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COTONOU – A new report by GSMA sheds light on the transformative potential of digitalisation in Benin, forecasting that the adoption of digital technologies could contribute XOF 1.2 trillion to the country’s GDP by 2028. The report outlines how accelerated digitalisation will not only drive economic growth but also create over 300,000 jobs, boost tax revenues, and promote financial inclusion in the West African nation.
Launched on January 30, 2025, GSMA’s “Driving Digital Transformation of the Economy in Benin” report underscores the pivotal role of digital technologies in advancing Benin’s National Development Plan and Government Action Program. It emphasizes how mobile technology, artificial intelligence (AI), cloud computing, and mobile money can help diversify the economy, improve productivity, and foster human capital development, leading to sustainable growth.
The findings come at a time when Benin is positioning itself as a leader in digital transformation in the region. The government has made significant strides in promoting digital literacy and expanding mobile internet access, laying a strong foundation for future growth in various sectors.
The mobile sector alone contributed XOF 960 billion to Benin’s GDP in 2023, and digitalisation is expected to push this figure higher, adding 8% to total GDP by 2028. The mobile money and fintech sectors, in particular, are poised to play a critical role in increasing financial inclusion and supporting small and medium enterprises (SMEs) with low-cost financial services.
The report highlights how key sectors will benefit:
- Agriculture: XOF 197 billion added (4.3% of sector GDP), with 82,000 jobs created.
- Manufacturing: XOF 134 billion added (5.1% of sector GDP), with 77,000 jobs created.
- Transport: XOF 74 billion added (6.3% of sector GDP), with 25,000 jobs created.
- Trade: XOF 39 billion added (2.0% of sector GDP), with 18,000 jobs created.
Additionally, Benin is expected to see an increase of 1.2 million mobile internet users by 2028, bridging the digital divide and ensuring broader access to digital services across the country.
“Benin’s digital transformation presents an exciting opportunity to drive inclusive growth, create jobs, and build a more resilient economy,” said Angela Wamola, Head of Sub-Saharan Africa at GSMA. “By prioritising digital policies, Benin can unlock significant potential for business and societal progress.”
Local policymakers have welcomed the report’s findings, aligning with Benin’s ongoing efforts to boost digital infrastructure and expand mobile internet access. However, there are calls for more targeted reforms, particularly in reducing taxes and modernising telecom frameworks, to further stimulate investment and ensure affordability.
- Policy Reforms: The report’s key recommendations, such as reducing sector-specific taxes, removing the mobile money levy, and modernising telecom licensing, will need swift implementation to maintain momentum in the digital transformation.
- Sectoral Opportunities: Focus on agricultural, manufacturing, and transport sectors for job creation and digitalisation efforts.
- International Partnerships: Collaboration with international organisations and tech firms will be critical in accelerating Benin’s digital agenda.
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