Benin has secured US$41.5 million in financing from European lenders to modernise waste management in its largest urban area, as authorities push to improve sanitation, cut emissions and create jobs.
The funding, provided by the European Bank for Reconstruction and Development (EBRD) with co-financing from the European Investment Bank (EIB), will support a major overhaul of solid waste systems in the Greater Nokoué region, home to around 2.8 million people.
The loan will be channelled to Société de gestion des déchets et de la salubrité (SGDS), the state-owned firm responsible for waste collection and processing.
Shift to modern waste systems
The programme aims to transition Benin away from a landfill-dependent model toward a more integrated system focused on sorting, recycling and waste recovery.
Planned investments include upgrading existing sorting centres, building new composting facilities and installing gas capture systems at landfill sites to reduce harmful emissions. Improvements in leachate management are also expected to limit environmental contamination.
The project will also finance new trucks and containers to expand waste collection capacity, with authorities targeting a significant increase in service coverage.
Officials estimate the reforms could cut carbon dioxide emissions by more than 75,000 tonnes annually, contributing to climate goals while improving urban living conditions.
Broader reform agenda
The initiative forms part of a wider national programme launched by Benin in 2018, when the government created SGDS to overhaul waste management systems and eliminate illegal dumping.
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Authorities aim to collect up to 90 percent of urban waste within seven years, improve public health outcomes and generate up to 10,000 direct and indirect jobs.
The broader reform programme carries an estimated budget of 57 billion CFA francs (about $101.6 million) and covers key cities including Cotonou, Porto-Novo and Abomey-Calavi.
SGDS chief executive Gilles Amoussou described the project as a “significant step” toward building a modern and sustainable waste management system.
Governance and inclusion
Beyond infrastructure, the EBRD said it would launch its first infrastructure policy dialogue in sub-Saharan Africa in Benin, providing technical assistance to strengthen governance at SGDS.
This includes support for introducing a household waste collection fee, aimed at improving cost recovery and long-term financial sustainability.
The programme will also promote gender inclusion by encouraging greater participation of women in technical and leadership roles within the waste management sector.
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Expanding partnerships
Benin became a shareholder in the EBRD in 2024 and an operating country in 2025, opening the door to increased financing for infrastructure and public services.
The latest loan follows another €30 million EBRD facility approved in late 2025 for the national electricity company, aimed at strengthening the power grid.
Analysts say such investments reflect growing international support for Benin’s reform agenda, particularly in urban development and essential services.
If successfully implemented, the waste management programme could serve as a model for other African cities grappling with rapid urbanisation, rising waste volumes and environmental challenges.
