Factors to consider before doing business in Benin Republic are germane to the decision-making that must breed any entrepreneurial strategy to fill the void in that part of the continent. Benin’s rate of population growth can be compared with that of some western African countries and it is among the highest in the world. This growth results primarily from a birth rate that is almost twice as high as the world average and a death rate that is similar to the world average.
This has therefore become a growing concern to maintaining a standard for the economic stature of the country. Any trader, investor, or businessman/woman is hitherto advised to take a glance at some of the factors to consider before doing business in Benin Republic as they are germane to any entrepreneurial decision one has ever nurtured.
Factors to Consider Before Doing Business in Benin Republic.
Economic Dependence on Foreign Aids
Benin’s regular and developmental budgets have been dependent on external support, primarily from France and international organizations. This support has rendered a little less painful the formidable economic stagnation and low standard of living of the overwhelming majority of the population. However, this economic dependence also places investment on a very risky platform.
Insufficient Natural Resources
Other than the few stretches of tropical forest that remain in Benin, mostly in the southwest and central areas, contain mahogany, Iroko, teak, samba, and other tropical hardwoods, and the rivers and lagoons are rich in fish, and also, the mineral deposits include iron ore, Benin Republic does not have any other reliably lucrative resource unlike other major African countries like Nigeria, etc.
High Rate of Illiteracy in Benin Republic
The people of Benin Republic are on a very high rate of illiteracy as older males and females are mostly uneducated, and the younger ones, due to the level of poverty in the country, do not experience uninterrupted education. This therefore lead to the high number of drop outs among the youth. This is another factor to consider before doing business in Benin Republic.
Poor Infrastructures
Like many African countries, Benin Republic is structurally not so blessed with urban facilities that could be enjoyed by any investors, traders and businessmen/women. Though their electricity could be relied upon, yet there is limited access to other needed infrastructurally facilities like good roads, constructed buildings, etc.. It is nonetheless another factor that is worth considering before doing business in Benin Republic.
Small Internal Market
Benin is among the poorest nations in the world and most of the population is living in a condition of severe poverty which is owing to its small internal market and inadequate resources and foreign exchange.
French Language as Bane or Benefit for Business
Another factor to consider before doing business in Benin Republic is the language as language could be a barrier as well as it could be one of the strengths for making sales in the country.
GDP Growth and Demographic in Benin Republic
Benin is a fast-growing country and from a business perspective, it is a market that will evolve considerably in the future decades. Any investment should be staged based on a long term plan.
Other factors to consider before doing business in Benin Republic shall be researched and therefore added to the list here if there are any worth sharing. Until then, these ones must be carefully considered in order to achieve a lucrative end in any chosen enterprise in Benin Republic.
