General Information

Benin is a member of the West African Economic and Monetary Union (WAEMU) and the Franc Zone. Benin shares a common currency (the CFA franc or XOF), a central bank (the Central Bank of West African States - BCEAO - and a common monetary policy with the other member countries. The CFA franc is pegged to the Euro with a fixed parity guaranteed by the French Treasury.

Foreign exchange regulations: transfers of funds abroad must be authorised by the BCEAO upon presentation of supporting documents and must pass through an authorised intermediary.

Due to its strategic position, Benin through the port of Cotonou is an important transit centre for commercial services to Niger, Burkina Faso, and also Nigeria.

The country also has a large agricultural capacity and benefits from the liberalisation of the cotton sector. It seeks to develop the oil and mining sector and grants operating permits (gold, iron, uranium).

The good management of the country has allowed it to finance itself on the international market through bond issues (2 were completed in 2021 for a total of EUR 1.5 billion, 1 in February 2024 for 750 MUSD over 14 years and 1 in January 2025 for 500 MUSD over 16 years) which demonstrates the confidence of long-term investors in the country. Fitch has maintained its long-term foreign and local currency rating at B+ -stable- since October 2021.

Means of Payment & Banking Specificities

To secure your payment, we strongly recommend the use of a documentary credit confirmed with payment upon demand or after a maximum of 30 or 60 days or a documentary remittance with payment on demand. Visibility on local corporate risks remains very limited.