Power
Benin energy reforms could unlock 159 000 new jobs
Channel Africa reports that comprehensive electricity sector reforms in Benin have the potential to create nearly 159 000 quality jobs.
Key points
- Benin recorded strong economic expansion of 8.1% in 2025.
- Almost half of local businesses view unreliable electricity as a primary operational barrier.
- Enhanced regional trade with Nigeria could yield up to $1.3 billion yearly.
Economic growth and employment challenges
Benin demonstrated robust macroeconomic performance recently, with gross domestic product growing by 8.1% in 2025 and maintaining a 7.1% annual average between 2021 and 2025, according to Channel Africa reporting on a World Bank assessment. The fiscal deficit remained contained at 2.7% of gross domestic product in 2025, staying beneath the regional threshold of 3% set by the West African Economic and Monetary Union.
Despite this strong expansion, the latest economic review from the World Bank indicates that growth has failed to generate adequate formal employment. The informal sector accounted for 96.3% of workers in 2022, and self-employment represented eight out of every ten positions created. Salaried roles remained scarce, held by fewer than one in five workers in 2024, and dropping to 9% among younger citizens. World Bank economist Mamadou Tanou Baldé noted that while the macroeconomic foundation is solid, the priority must shift toward productivity gains and formal job creation for youth.
Infrastructure hurdles in the power sector
Industrial initiatives such as the Glo-Djigbé Industrial Zone showed that formal manufacturing employment can expand, with job numbers rising by 28.8% to 22 798 in 2025. However, the World Bank emphasized that dependable electricity supplies are vital for scaling such outcomes. Nearly half of Beninese enterprises consider power availability a major impediment, and 86.1% encounter frequent service interruptions.
Grid performance indicators further underline these vulnerabilities. Transmission losses reached 24.7% in 2024, while roughly half of all substations and transmission lines exceeded 25 years in age. Additionally, gas supply constraints forced a heavier reliance on costly heavy fuel oil. Karine Bachongy, the World Bank Group Country Manager for the nation, indicated that executing the Mission 300 Compact could unlock approximately 159 000 enhanced employment opportunities.
Why it matters
For regional policymakers and energy investors, Benin's situation illustrates the acute link between reliable power infrastructure and formal economic participation. According to World Bank figures cited in the reporting, access to electricity stood at 59% of the population in 2024, with electricity consumption averaging 122.7 kWh per person, far below global averages of 91.9% and 3708.5 kWh respectively. Furthermore, clean cooking access remains severely restricted at 8% in 2024. Addressing these deficits through network modernization, diversified generation, and improved governance will determine whether West African economies can translate macro growth into sustainable industrial employment. The assessment also noted that deeper trade integration with Nigeria could generate up to $1.3 billion annually and establish 26 000 direct positions across sectors including energy, textiles, and grain processing.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Grids decide whether generation becomes power that homes and businesses can rely on. Generation mix, transmission and distribution losses, and tariffs together shape reliability and the case for investment.
59.0% of people in Benin had electricity in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
