The World Bank has approved a $150 million loan to bolster Benin’s agricultural sector, a critical contributor to the country’s economy, accounting for nearly 30% of GDP and employing over two-thirds of the active population.
This additional financing will support the ongoing Agricultural Competitiveness and Export Diversification Project (PACOFIDE) in Benin, focusing on pineapple, cashew, and vegetable value chains nationwide.
Expanding Irrigation and Cashew Production
The loan, provided by the International Development Association (IDA), will finance the development of a 3,000-hectare irrigated area for rice and vegetable production.
Additionally, it will support the rehabilitation of 34,000 hectares of existing cashew plantations and the establishment of 7,000 hectares of new cashew plantations.
Boosting Pineapple Production with Innovative Technologies
In the pineapple sector, the project will create a model farm and establish an industrial unit for in vitro plant production, with an annual capacity of 13.5 million plants.
This initiative aims to ensure a local supply of healthy plant material, further enhancing the productivity and competitiveness of the pineapple value chain.
Nestor Coffi, World Bank Group Operations Manager for Benin, emphasizes that this financial support will create new economic opportunities and more inclusive livelihoods for over 150,000 PACOFIDE beneficiaries.
This investment aligns with the World Bank’s commitment to fostering sustainable and inclusive growth in Benin.
Strengthening Benin’s Agricultural Exports
Cashew nuts are Benin’s second-largest agricultural export after cotton, generating over 20.6 billion FCFA ($34 million) in revenue in 2022. Pineapples, on the other hand, are the country’s leading horticultural export, contributing 240 million FCFA ($395,700) in the same year.
The World Bank’s investment will further strengthen these value chains and contribute to Benin’s economic diversification efforts.
With this substantial financial boost, Benin’s agricultural sector is poised for significant growth and development.
The World Bank’s support will not only enhance productivity and competitiveness but also improve the livelihoods of countless farmers and agricultural workers across the country.