Benin’s Sectoral Policy Statement – Strategic Directions 2021 in the Digital Economy Sector

The strategic plan detailed in the ‘Déclaration de Politique Sectorielle – Orientations Stratégiques 2021 dans le Secteur de l’Économie Numérique’ aims to transform Benin into a leading digital service hub in West Africa by 2021. This strategy is rooted in the belief that the digital economy is a key driver for economic growth, social inclusion, and regional leadership. The plan outlines a comprehensive approach to overcoming the challenges facing Benin’s digital economy, including governance fragmentation, infrastructure deficits, and inadequate investment. It also identifies the significant potential in harnessing digital technologies to accelerate growth across various sectors and enhance the quality of life for all citizens.

Strategic Goals and Objectives

1. Transforming Benin into a Digital Service Hub

The primary goal of this strategy is to position Benin as the digital platform of West Africa by 2021. This involves creating a conducive environment for the emergence of digital enterprises, developing robust infrastructure, and implementing supportive legal frameworks. The overarching objectives include:

• Enhancing social inclusion through improved access to knowledge and education.
• Creating jobs and reducing unemployment by fostering a vibrant digital economy.
• Promoting economic growth across all sectors, with a specific focus on the digital economy.
• Improving governance transparency and administrative efficiency.
• Elevating Benin’s regional and international standing through digital innovation.

2. Key Performance Indicators

To measure the success of the strategy, specific targets have been set, including:

• Achieving 80% broadband internet coverage for businesses and households, with a 40% penetration rate for fixed internet and 60% for mobile.
• Doubling the ICT market size to reach 580 billion CFA francs.
• Creating 90,000 direct jobs in the ICT sector.
• Enhancing other sectors through digitization, such as achieving full broadband connectivity in educational institutions and boosting e-commerce adoption among citizens.

Challenges in the Digital Economy

1. Governance Fragmentation

Benin’s digital economy governance is currently dispersed across multiple agencies and ministries, leading to inefficiencies and overlapping responsibilities. Recent legislative reforms have introduced new regulatory bodies, but the lack of a unified vision and coordination remains a significant challenge. This fragmentation hinders the effective implementation of strategic initiatives and dilutes the resources necessary for modernizing the sector.

2. Infrastructure Deficits

The digital infrastructure in Benin is inadequate, particularly in fixed-line services, which account for less than 4% of the electronic communications market. The country suffers from a lack of investment in high-speed internet infrastructure, with limited access to broadband services. The mobile internet market, dominated by a duopoly, also struggles with low penetration rates for 3G and 4G services, which hampers the nation’s overall digital development.

3. Investment Shortfalls

Investment in Benin’s digital economy is below international standards, particularly in the mobile sector, where operators have been slow to expand and upgrade their networks. This lack of investment is partly due to insufficient competition in the market, which disincentivizes operators from enhancing their services. The high tax burden on operators further discourages investment, as it significantly reduces their profitability and capacity to reinvest in the sector.

Strategic Initiatives

1. Six Flagship Projects (2016-2021)

To achieve the strategic objectives, six flagship projects have been identified:

• Deployment of High-Speed Internet: Expanding broadband and ultra-broadband infrastructure across the country to improve connectivity and support digital services.
• Transition to Digital Terrestrial Television (TNT): Accelerating the switch from analog to digital broadcasting to enhance content delivery and free up frequencies for mobile broadband services.
• Implementation of Smart Governance (Smart Gouv): Digitizing government services to improve efficiency, transparency, and user focus.
• Generalization of E-Commerce: Promoting online commerce to boost economic activity and financial inclusion.
• Promotion of Digital Literacy in Education: Integrating digital technologies in the education system to enhance learning outcomes and prepare future generations for the digital economy.
• Development of Digital Content: Encouraging the production and distribution of local digital content to foster cultural expression and innovation.

2. Structural Reforms

Six structural reforms will underpin the successful execution of these projects:

• Investment Dynamics: Strengthening regulatory frameworks to attract investment in the digital sector.
• Governance Reform: Clarifying roles and responsibilities within the digital economy to ensure coherent and effective governance.
• Emergence of Efficient Actors: Supporting the development of competitive digital enterprises and infrastructure providers.
• Taxation Simplification: Reforming the tax system to incentivize investment and support the growth of digital services.
• Development of B2B Services: Expanding business-oriented digital services to enhance the competitiveness of Benin’s enterprises.
• Creation of a Digital Code: Establishing a comprehensive legal framework for the digital economy to provide security and attract international investment.