Benin has undergone vast political and economic transformations over the past several years. Yet, economic reforms have proven more uneven than political transformation. Although the basic institutional framework for a market economy has been increasingly strengthened, the economy remains dominated by the informal sector. There is a lack of consensus as to the exact percentage of the workforce that is employed in this sector: estimates vary between 80% and 95%. In any case, sources agree that the informal sector continues to play an important role in Benin's economy with both the productivity and trade of SMEs and individual labourers operating in the informal sector accounting for upwards of 50% of the country's annual GDP.

There are several obstacles to attracting foreign investors in Benin. The most important obstacle, according to many observers, is widespread petty (facilitation payments and small bribes) and grand (government, contracts) corruption in the country. According to the World Bank & African Development Bank 2007 (in French), 58% of the households and companies surveyed in Benin rank corruption in the public sector as the most important concern in their daily activities. Furthermore, 20% of household and company respondents report that they spend a minimum of 1% of their annual income on unofficial payments to public officials. According to the World Economic Forum Global Competitiveness Report 2011-2012, companies identify corruption as the most problematic factor for doing business in Benin. Furthermore, according to an official estimate, corruption costs companies 8.4% of their annual turnover. Another obstacle for doing business in Benin is complicated bureaucratic procedures. Companies should therefore expect to encounter corruption in many areas of business activities: in relation to public utilities, licences and permits, in contracting with state institutions, and in dealings with government bureaucracy and customs authorities, particularly at the Port of Cotonou.

According to US Department of State 2009, foreign investment in Benin has, for the most part, entailed the purchase of interests in privatised companies by investors from Lebanon, India, Germany, France and other countries. According to the South African Credit Guarantee Benin Country Profile 2008, foreign investment is subject to government approval and regulations that require the hiring of native Beninese, just as part-Beninese ownership of privatised companies is required. Corruption in the political system is endemic and the diversion of funds and allocation of state resources through patron-client networks is widespread. The distribution of funds through these informal networks creates a non-transparent investment climate that discourages foreign investment. On the basis of the above, companies are urged to develop, implement and strengthen integrity systems and to conduct thorough due diligence before investing in or when already doing business in Benin.

The government's commitment to combat corruption and to attract investment has resulted in a number of laws, regulations and measures to improve the business climate. According to the US Department of State 2009, in order to further improve the investment climate in Benin, the government revised the Investment Code (in French) in July 2008. Part of the code deals with empowering the Investment Control Commission at the Ministry of Industry and Commerce. The Chamber of Commerce and Industry has a one-stop shop in order to simplify procedures for the start up of companies, registration, tax declaration and import licensing, thereby aggregating all the formalities facing a new investor in one place, the so-called Guichet Unique within the Centres des Formalités (CFE). However, according to the World Bank & IFC Doing Business 2011, the effects of this one-stop shop have been mixed and Benin performs relatively worse in relation to starting up a company than reported in 2009. Furthermore, the Africa-Asia Business Forum also states that the ineffective and corrupt bureaucracy is making the investment code difficult to implement in practice.

According to the US Department of State 2009, Benin is member of the Organisation for Harmonisation in Africa of Business Law (OHADA). OHADA aims to ensure a secure legal environment through modernisation and unification of business laws for OHADA's 16 countries by the adoption of Uniform Acts. OHADA also established a common court of justice and encourages the use of arbitration for the settlement of contractual disputes. The adoption of OHADA's Uniform Acts has solved a number of problems that foreign investors previously faced when entering Benin, such as uncertainty and outdated legislation. Benin is also a member of the International Center for the Settlement of Investment Disputes (ICSID) and of the New York Convention 1958. Despite of these initiatives, companies should be aware of that there is no commercial court system in Benin, so the settlements of business and commercial disputes are referred to the civil courts. The US Department of State 2009 also reports that Benin recognises property rights and both acquisition of and disposing of property are facilitated and protected in the law. The Bertelsmann Foundation 2010 supports this view, but differs slightly by concluding that property rights, although adequately defined, are not safeguarded in practice, due to corruption. Although there have been some rulings by judges which were not in favour of government interests, companies should note that the judicial system remains permeated by corruption, especially at the trial court level as well as at administrative hearings. Access the Lexadin World Law Guide for a collection of legislation in Benin (in French).

The official procedures in Benin remain bureaucratic and inefficient. Some observers note that instead of addressing complicated problems, the government only addresses those that are relatively easy to manage. According to the World Economic Forum Global Competitiveness Report 2011-2012, companies identify inefficient government bureaucracy as a relatively serious problem for doing business in Benin. According to the same report, companies identify tax rates and tax regulations as the fourth and sixth most problematic factors for doing business respectively. These problems are further illustrated in the World Bank & IFC Enterprise Surveys 2009, where senior managers report to spend nearly 21% of their time dealing with requirements of the government regulation, nearly 21% of companies identify business licensing and permits as major constrain and nearly 68% of companies identify corruption as a major constrain in doing business in Benin. In customs, for instance, the slow and inefficient procedures mean that importers have to pay so-called 'normal extras' (charges for storage in customs, penalty fees for delays, etc.). As a result, importers frequently choose to bribe their way through the system. Regulations are reportedly not always enforced evenly or consistently. Foreign companies complain that they are held to higher regulatory standards than Beninese companies and, according to the US Department of State 2009, this is especially true for labour regulations. The US Department of State 2009 advises companies to hire a notary public who understands the country's business laws in order to ease start-up facilities.

Individual Corruption

Judicial corruption is widespread in Benin and impedes citizens' right to a fair trial. According to the World Bank & African Development Bank 2007, only 35% of the population trust the judiciary. This lack of trust in the capability of the judicial system to secure justice is contributing to the continued practice of mob justice, according to the US Department of State 2009. According to Freedom House 2011, the Beninese judiciary's independence is respected by the executive, however, the courts are considered to be inefficient and prone to corruption. This is further supported by the Bertelsmann Foundation 2010, stating that more than half of the country's judges have been involved in corruption scandals.

Business Corruption

The majority of companies do not have confidence in the Beninese judicial system. According to the US Department of State 2009, companies frequently complain that corruption is particularly widespread at the trial court level, as well as at administrative hearings, and that the honesty and competences of the judiciary staff are quite limited. However, according to the CIPB The Role of the Judiciary in Safeguarding Business Investments and Transaction in Benin 2008 by the Beninese Magistrate Séverine Lawson, companies are playing an important role in sustaining corruption in the judicial system, as the majority of people bribing judicial staff are businessmen who try to influence the court decisions to their favour.   

Furthermore, the US Department of State 2009 reports that the judiciary suffers from a backlog of court cases, with some matters taking two years or more before proceeding to trial. Companies surveyed by the World Economic Forum Global Competitiveness Report 2011-2012 indicate that the lack of judicial independence constitutes a competitive disadvantage in Benin.

Political Corruption

According to Bertelsmann Foundation 2010, the work of the judiciary is hampered by territorial and functional inadequacies as well as corruption. Magistrate Séverine Lawson reports in the CIPB The Role of the Judiciary in Safeguarding Business Investments and Transaction in Benin 2008 that several factors are contributing to creating a dysfunctional judicial system with massive delays in the processing of cases. Among the negative factors that hamper the efficiency of the judiciary are insufficient resources, both with regard to budget allocations, the lack of continued training and the inadequate numbers of staff. Moreover, judicial decisions are often not implemented by authorities with reference to the necessity of preventing public unrest, thus creating a climate of impunity. Furthermore, Magistrate Lawson notes that corruption is a widespread problem.

Frequency

World Economic Forum: The Global Competitiveness Report 2011-2012:
- Business executives give the judiciary's level of independence from influences of members of government, citizens, or companies a score of 3.1 on a 7-point scale (1 being 'heavily influenced' and 7 'entirely independent').

- Business executives give the efficiency of the legal framework for private companies to settle disputes and to challenge the legality of government actions and/or regulations a score of 3.5 and 3.2 respectively on a 7-point scale (1 being 'extremely inefficient' and 7 'highly efficient').

The World Bank & IFC: Doing Business 2011:
- Enforcing a commercial contract in Benin is relatively difficult compared to regional and OECD averages, requiring 42 procedures and taking an average of 825 days at a cost of 64.7% of the claim.

The World Bank & IFC: Enterprise Surveys 2009:
- 9.6% of the companies surveyed believe that the court system is fair, impartial and uncorrupted.

Afrobarometer: Summary of Results Benin 2008:
- 36% of respondents in this household survey considered some of the judges and magistrates to be corrupt.

- 28% of respondents considered most of the judges and magistrates to be corrupt.

- 20% of respondents considered all judges and magistrates to be corrupt.

The World Bank & African Development Bank 2007 (in French):
- Only 35% of the households surveyed have trust in the judiciary.

- 75% of business managers mention the influence of corruption in court decisions as a major obstacle to using the courts.

Individual Corruption

According to Afrobaromter 2008, a majority of the surveyed households considered police officers to be corrupt. Similarly, the US Department of State 2010 also states that petty bribes to police officers at roadstops are common. Generally, the police are known for widespread corruption and impunity.

Business Corruption

According to the World Economic Forum Global Competitiveness Report 2011-2012, companies identify the business costs of crime and violence as well as organised crime as significant competitive disadvantages in the Beninese context. The same report also describes the reliability of police services to protect companies from crime as a competitive disadvantage compared to other countries.

Political Corruption

According to a 2009 article by IRIN, in 2007, 12 former officials from the Office for the Control of Illicit Traffic of Drugs (OCERTID), together with the agency's former director and the country's top police chief, were dismissed for alleged corruption. They were accused of cooperating with drug traffickers and were being held on corruption charges. This illustrates the challenges facing Benin in its fight against corruption: the central administration and the police, who should be combating corruptions, are themselves considered corrupt.

According to the US Department of State 2010, the Beninese police forces suffer from lack of resources with regard to equipment as well as training. Furthermore, corruption and impunity remain widespread.

Frequency

World Economic Forum: The Global Competitiveness Report 2011-2012:
- Business executives give the reliability of police services to enforce law and order a score of 4.6 on a 7 point scale (1 being 'cannot be relied upon at all' and 7 'can always be relied upon').

The World Bank & IFC: Enterprise Surveys 2009:
- 52.7% of the companies surveyed identify crime, theft and disorder as major constraints to doing business.

Afrobarometer: Summary of Results Benin 2008:
- 41% of the respondents in this household survey considered some of the police officers to be corrupt.

- 30% of the respondents considered most of the police officers to be corrupt.

- 15% of the respondents considered all police officers to be corrupt.

- 2% of the respondents in this household survey report to have often paid a bribe in order to avoid a problem with the police in 2007.

The World Bank & African Development Bank 2007 (in French):
- 55% of the household respondents consider the police corrupt.

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.

Business Corruption

Access to industrial terrain is difficult and constitutes a major constraint for both domestic and foreign companies. Alongside the difficulties in obtaining land there are also the very high administrative costs related to the purchase and registration of property which in turn gives rise to a series of informal payments. According to the US Department of State 2009, land tenure remains a complicated question in many areas and it is often difficult to transfer a clear title to real property, while property rights are not adequately safeguarded largely because of inefficient and corrupt aspects in Benin's judiciary.

Frequency

World Economic Forum: The Global Competitiveness Report 2011-2012:
- Business executives give the protection of property rights in Benin, including financial assets, a score of 4.3 on a 7-point scale (1 being 'very weak' and 7 'very strong').

The World Bank & IFC: Doing Business 2011:
- It takes an average of 4 procedures and 120 days to register property in Benin at a cost of nearly 11.2% of the property's value.

Business Corruption

According to the World Bank & African Development Bank 2007 (in French), it is not uncommon for companies to bribe officials in order to avoid paying taxes; half of the surveyed business managers report to have made non-official payments when dealing with the tax authorities.

According to the World Economic Forum Global Competitiveness Report 2011-2012, nearly one out of five of the companies surveyed identify tax regulation as the most problematic factor for doing business in Benin.

Political Corruption

According to Global Integrity 2006, tax laws in Benin are not always enforced uniformly and without discrimination. Those with political influence often escape the right application of tax laws.

Frequency

The World Bank & IFC: Doing Business 2011:
- The number of annual payments a business has to make is 55, compared to a regional average of 37.3 and an OECD average of 14.2.

- The total time and tax rate associated with the payment of corporate taxes in Benin is 270 hours and 66% of profits respectively.

The World Bank & IFC: Enterprise Surveys 2009:
- 26.8% of the surveyed companies report that they expect to give gifts in meetings with tax inspectors.

Afrobarometer: Summary of Results Benin 2008:
- 26% of the respondents in this household survey considered some of the tax officers to be corrupt.

- 30% of the respondents considered most of the tax officers to be corrupt.

- 32% of the respondents considered all tax officers to be corrupt.

Individual Corruption

A multitude of middlemen, such as so-called 'banknote rippers' (klébés) and 'transit agents' (transitoires ambulants) channel bribes from citizens to public officials. Custom officers are alleged to be particularly corrupt; however, due to reforms introduced by President Yayi Boni, it has become more difficult for them to request bribes. According to an August 2011 article by West Africa Democracy Radio, the president declared that tax evasion is costing the country EUR 3 billion every year. The president further stated that the fight against corruption that the government is waging must address agents of the customs services.

Business Corruption

According to the US Department of State 2009, corruption in the customs service is still a serious problem in Benin. Despite that the government has set up a free trade zone in the Port of Cotonou for imports between Benin and its landlocked neighbours of Burkina Faso and Niger, many foreign importers complain that corruption in the Port of Cotonou is making it difficult for them to benefit from the free trade zone.

According to Global Integrity 2006, customs and excise laws are not always enforced uniformly and without discrimination as corruption and bribery can be used to influence the application of these laws in practice. According to the World Economic Forum Enabling Trade Report 2010, the border administration in Benin does not always operate in a transparent manner. Companies need to be aware that irregular payments are sometimes needed in order to export and import goods.  

Political Corruption

According to World Bank & African Development Bank 2007, the customs administration is perceived by the general public as one of the most corrupt public institutions in Benin. Many applicants seek jobs in this sector, and large bribes are paid in order to obtain these jobs, because individual custom officers can demand bribes as 'extra income'. Consequently, the most qualified applicant does not necessarily get the job, hampering the quality of the administration. Thereby, the customs administration is targeted by those who are willing to accept and demand bribes and who thereby perpetuate corruption within the system.

Frequency

World Economic Forum: The Global Competitiveness Report 2011-2012:
- Business executives give the efficiency of customs procedures (formalities regulating the entry and exit of merchandise) in Benin a score of 3.7 on a 7-point scale (1 being 'extremely inefficient' and 7 'extremely efficient').

The World Bank & IFC: Doing Business 2011:
- A standard export shipment of goods requires 7 documents to and takes an average of 30 days, at a cost of USD 1,251 per container.

- A standard import shipment of goods requires 7 documents and takes an average of 32 days, at the cost of USD 1,400 per container.

World Economic Forum: The Global Enabling Trade Report 2010:
- Business executives give the transparency of border administration (irregular payments in exports and imports) a score of 3.0 on a 7-point scale (1 'non-transparent' and 7 'transparent').

- Business executives give the transparency of border administration (corruption perceptions index) a score of 2.9 on a 10-point scale (0 being 'corrupt' and 10 'not corrupt').

The World Bank & IFC: Enterprise Surveys 2009:
- 24.5% of the surveyed companies report that they expect to give gifts in order to obtain an import licence.

The World Bank & African Development Bank 2007 (in French):
- 79% of the household respondents consider the customs administration to be the most corrupt institution in Benin.

Business Corruption

According to the World Bank & IFC Enterprise Surveys 2009, more than half of the surveyed companies stated that they expect to give gifts in order to secure a government contract. Companies looking to get government contracts in Benin should be aware that many observers find public procurement and contracting to be one of the most corrupt sectors in Benin. Companies are recommended to use a specialised public procurement due diligence tool in order to mitigate the corruption risks associated with public procurement in Benin.

Global Integrity 2006 notes that in spite of the government's emphasis on competitive bidding, there have been cases in which high-ranking officials with special interests have intervened in order to change decisions and give post-award contracts to other companies. This was the case when the Minister of Environment, Housing and City Planning challenged the decision of the selection committee to award a contract for a feasibility study of a development project in Djougou to a company (BIM) and not to a company (SERAU SEM) in which he is a shareholder. Beninese civil society, led by FONAC, publicly protested, and the contract was at last awarded to BIM. Read more on USAID.

According to a 2009 news article by AllAfrica, in the past 20 years Benin has received USD 87 million for water sector reform from different donors. However, the time it takes from receiving of donor funds to the projects getting started is very slow. Contracts for water sector reforms are susceptible to corruption, causing the cost of project management contracts to rise. According to Jean Michel Klican, assistant director of SONEB, the amount of money that is lost to corruption is so huge that it cannot even be quantified.

See more information on public procurement under 'Public Anti-Corruption Initiatives' in the Initiatives section.

Political Corruption

Generally, public procurement and contracting in Benin is permeated by corrupt practices, such as contract tampering, tampering with specifications, and over-invoicing.

In 2005, a US military communications company, Titan, was sentenced to pay USD 28.5 million in fines for breaches of the US Foreign Corrupt Practices Act. Between 1999 and 2001, Titan allegedly paid a total of USD 3.5 million to former President Kérékou's business advisor in an order to pave the way for the company's telecommunications project in the country. Moreover, in 2001, Titan is said to have funnelled USD 2 million into former President Kérékou's re-election campaign, since the former President's support was thought to be critical to the company's project in Benin. The former CEO of Titan Africa, Inc., Steven Lynwood Head pleaded guilty to falsifying financial records and was sentenced to 6 months in prison. The USD 28.5 million fine was then the biggest fine imposed on a company under the FCPA.

According to the US Department of State 2010, the government dismissed the former minister of finance and economy as well as several officials in charge of public procurement and requested disciplinary actions against them following a July 2009 State Office report which revealed that they were involved in corrupt practices including illegal rewarding of public contracts, misappropriation of public funds related to the renovation of two conference centres for the CEN-SAD summit.

See more information on public procurement under 'Public Anti-Corruption Initiatives' in the Initiatives section.

Frequency

World Economic Forum: The Global Competitiveness Report 2011-2012:
- Business executives give the diversion of public funds to companies, individuals, or groups due to corruption a score of 2.5 on a 7-point scale (1 being 'very common' and 7 'never occurs').

- Business executives give the favouritism of government officials when deciding companies and contracts a score of 2.8 on a 7-point scale (1 being 'always show favouritism' and 7 'never show favouritism').

The World Bank & IFC: Enterprise Surveys 2009:
- 59% of the surveyed companies report that they expect to give gifts in order to secure a government contract.

- The average value of a gift expected to secure a government contract is a little less than 5% of the value of the contract.

The World Bank & African Development Bank 2007 (in French):
- 81% of business managers perceive corruption to occur very often in the public procurement process.

Business Corruption

Many small-scale entrepreneurs and loggers at the local and regional level engage in illegal timber logging and harvesting of construction wood. Forest service personnel and loggers are organised into clientelist and corrupt networks. The foresters, who in principle should prevent illegal logging, are often corrupt and are even asked for advice and support by illegal loggers as to where to find suitable trees and how to carry out illegal transport.

According to the African Biodiversity Network 2007, the palm sales between the government and the community cooperatives have been devastated by several occurrences of corruption. These incidents led the community cooperatives to abandon the sales partnership with the government to instead pursue a direct partnership with private companies. The latter promised to buy palm oil at a higher price, but ultimately failed to pay. This put the palm oil cooperatives in a disadvantageous position and the government refused to offer any help in the matter.

Political Corruption

Corruption is prevalent both in natural forest management and in management of state plantations, and customs agents are known to issue false import certificates. Furthermore, different kinds of illegal activities are common in the cotton sector, which is Benin's primary export.

• Legislation: Benin ratified the United Nations Convention against Corruption in October 2004 and the African Union Convention on Preventing and Combating Corruption in September 2007. Benin lacks specific corruption legislation; however, corruption is criminalised in Beninese legislation by Articles 166 to 183 of the Criminal Code, in the Criminal Procedures Code and in Articles 35 and 37 of the Beninese Constitution (in French). In August 2011, the Beninese parliament passed a new anti-graft bill. According to an August 2011 article by Afrique Avenir, the law binds the country's top authorities, civil servants, central directors of the administration, project managers and accountants of any public body to disclose their assets when assuming and leaving office. The following are considered offences: attempted corruption, extortion, active and passive bribery, bribing a foreign official, using public resources for private gain, using confidential state information for private gain and money laundering. Benin is a party to the West African Economic and Monetary Union (UEMOA), and money laundering is criminalised in UEMOA's Directive on the Fight Against Money-Laundering 2002 (in French) and Directive on the Fight Against Financing of Terrorism 2007 (in French). Access the Lexadin World Law Guide for a collection of legislation in Benin (in French).

• Government Strategies: President Yayi Boni has publicly announced that the fight against corruption is a top priority of his administration. He has, for instance, installed a toll free line linked directly to the presidency providing a means for citizens to report corruption whenever witnessed in their everyday lives. Various initiatives have been adopted, such as a law creating an official code of conduct for governmental management and the establishment of the General Inspection of the Government in 2006 and the financial intelligence unit, the Cellule Nationale de Traitement des Informations Financières (CENTIF), in March 2009. Benin's government takes part in the regional efforts to fight money-laundering and several workshops organised by the Intergovernmental Action Group Against Money Laundering in West Africa (GIABA) have been held in Benin. In 2007, a National Governance and Corruption Diagnostic Survey (in French) was produced in cooperation with civil society organisations and the World Bank. The survey was followed up by workshops also attended by CSO's and journalists, aiming at identifying constraints and opportunities for governance reform as well as ways to enhance the role of the media in promoting good governance. The results of the workshops are to be implemented in a National Anti-Corruption Strategy, which has not been presented as of August 2010. International observers have deemed Benin's anti-corruption efforts successful, while the local anti-corruption agency, l'Observatoire de Lutte contre la Corruption (OLC), assessed in the beginning of 2010 that corruption had worsened in the recent years.

• Anti-Corruption Agency: Observatoire de Lutte contre la Corruption (OLC, in French) is the legal agency with the mandate to address corruption and it has jurisdiction to intervene wherever corruption is observed. Among other duties, the agency is responsible for producing each year a White Paper on the state of corruption in Benin. The agency includes representatives of the state, civil society and the private sector. It was established in 2004 and has legal authority as well as financial and functional autonomy. According to Global Integrity 2006, the agency is effective and professional and it is protected from political interference. However, critics are concerned that the OLC's independence may be limited by lack of financial resources and understaffing (read more in the World Bank Observatory for the Fight Against Corruption Report).  OLC has carried out several activities to raise awareness of corruption among the population and civil servants, such as conducting workshops on the code of conduct for governmental management, training for ministry officials on transparency in public administration as well as training for judicial personnel on the UNCAC and the African Union Convention on Preventing and Combating Corruption. Limitations in the efforts of the OLC can be traced in the US Department of State 2010 report which notes that in January 2010, the president for the NGO front for National Anti-Corruption Organizations (FONAC) pointed out 32 corruption cases stretching from 2006 to 2009 and involving civil servants. An investigation conducted by the FONAC at the Ministry of Civil Service found that these cases were left unresolved and that no sanctions were applied. 

• National Union of Magistrates (Union Nationale des Magistrats du Bénin, UNAMAB): The UNAMAB works to defend the professional interests of its members as well as the independence of the judiciary. The union makes studies and gives recommendations on good governance in the judicial system. The UNAMAB has been granted the status of extraordinary member of the International Association of Judges.

• Office of the Ombudsman (in French): The office of the Ombudsman was first established in February 2006 by the Decree 2006-417 that designated the responsibilities, organisation and functioning of the Presidential Board of Meditation. In August 2009, the Law 2009-22 (in French) was passed as the legal basis for the activities of the Ombudsman (le Médiateur de la République du Benin). The Ombudsman's office is an independent authority. It handles complaints from citizens against the public administration and gives recommendations to the President with regard to the functioning of public institutions. The Ombudsman is appointed by the President for a five-year term and cannot be removed from the office except in cases of serious misconduct stated by the Supreme Court. The office of the Ombudsman regularly issues reports on its activities, which are available on the office's website.

• Auditor-General: The General Inspection of the Government (l'Inspection Générale de l'Etat, IGE) was established in 2006 by the Decree 2006-319 (in French) and succeeded the former Public Life Moralisation Unit (in French). It is the supreme audit institution. The IGE is a state body placed under the authority of the President. It coordinates the other inspection and monitoring bodies, such as the General Inspectorate for Finance (IGF). IGE's mission is to investigate and monitor public services, national and local public bodies and other structures receiving public financial assistance, such as state-owned enterprises and to inform the President of barriers to good governance and sound management of public resources and to give recommendations with regard to the fight against corruption. Several local observers note that the IGE is not capable of performing its mandate and that the agency is used by the President for political purposes. According to the US Department of State 2010, public officials are not subject to financial disclosure laws. The report further notes that there does not exist any law that provides the public access to government information and that it was unclear whether demands for such access were granted.

• E-governance: Benin does not yet have an integrated platform for e-governance, but several public institutions provide online services. On the website of the Chamber of Commerce and Industry (in French), application forms for starting up a company are available, and the website of the Government of Benin provides information on public tenders. However, this part of the website does not seem not to be regularly updated.

• Public Procurement: Procurement procedures are regulated by the Code of Ethics of the Public Procurement Act (in French), but Beninese procurement law is generally assessed to be weak. The government has created a Public Procurement Verification Commission, which also includes a number of civil society watchdog organisations, such as FONAC (see 'Private Anti-Corruption Initiatives' in the Initiatives section). Despite attempts by politicians to circumvent the commission's decisions in procurement cases, the commission has resisted such political pressure. According to Global integrity 2006, under the law, companies found guilty of major violations of procurement regulations, such as bribery, are prohibited from participating in future procurement bids, however, they are not always effectively enforced in practice. 

• Whistle Blowing: According to Global Integrity 2006, public and private sector employees reporting cases of corruption have no legal or practical protection from recrimination or other kind of negative consequence.

• General Comments on the Public Anti-Corruption Initiatives: Benin's legislative framework criminalises corruption and guarantees an independent judiciary. However, in general, corruption laws in Benin are out-dated and many of them are not applied in practice. The institutional set-up for fighting corruption is quite well established, but these institutions are themselves frequently criticised for being politicised and subject to corruption. This is true for the judiciary and the police and for numerous other political-administrative structures.

• Media: Freedom of speech and of the press is protected by the constitution, and many observers note that state and private media operate relatively freely in Benin. However, according to the US Department of State 2010, the media's effect on public opinion is limited due to restricted circulation and illiteracy. The government has a reputation for respecting freedom of the press, and the media is renowned for scrutinising both the government and the opposition. Nevertheless, the past several years have brought about some worrying developments, according to Reporters Without Borders 2009 and Freedom House 2009, as the market has been filled with politically funded publications and the government decided to apply a law that had not been strictly applied for a couple of years, imposing prison sentences for press offences. As a result, several journalists were imprisoned. According to the US Department of State 2010, the government blocked the state-owned radio station 'Radio France Internationale' for 14 hours in August 2010. This took place after the radio station reported that deputies in the National Assembly attempted to impeach the President for his alleged involvement in a Ponzi scheme that had defrauded investors of billions of CFA. Before being blocked, the radio station had also announced that it would broadcast an interactive program on the case. Furthermore, reporters are reportedly susceptible to bribery and blackmail. It is therefore not uncommon for politicians to buy positive stories from journalists. According to Freedom House 2011, the government does not restrict access to the Internet, but poverty hinders the wider population from benefiting from it. Reporters Without Borders 2011 ranks Benin 70th out of 178 countries, while Freedom House 2011 ranks Benin 72nd out of 196 countries and describes its press environment as 'partly free'.

• Civil Society: Freedom of association and assembly are guaranteed under the constitution and those rights are generally respected. Non-governmental organisations are numerous in Benin and are generally free to act without governmental intervention. However, according to the Bertelsmann Foundation 2010, the lack of resources and the poor institutionalisation of those organisations impede a more continuous participation. According to the same report, civil society often reveals corruption more effectively than government. 

• Front des Organisations Nationales Anti-Corruption (FONAC): FONAC is a national coalition of around 60 non-governmental organisations and associations that work with anti-corruption. FONAC works primarily with awareness raising, investigation and calling attention to corrupt politicians. The coalition is represented in the most prominent public anti-corruption institutions and initiatives (e.g. the Public Procurement Verification Commission) and their work is regarded as successful and influential by international actors, such as USAID and the World Bank. Read more about FONAC (in French).

• Association de Lutte Contre le Racisme, l'Ethnocentrisme et le Regional (ALCRER): ALCRER is a grassroots organisation created in 1994 whose primary goal is to promote good governance in the management of public affairs, combat racism, ethnocentrism and regionalism and protect human rights in Benin and Africa in general. It focuses on awareness raising during elections and youth education. Read more about ALCRER (in French).

• African Parliamentarians Network Against Corruption Benin (APNAC): APNAC is active in capacity building, information campaigns, promotion of anti-corruption legislation, and establishing a legal framework to promote free elections.

• Board of Private Investors in Benin (CIPB): CIPB was founded in 2002 by a group of entrepreneurs. Today it is comprised of around 40 companies with significant investments in Benin that have decided to combine their experiences, competences and economic weight to influence the environment in which they operate, working for the promotion of good governance. CIPB works with anti-corruption and provides/produces corruption related information for companies, and also cooperates with the UNDP, IMF, the World Bank, European Commission and the diplomatic missions of major donor countries.

The websites listed below provide useful facts on Benin as well as contacts and tools for companies operating in Benin:

• International Finance Corporation: West Africa SME Toolkit (in French)
  Guide to sustainable business management practices for SMEs.
• Business Fighting Corruption
  An online resource centre for business on collective action to avoid corruption which contains a guide and resources for partnerships with companies and other stakeholders to fight against corruption.
• CIA World Factbook: Benin Country Profile
• World Bank: Benin Data Profile

Sources for further reading:

• Freedom House: Freedom in the World - Benin 2011.
• The Bertelsmann Foundation: Transformation Index - Benin 2010.
• Afrobarometer: Summary of Results Benin - 2008.
• The World Bank & African Development Bank: La corruption et la gouvernance au Benin: Rapport des résultats de l'enquête diagnostique 2007 (in French).
• Global Integrity: Benin Country Report 2006.

UNCAC Status: Signed 10 December 2003. Ratified 14 October 2004.

Status on UNCAC Implementation
This field describes the country's status on the United Nations Convention against Corruption. Please note any declarations and reservations made upon ratification. The list of signatories can be found on the UNODC website. Read more about the UNCAC.

Other Relevant Conventions or Treaties:

• AU Convention on Preventing and Combating Corruption: Signed 11 February 2003. Not Ratified.
  Read Transparency International's summary and assessment of the convention.
• United Nations Convention against Transnational Organized Crime: Signed 13 December 2000. Ratified 30 August 2004.
  Read Transparency International's summary and assessment of the convention.

Transparency CPI: 2011: 100/182 (Score: 3)

Transparency CPI
This field consists of the score for the country in question on the Corruption Perceptions Index from Transparency International as well as its ranking.

World Bank CORR Index (-2.5 - +2.5): 2010: -0.75

World Bank Corruption Index
This field consists of the score for the country in question on the 'Control of Corruption' indicator in the World Bank Governance Research Indicator Country Snapshot (GRICS): 1996-2010.

OECD Country Risk Classification (0-7): 2011: 6

Country Risk Classification
The classification of countries by risk category has the aim of providing OECD countries with a basis for calculating the premium interest rate to be charged to cover the risk of non-repayment of export credits. Countries are placed in risk categories 0 - 7, with 0 being the lowest risk category and thus the least expensive. Conversely, premium group 7 is the highest risk category. Each classification is comprised of 2 components: 1) an assessment of the country's economic/financial situation, and 2) its overall political stability. Access the complete list of OECD Country Risk Classification figures.

Data Verification:

Publication Date: November 2011

Data verified by: Global Advice Network

General Information Sources

• World Economic Forum: The Global Competitiveness Report 2011-2012.
• The World Bank & IFC: Doing Business 2011.
• Freedom House: Freedom in the World - Benin 2011.
• Le Post: 'Lutte contre la corruption au Bénin: La Présidence de la Republique dispose désormais d´un numéro vert', 23 July 2011.
• The Bertelsmann Foundation: Transformation Index - Benin 2010.
• Reuters Africa: 'Benin president accused of role in ponzy scheme', 20 August, 2010.
• La Nouvelle Tribune: 'Bénin: La corruption s'est aggravée sous Yayi', 13 April 2010.
• World Bank & IFC: Enterprise Surveys 2009.
• Freedom House: Freedom in the World - Benin 2009.
• US Department of State: Human Rights Report - Benin 2009.
• US Department of State: Investment Climate Statement - Benin 2009.
• Ministry of Foreign Affairs of the Netherlands: 'Benin anti-corruption strategy a success', 22 January 2009.
• Credit Guarantee: Country Profile Benin 2008.
• Afrobarometer: Summary of Results Benin 2008.
• OECD & African Development Bank: African Economic Outlook - Benin 2008.
• APMR Secretariat: Country Review Report of the Republic of Benin 2008.
• Freedom House: Freedom in the World - Benin 2008.
• Lexadin: The World Law Guide - Legislation Benin 2008 (in French).
• The World Bank & African Development Bank: La corruption et la gouvernance au Benin: Rapport des résultats de l'enquête diagnostique 2007 (in French).
• Afrobarometer: Battle, Martin and Seely, Jennifer C.: It's All Relative: Competing Models of Vote Choice in Benin 2007.
• Afrobarometer: Konold Carrie: Perceived Corruption, Public Opinion, and Social Influence in Senegal 2007.
• Global Integrity: Benin Country Report 2006.
• Government of Sweden: Mänskliga rättigheter i Benin 2006 (in Swedish).
• The Elephant's Eye: 'Former Foreign Minister Biaou Arrested for Corruption', 10 March 2006.
• OECD & African Development Bank: African Economic Outlook - Benin 2005.
• Afrobarometer: Summary of Results Benin 2005 (in French).
• The World Bank & IFC: Summary of Investment Climate Assessment 2005.
• Transparency International: Global Corruption Report 2004.
• OneWorld: Country Guide Benin.
• The World Bank: Benin Data Profile.
• BBC News: Benin Country Profile.
• Africa-Asia Business Forum: Benin Investment Guide.

Corruption Levels Sources

Judicial System

• World Economic Forum: The Global Competitiveness Report 2011-2012.
• The World Bank & IFC: Doing Business 2011.
• Freedom House: Freedom in the World - Benin 2011.
• The Bertelsmann Foundation: Transformation Index - Benin 2010.
• World Bank & IFC: Enterprise Surveys 2009.
• US Department of State: Human Rights Report - Benin 2009.
• US Department of State: Investment Climate Statement - Benin 2009.
• CIPB: The Role of the Judiciary in Safeguarding Business Investments and Transaction in Benin 2008.
• Afrobarometer: Summary of Results Benin 2008.
• Freedom House: Freedom in the World - Benin 2008.
• US Department of State: Human Rights Report - Benin 2008.
• The World Bank & African Development Bank: La corruption et la gouvernance au Benin: Rapport des résultats de l'enquête diagnostique 2007 (in French).
• Government of Sweden/Utrikesdepartementet: Mänskliga rättigheter i Benin 2006 (in Swedish).
• Afrol News: 'Government tries its judges for corruption', 29 January 2006.
• USAID: USAID's Support Improves the Credibility of Benin's Judicial System 2005.
• Report from Transparency International's 9th International Anti-Corruption Conference (IACC).

Police

• World Economic Forum: The Global Competitiveness Report 2011-2012.
• US Department of State: Human Rights Report - Benin 2010.
• World Bank & IFC: Enterprise Surveys 2009.
• Freedom House: Freedom in the World - Benin 2009.　
• IRIN: 'BENIN: Screening out morally unfit crime fighters', 29 October 2009.
• Freedom House: Freedom in the World - Benin 2008.
• Afrobarometer: Summary of Results Benin 2008.
• The Bertelsmann Foundation: Transformation Index - Benin 2008.
• The World Bank & African Development Bank: La corruption et la gouvernance au Benin: Rapport des résultats de l'enquête diagnostique 2007 (in French).
• Afrobarometer: Summary of Results Benin 2005 (in French).
• FIDH: La justice au Bénin - corruption et arbitraire 2004 (in French).
• OneWorld: Country Guide Benin.

Licences, Infrastructure and Public Utilities

• World Economic Forum: The Global Competitiveness Report 2011-2012.
• The World Bank & IFC: Doing Business 2011.
• World Bank & IFC: Enterprise Surveys 2009.
• US Department of State: Investment Climate Statement - Benin 2009.
• IRIN: 'Benin: Water sector corruption 'enormous'', 17 February 2009.
• Afrobarometer: Summary of Results Benin 2008.
• The Bertelsmann Foundation: Transformation Index - Benin 2008.
• The World Bank & African Development Bank: La corruption et la gouvernance au Benin: Rapport des résultats de l'enquête diagnostique 2007 (in French).
• Global Integrity: Benin Country Report 2006.
• The World Bank & IFC: Summary of Investment Climate Assessment 2005.
• Irin News: 'Benin: Smuggling, Corruption and Another Term for the President', 18 April 2005.
• Transparency International: Global Corruption Report 2003.

Land Administration

• World Economic Forum: The Global Competitiveness Report 2011-2012.
• The World Bank & IFC: Doing Business 2011.
• US Department of State: Investment Climate Statement - Benin 2009.
• The Bertelsmann Foundation: Transformation Index - Benin 2008.
• The World Bank & African Development Bank: La corruption et la gouvernance au Benin: Rapport des résultats de l'enquête diagnostique 2007 (in French).
• The World Bank & IFC: Summary of Investment Climate Assessment 2005.

Tax Administration

• World Economic Forum: The Global Competitiveness Report 2011-2012.
• The World Bank & IFC: Doing Business 2011.
• World Bank & IFC: Enterprise Surveys 2009.
• Afrobarometer: Summary of Results Benin 2008.
• The World Bank & African Development Bank: La corruption et la gouvernance au Benin: Rapport des résultats de l'enquête diagnostique 2007 (in French).
• Global Integrity: Benin Country Report 2006.

Customs Administration

• World Economic Forum: The Global Competitiveness Report 2011-2012.
• The World Bank & IFC: Doing Business 2011.
• West Africa Demacracy Radio: 'Benin loses £3billion in revenues yearly', 12 August 2011.
• World Economic Forum: The Global Enabling Trade Report 2010.
• World Bank & IFC: Enterprise Surveys 2009.　 　
• The World Bank & African Development Bank: La corruption et la gouvernance au Benin: Rapport des résultats de l'enquête diagnostique 2007 (in French).
• Global Integrity: Benin Country Report 2006.
• Report from Transparency International's 9th International Anti-Corruption Conference (IACC).

Public Procurement and Contracting

• World Economic Forum: The Global Competitiveness Report 2011-2012.
• US Department of State: Human Rights report 2010- Benin.
• The World Bank & IFC: Doing Business 2010.
• The World Bank & IFC: Enterprise Surveys 2009.
• Frontline World: 'The International Fight Against Bribery', 13 March 2009.
• AllAfrica: 'Benin: Water sector corruption 'enormous'', 17 February 2009.
• The World Bank & African Development Bank: La corruption et la gouvernance au Benin: Rapport des résultats de l'enquête diagnostique 2007 (in French).
• Global Integrity: Benin Country Report 2006.
• Financial Times: 'Titan to pay $28.5m in foreign bribery case', 2 March 2005.
• OneWorld: Country Guide Benin.
• USAID: Beninese Civil Society Takes Charge.
• Report from Transparency International's 9th International Anti-Corruption Conference (IACC).

Environment, Natural Resources and Extractive Industry

• African Biodiversity Network: Agrofuels in Africa 2007.
• OECD: African Economic 2004-2005.
• Ute Siebert & Georg Elwert: Potentials and Recommendations for Combating Corruption and Illegal Logging in the Forest Sector of Benin, West Africa 2002.

Public Anti-Corruption Initiatives Sources

• Afrique Avenir: 'Beninese parliament passes anti-graft bill', 30 August 2011.
• The US Department of State: Human Rights Report - Benin 2010.
• La Nouvelle Tribune: 'Bénin: La corruption s'est aggravée sous Yayi', 13 April 2010.
• allAfrica: 'Bénin: Deuxième atelier de lutte contre le blanchiment d'argent et le financement du terrorisme', 17 September 2009.
• 24 heures au Bénin: ‘L’Ige de Koussey est-elle encore crédible ?’, 23 Juin 2009.
• Le Grand Journal: ’Lutte contre l’impunité au Bénin, L’inspection générale d’Etat, un miroir aux alouettes’, 12 may 2009.
• IPS: 'Former des gens pour lutter contre le blanchiment d'argent', 17 March 2009.
• Agence Benin Presse: 'BENIN/ECONOMIE : Le Bénin se dote d'une Cellule de traitement des informations financières', 3 March 2009.
• Ministry of Foreign Affairs of the Netherlands: 'Benin anti-corruption strategy a success', 22 January 2009.
• Lexadin: The World Law Guide - Legislation Benin 2008 (in French).
• Global Integrity: Benin Country Report 2006.
• The World Bank: Benin Data Profile.
• The Worls Bank: Benin Governance Diagnostics.
• Gouvernance en Afrique (in French).

Private Anti-Corruption Initiatives Sources

• Freedom House: Freedom of the Press Index 2011.
• Reporters Without Borders: Benin Country Report 2011.
• The Bertelsmann Foundation: Transformation Index - Benin 2010.
• US Department of State: Human Rights Report - Benin 2010.
• Freedom House: Freedom in the World - Benin 2009.
• Reporters Without Borders: Worldwide Press Freedom Index 2009.
• Freedom House: Freedom of the Press - Benin 2008.
• Global Integrity: Benin Country Report 2006.
• USAID: Beninese Civil Society Takes Charge.
• Gouvernance en Afrique (in French).