Benin stands at a crossroads. Despite a robust 8.1% economic growth in 2025 and an average annual expansion of 7.1% between 2021 and 2025, the country faces a critical challenge: translating macroeconomic success into tangible job opportunities. The paradox lies in the fact that formal, stable employment remains elusive for the majority of workers, with nearly nine out of ten jobs rooted in the informal sector, where income security and social protection are often absent.
The gap between growth and employment: where jobs fall short
The World Bank’s 2026 economic outlook for Benin underscores this disconnect. In 2022, 96.3% of workers operated in the informal economy, and by 2024, only 19.8% held salaried positions a figure that plummets to just 9% among young adults. While growth is undeniable, its benefits are not being evenly distributed. Small business owners, artisans, and young entrepreneurs struggle to secure stable incomes, invest in their ventures, or expand their operations when the foundations of formal employment remain weak.
The industrial sector, particularly the Glo-Djigbé Industrial Zone (GDIZ), offers a glimpse of what is possible. By 2025, GDIZ employed 22,798 workers, marking a 28.8% increase from the previous year. This success demonstrates that targeted industrial investment can generate high-volume employment, especially in value-added sectors like agro-processing, textiles, and manufacturing. Yet, for this model to scale nationwide, a fundamental barrier must be addressed: reliable electricity.
Electricity cuts: the hidden tax on Benin’s economy
Nearly half of Beninese businesses cite electricity access as a major obstacle to operations, while 86.1% report suffering from regular power outages. The consequences are steep. Manufacturing units lose time, raw materials, and customer trust when production halts unexpectedly. Small enterprises reliant on generators face soaring operational costs, eroding their competitiveness. For exporters, power disruptions can derail delivery schedules, leading to penalties and lost market share.
The energy crisis extends beyond reliability. In 2024, electricity losses on the national grid reached 24.7%, with over half of transmission lines and substations nearing the quarter-century mark. Compounding the issue is Benin’s heavy dependence on heavy fuel oil due to constrained natural gas supply, driving up energy costs across the board. The problem is not just a scarcity of power it is a systemic failure to deliver affordable, consistent electricity to businesses and households alike.
Mission 300: a regional blueprint with local stakes
The World Bank’s Mission 300 initiative, in partnership with the African Development Bank, aims to connect an additional 300 million Africans to electricity by 2030. For Benin, the associated National Energy Pact presents a pathway to upgrade generation, modernize transmission and distribution networks, and attract private investment. If executed effectively, the plan could yield significant economic returns, including the creation or improvement of nearly 159,000 jobs by 2030.
Key projects are already in motion. Four solar plants in Natitingou, Djougou, Bohicon, and Parakou totaling 50 MW are set to diversify the energy mix, while the Onigbolo thermal plant, with a planned capacity of 128 MW, promises to bolster national supply. Yet, success hinges on more than infrastructure. It requires robust governance, reduced technical and commercial losses, cost-effective fuel strategies, and accelerated connections to the grid.
Beyond kilowatts: powering a new era of opportunity
Benin has proven capable of sustaining high growth and attracting strategic investments. The GDIZ’s job growth is a testament to this potential. The next phase must focus on broadening these benefits across the economy prioritizing small and medium enterprises, agro-processors, and young entrepreneurs. With reliable electricity, these actors could lower operational costs, scale production, protect equipment investments, and, ultimately, hire more workers.
The true measure of Benin’s progress will not be its GDP growth alone. It will be seen in the number of salaried jobs created, the productivity gains of local businesses, the stability of the power supply, and the ability of young people to access dignified employment. Economic growth must become a catalyst for shared prosperity not just for investors, but for the thousands of Beninese striving to build better futures for themselves and their families.
By Kadi Alhassane — Journalist