Benin has mobilized CFA7.7 billion (US$13.5 million) to support 365 small and medium-sized enterprises (SMEs) as part of the 2026 cohort of the Support Project for Entrepreneurship in Benin (PAEB), officials announced Thursday.
BeninThe program, implemented by the Small Business Development Agency with backing from the French Development Agency and the European Union, aims to expand technical and financial assistance to micro, small, and medium-sized businesses, strengthen competitiveness, and enhance resilience across the SME sector.
Authorities said the 2026 cohort targets a 40 percent share of women-led businesses and seeks to broaden geographic coverage to ensure national inclusivity. “Our goal now is to take things a step further by providing more support to businesses, expanding the program’s reach across the country, and promoting women’s entrepreneurship,” said Marlène Houssou, program coordinator.
SMEs form the backbone of Benin’s economy, representing over 90% of businesses and generating the majority of new jobs. Yet many face persistent structural challenges, particularly limited access to financing and markets, which constrains growth and competitiveness.
The PAEB program is part of a broader strategic framework developed by the SME Development Agency for 2024–2029, aimed at strengthening support mechanisms, structuring the entrepreneurial ecosystem, and fostering inclusive economic growth.
This latest funding phase follows a successful initial stage, which supported 160 SMEs, including 46 women-led ventures, with total financing exceeding CFA3.3 billion. Officials described the first phase as “a solid foundation” for the expanded program, which operates under a total budget of €32.2 million ($37.2 million) over 2023–2028.
By providing both financial and technical support, Benin aims to unlock the growth potential of SMEs, particularly in promoting women’s entrepreneurship and stimulating regional development across the country. Analysts say the initiative could help SMEs scale operations, access broader markets, and strengthen their role as engines of job creation and economic diversification.
The PAEB program also aligns with broader West African efforts to support small businesses, enhance private sector development, and build resilient local economies amid challenges such as limited credit availability and market access barriers.
Through this new funding push, authorities in Cotonou hope to accelerate inclusive growth, deepen economic participation, and reinforce the entrepreneurial ecosystem, ensuring that SMEs already central to Benin’s economy can thrive in a competitive and increasingly digitalized marketplace.
Small and medium-sized enterprises (SMEs) are a cornerstone of Benin’s economy, accounting for more than 90 percent of businesses and generating the majority of new jobs. They operate across sectors such as trade, manufacturing, agriculture, and services, and play a critical role in driving economic diversification, innovation, and local development.
Despite their importance, SMEs in Benin face persistent structural constraints. Limited access to finance remains the most significant challenge, with many small businesses unable to secure loans or attract investment. Market access is also a major hurdle, as informal networks and limited distribution channels restrict growth opportunities. Other obstacles include low technical capacity, gaps in business management skills, and uneven access to modern technology.
To address these challenges, the Small Business Development Agency was established to promote entrepreneurship and support SME growth. The agency implements programs such as the Support Project for Entrepreneurship in Benin (PAEB), which provides financial support, training, mentorship, and market linkage services. The initiative receives backing from international partners, including the French Development Agency and the European Union, reflecting the strategic role of multilateral cooperation in fostering SME development.
Benin has also developed a 2024–2029 strategic plan for SMEs, aimed at structuring the entrepreneurial ecosystem, increasing competitiveness, and promoting inclusivity, particularly for women-led enterprises. Women entrepreneurs currently face additional barriers, including limited access to capital, cultural constraints, and fewer networking opportunities, prompting programs like PAEB to target a 40% share of women-led businesses in funding initiatives.
Previous phases of PAEB have shown early success. The initial cohort supported 160 SMEs, including 46 women-led businesses, with total financing exceeding CFA3.3 billion, demonstrating that targeted support can help small businesses scale and improve resilience.
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Overall, strengthening SMEs is viewed as a key lever for inclusive economic growth in Benin, supporting job creation, industrial diversification, and the development of a more formalized and competitive private sector. International support, coupled with national policy frameworks, seeks to unlock the potential of SMEs as engines of sustainable development.
