GSMA’s report outlines how digitalisation can drive Benin’s economic growth, create jobs, boost tax revenue, and enhance financial inclusion.
The GSMA has launched a groundbreaking report, Driving Digital Transformation of the Economy in Benin: Opportunities, Policy Reforms, and the Role of Mobile, highlighting the pivotal role of digitalisation in unlocking sustainable economic growth, creating jobs, and driving societal progress in Benin. The report’s recommendations align with Benin’s National Development Plan and Government Action Program, providing a clear strategy for fostering economic diversification, increasing productivity, and driving human capital development.
The study outlines how the adoption of digital technologies across public and private sectors can generate XOF 1.2 trillion in GDP by 2028, while creating over 300,000 jobs and boosting tax revenues by XOF 150 billion. Digitalisation is identified as a cornerstone for achieving shared prosperity in Benin, enhancing productivity in agriculture, manufacturing, transport, and trade, while improving access to global value chains (GVCs) and strengthening public service delivery. Emerging technologies such as mobile money, artificial intelligence (AI), and cloud computing are also noted as critical enablers of digital and financial inclusion, supporting human development across the country.
Key Findings from the Report
- Economic Impact: The mobile sector contributed XOF 960 billion to GDP in 2023, and accelerated digitalisation could increase total GDP by 8% by 2028.
- Sector Benefits:
Agriculture: XOF 197 billion (4.3% of sector GDP) added by 2028, creating 82,000 jobs.
Manufacturing: XOF 134 billion (5.1% of sector GDP) added by 2028, creating 77,000 jobs.
Transport: XOF 74 billion (6.3% of sector GDP) added by 2028, creating 25,000 jobs.
Trade: XOF 39 billion (2.0% of sector GDP) added by 2028, creating 18,000 jobs. - Digital Inclusion: Policy reforms could drive an increase of 1.2 million mobile internet users by 2028, significantly reducing the usage gap and ensuring broader access to digital services.
This report underscores the transformative potential of Benin’s digital economy to deliver inclusive growth and shared prosperity. By prioritising policy reforms and fostering collaboration across sectors, Benin can unlock new opportunities for businesses and individuals, improve public service delivery, and build a thriving digital ecosystem that benefits everyone. With targeted action, the country is well-placed to drive innovation, create jobs, and secure a more connected and prosperous future.
– Angela Wamola, Head of Sub-Saharan Africa, GSMA
Policy Recommendations for Accelerating Growth
The report calls for targeted reforms to build a sustainable and inclusive digital ecosystem, including:
- Reforming coverage and quality of service indicators to take account of technological developments in terminals, which, by enabling investment to be redirected towards more relevant services, will better serve the interests of users.
- Reducing sector-specific taxes and setting appropriate spectrum fees to unlock investment and improve affordability.
- Removing the mobile money levy to enhance financial inclusion and expand access to low-cost financial services.
- Modernising telecom licensing frameworks to foster competition, innovation, and network quality improvements.
- Implementing demand-side policies such as handset subsidies, digital skills training, SME support, and the digitalisation of government services to increase adoption of new technologies.
Delivering Shared Prosperity Through Digitalisation
The study highlights the direct and indirect benefits of digital technologies, including enhanced access to information, improved educational outcomes, and greater transparency and efficiency in public service delivery.
Source: www.telcotitans.com
