Benin - Private Sector Project

Project Development Objectives. The objective of the project is to improve Benin's business environment, local enterprises' competitiveness, and access of small and medium enterprises (SMEs) and micro-enterprises to credit. This would in turn help the country diversify its economy and reach its goal of achieving a GDP growth of at least 5 percent per annum over the coming years.The project will address lingering constraints in the regulatory and institutional framework for private sector development, through an improved dialogue between business representatives and Government and accelerated privatization of some key enterprises. It will seek to enhance the competitiveness of enterprises and help them become more efficient and export-oriented through support to export associations and firms. Finally, it will help strengthen two promising financial institutions, the credit institution for micro-enterprises (PADME) and the credit institution for small and medium enterprises (PAPME).Performance indicators include increase in private sector investment, reflecting an improved business environment, growth of employment in the private sector, growth of non-traditional exports, and financial and institutional sustainability of the two credit institutions.