Introduction
Benin is a country found in the West African region. It borders Togo to the East and Nigeria to the West. Trade in Benin is dated back to 15th century when the Europeans involved in slave trade. The Europeans imported slaves from other African countries into Benin. However, sources argue that Benin prohibited the exportation of male slaves to prevent its population from depletion. Their main exports were Palm oil, ivory, cloth, and pepper. This paper discusses trade in Benin, its imports and exports and the changes witnessed in the last 30 years.
Benin remains a significant business hub to the neighboring West African countries. Benin country review argues that “This country has been a transit point for goods from markets around the world” (25). Benin majorly exports agricultural products. Its top export is raw cotton. Other exports are maize, cocoa, cashews, gold, rough wood, and seafood. It imports palm oil, cars, rice and poultry meat. Its exports have increased at an annual rate of 30.5%, with cotton and petroleum oil leading. Exports constitute a total amount of $ 2.23 billion and imports at $ 6.78 billion. It has a GDP Per Capita of $ 2.03 thousand.
Amounts and GDP
According to Benin country review, “Benin has enjoyed serene macroeconomic and political environment which is ideal for trade” (56).However, its poor legal and physical infrastructure has hindered Business. Moreover, the inefficiency in the government has motivated slow economic growth. It also scores poorly in economic freedom and competitiveness. Therefore the amounts earned from exports and import duties are small to the GDP.
Trade changes in Benin
Benin has progressively reformed its economy in the last three decades. These changes have defined the face of business in Benin. Benin’s economy has improved since the early 90’s after abandoning Marxism (Montgomery, 67). For example, Benin charges import rates of regular import duties at about 13 percent, are among the lowest in African countries. However, the government bureaucracy has prevailed particularly in the border. Additionally, the administrative processes are slow and full of irregularities. New legislations have been reviewed over the past few years to make the economy of Benin reliable and appealing to investors and business companies (Montgomery, 75). For instance, the laws in government procurement, investment and competition have been reviewed to suit investors’ options.
References
"Benin: 2016 Country Review." Benin Country Review (2016): 1-287. Business Source Complete. Web. 26 Jan. 2017.
Montgomery, Lynda. Trade With Sub-Saharan Africa: African Growth And Opportunity Act Compared To Other Countries' Trade Preference Programs.50-120.New York: Nova Science Publishers, Inc, 2016. eBook Collection (EBSCOhost). Web. 26 Jan. 2017.
