Benin has secured the 99th position worldwide and the 11th spot in Africa in the 2026 Economic Freedom of the World Index, as released in the latest annual report. This milestone underscores the nation’s steady progress in implementing structural reforms to boost private sector growth, attract foreign direct investment, and modernise its economic framework.
How the index evaluates economic freedom
The index assesses the extent to which individuals and businesses can make economic decisions free from undue restrictions. It evaluates 165 jurisdictions across 46 key indicators, grouped into five core categories, each scored on a scale from 0 to 10:
- Government size: Public spending, transfers, and taxation levels.
- Legal system and property rights: Judicial independence, court impartiality, and protection of private property.
- Access to sound money: Inflation control, monetary stability, and financial freedom.
- Freedom to trade internationally: Tariff levels, non-tariff barriers, and trade openness.
- Regulation of business, labour, and credit: Labour market flexibility, ease of business formation, and banking regulation.
Note: The 2026 edition relies on 2024 data to ensure consistent comparisons across all jurisdictions.
Africa’s economic freedom landscape
Africa presents a mixed picture, but Benin is closing in on the continent’s top 10. Island nations and highly open economies dominate the upper ranks, with Mauritius leading at 9th globally, followed by Seychelles (35th) and Cape Verde (42nd).
Other strong performers include Gambia (66th), Botswana (67th), Rwanda (73rd), Uganda (78th), Kenya (83rd), and South Africa (85th). Morocco ranks 10th in Africa (97th globally), placing Benin just behind in 11th on the continent and 99th worldwide—ahead of several major regional economies.
Key drivers behind Benin’s rise
Benin’s entry into the global top 100 stems from sustained reforms in critical areas:
- Public service digitisation: Online business registration, electronic tax payments, and digital land registry systems have streamlined bureaucracy and enhanced transparency.
- Industrial attractiveness: The development of the Glo-Digbé Industrial Zone (GDIZ) highlights efforts to process raw materials locally while offering investors a favourable regulatory and fiscal environment.
- Macroeconomic stability: Backed by the BCEAO’s monetary policy within the WAEMU, Benin maintains controlled inflation and resilient growth, consistently recognised by global financial institutions.
Challenges to reaching Africa’s top 10
To advance further and break into Africa’s top 10 in future editions, Benin must address strategic hurdles:
- Judicial efficiency: Speeding up commercial dispute resolution and strengthening investment protection.
- Financing access: Simplifying credit access for micro, small, and medium enterprises (MSMEs), a cornerstone of the local economy.
- Formalising the economy: Encouraging informal sector players to transition to the formal economy through simplified and adaptive frameworks.
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