Benin - Private Sector Project

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The Private Sector Development Project aims to improve Benin's business environment, local enterprises' competitiveness, and the access of small and medium enterprises (SMEs) and micro-enterprises to credit. The project has three components. The first aims to remove remaining policy constraints to private sector development and exports through concrete actions agreed in the context of an improved dialogue between the government and the private sector. This component will also support the privatization program. The program will privatize two textile companies and adopt a new sectoral policy for the textile sector. It will also design and implement a revised sectoral policy in the telecommunications sector to increase sound competition and efficiency. The second component will help local firms enhance their competitiveness and develop external markets for their products. It will assist the recently established association for export development in providing services to its members. This component includes a matching grant fund and support for trade information services. The third component builds on recent efforts to develop two credit institutions into sustainable financial institutions specifically geared to meet the needs of SMEs and micro-enterprises; strengthens micro-finance supervision in the finance ministry; and helps develop a micro-finance nongovernmental organization.