Benin has been an agricultural-led industry for a long time, with the main export products being cotton, coffee, palm oil and cocoa. The country continues to invest further to diversify its economy, bridge the poverty gap and increase FDI with various initiatives to redefine the business environment. If your company is planning a move to Benin and unaware of the local regulations, you may be faced with legislative, cultural, and employment law challenges, which may be time-consuming to address appropriately and compliantly.
Most international firms who enter new regions initially engage the services of experienced partners for the purposes of outsourcing business processes, including employment outsourcing solutions where there is a requirement to employ and payroll staff in-country. At Africa HR Solutions, our in-country experts are here to help you with all the Benin outsourcing support you may need to add value to your organisation’s operations and strategic growth objectives.
We provide bespoke HR outsourcing solutions that include services such as Professional Employer Organisation (PEO), Employer of Record, a comprehensive payroll outsourcing solution as well as relevant ancillary support services to help you expand your business in Benin, whether or not your organisation has set up a subsidiary or legal entity in-country.
Country Profile - Benin
Population: 12,451,031
Gross Domestic Product (GDP): $17.79 B
GDP Growth: 6.6%
Inflation: 1.7%
Foreign Direct Investment (% of GDP): 1.1%
Unemployment Rate: 1.6 %
Capital: Porto-Novo
Currency: West African CFA franc
Languages: French, English
Benin's Economy
Considered a stable economy, Benin was ranked 149th out of 190 countries in the World Bank’s Ease of Doing Business 2020 report. Like most African economies, the country faced a few setbacks due to the COVID-19 pandemic, but recorded growth in the agricultural sector thanks to the significant amount of cotton production. The performance of several other sectors, such as industry and services, also contributed to the economy’s growth, underpinned by the rise in locally generated electricity following the launch of a new power station. Consumer spending and investments remain fundamental drivers of Benin’s economic activities. As the country paves the way for more growth and in order to bridge the poverty gap, there are initiatives being established to generate economic diversification, greater public spending and a fairer distribution of geographical resources.
Interesting Facts About Benin
The government’s offices are located in Cotonou, the country’s largest city, which is considered as the economic business centre primarily as it has the country’s only seaport and international airport.
The people of Benin are referred to as Beninese.
Cotton remains Benin’s main export product, but the country’s economic activity is also dependent on agriculture and regional trade.
Soccer is the most popular sport in Benin.
Despite facing poverty, Benin is considered one of the most politically stable countries in West Africa.
The country’s national dish is ‘kuli-kuli’, which consists of ground, smashed peanuts deep-fried in the shape of balls.
Public Holidays in Benin
New Year’s Day
Vodoun
Easter Monday
Labour Day
Ascension Thursday
Pentecost Monday
Independence Day
Assumption
Armed Forces Day
All Saints’ Day
Christmas
Employment in Benin
The Benin economy is primarily agricultural led and dependent on subsistence farming. In 2017, the country’s total exports amounted to $695.6 million. Benin’s main import partners are the UAE, Brazil, China, Germany, Spain, France, India, Malaysia, Netherlands, Togo, and Thailand. Investment in the electricity sector to serve immediate energy needs, modernisation of the economy and increased trading with African countries are being planned. The country is targeting a universal healthcare system, but currently operates a public/private system.
Employees in Benin are entitled to vacation, sick and parental leave. From a termination perspective, they are generally entitled to a notice period of 1 month, except for executives where a 3 months’ notice provision applies. From a taxation perspective, employees dedicate 3.6% of their wages to social security, while employers contribute the following:
Social security: 15.4% of gross salary
Pension: 6.4%
Family allowance: 9%
Industrial injury: 1% to 4%
When recruiting locals or hiring expatriates in Benin, navigating the country’s labour laws and devising the right employee package can be complex due to the various legislative requirements, customary procedures and market practices. Engaging a specialist firm such as Africa HR Solutions, who have an in-depth understanding of Benin’s regulations and best practices across a variety of industries, will provide you with peace of mind that a competitive and relevant employee benefit scheme will be offered to your in-country resources.
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