BENIN: An Introduction

Introduction 

Benin has initiated bold reforms in several sectors, through Government Action Programme PAG 2021–2026, aimed at improving the business climate and private investment. These include:

i) the digitalisation of procedures for obtaining services from public administrations, reducing costs and defining maximum deadlines;

ii) encouraging transparency through a legal framework and clear procedures; and

iii) support for inclusion and protection of users.

These reforms are observed in different sectors, as discussed below.

Justice 

In the area of justice, Benin’s general objective through Government Action Programme PAG 2021–2026 is the improvement of legal and judicial security and of the rule of law through the strengthening of users’ access to justice and the judicial system.

The adoption of Law No 2016-16 of 28 July 20216 amending and supplementing Law No 2008-07 of 28 February 2011 relating to the code of civil, commercial, social, administrative procedure and accounts, as well as Law No 2016-15 of 28 July 2016 amending and supplementing Law No 2001-37 of 27 August 2002 on the judicial organisation in the Republic of Benin, established the commercial courts in Benin – in particular, the Commercial Courts and the Commercial Courts of Appeal. These jurisdictions allow optimal operationalisation of commercial disputes, with the establishment of:

i) financial incentive measures in the event of recourse to conciliation and mediation procedures;

ii) the dematerialisation of referrals to court; and

iii) speed in the processing of procedures.

In order to deepen the initiated reforms and to better strengthen litigants’ access to justice and the judicial system, Benin adopted a law on the modernisation of justice. Law No 2020-08 of 23 April 2020 brought several significant innovations to the justice sector, including the following.

A chamber specialised in the management of small claims has been established within the courts of first instance, in order to provide justice inexpensively and quickly. It hears cases where the value of the dispute is equal to or less than XOF5 million. The decisions of the Children’s Chamber are rendered as first and last resort within 30 days from the first hearing. They are exempt from payment of registration and stamp duties. Referral to said chamber has been simplified through the standardised form available for download online. The registry completes all notification and service formalities between the parties at a reduced cost set by order of the Minister of Justice (payable online). The cost is XOF5,000. The procedure is oral, and the evidence is free. As well as speed, transparency of information is also present thanks to the online posting of information on commercial justice through the publication of statistics regarding judgments rendered, hearing schedules, etc.

The digitalisation of procedures regarding referrals to the court, monitoring of procedures and payments of costs has also been established.

Additionally, in each jurisdiction, information offices have been established for litigants, in order to better inform and support them in completing their formalities.

Labour Law No 2017-05 

Labour Law No 2017-05 of 29 August 2017, establishing the conditions and procedures for hiring, placement of labour and termination of employment contracts in the Republic of Benin, aims to strengthen a legal environment favourable to the emergence of a right to work, as well as productive investment for the creation of sustainable jobs (with a view towards meeting the productivity and competitiveness requirements of private enterprise), while safeguarding the workforce.

The fixed-term employment contract can be renewed indefinitely. However, from the fourth term of the fixed-term contract, any decision not to renew is preceded by notice established under the conditions set out in the Labour Code. In the event of unfair dismissal, the amount of compensation cannot be less than three months of gross salary, nor exceed nine months. The abolition of the conciliation chamber before the labour courts has made procedures more cumbersome.

Business Creation 

The business creation procedure has been simplified thanks to the establishment of the Investment and Export Promotion Agency (APIEX), which brings together several areas of administration (notably taxes) and the National Social Security Fund. This makes it possible to limit interactions with these administrations, while maintaining their effectiveness.

Companies are now created online via www.monentreprise.bj, and electronic certificates of creation can be obtained within three hours, in principle. The cost of creating an individual business is set at XOF10,000. The cost of creating a company (SARL and SA) is set at XOF22,000.

Access to Water and Electricity 

Connection to water and electricity is free for SMEs and SMIs (with consumption needs of 140–160 kVA for electricity). The connection request procedure is now simplified thanks to the dematerialisation of procedures, and occurs via www.sbee.bj and www.soneb.bj. Connection times are reduced (six working days for a water connection and 30 working days for electricity). There is also supervision of quality of service in the field of electricity through the establishment of service regulations between the SBEE and the Electricity Regulatory Authority.

Access to Public Markets 

Strengthened transparency has been established through online publication and management of public contracts (www.marches-publics.bj). Also present is:

i) the encouragement of competition;

ii) free withdrawal of tender documents;

iii) reduction of award times;

iv) simplification of requested documents; and

v) the possibility of easier appeal to the contracting authority and the ARMP at all stages of procurement.

Foreign trade and simplification regarding the customs clearance of goods is also available thanks to the dematerialisation of customs clearance procedures for formalities (www.guce.bj), electronic payment of permits, licences and certificates.

Energy 

Law No 2019-06 of 15 November 2019 establishing the Petroleum Code in the Republic of Benin determines the legal, tax, customs and exchange regime for petroleum operations (including transport and storage) undertaken in the territory of Benin.

Construction of Infrastructure Benin currently plans for the following:

i) the rehabilitation of urban and peri-urban roads;

ii) “asphalting B”;

iii) rainwater sanitation in Cotonou and some secondary towns;

iv) modernisation of the management of fecal sludge and wastewater; and

v) construction of social housing (20,000 housing units).

Promotion of Culture 

Several projects are expected in the field of culture, including:

i) the construction of a museum of the Amazons and the Kings of Danhomè, and the rehabilitation of the surrounding palatial site;

ii) the rehabilitation of tourist infrastructure in Allada;

iii) the construction of the Vodun/Orisha museum in Porto Novo, and rehabilitation of the Adandé and Honmé museums;

iv) the development of the “Vodun/Orisha Convents Road”;

v) the construction of a new palace of the King of Nikki and of the Gaani arena, and management of the Tata Road;

vi) the identical reconstruction of the historic city of Ouidah; and

vii) the construction of an international complex (conferences and theatres) in Cotonou.

To achieve its various objectives, Benin has adopted several legal mechanisms favouring foreign investments:

i) Law No 2020-02 of 20 March 2020, establishing the investment code in the Republic of Benin;

ii) Law No 2016-24 of 24 October 2016, establishing the legal framework for public-private partnerships in the Republic of Benin;

iii) Law No 2021-15 of 23 December 2021, establishing the general tax code of the Republic of Benin; and

iv) the 2024 Finance Law.

Among other things, these establish the conditions, advantages and general rules applicable to direct investments (national and foreign) made in Benin – hence why the 2024 Finance Law allocates a budget of nearly XOF963.4 billion, compared to XOF252.950 billion in 2023, as regards the Public Investment Programme (PIP). All these mechanisms and reforms position Benin as a secure hub of economic activities and investments in the sub-region and African continent.