Individual Corruption

Corruption has limited more than half of Benin's population's access to safe water. According to a 2009 article by IRIN, the cost of water connections in rural areas is 20% higher than in urban areas, mainly because of the difficulty stemming corruption in disparate and decentralised contracts. According to the same source, it is not uncommon for mayors to award project manager contracts in return for bribes. There are also allegations of meter counters from the state water company forcing their customers, who fail to pay a bill, to pay extra by threatening to cut off their water supply. The same source also reports that officials include 'fake' costs in water construction related contracts and they skim the difference.

Business Corruption

Foreign investors should note that bribes are sometimes needed in order to obtain basic utility connections, construction permits and commercial licences. This is illustrated in the World Bank & IFC Enterprise Surveys 2009, in which a substantial amount of the surveyed companies stated that they expect to give gifts in order to obtain the aforementioned services. The bribes demanded are reportedly especially high for foreign companies due to their alleged 'capacity to pay'. However, corruption is not only demand-driven, with many local companies admitting to having offered bribes in order to influence the authorities to provide favourable treatment.

Political Corruption

In general, Benin has some serious infrastructural problems and deficits. The railway system, transportation of goods and the provision of electricity are poorly developed. These services are unreliable, of poor quality and subject to bribery. The telecommunications sector is particularly affected by corruption. Moreover, civil servants of the state-owned telecommunications company (OPT) are known to demand bribes to establish a telephone line (read more about the infrastructural deficits in the World Bank & IFC Summary of Investment Climate Assessment 2005).

Frequency

World Economic Forum: The Global Competitiveness Report 2011-2012:
- Business executives give government administrative requirements (permits, regulations, reporting) in Benin a score of 3.5 on a 7-point scale (1 being 'extremely burdensome' and 7 'not burdensome at all').

The World Bank & IFC: Doing Business 2011:
- Building a warehouse in Benin requires a company to go through an average of 15 administrative procedures, taking an average of 320 days and costing nearly 255% of income per capita.

The World Bank & IFC: Enterprise Surveys 2009:
- 44.6% of the surveyed companies report that they expect to give gifts in order to obtain an operating licence.

- 47.3% of the surveyed companies report that they expect to give gifts to get a construction permit.

- 48.3% of the surveyed companies report that they expect to give gifts in order to obtain a water connection

- 31.4% of the surveyed companies report that they expect to give gifts in order to obtain a phone connection.

- 48.8% of the surveyed companies report that they expect to give gifts in order to obtain an electrical connection.

Afrobarometer: Summary of Results Benin 2008:
-2% of the respondents in this household survey report to have often paid a bribe for water and sanitation services in 2007.

The World Bank & African Development Bank 2007 (in French):
- 20% of household and company respondents earning an income declare that they spend a minimum of 1% of their annual income on unofficial payments to public officials.

- 38% of business managers consider corruption in the public sector a very serious problem.

- 72% of business managers believe that corruption occurs very often in the process of application for licences and permits.