China to play a major role in Benin's economic growth as a new era opens
After Romuald Wadagni's swearing-in as Benin's new president, China is emerging as a major partner in the country's economic growth. A draft $1.2 billion investment package backed by the People's Bank of China is under discussion. SCMP analysis says Beijing is pursuing wider influence in West Africa.
According to a South China Morning Post analysis, after Romuald Wadagni was sworn in as Benin's new president, China is emerging as a central partner for the country's economic growth. A draft $1.2 billion investment package approved by the People's Bank of China covers port modernisation, railways and solar-energy projects in the capital Cotonou. The deal is expected to be finalised by the end of this year.
Faouziatou Atocodjo, spokesperson for Benin's Ministry of Finance and the Economy, said the deal 'represents a new stage for structural development'. China's Ministry of Foreign Affairs spokesperson Lin Jian said the discussions are 'progressing on the principle of mutual benefit'. US Deputy Assistant Secretary for African Affairs Jonathan Pratt said Washington is also reviewing its investment framework for Benin.
Lisa Yejide, Goldman Sachs Africa strategist, said Beijing's strategy of investing in port and energy infrastructure across West Africa can be read as 'geoeconomic capacity-building'. Sara Verde, the European Union's special representative for the Sahel and West Africa, said the EU's Global Gateway framework 'will continue to be a competitive alternative' for Benin. This article is sector analysis and not investment advice; readers should consult a licensed financial adviser.
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