The Digital Economy Sector Policy of Benin

The Digital Economy Sector Policy of Benin aims to transform the country into the leading digital service platform in West Africa by 2021. This ambitious goal is driven by the belief that the digital economy is a powerful engine for socioeconomic development, inclusion, and innovation. The policy is aligned with the broader vision of President Patrice Talon, who emphasizes the significant potential for digital services in Africa and envisions Benin as a hub for these services.

Strategic Importance

The development of the digital economy is seen as a crucial lever for:

• Enhancing social inclusion and human well-being through improved access to knowledge and education.
• Creating jobs and reducing unemployment.
• Boosting economic development across all sectors, including the digital economy itself.
• Promoting transparent governance and efficient administration focused on user needs.
• Elevating Benin’s regional and international standing.

Key Challenges

Despite the ambitious vision, the digital economy in Benin faces several challenges:

1. Governance Fragmentation: The sector suffers from dispersed governance due to multiple institutions and regulatory bodies created by recent legislative reforms. This fragmentation leads to complexity and inefficiencies.
2. Infrastructure Deficiencies: There is a significant lack of infrastructure, especially in the fixed telecommunications market, which hinders the widespread adoption of digital services.
3. Market Issues: The mobile market is characterized by a duopoly, resulting in insufficient competition and low investment levels. This affects the quality and coverage of mobile services.
4. Taxation Policies: Current taxation policies are counterproductive, imposing high tax burdens on operators without incentivizing investments in infrastructure.
5. Transition to Digital Broadcasting: The transition to Digital Terrestrial Television (TNT) is behind schedule, posing risks to meeting regional deadlines.
6. Public Operators’ Performance: Public telecommunications operators are struggling, with uncertain futures due to economic instability.

Strategic Projects and Reforms

To address these challenges and achieve its objectives, Benin’s sectoral policy outlines six major projects and several structural reforms:

1. High-Speed Internet Deployment: Extensive development of broadband and high-speed internet infrastructure across the country to enhance connectivity.
2. Transition to TNT: Accelerating the migration to TNT to improve broadcasting quality and free up frequencies for mobile broadband services.
3. Smart Governance: Implementing intelligent governance systems to improve administrative efficiency and transparency.
4. E-Commerce Expansion: Promoting and generalizing the use of e-commerce and mobile commerce to drive economic growth and financial inclusion.
5. Digital Education and Training: Integrating digital technologies in education to improve learning outcomes and prepare future generations for the digital economy.
6. Digital Content Development: Fostering the creation and promotion of local digital content to enhance cultural representation and economic opportunities.

Expected Outcomes

By implementing these projects and reforms, the policy aims to:

• Achieve 80% broadband coverage for enterprises and individuals.
• Double the size of the ICT market to 580 billion CFA francs.
• Create 90,000 direct jobs in the ICT sector.
• Enhance the development of other economic sectors through digitalization.
• Position Benin among the top 100 countries in the Networked Readiness Index (NRI) and as the leader in West Africa.