Critical issues for American investors in Benin

This report provides political and economic information helpful to potential U.S. investors in Benin. Data are presented on the performance of the macroeconomy and on economic sectors, the state"s role in the economy, the investment climate, regulation of foreign investment, infrastructure, foreign trade and balance of payments, external debt and aid, labor, the financial sector, inflation and price controls, public finance, taxation, and intellectual property protection. According to the report, small private farms continue to produce most of the country"s food, and private merchants handle much of the trade. Thus, privatization is likely to have its greatest effect in the modern sector, particularly in agribusiness. Investment opportunities in manufacturing will tend to cluster around commodity-processing, while those in the services sector will tend to support commerce. Niche opportunities may appear in mining, fishing, tourism, and construction. The government offers various packages of investor incentives and in general offers an attractive regulatory environment for investment. Lack of trained labor is a major problem, and investors should count on providing comprehensive training. They will also need assistance from local experts in dealing with Benin"s extremely complex tax situation.