The 2026 global economic freedom report has been released, placing Benin at the 99th position worldwide and 11th in Africa. This milestone underscores the country’s commitment to structural reforms aimed at boosting private sector growth, attracting foreign direct investment, and modernising its economic framework.
How the index evaluates economic freedom
The assessment relies on 46 key indicators grouped into five core categories, each scored from 0 to 10:
- Government size: public spending, fiscal transfers, and taxation levels.
- Legal system and property rights: judicial independence, court impartiality, and private property protection.
- Sound money access: inflation control, monetary stability, and currency freedom.
- International trade freedom: tariff rates, non-tariff barriers, and trade fluidity.
- Regulation of business, labour, and credit: employment market flexibility, business registration speed, and banking sector oversight.
Note: The 2026 edition uses 2024 data to ensure accurate comparisons across 165 jurisdictions.
Africa’s economic freedom landscape
Benin’s 11th-place ranking in Africa reflects strong progress, though the continent’s performance remains uneven. Mauritius leads Africa at 9th globally, followed by Seychelles (35th) and Cape Verde (42nd).
Other notable African performers include The Gambia (66th), Botswana (67th), Rwanda (73rd), Uganda (78th), Kenya (83rd), and South Africa (85th). Morocco ranks just ahead of Benin at 10th in Africa (97th globally), positioning Benin as a rising contender in West Africa.
Key drivers behind Benin’s ascent
Benin’s entry into the global top 100 stems from strategic reforms:
- Digital public services: Online business registration, electronic tax payments, and digital land registry have streamlined bureaucracy and enhanced transparency.
- Industrial appeal: The Glo-Djigbé Industrial Zone (GDIZ) exemplifies efforts to process raw materials locally while offering investors tax and regulatory incentives.
- Macroeconomic stability: Supported by the BCEAO’s monetary policy within the WAEMU, Benin maintains controlled inflation and resilient growth, as recognised by the World Bank and IMF.
Next steps to crack Africa’s top 10
To advance further, Benin must address critical challenges:
- Judicial efficiency: Speed up commercial dispute resolution and strengthen investment protections.
- Financing access: Improve credit availability for micro, small, and medium enterprises (MSMEs), the backbone of the local economy.
- Formalising the economy: Encourage informal sector actors to transition to the formal economy through simplified frameworks.
