends to go beyond the Sèmè-Kpodji site,
and several further sites have been identified
throughout the country. Two zones are cur-
rently being set up: one at Gakpé, (“Atlantic
Industrial Zone”) and another at Bohicon, in
the department of Zou.
(1) Basile Kougblenou, Bouraïma Dine, Saliou Ichola, Salomon
Kerekou, M. Aguemon, Nazaire Gnanhoue, Lucien Glele
Industry (suite “ On the Spot “)
Industrial Free Trade zone on track

3. Japan granted financial assistance worth 50.4 million CFAFr to Djidja commune (in the
centre of Benin) to rehabilitate the track to access Gounoukouin.
The Kingdom of Denmark has granted a subsidy of 14 billion CFAFr to develop the
farming sector in Benin.
The African Development Bank (ADB) approved a grant worth $14.6 million to promote
peace in the Economic Community of West African States (ECOWAS). This funding is pro-
vided by the African development fund and intended to launch a project supporting peace
and development in 15 countries of ECOWAS and for civil society in countries affected by
conflict. Planned to last six years and starting early 2005, it intends to better coordinate
conflict prevention.
H I G H L I G H T SH I G H L I G H T S
The government has passed the budget
proposal for 2005. It should now be
approved by Parliament (Assemblée
Nationale) on October 18. It amounts to
556 billion CFAFr, up 1.7% compared to
2004. Income should come out at
380 billion CFAFr leaving a deficit of
176 billion CFAFr which will be entirely
covered by foreign funding.
The 2005 Finance bill was prepared on the
basis of projected real economic growth of
5.3% per year, driven primarily by agricul-
tural production, based on inflation remai-
ning stable around 2%, on a current account
deficit around 3.4% of GDP and on tax
pressure of about 14.6% of GDP.
The 2005 budget, just like 2004’s, fits
2005 budget : in line with the PRSP Jean-Baptiste ELIAS will
chair the National anti-corruption
observatory set up last 16
September. He is Vice-Chairman
of the Forum of national anti-cor-
ruption organisations (FONAC).
Noël FONTON was
appointed Managing Director of
National Fund for the
Development and Promotion of
Tourism
Guy JOHNSON will be
Managing Director of the Agence
de développement et de promo-
tion de la route des pêches
The 44th ordinary session
of Board of directors of the
African Organisation for
Intellectual Property is to be
organized in the first ten
days of December 2004.
The fourth edition of the
national farming fair
Foire agricole nationale,
will take place from
November 26 to
December 3, 2004 in
Benin.
The first edition of the
African media integration
fair Salon de l'intégration
de la presse africaine (SIPA
2004) will be held 7 to 11
December in Cotonou. The
principal topic this year will
be "Journalism and new
technologies : necessary
changes "
The second edition of the
Danxomè festival will take
place from 10 to 15
December 2004 at
Abomey.
RENDEZ-VOUS
Following Standard & Poor’s rating of Benin’s sovereign long-term and short term debts
at B+ and B respectively last December 2003, Ficht gave very similar ratings to the
Benin economy last September : both debts got B, which indicates that prospects are
stable, in the long and short term.
Benin gets
a good rate again
THIS MONTH’S RATE : B
within the Poverty Reduction Strategy Paper
(PRSP) with priority spending for education
(close to 20 billion CFAFr), water (9 billion
CFAFr) and public health (over 7 billion).
One major change is the increased budget
allocation for decentralization. Compared
to 2004, decentralization gets almost three
times as much – CFAFr 20 billion – making
it the biggest item in the budget. The diffe-
rence is due to new transfers to decentrali-
zed bodies such as Cogec, subsidies to
Prefectures, to school parents’ groups, pri-
mary schools and running fees for primary
and secondary schools. These transfers will
be welcomed by the local authorities who
considered that their resources were not in
line with their new responsibilities.

4. C o m e v i s i t u s
a t : w w w. i z f . n e t
C l i c k o n « B e n i n »
Le Monde
« Nigeria submits Benin
to austerity diet »
Tuesday 21 September 2004 edition,
le Monde de l’Economie
« An expert qualified Benin as a warehouse-
State, stigmatizing the disproportionate role
played by transit in the local economy. The
strong dependence on Nigeria which this
entails is not without risk. Trade is tightly lin-
ked to the vagaries of its powerful’ allies’
politics. Thus when the Nigerian authorities
restrict imports of a list of goods from Benin,
as has been the case since 2003, the Benin
economy has been badly hit. Trade flows fell,
and with them, customs and tax revenue. ».
L’intelligent /Jeune Afrique
Hyper-indebted TV
12 to 18 September 2004 edition
“725.6 million CFAFr. That is the – fantastic
– amount of credits of private TV group LC2
TV Net towards Office des postes et télé-
communications du Bénin (OPT). According
to a private letter from Isidore Degbelo,
managing director of the public operator
(OPT), to the CEO of LC2 TV Net, Christian
Enock Lagnidé, on 23 July 2004. The
amount mainly consists of bills for satellite
broadcast programs during the African
Nations football Cup 2004, of operating
fees and unpaid telephone bills.
TL’AFRICAINE DES ASSURANCES, a private law insurance company, intends to construct its headquar-
ters building in Cotonou.
Objective of the call for competition:
- In the context of the aforementioned project, AFRICAINE DES ASSURANCES is delegating oversight of
the construction work to AGETUR.
AGETUR - Agence d'Exécution des Travaux Urbains – who will oversee the work, is launching an open compe-
tition to choose the architectural project for the building of Africaine des Assurances headquarters in Cotonou.
Participation in the competition
The following are admitted to compete: architects or groups of architects legally allowed to work in the
Republic of Benin, duly registered at the Ordre National des Architectes. They may associate with foreign
architects or groups of architects.
Competition date
The competition is launched starting October 11, 2004 for a period of sixty (60) calendar days
Date for bid deposits
The bids must be deposited with the Personal secretariat of AGETUR’s General Manager before December
10, 2004 at 09:00 AM sharp
Further information
For all further information, please apply in writing to the Managing Director of AGETUR (Agence
d'Exécution des Travaux Urbains): 01 BP 2780 Cotonou, Benin
Phone (229) 31 36 45 / 31 28 30/ 31 19 23 – Fax (229) 31 26 73.
The Managing Director
Lambert KOTY
AGETUR
AGENCE D 'EXECUTION DES TRAVAUX URBAINS
L'AFRICAINE DES ASSURANCES SA.
ARCHITECTURE COMPETITION
The Managing Director of the Post and Telecommunications’ Office (Office des Postes et
Télécommunications – OPT) of Benin is launching an invitation to tender for the provision and installation
of a system of automated collection and processing of billing data for telephone exchanges of the types:
E10 ALCATEL (OCB 283, MT20 et SYSOP), and other automatic exchanges such as ELTEX V SIGMA
SAGEM for telex and CRCS-800 HARRIS NOVATEL for fixed cellular networks. The technical
characteristics are contained in the annexed technical specifications document.
Participation in the competitive process is open equally to all companies established in Benin and
compliant with Benin legislation, as well as to all foreign companies specialized in the supply and instal-
lation of such equipment with detailed knowledge of these telephone exchanges : E 10 ALCATEL OCB 283
MT20 et SYSOP and other automatic exchanges mentioned in this invitation to tender.
Bidders interested in the current invitation to tender may obtain the documents relating to it and purchase
them if need be, at the Direction de l'Approvisionnement et de la Logistique de l'Office des Postes et
Télécommunications (OPT) address : P. 3.5 AKPAKPA, Benin, against payment of the non-reimbursable
sum of FIVE HUNDRED THOUSAND (500 000) CFAFr.
Bids must include a bid guarantee from a bank, or a certified cheque, worth between 2 and 3% of the
total bid amount and must reach the Mailing department on the first floor of the OPT building, situated at
GANHI, at the latest December 2, 2004 at 9:30 AM (local time), addressed to :
Monsieur le Directeur Général de l'OPT
(Attention monsieur le Directeur de l'Approvisionnement et de la Logistique)
01 BP 5959 COTONOU - BENIN
The Managing Director of OPT
REPUBLIC OF BENIN
POST AND TELECOMMUNCATIONS’ OFFICE
INVITATION TO TENDER
Director :
Jean-Yves SINZOGAN
(229) 30 10 20
Editor :
A.C.M.C.
Christine CHANTEREAU
17-19, rue Paul Bert
94 700 Maisons-Alfort
FRANCE - 00 33 1 43 75 44 35
• Email : chrichan@club-internet.fr
• Concept, layout & production:
RC Concept - 00 33 1 58 01 14 14
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